A WSJ video indicates that Peru is now known as the counterfeiting capital of Latin America.
The video explains one reason for the counterfeiting operations to take place in Lima is due to the lenient punishment if caught. Unfortunately, this situation is an example of where a system weakness (lower opportunity cost of counterfeiting) can influence a systemic increase in terror operations planning or in drug operations. Because organized crime, terror, and narco trafficking all require a form of currency to sustain and advance their operations, a weakness like this in Peru can result in collusion among these different actors.
Two insurgent groups that were most powerful in Peru in the 1980’s and early 1990s, the Sendero Luminoso (SL) (Shining Path) and Tupac Amaru Revolutionary Movement (MRTA) are now resurging in part due to demand for Cocaine.
Through underground and subversive networks and methods, these groups communicate and share information to keep a step ahead of security and enforcement officials. So too must agencies and institutions communicate and share information, leading to trends and networks that are unrelated at the surface. Many private industries could be at risk from a major criminal or terrorist disruption. Also the market does not like uncertainty. Many investors considering Foreign Direct Investment may punish a publicly traded company for excessive risk if they operate in risky countries.