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Drugs Become World's Boom Trade
by Anthony Browne, The Observer (UK), 4 July 1999
The World's organised criminals have a greater economic
output than the United Kingdom, according to a United
Nations report. Their turnover is now greater than all but
three of the world's economies.
The UN's 1999 Human Development Report estimates organised
crime syndicates gross around $31,000 billion a year. The
UK's economic output is just over $3800bn. The report says
the syndicates' economic power rivals that of multinational
corporations.
The biggest growth area is drugs, which is now a bigger
global industry than motor manufacturing. Over the past 10
years, the production of opium has more than tripled and the
production of coca leaves has doubled. The illegal drug
trade - supplying 200 million customers - is worth around
$3250bn, or 8 per cent of world trade.
Another growth industry is trafficking in women and girls
for the sex industry. It is now a business worth $35bn a
year.
The report, due out next week, studies the advantages and
disadvantages of globalisation. It says crime syndicates
have been particular beneficiaries of advances in
telecommunications and the opening up of borders.
'Globalisation creates new and exciting opportunities, and
among the most enterprising and imaginative opportunists are
the world's criminals,' it says. 'As the multinational
corporations have led the drive to globalise the world's
economy, so the ''crime multinationals'' have been quick to
exploit it.'
It cites examples of a computer hacker in Russia who came
close to stealing millions of dollars from Citibank in New
York, and Nigerian con men who take advantage of the
semblance of legitimacy that a fax machine gives to a forged
document.
Most of the main criminal groups have extended beyond their
home territories. The Chinese triads are in the restaurant
trade in London, the Sicilian mafia is selling heroin in New
York, and the Japanese yakuza are financing pornography in the Netherlands.
The Medellin and Cali cartels in Colombia, the Juarez,
Tijuana and Gulf cartels of Mexico and the Cosa Nostra in
the US are all exporting their crimes. The report claims
'they are now developing strategic alliances
linked in a global network, reaping the benefits of
globalisation'.
The criminals have been particularly helped by the ease with
which money can now be transferred between continents. 'The
precipitous removal of currency controls, before a proper
regulatory environment has been established, is the perfect
condition for laundering money,' says the report.
It also suggests the lowering of trade barriers has aided
criminals: 'It helps the luxury car hijacked on a
Johannesburg street to reappear for sale in Moscow.'
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