To cite an example of global illicit trade, a credit card fraud begins with a Vietnamese shopkeeper in USA as he swipes the customer card in a special fraud machine. This machine electronically transmits card details to Hong Kong crime syndicate, which collects the information from different ports in US to send it to Malaysia for manufacturing of fake credit cards. These cards are then couriered to Italy where another organised crime group sells them to their Russian counterparts in Czechoslovakia. Here these cards are used to make payments for several online orders in London, Paris and Rome; goods are then flown and sold in Moscow, Russia within 200 hours of first card swipe. According to an online estimate, the global illicit market value stands at US $1.78 trillion. The intricacies of its transnational web are far more complicated then its legal counterpart. This essay analyses the relationship between globalisation and clandestine economy of the globe.
Table of Contents
Introduction
Illicit economy and globalisation
Is illicit economy globalised?
The Paradoxical Bond
Conclusion
Objectives and Themes
This paper examines the paradoxical relationship between the illicit economy and the process of globalisation, exploring how global integration has facilitated transnational criminal activities while simultaneously compelling nations to strengthen international cooperation and governance. It aims to clarify the mechanisms of this interdependence and the resulting challenges for global security and legal frameworks.
- Conceptual definitions of the illicit economy and globalisation
- The scope and global nature of transnational illicit activities
- Positive and negative impacts of globalisation on illicit markets
- The role of technology in enabling global crime networks
- Governmental responses, border control challenges, and international cooperation
Excerpts from the Book
Is illicit economy globalised?
In the licit economic discussions, academics have often quoted the level of international integration of production, services and finance as the major indicator of globalisation (Garrett, 2000, pp. 941-942 Gilpin, 2001, p. 364). And as RT Naylor emphasized in his book Wages of Crime, ‘legal and illegal economic activities are very much intertwined: every sector of the licit economy has its illicit counterpart’ (Andreas, 2004). Modern tools of telecommunication and transportation have empowered virtually any individual to act as a participant of global crime network. Exponential rise of internet has presented new criminal opportunities, which do not require physical presence, such as media piracy or identity theft. Fraudsters find victims in wealthy countries while operating out of nations with little or no will to stop them. There are at least 93 countries which do not specifically address the issue of child pornography in their legislation, 24 of them do not have punishment for crime committed through computer technology (ICMEC, 2007). The money made from these operations swiftly moves through a dozen national banking systems in a matter of minutes. Such unprecedented ease of operations has changed the entire structure of the illicit world.
During the Cold War era, illicit economy was mostly seen as system of major organised crime syndicates. In his book The New War: the Web of Crime that Threatens America's Security (1998), US Senator John Kerry pointed to a global nexus of the ‘Italian mafia, the Russian mobs, the Chinese triads, the Japanese Yakuza, and the Colombian cartels’ (Kerry, 1998), that coordinated their operations with smaller highly organised gangs across the planet. However, evidence suggests that globalisation has presented a major challenge to these syndicates and such crime organisations are making way for less hierarchical and more cooperative networks of individual and grouped criminals across borders (Andreas, 2004, p. 644; UNODC, 2010, p. 3).
Chapter Summaries
Introduction: This chapter provides an overview of the academic debate surrounding globalisation and highlights the often-overlooked "dark underbelly" of global economic interconnectedness.
Illicit economy and globalisation: This section defines the illicit economy and examines how illegal activities have expanded into diverse, transnational sectors, often blurring the lines between legitimate and criminal business enterprises.
Is illicit economy globalised?: This chapter investigates how telecommunication and transport innovations have transformed criminal operations, moving away from rigid hierarchical syndicates toward decentralized, cooperative networks.
The Paradoxical Bond: This section analyzes the unintended consequences of market liberalisation, illustrating how global integration facilitates crime while simultaneously forcing states to pursue greater international cooperation and governance.
Conclusion: The final chapter summarizes how globalisation has accelerated the illicit economy and argues that modern transnational crime requires a move away from purely national responses toward harmonized international legal frameworks.
Keywords
Globalisation, Illicit Economy, Transnational Crime, Organised Crime, Market Liberalisation, Cybercrime, Border Control, International Cooperation, Global Governance, Human Trafficking, Drug Trade, Financial Integration, Illegal Migration, Neo-liberal Agenda, Economic Interdependency.
Frequently Asked Questions
What is the core subject of this paper?
The paper explores the complex relationship between globalisation and the illicit economy, specifically examining how increased global integration both facilitates criminal activities and necessitates stronger international regulatory responses.
What are the primary thematic fields covered?
The work covers political economy, transnational organised crime, the impact of technology on criminal operations, border security policy, and the challenges of international legal harmonisation.
What is the main research question or objective?
The primary objective is to define the paradoxical link between globalisation and the illicit economy, analyzing how they influence one another and how this dynamic has shaped modern state responses to transnational threats.
Which scientific methodology is employed?
The author employs a theoretical and empirical analysis based on existing academic literature, UN reports, and economic data to synthesize the historical and contemporary evolution of illicit global markets.
What is the focus of the main body of the text?
The main body investigates the definitions of illicit economies, the role of modern technology in crime, the shift from hierarchical crime syndicates to cooperative networks, and the tension between open trade borders and the need for security.
How would you characterize this work using keywords?
The work is best characterized by terms such as globalisation, transnational crime, the illicit economy, international cooperation, and systemic economic integration.
How has the internet affected the structure of the illicit economy?
The internet has enabled criminals to operate without physical presence, leading to an exponential rise in remote crimes such as identity theft, cyber-fraud, and the distribution of illegal content, while also allowing money to be laundered rapidly across international banking systems.
Why does the author call the relationship between globalisation and the illicit economy a "paradoxical bond"?
It is paradoxical because the same processes of market liberalisation, open borders, and technological advancement that foster global legal trade are also exploited by illicit actors to expand their reach and evade national authorities.
What does the author suggest as a future requirement for addressing transnational crime?
The author argues that because criminals have become "global citizens," the law can no longer remain a strictly national subject; instead, nations must pursue sustainable cooperation, intelligence sharing, and common legal guidelines to combat crime effectively.
- Arbeit zitieren
- Arshi Aggarwal (Autor:in), 2014, Illicit Economy and Globalisation. The Paradoxical Bond, München, GRIN Verlag, https://www.hausarbeiten.de/document/286208
