Security and Growth: Why Security Cooperation matters for local economies

Security affects more than daily life. In many places, it can also determine whether a region attracts investment and creates jobs, or whether opportunities stall.

Behind every bunch of bananas, that familiar yellow fruit found on millions of tables each day, lies a story that begins long before it reaches the supermarket. In the plantations of the Gulf of Urabá, in northwestern Colombia, the air often carries the scent of ripe fruit and damp soil. Early in the morning, workers move through the fields, cutting the bunches and sending them toward packing facilities, where a journey begins that will end on ships bound for the United States and Europe.

In this region, bananas are far more than a crop. They are one of the pillars of the local economy and a source of employment for thousands of families. Every day, trucks loaded with boxes of fruit leave the farms for nearby ports, where shipments are prepared to cross the Caribbean and enter global trade routes.

Yet behind this routine lies a factor that rarely appears in economic statistics: the institutional stability that allows roads, ports, and logistics infrastructure to operate without interruption. In many cases, that stability is reinforced through international security cooperation, arrangements that help protect strategic corridors and create the confidence needed for investment and formal employment.

Security as an economic variable

When companies consider investing in a country or a region, they look beyond market size or labor costs. They also ask a more basic question: how safe and predictable is it to operate there?

In areas marked by persistent instability, operating costs tend to rise. Companies must spend more on private security, insurance premiums increase, and supply chains become less reliable.

Where institutions are able to safeguard trade routes, protect strategic infrastructure, and maintain stable logistics networks, many of those risks begin to recede. As the Inter-American Development Bank notes, “crime and violence represent an obstacle to development in Latin America and the Caribbean, affecting individuals, businesses, and governments.”

For this reason, many security cooperation agreements focus on capabilities that also have economic implications: maritime surveillance, the protection of critical infrastructure, specialized training, and coordination against criminal networks that disrupt commerce. What investment looks for

Foreign direct investment is particularly sensitive to perceptions of risk. Multinational companies weigh institutional stability carefully when deciding where to establish logistics hubs, industrial facilities, or regional headquarters.

Colombia offers a telling example. Since the early 2000s, gradual improvements in security conditions have coincided with significant growth in foreign investment across sectors such as energy, infrastructure, and services.

According to international statistics compiled by the United Nations Conference on Trade and Development (UNCTAD) and the World Bank, foreign direct investment inflows to Colombia rose from roughly $2.4 billion in 2000 to more than $16 billion in 2023. This expansion had multiple drivers, but stronger institutional stability helped reduce the perception of risk that many investors once associated with the country.

International security cooperation has also been part of that broader shift. Training programs, intelligence sharing initiatives, and monitoring of strategic corridors have strengthened state capabilities to protect key infrastructure and sustain stable conditions for economic activity.

Local economic effects

Security related operations can also generate economic activity at the local level. They require logistical support and services that are often sourced from nearby communities. Transportation, catering, infrastructure maintenance, construction, and technical services are among the sectors that may benefit.

These arrangements can create networks of suppliers, bringing small and medium sized businesses into supply chains connected to strategic installations.

Panama provides one example. The protection of maritime routes and infrastructure linked to the Panama Canal involves coordination between national authorities and international partners. That environment also creates demand for port services, specialized maintenance, and logistical support in areas surrounding major transportation hubs.

A similar trend can be seen in foreign direct investment flows. According to World Bank statistics, Panama’s inflows grew from roughly $600 million in 2000 to more than $5 billion in several years over the past decade, driven in part by its role as a regional logistics and financial center.

While these effects do not always appear clearly in national statistics, local chambers of commerce often point out that contracts associated with strategic infrastructure help stimulate regional economies.

Infrastructure with broader economic effects

Another area where security and economic activity intersect is infrastructure. Strategic facilities such as ports, airfields, and logistics centers often require upgrades to roads, communications systems, and energy networks.

These investments frequently produce effects that extend beyond their initial purpose. Roads built to improve access to strategic sites can also facilitate the transport of goods. Port expansions designed with security needs in mind may ultimately strengthen international trade.

Over time, such infrastructure can become a platform for other economic activities, from exports and tourism to regional integration.

Security as a foundation for growth

The relationship between security and economic growth is not automatic. It depends on strong institutions, transparency, and effective public policy.

Still, evidence suggests that when states strengthen institutional capacity and protect critical infrastructure, they create more stable conditions for economic activity.

International security cooperation can contribute to that process by reinforcing capabilities, improving coordination, and protecting the strategic corridors that sustain trade.

Once stability takes hold, its effects reach far beyond the security sphere. It shapes investment decisions, supports the creation of formal employment, and strengthens the competitiveness of regional economies.

In economies where trade depends on reliable logistics corridors, ports, and supply chains, security becomes more than a matter of public order. It becomes one of the conditions that make sustained economic growth possible.