Illegal Economy in the Peru-Bolivia Border: A Difficult Vicious Cycle to Break

Abstract

The article "Illegal Economy in the Peru-Bolivia Border: A Difficult Vicious Cycle to Break" examines the phenomenon of the illegal economy in the border area between Peru and Bolivia. It highlights the background factors that have contributed to the growth of this informal economy, such as the strategic location of the border and the weakness of law enforcement institutions. The problematic situation reveals the existence of a vicious cycle in which the illegal economy feeds off and perpetuates itself, undermining the formal economy and weakening the rule of law. The analysis examines the factors that contribute to the persistence of this vicious cycle, such as the lack of investment in national security, limited state presence, and ineffective cooperation between Peru and Bolivia. The conclusions emphasize the need to break this vicious cycle and propose strengthening national security, increasing bilateral and regional cooperation, and improving institutional capacity and border control. Furthermore, the importance of implementing economic development policies that provide legitimate opportunities to border communities is highlighted. Emphasis is placed on addressing foreign political interference, preventing external interests from perpetuating the illegal economy.