Crime (Organized, Transnational) – Page 7

2005/10/302009/12/04

Review: Illicit–How Smugglers, Traffickers and Copycats are Hijacking the Global Economy (Hardcover)

5 Star, Crime (Organized, Transnational)

Definitive Volume–$2T/Year and Growing, Lost Government Revenues,

October 30, 2005

Moises Naim

I have known Moises Naim for many years, and admired his pragmatic approach to managing the content of Foreign Policy, as published under the auspices of the Canegie Endowment for International Peace. He has been Minister of Trade and Industry in Venezuela, a dean and professor of business administration, executive director of the World Bank, and an accomplished thinker and author. Above all he has been moral. He gets it: morality in politics and morality in business are priceless.

This book is important in two very big ways: the first, the one that most are noticing, is that it documents very ably the fact that crime pays–the author has done a superb job of itemizing the global illegal trade industry in a manner that could be understood by anyone, and the bottom line is frightening in that illicit trade is perhaps $2 trillion a year, while legal trade is between $5 trillion and $10 trillion. Off-the-books bartering and immoral invoicing within corporations are additional reducers of government tax revenue–import export tax fraud in the USA is known to be $50 billion a year ($25 rocket engines going out, $10 pencils coming in).

The second reason this book is important, the real value of this book, is in documenting the revenues lost to government. Legalizing prostitition has economic as well as public health implications. Reducing the arms trade, where the US is the greatest exporter of violence and bribery, has implications across ethnic conflict, stability, water and oil conservations, and so on. Eliminating counterfeiting and illegal immigration would have enormous implications for positive constructive government revenue. I personally know where $500 billion a year can be found in additional tax revenue for the US, mostly from eliminating pork barrel subsidies and corporate fraud, and by restoring the traditional share of corporations to the tax fund–when Halliburn pays $15M on billions in profit, when Exxon makes $3 billion in profit in a single quarter with no requisite tax bite, the system is broken. Eliminating crime, and corporate crime, provides the financial foundation for restoring the democratic contract, the social contract, with the working class and the middle class.

Moises Naim has, in brief, delivered the seminal work on one of the five factors that will determine how the human species does in its World War with itself and with bacteria. The other four factors are the end of cheap oil, the end of free water, the virulent re-emergence of infectuous diseases accompanied by the mutation and migration of new diseases from animal hosts to humans; and the promising but by no means assured emergence of collective democratic intelligence, perhaps aided by real-life decision support games such as those produced by BreakAwayLtd.com.

I consider Dr. Naim to be one of the most precious intellects now active–as penetrating but more pragmatic than Joe Nye, as strategic but more pragmatic as Zbigniew Brzezinski, as articulate but more pragmatic than my all time favorite strategist, Dr. Colin Gray from the United Kingdom.

Naim is a giant. He also represents, if I may be permitted an observation from my decades in Latin America and my Colombian-born mother, why Latin America is the future and why the US ignores the Chinese takeover of Latin American lands and resources, the Iranian penetrations, and the related Brazilian, Indian, Pakistani, and Russian incursions, at its peril. Latin America is both the source, and the solution, for most of the illicit trade that undermines the Republic. It's time we recognize that morality matters, crime is a greater threat than isolated terrorism, and Latin America is part of the Americas–the part that may achieve informed populist democracy before the USA recovers from the neo-conservative coup d'etat and ethical misadventures of a White House owned by Halliburton and dismissive of both the domestic and international publics.

2005/02/272009/12/04

Review: The Cheating Culture–Why More Americans Are Doing Wrong to Get Ahead

5 Star, Capitalism (Good & Bad), Consciousness & Social IQ, Corruption, Crime (Corporate), Crime (Government), Crime (Organized, Transnational), Ethics, Justice (Failure, Reform), Philosophy, Values, Ethics, Sustainable Evolution

Gets Right to the Point: Cheating Destroys the Commonwealth,

February 27, 2005

David Callahan

Edit of 20 Dec 07 to add links.

I recommend that this book be read together with John Perkins, Confessions of an Economic Hit Man and William Greider's, The Soul of Capitalism: Opening Paths to a Moral Economy. As a pre-amble, I would note that a Nobel Prize was given in the late 1990's to a man that demonstrates that trust lowers the cost of doing business. Morality matters–immorality imposes a pervasive sustained, insidious, long-term, and ultimately fatal cost on any community, any Republic, and that is the core message of this book that most reviewers seem to be missing.

Any student of national security can tell you that one of the most important sources of national power is the population, followed by the economy, natural resources, and then the more traditional sources of national power: diplomacy, military, law enforcement, and government policies generally.

What this author makes clear is that our population has become a cheating population, one that cheats in school, cheats their employer, and cheats their clients (lawyers, accountants, doctors, all cheating). Such a population is literally undermining national security by creating false values, and undermining true values. Some simple examples: an estimated $250 Billion a year in individual tax avoidance; an estimated $600 Billion a year in theft from employers; an estimated $250 Billion a year in legalized corporate tax avoidance and investor fraud; and an additional $250 Billion a year in legalized theft form the individual taxpayers through Congressional support for unnecessary and ill-advised “subsidies” for agriculture, fishing, and forestry, as well as waivers of environmental standards that ultimately result in long-term external diseconomies…

At root, the author observes that pervasive cheating ensues from the perception by the majority that “everyone does it” and that the rules are not being enforced–that “the system” lacks legitimacy. In other countries, illegitimacy might lead to revolution, a revolt of the masses. In the USA, still a very rich country, the poor are cheating on the margins while the rich are looting the country, and we are not yet at a “tipping point” such as a new Great Depression might inspire.

This is a thoughtful book, and it does not deserve the negative comments from those whom the book most likely is describing all too well. Cheating diminishes trust and reduces value. America has become corrupt across all the professions, within Congress, within the media, within the political level of government (the civil service remains a bastion of propriety).

What price freedom? What price the Republic? You may or may not choose to agree with this author's diagnosis and prescription, but in my view, he gets to the heart of the matter. It's about integrity. We've lost it.

2004/07/282009/12/04

Review: The Outlaw Sea–A World of Freedom, Chaos, and Crime

4 Star, Complexity & Catastrophe, Crime (Organized, Transnational), Environment (Problems), Geography & Mapping, Water, Energy, Oil, Scarcity

Threat From the Sea–75% of the Planet,

July 28, 2004

William Langewiesche

This is not the book I was expecting. Normally it would only have gotten three stars, for recycling three articles, only one of which was really of interest to me (on piracy), but the author is gifted, and his articulation of detail lifts the book to four stars and caused me to appreciate his final story on the poisonous deadly exportation of ship “break-up” by hand. It is a double-spaced book, stretched a bit, and not a research book per se.

Two high points for came early on. The author does a superb job of describing the vast expanse of the ungovernable ocean, three quarters of the globes surface, carrying 40,000 wandering merchant ships on any given day, and completely beyond the reach of sovereign states. The author does a fine job of demonstrating how most regulations and documentation are a complete facade, to the point of being both authentic, and irrelevant.

The author's second big point for me came early on as he explored the utility of the large ocean to both pirates and terrorists seeking to rest within its bosom, and I am quite convinced, based on this book, that one of the next several 9-11's will be a large merchant ship exploding toxically in a close in port situation–on page 43 he describes a French munitions ship colliding with a Norwegian freighter in Halifax. “Witnesses say that the sky erupted in a cubic mile of flame, and for the blink of an eye the harbor bottom went dry. More than 1,630 buildings were completely destroyed, another 12,000 were damaged, and more than 1,900 people died.”

There is no question but that the maritime industry is much more threatening to Western ports than is the aviation industry in the aftermath of 9-11, and we appear to be substituting paperwork instead of profound changes in how we track ships–instead of another secret satellite, for example, we should redirect funds to a maritime security satellite, and demand that ships have both transponders and an easy to understand chain of ownership. There is no question that we are caught in a trap: on the one hand, a major maritime disaster will make 9-11 look like a tea party; on the other the costs–in all forms–of actually securing the oceans is formidable.

Having previously written about the urgent need for a 450-ship Navy that includes brown water and deep water intercept ships (at the Defense Daily site, under Reports, GONAVY), I secure the fourth star for the author, despite my disappointment over the middle of the book, by giving him credit for doing a tremendous job of defining the challenges that we face in the combination of a vast sea and ruthless individual stateless terrorists, pirates, and crime gangs collaborating without regard to any sovereign state.

I do have to say, as a reader of Atlantic Monthly, I am getting a little tired of finding their stuff recycled into books without any warning as to the origin. Certainly I am happy to buy Jim Fallows and Robert Kaplan, to name just two that I admire, but it may be that books which consist of articles thrown together, without any additional research or cohesive elements added (such as a bibliography or index), should come with a warning. I for one will be more alert to this prospect in the future.

Having said that, I will end with the third reason I went up to four stars: the third and final story, on the poisonous manner in which we export our dead ships to be taken apart by hand in South Asia, with hundreds of deaths and truly gruesome working conditions for all concerned, is not one of the stories I have seen in article form before, it is a very valuable story, and for this unanticipated benefit, I put the book down a happy reader, well satisfied with the over-all afternoon.

2004/07/062012/10/28

2004 Department of Homeland Security (November)

Briefings & Lectures, Civil Society, Crime (Corporate), Crime (Government), Crime (Organized, Transnational), Democracy, Disaster Relief, Executive (Partisan Failure, Reform), Intelligence (Collective & Quantum), Intelligence (Commercial), Intelligence (Government/Secret), Intelligence (Public)

2004/05/152009/12/04

Review: Yakuza–Japan’s Criminal Underworld, Expanded Edition

5 Star, Crime (Organized, Transnational)

Solid Reference Work–Need Same for US,

May 15, 2004

David E. Kaplan

This is a solid reference work, and expands and updates on the earlier work that was itself a classic. It examines structured corruption in which organized crime, organized politics, and secretive corporate conglomerates, all help one another become wealthy at the expense of the public.There are a number of fine points across the book that merit emphasis here, and one of the earliest is that of how the CIA and the Army G-2 deliberately nurtured Japanese criminal organizations during the occupation, because they were “anti-communist.”

There is an excellent section of the book that focuses on how the US government fostering of political corruption in Japan in turn led to US corporate corruption, to include the funding of separate US corporate foreign policies anti-thetical to those Congress was trying to foster in the days before Congress abdicated its responsibilities.

Lee Kuan Yew would like this book. He says the only antidote to organized crime is strong extended families–natural families whose kinship equates to ethics. The book documents the spread of crime in Japan to every aspect of life, and one can only be saddened to see how the concepts of samurai honor and loyalty have been turned upside down.

Three ideas keep running through my mind as I read the book, two of them from the author and the third my own. First, the authors focused on the importance of following the money. He knew and wrote about this in the mid-1980's, but today the US Government is still marginally able to follow money, especially informal money that the FBI only discovered in the late 1990's with help from Dick Clarke (see my review of “Against All Enemies”). Following the money is *the* intelligence challenge of the 21st Century, and it is not something CIA can do–we have to find means of integrating all seven tribes, and especially business and banks as well as law enforcement at every level. Second, the author documents the weakness of Japanese law enforcement in a manner that highlights the weakness of US law enforcement at the state and local levels. Think of this book as traveling back in time to Japan, and then forward in time to the US, where we are now suffering many of the same problems. Finally, being a fan of Special Operations properly done, I realized that 21st Century warfare is going to be about man-hunts. It is going to be about tribal and criminal orders of battle, and about decapitating terrorist and criminal gangs without mercy.

The book spends some time on how US forces overseas are in fact a major stimulant and catalyst for crime, especially drugs and trade in women and children. By sending our forces and their money into austere conditions, we have actually created 750 “crime magnets” all over the world. And if you think our secret bases overseas are secret from anyone other than the US public, think again–one has only to ask the prostitutes. There is another important aspect of GI (Government Issue) life overseas: too many of our naive GI's get sucked into crime, first from small loans, then being asked to smuggle small things, then big things, to pay off the loan, and then being tracked down, after returning home, to be brought into international crime within the USA. I realized from this that DoD needs a crime counterintelligence and amnesty program, and we need to out-brief every GI on how to handle criminal blackmail when they encounter it, both overseas, at home, and post-service.

The book ends with a fascinating and thoughtfully-selected series of vignettes on the spread of Yakuza crime to 21 countries. The study of their passports is especially interesting, and makes us wonder why the US Treasury is still spending most of its time, two years after 9-11, trying to harass those trading with Cuba, instead of going after terrorist and criminal money.

Toward the end of the book there is a useful professional discussion of how inept governments are at identifying correct names and name variants when trying to spot and monitor criminals. This is a real problem. Within the US Intelligence Community, there is no standard for international names, each agency doing its own thing, with the result that even if we were to connect all the databases, the decades of unstandardized data entry across the archipelago makes many of our records too hard to use–almost as if we have to start from scratch.

One final point that really jumped out at me: the authors do a great job of identifying the real experts on Yakuza, across many countries, and what struck me was that they exist but no one has figured out how to create a virtual community of interest with the Internet such that all of them are security in touch with one another, sharing name databases, libraries, photograph archives, etcetera. The obsession with secrecy and national control remains the greatest obstacle to actually doing well against crime, and we appear to need regional information sharing systems that are NOT secret (just secure), and multinational regional “stations” against crime.

Closing comment: the book documents the incompetence of the US approach to manning its Embassies, especially in the law enforcement arena, where individuals are not language qualified, have no idea of the culture or history, and rotate every two years just as they are finally getting wise. We need a “long haul” manning strategy, and in my view should start thinking in terms of 10-year assignments with every second person coming in at the 5-year mark for solid continuity of intelligence and counterintelligence against these clear and present threats to national security and prosperity.

Outstanding book. A classic relevant to any country, any business, any government, at any level.

2003/01/272009/12/04

Review: The Underground Empire–Where Crime and Governments Embrace

5 Star, Crime (Government), Crime (Organized, Transnational)

Government Crime Pays Very Very Well,

January 27, 2003

James Mills

There are two kinds of government crime against the taxpayer, and both are wide-spread and costly to the taxpayer. There is corporate corruption, the buying of politicians, such that decisions are made that in effect transfer the taxes paid by individuals (who carry every government's costs) to unethical corporations focused on profit at any cost (to others). This book documents the second kind of crime: where government agencies charged with protecting the taxpayer from drugs or crime or terrorists or other threats, themselves become allies with criminals, and seek to profit from crime while permitting field officers to go bad, steal money, and become nothing more than officially sanctioned criminals. If and when each Nations cleans house within its “secret world,” the ethics of intelligence, and how to police the police, will be among the most fearsome challenges to be addressed.This extraordinary book, at 1165 pages (1974 edition) is a deeply documented, thoughtful, credible account of the second kind of corruption. It is strongly recommended for purchase by anyone who pays taxes.

2002/02/132009/12/04

Review: Sharing the Secrets–Open Source Intelligence and the War on Drugs

5 Star, Crime (Organized, Transnational), Intelligence (Government/Secret), Intelligence (Public)

Seriously Under-Marketed and Under-Appreciated, A Real Value,

February 13, 2002

J. F. Holden-Rhodes

EDIT of 22 Sep 08: The publisher has sucumbed to insane greed. This book should not be selling for more than $45.95. It cost a penny a page to produce and they have not spend a dime on marketing, so go figure….

It is always a shame when a really great book is badly marketed and consequently does not reach as many professionals and citizens as it should. This is such a book.

What the blurbs don't tell you, such as they are, is that the author was one of the true pioneers in the world of open source intelligence (creating useful actionable intelligence using only legal and ethical sources and methods). His brilliant efforts in the early 1990's were easily a decade ahead of where the Foreign Broadcast Information Service (FBIS) is today–using a wide variety of Latin American newspapers and lots of brainpower, he was able to create tactical intelligence that contributed significantly to the success of operational missions by the U.S. Southern Command and the Drug Enforcement Administration, leading the destruction of cocaine laboratories, the interdiction of aircraft, and the arrest of key people in the transnational criminal structure.

This book is an essential reference for any agency or command library concerned with asymmetric warfare, unconventional threats, and non-traditional methods of providing intelligence support to those responsible for dealing with anything other than traditional war. The sources and methods that the author discusses are especially pertinent to the study of terrorism, proliferation, transnational crime, cross-national toxic dumping, and other sub-state and non-state threats.