convergence

Chapter 10
How Illicit Networks Impact Sovereignty
John P. Sullivan
T his chapter examines the problématique of illicit networks and transnational crime’s impact
on sovereignty. 1 Transnational criminal organizations (TCOs) and gangs challenge states
and sovereignty in a variety of ways. These include eroding state solvency through corruption,
subtle co-option of state officials and institutions, direct assault on state functions, and in
the worst case, state capture or failure under the threat of criminal challengers. Rarely do
criminal enterprises totally supplant states; rather they change the nature of state functioning.
This chapter looks at how gangs and TCOs influence state change at local, state, federal, and
transnational levels. It specifically examines networked TCOs and transnational gangs in
Mexico and Latin America to gauge the current and emerging threats to state functions, and
the reconfiguration of power within states.
State reconfiguration, including co-option, and the rise of criminal enclaves result from
the growth and proliferation of lawless or other-governed zones—including failed communities
or failed zones—through corruption and the application of force by private nonstate
armies. As part of this exploration, the concept of “criminal insurgency” will be examined
in the context of a “battle for the parallel state” (dual sovereignty) and the potential rise of
“narco-states” and “narco-networks.” The chapter illuminates the logic structure of criminal
state-challengers as they attempt to establish “neo-feudal” governance structures.
We begin with an examination of deviant globalization and dark side actors using
examples from Mexico and Latin America. The discussion then looks at narcocultura and
state-making potentials. Finally, we examine the impact on the state and the contours of state
reconfiguration, and the potential—or actuality—of gangs and criminal cartels to emerge
as new warmaking and potentially networked state-making entities. Within this construct,
criminal insurgency is defined as a means of removing the criminal enterprise from the control
of the state, enabling it to pursue its goals to dominate the illicit economy. Here the illicit
economy and globalization converge, conferring advantages to criminal enterprises. 2 Despite
this economic agenda, a political agenda also emerges. As a result, gangs and TCOs become
political actors influencing the reconfiguration of states.
Essentially, the chapter is concerned with the potential for illicit networks to reconfigure
states. Such reconfiguration could include erosion of state capacity (or the exploitation of a
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