Moises Naim: Mafia States Robert Steele Graphic

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Moises Naim
Moises Naim

Mafia States:Organized Crime Takes Office

By Moisés Naím

Foreign Affairs, May/June 2012

SUMMARY:  Around the world, criminal organizations and governments are fusing to an unprecedented degree, blurring the distinction between national interests and what suits the gangsters.  Mafia states enjoy the unhealthy advantages of their hybrid status: they’re as nimble as gangs and as well protected as governments, and thus more dangerous than either.

MOISES NAIM is a Senior Associate at the Carnegie Endowment for International Peace and the author of Illicit: How Smugglers, Traffickers, and Copycats Are Hijacking the Global Economy.

The global economic crisis has been a boon for transnational criminals. Thanks to the weak economy, cash-rich criminal organizations can acquire financially distressed but potentially valuable companies at bargain prices. Fiscal austerity is forcing governments everywhere to cut the budgets of law enforcement agencies and court systems. Millions of people have been laid off and are thus more easily tempted to break the law. Large numbers of unemployed experts in finance, accounting, information technology, law, and logistics have boosted the supply of world-class talent available to criminal cartels. Meanwhile, philanthropists all over the world have curtailed their giving, creating funding shortfalls in the arts, education, health care, and other areas, which criminals are all too happy to fill in exchange for political access, social legitimacy, and popular support. International criminals could hardly ask for a more favorable business environment. Their activities are typically high margin and cash-based, which means they often enjoy a high degree of liquidity — not a bad position to be in during a global credit crunch.

But emboldened adversaries and dwindling resources are not the only problems confronting police departments, prosecutors, and judges. In recent years, a new threat has emerged: the mafia state. Across the globe, criminals have penetrated governments to an unprecedented degree. The reverse has also happened: rather than stamping out powerful gangs, some governments have instead taken over their illegal operations. In mafia states, government officials enrich themselves and their families and friends while exploiting the money, muscle, political influence, and global connections of criminal syndicates to cement and expand their own power. Indeed, top positions in some of the world’s most profitable illicit enterprises are no longer filled only by professional criminals; they now include senior government officials, legislators, spy chiefs, heads of police departments, military officers, and, in some extreme cases, even heads of state or their family members.

Read full article (registration required).

Measuring the Mafia-State Menace: Are Government-Backed Gangs a Grave New Threat?

By Peter Andreas; Moisés Naím

Foreign Affairs,July/August 2012

Read rebuttal commentary (Peter Andreas) and response (Moises Naim) — no registration required.

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Click on Image to Enlarge

Phi Beta Iota:  Here is the concluding paragraph of the original article

An important obstacle to combating the spread of mafia states is a basic lack of awareness among ordinary citizens and policymakers about the extent of the phenomenon. Ignorance of the scope and scale of the problem will make it difficult to defend or increase the already meager budgets of government agencies charged with confronting international crime, especially in a time of fiscal austerity. But such awareness will be hard to generate while so many aspects of the process of state criminalization remain ill understood — and therein lies an even larger problem. Devoting public money to reducing the power of mafia states will be useless or even counterproductive unless the funds pay for policies grounded in a robust body of knowledge. Regrettably, the mafia state is a phenomenon about which there is little available data. The analytic frameworks that governments are currently applying to the problem are primitive, based on outdated understandings about organized crime. Addressing this dearth of knowledge will require law enforcement authorities, intelligence agencies, military organizations, media outlets, academics, and nongovernmental organizations to develop and share more reliable information. Doing so, however, would be only a first step — and an admittedly insufficient one.

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21st Century Intelligence Core References 2.8