Peru is 'losing the battle' against organized crime, business groups say

LIMA (Reuters) - Peru's business associations said on Friday that the country is "losing the battle" against organized crime, after an escalation in extortions forced the government to call in the military to help police bolster security in the capital Lima.

The Andean nation's government on Thursday declared a 60-day state of emergency in 12 districts of Lima after bus drivers in the city went on strike, demanding greater protection from authorities due to a wave of extortion and attacks. On Friday, it added two more districts.

"We live under siege from organized crime which has taken control of the country in the alarming absence of the state," more than 20 trade associations said in a joint statement.

The organizations range from industry and commerce to import-export firms, restaurants and even beauty salons.

"None of our activities, regardless of size or sector, is safe from extortion," they said.

The business groups said organized crime is being compounded by the strengthening of economic activities operating outside the law, such as illegal mining, which they say has infiltrated politics.

Mining companies have reported repeated deadly attacks on their installations by armed men they say are linked to illegal miners.

The state of emergency, which suspends some citizens' rights related to free transit, comes amid pressure from the opposition and civil society for more measures to combat crime as it threatens the country's economy.

(Reporting by Marco Aquino; Writing by Sarah Morland; Editing by Aida Pelaez-Fernandez and Bill Berkrot)