Dependency, Democracy and Organised Crime

DEPENDENCY, DEMOCRACY

AND

ORGANISED CRIME

Abstract

The legacy of Dependency came from the industrialization and underwent through a process of colonization, decolonization, liberalization and globalization.  The process of democratization of the ex-colonies after the World War II and Post-Cold War brought ample scope for the generation illicit economy, i.e. the economy that threaten the civility was controlled by the cartel and syndicates of gangs and mafias.  The origin of Organized crime flourished through the economy of gaming, drugs and sex under the granted sovereignty to Native American through Indian Reorganization Act, 1934 that further expanded to the International Sports as Event towards Recreation than virtue development  and thus, the economy of hospitality flourished around where betting became the tool of extortion and mobilization of the economy of illicit activities.  These transnational crimes at global network became sovereign under the shield of SEZ, which is beyond the ambit of National and International Laws.  The transnational crimes are further being protected by the Criminal Political Network through non-Institutional support and by corrupting the Institutional system.

The theory of dependency originates from the Industrialization process, where there was a need of raw material and the market for the industrial goods that were explored by the European Traders.  The dependency, i.e. Resources (natural and human) along with market had made the European Traders to explore the world market and bring its utilities towards the enhancement of the economy to the European Nations.

The manipulations by the Traders backed by the imperialistic powers are quite visible even in the era of Globalistaion, when the Comparative Trade and SEZ Economy are the policies that co-relates with the imperialistic approach of the Colonial Era. 

The British East India Company was becoming the most important power in India. It held huge amounts of land almost the entire subcontinent. British law forced India to supply raw materials such as tea, indigo (a dye), coffee, and cotton. The law also forced Indian manufacturing out of business.[1]

European nations wanted to control lands that had raw materials they needed for their industrial economies. They also wanted to open up markets for the goods they made. Nationalism fed the drive for empires as well. A nation often felt that gaining colonies was a measure of its greatness. Racism was another reason. Europeans thought that they were better than Africans. Finally, Christian missionaries supported imperialism[2]

The discovery of gold and diamonds in Africa increased European interest in the continent. So that they would not fight over the land, European powers met in Berlin in 1884~85. They agreed that any nation could claim any part of Africa simply by telling the others and by showing that it had control of the area. They then moved quickly to grab land. By 1914, only Liberia and Ethiopia were independent of European control.
The Europeans began to build plantations where they grew peanuts, palm oil, cocoa, and rubber. They also took important minerals. The Congo produced copper and tin. South Africa had gold and diamonds.[3]

Technology helped them succeed. Steam engines, railroads, and telegraphs made them able to penetrate deep into Africa and still have contact with the home country Machine guns gave them a weapon of far greater power than any African peoples possessed[4]

These are the indicatives that the dependency was more from the European nations after industrialization towards mass production and invaded the periphery nations for their resources (natural and human). The manipulations in the name of International Laws were towards misguiding the indigenous communities based as independent nation to captivate their resources towards enhancing the European economy.

Post World War II and Power Gamers

Post World War II and De-colonization process brought ample changes in the World Political System.  After great devastation, the process of polarizing the world created two worlds based on ideology, i.e. communism and liberalism.  The Power gamers of US and USSR became the World militants to sustain their Power blocs.  Subsequently, advocacy towards Democratic system also became a part of International Relations.

The bipolar system sparked also prompted a series of conflicts that effected the superpower competition for influence in a postcolonial world. Proxy wars erupted in the Third World as the United States and the Soviet Union “fought in many regions and over many decades” to establish tacit spheres of influence (Frieden, Lake, and Schultz 2010, 28). Their competition fueled repeated outbreaks of violence in the Middle East and South Asia as well as U.S. interventions in Latin America and elsewhere (Westad 2007). It also led to large-scale wars in Korea and Vietnam. As in the case of major-power disputes, these conflicts pitted non-democracies against each other.[5]

The destruction of the economy and population in the Europe gave the rise of power under the doctrine of Ideology further destroyed those nations that were not part of World War II by the Colonial Rulers.  Thus, the World divided into two Worlds based on Conflict theory to facilitate Wars of Ideologies.

As a result, the bipolar system created a conflict pattern that was orthogonal to democratic-peace theory yet nonetheless seems very likely to have contributed to its empirical success. The Russian state that emerged after 1991 was neither willing nor able to engage in these proxy wars. As such, the post-Cold War world seemed likely to generate a more uniform distribution of disputes across dyad types than had its predecessor. The waning of the East-West conflict also seemed likely to weaken the bonds that had held many postwar alliances together.[6]

Finally, the Soviet implosion led to a precipitous decline in the appeal of state-dominated polities and markets, opening “the door to democratic transitions in Eastern Europe and parts of Central Asia” and reinforcing changes occurring both in Latin America and elsewhere (Walt 2005, 54)[7].

The process of decolonization underwent by attaining the freedom of ex-colonies under the doctrine of Constitution and pattern of parliamentary democracy, which is British Intellectual Property towards the continuity of the legacy of British imperialism through Leased Governance System.  Further the need of resources of bio-diversities and minerals created a new International Strategies of providing funds in the form of Aid to the nations towards the development and infrastructure building and also inviting migration to the European Nations as Diaspora communities.  These Diaspora communities were further used to create a local chaos or indigenous conflict by funding the cultural bodies or locals.

An absolute charity between governments without any expectations whatsoever was an insult from the giver to the receiver. It was like feeding a stray hungry dog. Nobody expected the stray hungry dog to render reciprocal service necessarily. But governments of human societies should be called upon to render some kind of reciprocal services provided those services are compatible with democracy and sovereignty.[8]

The dependency on the foreign aid was a new pattern of colonization under the democratic process that further paved the way of Non-governmental Institutions, which were based on donation from the International Agencies and Non-Government Actors and independent from the National accountability.

The do-not’s motives for giving foreign aid, are usually political; the recipient’s motives for seeking or receiving foreign aid are usually economic. That is the first asymmetry in development cooperation.  The giver seeks political satisfaction; the receiver may be in economic need.[9]

The motives of the recipient in seeking or accepting foreign aid are not difficult to follow. There is perceived economic need, and there is sometimes economic greed. Governments seldom reject extra revenue — unless conditions for the extra money are truly insupportable.[10]

On the whole, there is nothing complex about readiness to receive foreign aid. It is an inclination which is almost natural. But readiness to give foreign aid is a more fascinating human phenomenon. Why do some countries tax their own citizens in order to help or influence the citizens of other societies? Why have Scandinavian governments taxed their own people to help my people in Eastern Africa? What cultural, moral and political forces have been at work in this field of development cooperation?[11]

Foreign Aid became the tool of International Relations which gradually made many nations into debt to the International Funding Agencies and subsequently in the post-Cold War the periphery nation surrendered Economic policies from the State Control to the liberal economy. The Liberal economy without accountability was the first step towards economic frauds and structural crimes since the State became limited. The absence of vigilance and governance on the Economy created many opening for counterfeit / adulterated products, piracy, smuggling, trafficking for sex and forced labour along with the trade of violence.

Even after the World War II, there was in no way the colonies though attained freedom, but could not remain sovereign since the policies were always controlled by the Western powers either through appeasement of help or deception of surrender of resources.

Prior to the World War II, the imperialistic powers were somewhat accountable to the population of the colonies, but the post-colonial era, the colonies were taken over as Dependency, either through war of ideologies by Intellectual colonization or appeasement through aids or control of Economic policies through the World Economic Forums. In a way, there was a Political threat or Economic dependency the nations have to choose, so surrendering the economy, i.e. market, resources and policies were the buying peace process.

End of Cold War and Expansion of Democracy through Liberal Economy

In the World Politics, the major turning point was the end of Cold War with the disintegration of USSR. A new world has emerged under the leadership of the USA which created ample scope of liberal economy and global movement through licit and illicit migration. These licit and illicit migration paved way towards the licit and illicit economy which was running parallel to each other.

An analysis by Freedom House shows that there was not a single liberal democracy with universal suffrage in the world in 1900, but that in 2000, 120 of the world's 192 nations, or 62% were such democracies. They count 25 nations, or 13% of the world's nations with "restricted democratic practices" in 1900 and 16, or 8% of the world's nations today.[12]

The end of the Cold War in the early 1990s has had a dual impact on international relations. On the one hand, the Soviet military withdrawal from Eastern Europe and the Third World brought an end to the Cold War, allowed democratization to proceed in many states previously ruled by Marxist dictatorships, and led to significant progress in resolving several Third World conflicts that had become prolonged during the Cold War. The reduction in East-West tension also resulted in a great decrease in inter-state conflicts, some of which occurred due to the superpower ideological rivalry during the Cold War. Even it became fashionable to argue that force, used here as military power, has run its course in international politics. And it is true that defense budgets in many parts of the world radically decreased (See, for example, United States, Government Accountability Office, 2008). This trend, despite very few contrary examples (for instance China), appears to holding.[13]

On the other hand, however, it would be rather unwise to argue that the world is now at peace. The collapse of the “Soviet Empire” was followed by the emergence, or re-emergence, of many serious conflicts in several areas that had been relatively quiescent during the Cold War. Some of these new conflicts have been taking place within the former Soviet Union, such as the war between Armenia and Azerbaijan over Nagorno-Karabakh, and the fighting in Chechnya. But some conflicts also erupted or intensified in several countries outside of it and many Third World conflicts in which the superpowers were not deeply involved during the Cold War have persisted after it, like the secessionist movements in India, Sri Lanka, and Sudan. Ethnopolitical conflicts aside, there have been other threats to international order that are, indeed, beyond the full control of major powers, even the United States, the victor of the Cold War. The most notable ones include religious militancy, terrorism, North-South conflict, and severe competition over scarce resources. Thus, the end of the Cold War can be said to have brought about both stability and instability to international relations.[14]

A large number of studies show that militarized interstate disputes (MIDs) rarely occur between democratic states after World War II (e.g., Bremer 1993; Huth and Allee 2002, 2003; Maoz and Russett 1993; Oneal and Russett 1997, 1999a, 1999b; Rousseau et al. 1996).

Although the ending of the Cold War clearly increased the willingness of governments to work through the United Nations and other international channels to resolve conflicts and keep peace around the globe, several new threats have emerged in the post-Cold War era that are, indeed, beyond the full control of nation-states, even major powers. One of the greatest threats, in this regard, is the prevalence of intra-national conflicts, conflicts occurring within the borders of states. These are mostly ethnically-driven conflicts over self-determination, succession or political dominance. Until the end of the Cold War, the conventional wisdom in the world was that ethnicity and nationalism were outdated concepts and largely resolved problems. On both sides of the Cold War, the trend seemed to indicate that the world was moving toward internationalism rather than nationalism. As a result of the threat of nuclear warfare, great emphasis on democracy and human rights, economic interdependence, and gradual acceptance of universal ideologies, it became fashionable to speak of the demise of ethnic and nationalist movements.[15]

These new form of violence in the tune of ideology of faith, separatism, identity conflict and tribal conflicts was an outcome of democratic process. The reason behind the conflicts is mainly that the democratic process is based on the Western governance system that has homogeneous flair and applicable to the industrial outfit, but the other part of the world that consist of tribal communities and diversified culture to bring them in a democratic system of Universal Laws was the basic conflict between the State and communities. The Constitution based on the Western understanding brought constitutional obligation for the Nation brought cultural oppression and conflict within the State-system. The basic difference that led to the internal conflicts between the communities in Africa, Asia, Middle-east and Latin America were based on culture that was oppressed in the democratic system value based on individualistic liberty and not the community accountability system. This makes the cultural conflicts in the democratic system or in other words, it can be termed that Democracy creates intra-communities conflict or a conflict against State; hence Democracy is based on conflict theory.

The post-Cold War that was based on Ideology brought a structural change under the obligation of the Funding agencies to liberalize the economy from the State-control. The funding aid to the under-developed nations also known as peripheries under the dependency theory had to compromise the economic policies in tune of the aide and loans they have taken towards rebuilding their nations under the democratic system.

The restrictive policy on the Economy by the state has given a huge scope of illicit economy and financial frauds. The absence of vigilance and accountability in tune of liberal economy has paved the way to the mafia that was mainly into adulteration and extortion along with betting and gambling. Betting and Gambling were making its way as an economy under the recreation which was affiliated with sex and drugs. Thus, the Casinos became the coordinators of the illicit economy in tune of liberalization and the State was not required to make it restrictive as a liberal policy.

The Liberal Economy has pursued huge International Relations in terms of Migration, whether it is legal or illegal. The human resources from the periphery nations moved to the Industrial nations towards jobs. This further created a fabric of intermediates that became link between the Economy and Human Resources. This created Diaspora communities in the Core nations which became a destination of illegal and legal migration. This further influenced the democratic system in the core nations that created a debate on Cultural Rights. Hence, this created two Nation theories within the State, i.e. the habitats and the Diaspora communities.

Native Americans - the Origin of Organised Crime

The division of community within the State-system under the democratic system alienated the Tribal communities who could not assimilate with the mainstream society.  Moreover, the Tribal Criminal Act (1871)[16] of the British imperialism brought to an understanding that the tribal populations are para-communities and always a threat to the mainstream societies due to their backwardness and ignorance.  In the Indian context, here are 313 Nomadic Tribes and 198 Denotified tribes of India, yet the legacy of the Act continues to haunt the majority of 60 million people belonging to these tribes, especially as their notification over a century ago has meant not just alienation and stereotyping by the police and the media, but also economic hardships. A large number of them can still only subscribe to a slightly altered label, "Vimukta jaatis or the Ex-Criminal Tribes”.[17]

The reason of tagging the tribal with the Criminal Act on the imperial perspective is that though ostensibly the law was created to bring into account groups like the Thugs which were successfully tackled in previous decades, and give the authorities better means to tackle the menace of 'professional criminals', many scholars believe, however, that this was also done due to their participation in the revolt of 1857, and many tribal chiefs were labelled traitors and caused constant trouble to the authorities through their frequent acts of rebellion.[18]

The similar approach was taken while framing the American constitution about the Native Americans and their placement that barred them to be the citizen of America.

The United States Constitution specifically mentions the relationship between the United States federal government and Native American tribes three times[19]:

• Article I, Section 2, Clause 3 states that "Representatives and direct Taxes shall be apportioned among the several States ... excluding Indians not taxed." According to Storey's Commentary on the US Constitution, "There were Indians, also, in several, and probably in most, of the states at that period, who were not treated as citizens, and yet, who did not form a part of independent communities or tribes, exercising general sovereignty and powers of government within the boundaries of the states."
• Article I, Section 8 of the Constitution states that “Congress shall have the power to regulate Commerce with foreign nations and among the several states, and with the Indian tribes”, determining that Indian tribes were separate from the federal government, the states, and foreign nations; and
• The Fourteenth Amendment, Section 2 amends the apportionment of representatives in Article I, Section 2 above.

From the era of Chief Justice John Marshall through the time of Justice Thurgood Marshall, the Supreme Court has struggled to define the doctrine of American Indian tribal sovereignty. Tribal sovereignty is not simply an abstract legal concept; it is part of the military, social, and economic development of our country.[20]

Hence, the comparative understanding of the tribal community under the imperialistic approach has remained alienated from the main stream society.  Various acts such as Forest Act, Land Acquisition Act remained oppressive against the tribal communities and that made them deprivation of dignified survival and generating economies within their socio-economic capacities.  When the survival is challenged then it is comprises to criminality.  That is the why the Native Americans are the first Origin of Organised Crime that facilitated the sex market of the migrated communities.  This further made the Native Americans to take recreation[21][22] as the means for survival. Less publicized has been the finding that America is not only a destination for the commercial trade in human beings, but also a point of origin.[23]  The sexual subjugation of women of color has been (and continues to be) a product of the European and American colonization projects.[24]

The Indian Reorganization Act of June 18, 1934, equip American Indians to re-establish sovereignty and self-government, to reduce the losses of reservation lands, and establish ways for Indians to build economic self-sufficiency[25].  This indicates that the sovereignty of the Native Americans enjoys the immunity from accountability to the Federal Laws towards the Organized Crime through gaming, drugs and sex and protect their economy through violence and further provides them as Sovereign state of Native Americans in the United States.

Liberal Economy and Mushroom Gambling in Core Nations

The liberal economy beyond accountability brought the Traditional Indian gaming into professional Casino which was the hub of gambling, sex and drugs as a tool of recreation. This paved way to the enormous illicit migration from all parts of the World towards the expansion of the gang activities while US became the destination of the mafias which gradually became syndicate and cartel system.

The impact of Liberal Economy in the Core and the Periphery nations are different in its character.  US being in the colonial legacy followed the imperialistic approach of British system, where indigenous communities were alienated from the civility.  These communities lost their land and traditional economy and often remain displaced as similar to other colonies in the rest of the world.

Historically, recreation was part of human life, but the economy of recreation was separate from the livelihood that was based on production and services.  That is why those who survived from the economy of recreation are always treated as para-communities since its survival was from the channelised of the economy of the mainstream society.  Recreations are crucial that gives relaxation and encourage creativity, but the balance between recreation and activism is crucial. 

Due to control of economy by the migrated societies in United State, the economy through recreation became the only means for the survival for the Native Americans.  The tradition gaming, which was part of their indigenous culture became their mainstream economy and further flourished with the influence of the European culture.

Gaming certainly isn’t new to Native Americans. In fact, it’s been part of culture since the beginning of time. The Chumash people had two types of games: games that required skill to play and games of chance. Our ancestors often gambled on the outcome of the games. Each village had a special area, called malamtepupi, where games were played.[26]

In the United States, many states are grappling with high unemployment and budget deficits and are now turning to legalizing casinos, often in places that are not tourist destinations. Some casinos are also known for hosting live entertainment events, such as stand-up comedy, concerts, and sporting events.[27] 

The distinction between gambling by skill and gambling as chance created two parameters of the recreation economy.  Gambling by chance increase an attribute of risk taking, which is essential attribute towards progress, whereas, the gambling through skill leads a practice and expertise.  In a way gambling does contribute in the society towards skill development and abilities to take risk. 

While gaming is essential part of human development, but what goes wrong is the expansion of its activities to sustain its clientele. Since the Native American attained the sovereignty towards economic self-sufficient, the intrusion of drugs and sex was a parallel economy to facilitate the clientele towards hospitality.  The immunity from the Federal Laws due to the Indian Reorganization Act of June 18, 1934, of the Native American, it invaded the regime of American Citizens as a market for Gambling, Sex and Drugs. 

The weak sociology amongst the migratory communities in the United States compels them to become the consumer of the recreation industries of gambling, sex and drugs. Thus, US becomes the market of the consumers of drugs and sex which further leads to destruction of reasoning and brings them into the fabric of Crime of theft, forgery, loot, violence and contract killing, hence all the Crimes that generates from the Act of 1934 provides the Tribal communities from the Federal Laws and generates economy from the American population or tourism.

Whereas, in the region of Periphery nations of indigenous communities and former colonies, the policy imposed for structural Adjustment Programme brought liberal economy beyond any planning and the vigilance radar of the State and hence it brought two aspects of facilitator of illicit economy nationally and internationally.

Firstly, there was huge quantum of intra-state migrations from rural to cities and cities to urban regions. Further, a systematic movement towards the coastal lands that proliferated smuggling. The rising movement from the intra-state, the pattern of economy also changed. The adulteration and the counterfeit economy created its market. The illicit economy of piracy and smuggling and also trafficking of drugs and arms blossomed during liberalization. Further, the rise of gangs towards the extortion from the population surviving on illicit economy or the liberated economy where government was not keeping its vigilance or accountability either on the economy or on the population surviving on illicit economy was towards the formation of Organised Crime. The inflows of migration have created a demand for sex trade that was also proliferating for the drugs.

Secondly, the tribal communities of the peripheries nations got involved in the illegal opium production due to their geographical benefits towards the economy of drugs. To protect them, the war of ideology such as Naxalism or Maoism was a face of these illegal economies. This makes peripheries nations as land of origin.

The international relations, i.e. North-South divide to facilitate the economy of drugs were accordingly to the drugs trade route. The liquidity of the borders' security were mainly to make an easy route towards the trafficking of drugs that further facilitated human trafficking and arms smuggling.

SAP and emergence of Cartel System and Transnational Crimes

The Structural Adjustment Programme in the Global Policy for the Third World has opened a huge scope of industries beyond the ambit of State Control and vigilance that paved the ways for the counterfeit produce and piracy along with open market for financial frauds through privatization of the financial markets and Share trading initially for local consumption and gradually spread their market of parallel economy in the Global market which became a threat to the Brands. 

The traditional organized crime groups are the groups that have continuity across crimes and over time, that engage in multiple criminal enterprises, that employ violence and corruption, and that usually have hierarchical structures.[28]

The sovereignty of the American Native through IRA, 1934 gave them autonomy without accountability in the liberal economy which was generated through gambling, toxic and hospitality which was a destination for all the illicit channels of the World. 

Nationwide, 237 Indian tribes in 28 states use Indian gaming to create new jobs, fund essential government services and rebuild communities. In 2009, tribal governments generated:[29]

• $26.2 Billion in gross revenue from Indian gaming (before wages, operating expenses, cost of goods and services, capital costs, etc. are paid)1

• $3.2 Billion in gross revenue from related hospitality and entertainment services (resorts, hotels,

restaurants, golf, entertainment complexes, and travel centers, etc.)

• 628,000 jobs nationwide for American Indians and our neighbors (direct and indirect jobs created by Indian gaming’s economic multiplier effect)

• $9.4 Billion in Federal taxes and revenue savings (including employer and employee social security taxes, income taxes, excise taxes, and savings on unemployment and welfare payments)

• $2.4 Billion in state taxes, revenue sharing, and regulatory payments (including state income, sales and excise taxes, regulatory payments and revenue sharing pursuant to Tribal-State compacts)

The capital accumulation from the economy of crime that extort by destroying the society further leads to invasion to economy through Share-trading and Political control through democratic system as fund-raisers toward contesting election.

The main link between the Land of Origin and Land of Destination is human trafficking that facilitates the consumerism of drugs and sex.  The casinos provide the platform that binds all the crimes in tune of gambling which provide them protection under the sovereignty that is provided by the Federal system to the Native Americans.

The original population of the Native American who were the actual beneficiaries of Act of 1934 was not that in number that could facilitate the market of consumerism of recreation.  It was essential for them to provide a support of various ethnics to capture the market of multi-ethnic society of the United States.  The illegal migrations from the various parts of the world were to facilitate the economy of gaming of the Native Americans.

Even though tens of thousands of Chinese men and women are being smuggled abroad every year, and the arrival of large numbers of undocumented Chinese laborers or sex workers is a major concern in many countries (Smith 1997, Kwong 1997, Emerton 2001, Brazil 2004), Chinese authorities do not consider this to be a major problem or view it as an organized crime problem. Some Chinese officials would even say that this is not a Chinese problem because most snakeheads (human smugglers) are Chinese-Americans (Chin 1999). Local authorities recounted to us the many benefits of having a large number of their own people working abroad and sending money home. Indeed, we observed considerable new housing development outside Fuzhou, which development is being fueled by monies allegedly sent home by illegal workers in the United States.[30]

The human trafficking benefit the land of origin since they are able to get away from those populations with less productivity and also it benefit while they send money home.  It is exporting labour that in turn they get money to their homeland.  It is not just with China, but all those periphery nations that export labour to the illicit economy.

Many influential gangsters in Taiwan are now chief executive officers of major business conglomerates, and they are heavily involved in the businesses of bid-rigging, waste disposal, construction, cable television networks, telecommunications, stock trading, and entertainment. Since the mid-1980s, many crime figures, to protect themselves from police crackdowns, ran for public office and it is estimated that today one-third of the elected deputies in Taiwan are current or former gangsters.[31]

Besides heijin, Taiwanese authorities are also concerned with “traditional” organized crime activities such as gambling, prostitution, loan sharking, debt-collection, extortion, and gang violence. Kidnapping for ransom is also a major concern for the authorities in Taiwan because influential and wealthy figures are often targeted and, as a result, a large number of Taiwanese entrepreneurs have left Taiwan for a safe haven abroad. It should be noted that none of these activities of major concern are of a transnational nature.[32]

As a major transportation and financial center of Asia and a transit point in and out of China, Hong Kong has been a hub for transnational organized crime activities for the past thirty years.[33]

The Macau administration relies heavily on taxes from the gambling industry, and prostitution is considered to be an important component to its gambling industry, Macau authorities are reluctant to crack down on crime groups active in gambling and prostitution.[34]

In Japan, the most serious organized crime problems are almost always related to the notorious Japanese organized crime groups – the yakuza (Hill 2003, Kaplan and Dubro 2003). Japanese authorities are mostly concerned with the yakuza’s involvement in gambling, prostitution, amphetamine trafficking, and the victimization of legitimate businesses.[35]

Because of its wealth and the spending power of Japanese businessmen, Japan has become a major destination country for sex workers from Thailand, the Philippines, Colombia, China, Korea, and several other countries (Human Rights Watch 2000, Santos 2002).[36]

The illicit side of the global economy includes the trade in prohibited commodities (such as heroin and cocaine), the smuggling of legal commodities (such as cigarettes) to circumvent sanctions and embargoes or to evade taxes, the black market in stolen commodities (most notably intellectual property theft), the clandestine movement of people (migrants, sex workers), the trafficking of endangered species and animal parts (such as ivory), and the laundering of money generated by these and other illicit activities. Some of these transnational flows are little more than a law enforcement nuisance (cross border vehicle theft), but others receive intense policy attention and media scrutiny (drug trafficking and migrant smuggling), and still others have serious environmental consequences (the illicit trade in toxic waste) and security implications (sanctions busting and arms trafficking).  The circulation of the illicit economy created its space towards legitimizing its money while investing in Shares Trading and hence invaded the licit business sectors.  Secondly, they penetrated the political affiliation through fund raising and finally and international collaboration of the organized crime groups and strengthening its network.[37]

There are several reasons why one might object to treating transnational criminal organisations (TCOs) as an international security problem: they are economic rather than political organisations; they do not pose the same kinds of overt or obvious challenges to states as do terrorist organisations; crime is a domestic problem; and law enforcement and national security are based on very different philosophies, organisational structures and legal frameworks. The contention of this article, however, is that TCOs pose serious threats to both national and international security, and are extremely resistant to efforts to contain, disrupt or destroy them.[38]

Transnational Criminal Organisation is economy and regime of human resources through trafficking where the trafficked populations are deprived of human rights due to its illegal movement.  These labour forces whether from drugs and sex trade or forced labour for the hazardous industries facilitates those legitimize business houses who are the beneficiaries from the capital of Organised Crime.

The emergence of TCOs is partly a result of underlying changes in global politics and economics, which have been conducive to the development of all transnational organisations. The emergence and development of the “global village” in the second half of the twentieth century has fundamentally changed the context in which both legitimate and illegitimate businesses operate. This has, moreover, created unprecedented opportunities for international criminal activity.  Increased interdependence between nations, the case of international travel and communications, the permeability of national

boundaries, and the globalisation of international financial networks have facilitated the emergence of what is, in effect, a single global market for both licit and illicit commodities. There has been a vast increase in transnational activity—the movement of information, money, physical objects, people, and other tangible or intangible items across state boundaries—in which at least one of the actors involved in the transaction is non-governmental.[39]

Just as the modern industrial economy and the rise of mass consumer markets encouraged the growth of organised crime in the US, so growing opportunities for transnational activities have facilitated the growth of TCOs. Not only is transnational activity as open to criminal groups as it is to legitimate multinational corporations, but the character of criminal organisations also makes them particularly suited to exploit these new opportunities. Since criminal groups are used to operating outside the rules, norms and laws of domestic jurisdictions, they have few qualms about crossing national boundaries

illegally. In many respects, therefore, TCOs are transnational organizations par excellence. They operate outside the existing structures of authority and power in world politics and have developed sophisticated strategies for circumventing law enforcement in individual states and in the global community of states.[40]

The Structural Adjustment Programme as a global policy towards the third world nations was primarily to open a transition of human resources towards the facilitation of the gaming and hospitality industries.  The propping up of the cartel with the multiple criminal activities and it’s networking in the pattern of feudalism creates a challenge towards combating the Organised Crime, since these cartels provide huge funds towards the political affiliation in the Democratic System and enjoy the immunities through corruption and power game.

Globalisation and Feudalism of Market

The loss of brands in the hand of counterfeit products pushed them to get global in tune of low labour cost along with capturing and expansion of the market through Global Economic Policy under Dependency Theory, which further facilitated transnational crimes in tune of mass production, distribution and consumption of sex, drugs and violence along with periphery crimes.  Further, the feudalism is based on Consumers, Production and Human Resources.  The fabric of lobbyists decides the distribution, vendor development and human resources.  The national policies are manipulated by these lobbyists and functions as chief coordinators amongst the Conglomerates, NGOs, Media and Political communities.

The theory of dependency and its relationship with Core, Semi-periphery and periphery relations has brought a feudalism of the resources and market in the era of Globalization.  Further the market and manufacturing zones are designed in such a way that it fills the requirement of two classes, i.e. elite and non-elites by the imperialistic powers.  This destroys the local economies and the consumers become the receivers of the global produces, which is homogeneous in nature and compromises the choice in the era of consumerism.

The rise of consumerism of counterfeit products is mainly when there is a control of Market through brands along with piracy of the traditional knowledge of the periphery nations by the global conglomerates and disbanding the indigenous rights on their original traditional knowledge and especially in the case of pharmacy.

It is apparent that counterfeit and pirated products are being sold in virtually all economies. The levels appear to be higher in economies where informal, open-air markets predominate. However, consumption patterns vary. The Middle East, for  example, is a principal market for counterfeit automotive parts with significant volumes of counterfeits also consumed in Europe and North America. Consumption of counterfeit tobacco products seems more widespread, with developing economies in Latin America, Africa and Asia seeming to have relatively high levels. Effective controls on the distribution of pharmaceutical products have sharply limited the distribution of counterfeit products in many economies. There are, however, serious problems with substandard counterfeit medicines in some economies, notably in Africa. Problems with counterfeit medicines are also evident in Europe and North America, with a significant number of seizures reported. Counterfeit electrical components, food and beverages and toiletries and household products are similarly appearing in markets worldwide, with Africa, Asia and Latin America frequently mentioned as key regional markets. Piracy of music, movies and software appears to be significant in all economies.[41]

The branded products with its high tag consumers market through publicity do create an aspiration for the masses to buy the product or create a demand, but due to it’s unaffordable or unavailability creates a market for counterfeit produces.  The piracies of the DVDs, etc., do capture the market of non-elites due to its high price tag.  In fact, the feudalism of market of entertainment or the IPRs of the branded goods do encourage the replica of the produces.  But these produces are nothing but the indigenous economy for the domestic market or the export of non-elites world consumer market which reaches them through smuggling.

Counterfeit and pirated products are being produced and consumed in virtually all economies, with Asia emerging as the single largest producing region. In recent years there has been an alarming expansion of the types of products being infringed, from luxury items (such as deluxe watches and designer clothing), to items that have an impact on personal health and safety (such as pharmaceutical products, food and drink, medical equipment, personal care items, toys, tobacco and automotive parts).[42]

The availability of technologies and state of art creates a parallel market.  The market for the technologies creates an expansion of the production range.  It might be termed as counterfeit or replica or indigenous production for the non-elite consumers.  The divide between rich and non-rich has distributed the consumer behaviors of choice and affordability.    The globalization if created a market for the branded products in the world market, so the indigenous economies have availed the scope of the created market for the non-branded or counterfeit / replica products, which is meant for non-elites consumers in the other parts of the world.

Counterfeiting and piracy are longstanding problems which are growing in scope and magnitude. They are of concern to governments because of (i) the negative impact that they can have on innovation, (ii) the threat they pose to the welfare of consumers and (iii) the substantial resources that they channel to criminal networks, organised crime and other groups that disrupt and corrupt society.[43]

The conflict between Global Economy and the indigenous economy compels them to intersect each other than complementing to them.  The intrusion of Transnational Companies and creating a global conglomerate destroyed the local industries through manipulation of the national policies with the help of lobbyists and manipulating the government through corruption.  Though this benefited a small population in wages, but in a largest context, there was fall of the national economies.  The substitute economy which was ignored by the government and hence, the mafia controlled the economy of piracy and counterfeit products.  Certainly, when the economy is based on replica, then it challenges to both of the indigenous innovators and the global innovators.  The adulteration or the fake produces victimizes the consumers since the absence of choice between unaffordable Brands and the replica or the adulterated goods.  Finally, the absence of government vigilance in tune of liberal economy and the characteristic of counterfeit products, the economy is controlled through extortion in tune of protection money.

Counterfeit and pirated products, previously largely distributed through informal markets, are infiltrating legitimate supply chains, with products now appearing on the shelves of established shops. Internationally, free trade zones, which are areas where international traders can store, assemble and manufacture products that are moving across borders with minimal regulation, are of increasing concern. Passing merchandise through such zones provides opportunities for parties to “sanitise” shipping documents in ways that disguise their original point of manufacture. They also allow parties to essentially establish distribution centres for counterfeit and pirated goods, with little or no IPR-related enforcement actions being taken. Within the zones, goods can be repackaged with counterfeit trademarks, prior to being exported to other economies, and place of origin can be falsified to reduce enforcement scrutiny at their destination.[44]

The consumption of the pirated or counterfeit goods is well protected in the informal markets.  The purchasing cultures of Asian or African nations are different from the European nations, which is feudal in nature.  The tribal culture of the population in Asia and Africa promote informal market and thus, become the market of pirated or counterfeit products.  The free port support the transition of the piracy or counterfeit products to facilitate the market where they are unable to fill the demand and hence China become the premier of these products and captured the market of counterfeit product.  This makes China a big economic challenge to the economy of Brands of the Western nations.

The high profitability of many counterfeiting and piracy activities which in some cases exceeds the “profitability” of illegal drug trades, low risk of detection and relatively light penalties have provided counterfeiters and pirates with an attractive environment for the illegal activities. The groups involved in counterfeiting and piracy include mafias in Europe and the Americas and Asian “triads”, which are also involved in heroin trafficking, prostitution, gambling, extortion, money laundering and human trafficking. To address the situation, Interpol created an Intellectual Property Crime Action Group in July 2002, to help combat trans-national and organised intellectual property (IP) crime by facilitating and supporting cross-border operational partnerships. Some governments have also established bilateral operational partnerships in border enforcement and criminal investigations[45]. 

The benefits of the Counterfeit products in comparison with the Brands that saves huge investment on the product development and creation of the market and only follow the channel, which is already created by the Brands.  Since such economies lack the innovation and creativity, so it is more or less a channel of demand and supply.  These channels of demand and supply are filled with those who are manipulative and instinct of mafias.

In addition to the established link between counterfeiting and piracy and organised crime, Interpol has highlighted a disturbing relationship of counterfeiting and piracy with terrorist financing, with IP crime said to be becoming the preferred method of financing for a number of terrorist groups.[46]

Piracy and counterfeit products is a pattern of economy, which is controlled by those who are also benefiting the economy of drugs, human trafficking and arms smuggling.  These piracies follow the same routes the way other crime activities are done and use the free ports under the SEZ as global policies.

SEZ and its influence on Transnational Crime

The economies of the Transnational Crime was further expanded through SEZ economies which remained away from the ambit of National and International Laws and created an open space towards smuggling and trafficking through privatizing of ports.  This further paved the way towards Global Finance system under offshore banking and equipped with the parallel state system of security and communication.

The Special Economic Zones (SEZ) are specifically delineated enclaves treated as foreign territory for the purpose of industrial, service and trade operations, with relaxation in customs duties and tariffs and a more liberal regime in respect of other levies, foreign investments and other transactions. Domestic restrictions and infrastructure inadequacies would be removed in the Special Economic Zones to create an internationally benchmarked environment for business transactions and operations.[47]

SEZ as treated as foreign land within the national boundaries, whether it touches the coastal land or the territories of the mines and minerals, this facilitates SEZ to captivate the major economy of the Nation which enjoys tax exemption and also national laws.  This characteristic of the SEZ makes the region of migrants and crime prone zones since the zone enjoys the immunity of the National Laws and International Laws.  SEZ are the land of migrants since the expertise of skill, semi-skilled and unskilled labours are imported in the zone to fill the requirement of human resources.

For example, economic development in Shenzhen Special Economic Zone (SEZ) and many coastal cities attracted millions of rural migrants from all over China. The emerging market economy created a market for protection and corruption. Shenzhen was a focal point of Hong Kong and Taiwanese triads because of a demand for illicit services, and drug smuggling (Broadhurst and Lee 2009).

SEZ attracts huge infrastructural developments which encourage real estate development for the migratory communities.  Since the migratory communities in the SEZ do not have social bonding, hence their recreation remains again through gaming that encourages casino or pub culture, which is further facilitated by sex and drugs.  This further raises violence and a stream of illicit economy.  Human trafficking become the hub of these zones since it facilitate the forced labour not just to SEZ economy, but also to the economy of recreation, which is a complementary economy to SEZ.

Triads have been regarded by some authorities as participating in a worldwide crime network that uses connections among overseas Chinese to undertake transnational crime such as drug and human trafficking. Fears that HK triads would re-establish abroad en masse with the return of Chinese sovereignty in 1997 appear not to have materialised despite alarmist predictions.  However, significant triad-related capital and capacity where thought to have reached among others Toronto, Vancouver, Sydney and Los Angeles that enabled such groups to hedge risk and transfer resources. Market reforms initially in Shenzhen SEZ in the 1980s and later elsewhere in China provided more attractive opportunities and lower costs

for criminal enterprise.[48]

SEZ as a foreign land within the national boundaries have the international network, so the organized crimes of smuggling and human trafficking also have the international network.  It moves parallel to SEZ economy and hence choose the same route towards the fulfilling of the demand and supply of the illicit economy.  The biggest support to these transnational crimes are inadequacies of the effective transportation system[49] which is substituted by the manual labour which are based on contract and sub-contract and hence it remains under the control of labour mafia which become the regional or global feudal.

International transportation systems have been under increasing pressures to support the growing demands of international trade and the globalization of production and consumption. This could not have occurred without considerable technical improvements permitting to transport larger quantities of freight and people, and this more quickly and more efficiently. Since containers and intermodal transportation improve the efficiency of global distribution, a growing share of general cargo moving globally is containerized.  Consequently, transportation is often referred as an enabling factor that is not necessarily the cause of international trade, but a mean over which globalization could not have occurred without.[50]

The intrusion of the SEZ economy under the Global Policy started well before the planning of development of the transportation to suit the SEZ transactions.  The realization to identify the appropriate project managers in the specialized field of infrastructural development was the primarily work towards the Global SEZ network.  These professionals were needed to identified that could undertake the turnkey projects and towards the execution.  This required a specialized professional that is facilitated through global arrangement.

Further there was a need of development of the Transport system that could manage the global requirement and efficiency.  This needed a huge training and specialization in the field of Transport management.  Further procuring the appropriate skills to fulfill the requirement of the efficiency of the global demands remained a challenge. Thirdly, the development of Transport system and creating vehicle industries further needs human resources of the expertise in the field. 

Ironically, the need for the training and education to facilitate the requirement of SEZ economy which enjoys tax exemption and accountability to the National Laws are being facilitated by the National system to fulfill the aspiration of the education system that will not benefit the national economy.  In that case, though the SEZ economy has ample opportunities of employment, but the absence of human resources, where as the National economy there is a scarcity of the employment, but ample human resources.

In that case, it is evaluated the transportation system is still under way to facilitate the Global economic policies to which the illicit economy run by the labours provide an easy scope of the movement of illicit goods and human.

Another facilitator to the Transnational Organized syndicates is the offshore banking under the SEZ.

Off-shore banking have an aura of mystery about it, portrayed by movies as sun-drenched resort islands infested with international crooks, tax evaders and drug peddlers. 'It's one of the great ironies in offshore financial circles that the sunniest spots in the world often afford protection to the shadiest characters.[51]

Offshore banking is all about providing international financial services such, as international banking, insurance and trusts to non-resident companies and businesses, and access to a wide range "of professional services and products to better manage their finances, reduce taxes and conduct business in an international arena.[52]"

The Union Commerce Minister in his speech announcing the EXIM Policy for 2002-07 that for the first time, Offshore Banking Units (OBUs) would be permitted to be set up in SEZs. These units would be virtually foreign branches of Indian banks but located in India. These OBUs, inter alia, would be exempt from CRR, SLR and give access to SEZ units and SEZ developers to international finances at international rates.[53]

This connectivity of the Offshore Banking in SEZ and the connectivity to the Onshore Banking have led to the distribution of money towards the money laundering and terror activities along with anti-social/national activities.

Although the process of money laundering follows no set procedure, the general stages by which money is laundered is placement, layering and integration. In the placement stage, criminal proceeds usually in cash form enter the financial system by some legal means. This is done by disguising it, that is, by "changing it into another form of asset", either by depositing the cash in an account at a deposit-taking financial institution, or by purchasing investment or securities bonds or property assets. In most cases, money representing criminal proceeds is transferred to an offshore financial center in the form of a deposit in numbered accounts as an investment or in satisfaction of the capital requirements for obtaining a license to operate as an offshore banking user.[54]

Thus it is concluded that the SEZ provides a protection to the Human Trafficking, Recreation Industries of sex and drugs.  Facilitate the banking system and further protect from the National and International accountability.  In a way, SEZ gets the protection what the Native American gets under the Indian Reorganization Act, 1934; hence the origin of the Organised Crime actually started in US through the legal protection and attained its sovereignty.  Similarly, the SEZ network also enjoys the sovereignty within the ambit of National Boundaries.

This sovereignty provides these region interdependent and act as Core, Semi-Periphery and Periphery zones which are managed by the Global Mafias. The sovereignty of SEZs from the National and International accountability does not allow the National and International Policing to combat organized crime.

International Sports Federations and Betting System

The role of International Sports Federations and its autonomy became a dejure face of the mobilizing and circulating the transaction of the illicit money through sports betting and fixing.  The role of Entertainment and celebrities played an ample role towards political mobilization through money laundering towards indigenous conflicts and mobilizing human resources towards illicit activities. 

The increasingly frequent presence of transnational criminal organisations in instances of corruption in sport is a major concern. Over the past two decades, these transnational criminal organisations have moved from regional, strongly family-oriented establishments to international organisations, diversified in their legal and illegal activities, and modes of operating. They have taken advantage of changes in regulations, flaws in legal and judicial systems, the opening-up of borders and the growth of free trade, all direct consequences of globalisation. They have adapted without any great difficulty to changes in political regimes, to dictatorships and democracies, without ever going under - quite the contrary, in fact, which is both unusual and particularly concerning, specifically from a strategic point of view.[55]

The rise of the criminal organization and invasion towards the International sports is a legacy of the recreation of gaming and gambling that was initiated in the US by American Natives as Tribal Economy.  The expansion of the drugs market needed to move forwards from the traditional gaming to the International Sports.  The gambling of the sports was towards the betting and hence it became another tool of economy generation in the name of Sports.

The increase in sports betting throughout the world represents a windfall for criminal organisations, as explained by Chris Eaton, Security Director of FIFA: “There are criminal gangs who are acting like enterprises and transforming betting into a worldwide problem.”[56]

The economy of betting flourishes only through manipulation and corruption and not with its genuineness of betting.  This manipulation is the strategies of the criminal organization, whether it is doping or fixing.  Secondly, sports betting represent a worldwide market that is disproportional to the market for doping products, and has grown considerably in recent years, to the point of constituting what is now a significant and substantial economic activity. It is estimated that by the end of 2011, sports betting as a whole was generating bets of close to .€200 billion per year[57].  The induction of drugs in the sports fraternity through sex earns a huge parallel economy in the tune of International Sports Events and its periphery economies of hospitality and tourism.

Sports betting also represents a money-laundering opportunity for criminal organisations. Noel Pons, a specialist in criminal organisations and fraud says: “The concentration of a number of money laundering and fraud resources in a single uncontrollable geographic area allows criminals to launder money, but more particularly to optimise the profitability of criminal corruption. It is due to this accumulation of interests that the criminal fraternity has become widely involved with betting on the web, which affords them a certain impunity due to betting sites being located offshore, lack control by the normal authorities (particularly in relation to money-laundering) and the opportunity to develop lobbying activities to liberalise the sector, which will be highly profitable for them.”[58]. Modern sport is not specifically equipped to face up to these powerful and determined networks, which are interested in the varying opportunities for profit provided by the sports betting markets.[59]

The control of the Criminal Organizations in the Sport Fraternity is based on the facilitation of the drug’s money which functions more as a facilitator to these illicit economies through the network and the position of the officials hold in the fraternity.  The blind eye of the Sport fraternity remained due to huge contribution from the Sponsorship for the companies that are the beneficiaries of the illicit economy and corruption at a larger scale.

Corruption at grassroots level is the concrete manifestation of corruption in sport. Its rules are easy enough to understand: to rig a match, one needs to corrupt players, because it is they who win or lose on the field. But it would be unwise to restrict oneself to approaching individual players only. The process of corruption can also involve other people who are physically more remote from the pitch, but who are broadly able to orchestrate corruption in sport.[60]

The networking of the illicit economy of drugs and betting connects the bottom to the top in the pyramid pattern.  The relevance of grassroots corruption is crucial since the grassroots are further connected with the communities that are the feeder to the illicit economy of betting and drugs.  The aspirant sports person can easily become prey to the nexus in tune of celebrated sports persons in the league. Further the promotions and selection of the candidate is more on the basis on the background and abilities to get involved in the betting racket.

The use of intermediaries specializing in corruption is a classic approach technique. In most cases, these are ex-players, agents of players or members of the world of sport who are known in sporting circles, and have a good reputation. The intermediary will therefore ideally be someone from the same milieu as the sportspeople to be corrupted, who can reassure them about the risks they will be running.  These intermediaries are also able to identify players who are weak, psychologically fragile or in financial difficulties, or possibly at the end of their careers, who make ideal targets.[61]

Sports life in the field has a limitation and based on event. Not all those who are the aspirants of the Sports achievement could reach to the peak. Most of them are left out in the middle. Those who have devoted their life in the Sports loose other opportunities as means of survival. That comes when the huge sports aspirants become jobless and becomes the victims of the illicit activities of fixing and betting network. Sports in the field are not long-term careers and commentators or coach needs a specific skill. So, the sportsperson becomes neglected in tune of lack of scope of survival. This makes huge human resources available for the drugs and sex syndicates.

By the end of the 1990s a large number of online betting sites had been set up independently of any state control. Profiting from the growth of the Internet, these sites began to extend their offering to Internet users across the world, without prior authorisation. According to a study carried out by Cert-Lexsi, an IT-watch institute, in 200671, 80-90% of the 10,000 gambling sites present on the Internet have no valid licence. The formation in just a few years of this uncontrolled virtual market has put pressure on the various laws that govern betting activities at a national level.[62]

The rising of betting syndicates or network post-Cold War during liberalization process in the developing countries was to the rise of illicit activities of counterfeit products, smuggling and extortion.  The biggest bidders in the betting are the traders mainly of gems and diamonds.  The huge profits that are earned through smuggling are further pushed them towards betting not out of choice or addiction but towards the extortion and betting is the tool towards that.

The street networks are made up of many runners, men of the streets, who take bets from the local population (by telephone or face-to-face) and transfer them to regional bookmakers who manage the betting finances by placing bets themselves with supra-regional betting houses operating as small scale local financial centres. These physical betting markets have now largely been replaced by Internet sites. And regional bookmakers manage all the bets and hedge their risk by betting on Asian online sites. These sites have therefore always been accustomed to accepting very large bets because they are the amalgamation of thousands of street bets that come through in the form of one combined bet, which can be exceedingly large.[63]

In 2005, the United Kingdom was one of the first countries to .“open up the market.”. France waited until May 2010 to propose regulating the market, and has now authorised 17 operators to market sports betting on the Internet, the management of physical sports betting remaining the monopoly of the Francaise des Jeux. Italy and Belgium also chose to regulate the market, and Spain and Denmark are on the point of taking the same route.[64]

Extortion through betting and the violence are parallel to each other.  The syndicates of entertainment and recreations and the population earn through these are compelled to be the part of betting economy.  Fixing is just to manipulate the betting so that the results are known and betters can be cheated.

Thus it indicates the betting and the corruption in the Sports that are fed by the Global Mafias actually originate with US Indian Reorganization Act, 1934 that provides sovereign to the Recreation of Gaming.  Sports’ being a virtue development of persistence, physique and discipline is conquered by the recreation of toxic, corruption, deception and sex.  The Sports are the virtue development has taken as an Event that is more a tourism based and this approach has made the Sports corrupt.  Sports Fraternity must reevaluate its approach of Sports and separate itself from gaming, gambling and recreation.

Parliamentary Democracy and Organised Crime

The role of Democracy is crucial to flourish the illicit economy due to party system, which is based on the collection of funds.  These tributes to the Political Parties has qualified them to get protection from the Law implementing Agencies which can be termed as ‘corruption’ and also favorable policies through scams.

Organized crime adopts all forms of corruption to infiltrate political, economic and social levels all over the world. Strong institutions are supposed to be impermeable to corruption. Contrastingly, weak governance often coexists with corruption and a mutually causal nexus exists between corruption and feeble governmental institutions, often ending up in a vicious cycle. Through corruption, criminal groups generate poverty. Corruption determines the misusing of Governments' resources by diverting them from sectors of vital importance such as health, education and development. Poor people are therefore deprived of economic growth and development opportunities. The price of public services rises and the economically deprived people can no longer afford them. As the poor become poorer, the corruption feeds the poverty and inequality.[65]

The destitute population victim of created poverty due to weak governance and corruption push them into the receiving end. Further these impoverished populations become a source for political mobilization in the democratic process. These populations in the tune of Political Workers are the facilitator of the Organised crimes in the nexus of Political affiliations that become their means of survival.

The parallel system in the Governance under the democracy is divided into Institutional and non-Institutional system. Institutional systems come where Judiciary, Administrative and Police are accountable by the Rule of Law, whereas, the non-Institutional systems function with NGOs, Trusts and Cultural bodies. In both the governance system of the population, the control is in the hand of Parliament that not only creates Laws and Policies, but also functions as Executive to the Institutional system. In the democratic system, though it is under the Rule of Law, but the implementation of the Law is based on people's power.

The resource generation that makes the effective Institutions is based on the Tax collection, whereas in the non-Institution system based on donations. The donations made by the population do enjoy tax exemption as policies. The corruption in the system and the space given to the organized crime do reach to the non-Institutions as Donation. The fund-raising technique for the non-institutional domain is basically extortion. The populations get involved in corruption in tune of tax-evasion, scams and including facilitation to the nexus of Organised Crime and get protection from these non-Institutional domains.

The relevance of Cultural and NGOs affiliation in the Parliamentarian system are the populations that are the ladder to attain the Political Power. Hence, cultural affiliation and NGOs play a significant role as demonstrators/protesters and pressure groups towards the Policies. Further these non-Institutions run parallel governance that facilitates the population towards social security, health care and education.

The political security to protect the resource generation by the non-Institutional system is the corruption in the Institutional system, i.e. Corruption in the Political system, Criminal Justice System, Administrative System and Military system.

The prostitution market provides a good example of the wide-range of corruption tactics used by organised crime. The present research shows that members of police forces throughout the EU engage in corrupt exchanges with prostitution networks, even extorting bribes or even directly running brothels. Such criminal networks use corruption to obtain information on investigations, ensure continuity of operations, or even to develop monopolies in local markets. Immigration authorities, including embassy or border guards, have also been targeted to ensure legal entries or stays of prostitutes. In Member States with legalised prostitution (e.g. Germany and the Netherlands) criminal groups have corrupted some local administrative authorities in order to avoid brothel regulations. Finally, criminal networks also use prostitutes to lure law-enforcement officers, magistrates and politicians into inappropriate behaviour, later using evidence of the behaviour to blackmail the officials for protection or information.[66]

The National Strategy Information Center (NSIC) carried out a collaborative international research project that focused on the Political Criminal Nexus (PCN), which refers to the “concentration and fusion of official political and professional criminal power” (NSIC 1999 , p.1)[67].

The key conclusions were that:

Ø                  Long-term existence of criminal groups requires some type of PCN;

Ø                  Some politicians might collaborate with criminal groups to embezzle public funds;

Ø                  Specific political conditions facilitate the formation and evolution of a PCN;

Ø                  One-party political systems (whether on a national, regional or citylevel) and states with strong bureaucracies but weak civil societies and no checks and balances are more prone to PCN;

Ø                  Weak states and countries in transition, particularly from authoritarian regimes, have weak law-enforcement or judicial institutions; the changing social structures blur values and politicians cross the line ofwhat are ethically acceptable;

Ø                  Cultural factors also play a role in facilitating PCN:

Ø                  Patron-client systems, like in Mexico or Southern Italy, for example, tend to make politics more personal and non-rational;

Ø                  A history and prevalence of secret societies (the Italian Mafia-Freemasonry connection in the 197 0s and 198 0s) help create conditions of covertness that facilitated PCNs;

Ø                  A widespread public perception that corruption is “normal”;

Ø                  Public perception of criminals as cultural heroes or “men of honour”;

 Markets and economics bear on the PCN issue:

Ø                  Need for large-scale money laundering of criminal proceeds breeds political corruption;

Ø                  Concrete economic factors at the local level also play a role (e.g. EU development funds in Southern Italy);

Ø                  Role of contingent, accidental, or coincidental factors in the development of PCNs: (1) specific individuals and (2) specific political circumstances could contribute to the establishment of a nexus;

Ø                  Different types of criminal activity and diverse concentrations of criminal actors lead to different types of PCNs. Local smugglers and criminal organisations need to develop relationships with local law enforcement authorities, but they may have few relationships with state or national officials. In addition to profits, criminals often corrupt politicians to help them achieve social respect or eliminate rivals.

The infiltration of the criminal network in the Judiciary, Administration, Police and Military are based on multi-tactics process. Giving an example as Plywaczewsky (2004) argues that the methods of corrupting the judiciary include:

Ø                  Gaining influence by accessing retired prosecutors, police officers or judges, and, with the retirees’ help, contacting working professionals and gaining influence among them;

Ø                  Lending small amounts of money, covering gambling debts or doing small favours; sometimes the prosecutors, police officers or judges would not even know initially that the person doing them the favours has links with organised crime;

Ø                  Judges or prosecutors would be tempted to brothels or parties where alcohol would be abused, only to find themselves blackmailed (with photographs or video recordings) into providing favours to organized crime;

Ø                  A criminal might even collect financial documents indicating a police officer, prosecutor or judge’s dishonesty, and use the documents as a way to blackmail the officials;

Ø                  Influencing officials’ families by making deals with relatives without the immediate knowledge of the prosecutor, police officer or judge;

Ø                  Signing contracts, through various funds, with selected persons for lucrative tasks; this method is often a first step to recruitment;

Similar, approaches are done to other Institutions in the Democratic system by the criminal syndicates to protect their activities and smooth sailing.

The inabilities to counter the criminal network that invaded the State-system are basically the approach of Check and Balance mechanism, i.e. Legislation, Judiciary and Executive.  The space given by the check and balance in the Democratic system is used by the Political Criminal Network that provides protection to the Organized Crime and further generates funds towards Political mobilization and capture of Power.

Conclusion

In the concluding note, it is being analysed that the dependency, democracy and organized crime are complementary to each other that started from the Industrial revolution, where there were migrations from the European nations to the various parts of the World and the natives were the victims of the technologies used against them to grab their land and resources (natural and human).

The end of World War II though brought the decolonization, but the colonial legacy still persisted.  The war of ideologies polarized the world and bled the population based on ideologies.  This was the ground work to promote democracies as it says the democratic nations do not wage war.

The Indian Reorganization Act, 1934, brought American Natives sovereignty from Federal system to which they acquired right to defense, economy generation beyond accountability.  This brought the Tribal sovereignty in the World of Civility.  This sovereignty is the main reasons of the Tribal autonomy that refuse to get assimilate with the mainstream society.

Tribal society due to absence of resources became the prey of the criminal network where the women of the natives were victimized for the Sex and Drugs Trade and they became the economy that facilitated the gaming industry of the Native Americans.  After the liberalization and globalization, there were random illegal migration from the rest of the World to the United States is basically to facilitate the human resources for the Tribal economy.  Further the regional tribal in the periphery nations involved with the cultivation of the opium that facilitated the Economy of the Drugs in the Core Nations.

After the fall of ideological war, the Liberal Economy imposed under the SAP to the periphery nations flourished the illicit economy and the gang culture towards extortion.  The rise of cartel system and rise of smuggling created a Transnational Criminal Organization that controlled the region and transaction of the counterfeit products along with human trafficking.   Globalization further created a Feudalism of Market between Elites and Non-elites which destroyed the local economy and invaded by those nations of Brands and its Replica.

The accumulation of the wealth through illicit economy invaded the State-system and acquired the land within the State-system as known as SEZ, which is beyond the accountability of National and International Laws.  Further the Sports Events under the International Sports Federation became the Global gaming that mobilized the Economy of the Global Mafias through Drugs, Sex and Violence and betting became the extortion method.

Ultimately, it is the Democratic process that protected the illicit economy through Organized Crime by non-Institutional domain and by corrupting the Institutions that are accountable to the Rule of Law.

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Siegle Joseph, June 2007, EFFECTIVE AID STRATEGIES TO SUPPORT

DEMOCRACY IN AFRICA, Prepared for the “Africa Beyond Aid” conference, June 24-26, Brussels Belgium.

The Economic Impact of Counterfeiting and Piracy, OECD, Organisation for Economic

Co-operation and Development.

Williams Phil , TRANSNATIONAL CRIMINAL ORGANISATIONS AND

INTERNATIONAL SECURITY

---

[1] Telescoping The Times : The Age of Imperialism, 1850-1914, © 1999, McDougal-Littell

[2] Ibid

[3] ibid

[4] ibid

[5] Gowa Joanne, The Democratic Peace after the Cold War, Department of Politics, Princeton University

[6] ibid

[7] ibid

[8] Mazrui Ali A., THE END OF THE COLD WAR AND THE RISE OF DEMOCRACY?: BETWEEN AFRICA AND THE WEST, http://www2.binghamton.edu/igcs/docs/cold_war.pdf

[9] ibid

[10] ibid

[11] ibid

[12] http://en.wikipedia.org/wiki/History_of_democracy

[13] Muzaffer Ercan YlLMAZ, “The New World Order”: An Outline of the Post-Cold War Era Alternatives: Turkish Journal of International Relations, Vol. 7, No. 4, Winter 2008

[14] ibid

[15] ibid

[16] http://en.wikipedia.org/wiki/Criminal_Tribes_Act

[17] ibid

[18] ibid

[19] http://en.wikipedia.org/wiki/Tribal_sovereignty_in_the_United_States

[20] Philip J. Prygoski  From Marshall to Marshall The Supreme Court's changing stance on tribal sovereignty, http://www.americanbar.org/newsletter/publications/gp_solo_magazine_home/gp_solo_magazine_index/marshall.html

[21] 2010 Deer Sarah Relocation Revisited: Sex Trafficking of Native Women in the United States

William Mitchell College of Law, sarah.deer@wmitchell.edu

[22] “Since the late 20th century and the rise of Indian activism over sovereignty issues, as well as many tribes' establishment of casino gambling on reservations as a revenue source,” http://en.wikipedia.org/wiki/Indian_Reorganization_Act

[23] Hodge suggests that “trends in international trafficking are easier to estimatethan trends in domestic trafficking.” Hodge, supra note 8, at 144.

[24] See Gary C. Anders, Theories of Underdevelopment and the American Indian, 14 J. ECON. ISSUES 681, 690 (1980) (“Colonialism is a theoretical model which stresses the domination of a people by a culturally different and more powerful group over which they have little influence.”)

[25] Ibid

[26] http://www.santaynezchumash.org/gaming_history.html

[27] http://en.wikipedia.org/wiki/Casino

[28]  James O. Finckenauer ; Ko-lin Chin, 2004,  ASIAN TRANSNATIONAL ORGANIZED CRIME AND ITS IMPACT ON THE UNITED STATES: DEVELOPING A TRANSNATIONAL CRIME RESEARCH AGENDA

[29] 2009 Economic Impact Report, National Indian Gaming Association

[30] ibid

[31] ibid

[32] ibid

[33] ibid

[34] ibid

[35] ibid

[36] ibid

[37] ANDREAS PETER, Illicit Globalization: Myths, Misconceptions, and Historical Lessons, Political Science Quarterly Volume 126 Number 3, 2011

[38] Phil Williams, “Transnational Criminal Organisations and International Security,” Survival, Vol. 36, No. 1, Spring 1994, pp. 96–113. Copyright 1994 Oxford University Press

[39] Ibid

[40] ibid

[41] THE ECONOMIC IMPACT OF COUNTERFEITING AND PIRACY, 2007, OECD

[42] ibid

[43] ibid

[44] ibid

[45] ibid

[46] ibid

[47] State Policy on Chhattisgarh Special Economic Zone

[48]

Roderic Broadhurst and Lee King Wa, The Transformation of Triad ‘Dark Societies’ in Hong Kong:

The Impact of Law Enforcement, Socio-Economic and Political Change, Security Challenges

, Vol. 5, No. 4 (Summer 2009), pp. 1-38.

[49] B. Kulcsár – A. Eleıd – É. Kövesné Gilicze – J. Márialigeti, Globalisation and Transport – Priorities for Education and Research

[50] Jean-Paul Rodrigue, Transportation and Globalization

[51] A, Courtenay 'The good, the bad and the Ugly' in Offshore Review (1996) 9-11, at

[52] European Union Bank, 'Offshore.Banking', INTERNET 16/04/1997,10:26:11 AM, Port Vila, VANUATU.

[53] Scheme for setting up of Offshore Banking Units (OBUs)in Special Economic Zones (SEZs) DBOD.IBS.BC. 42/23.13.004/2002-03, November 12, 2002

[54] Off-Shore Banking, a Legal Fabrication for Money Laundering?: A Critique of the Legal Framework of the Western Samoa Off-Shore Finance Center http://www.usp.ac.fj/index.php?id=13092

[55] IRIS, 2012, Sports betting and corruption: How to preserve the integrity of sport

[56] Frankfurter Allgemeinen Sonntagszeitung, 21 August 2011.

[57] ibid

[58] Pons Noel, "Economie Criminelle:Vieilles Ficelles et Ruses Insolites", Pouvoirs, 2010/1 No. 132, p. 29-40.

[59] IRIS, 2012, Sports betting and corruption: How to preserve the integrity of sport

[60] ibid

[61] ibid

[62] ibid

[63] ibid

[64] ibid

[65] http://www.unicri.it/emerging_crimes/organized_crime/

[66] Study on links between Organised Crime and Corruption, CSD, Center for Study of Democracy

[67] ibid