Transnational Crime and the Developing World

I. Introduction
The aim of this report is to provide an overview of 11 different transnational crimes and their overlapping
trends and systems: the trafficking of drugs, arms, humans, human organs, and cultural property;
counterfeiting; illegal wildlife crime; illegal fishing; illegal logging; illegal mining; and crude oil theft. Each
chapter focuses on a different crime, exploring the value of the transnational market, its dynamics, how it
impacts developing countries, and recent developments in how it operates.
Transnational Crime and the Developing World is an update to Global Financial Integrity’s 2011
report Transnational Crime in the Developing World, which was written by Jeremy Haken. The same
transnational crimes are covered in this report as in the 2011 report. All transnational crime has
significant impacts on individuals, communities, and countries, and future reports may be expanded to
include other major transnational crimes, such as cybercrime, illegal waste, and smuggling.
Any discussion of value, whether of entire markets or individual goods, is largely based on estimation.
Much of the knowledge about these crimes comes from interdictions and seizures—the instances when
transparency pierces the clandestine nature of the markets. These incidences represent only a small
percentage of the total trade, but provide valuable intelligence that can inform policy. The illicit nature of
these markets means that participants have an interest in keeping market operations opaque, limiting
the amount and quality of data.
The point of considering estimated ranges of values is to illustrate that the magnitude of the funds
generated by transnational crime are significant and have major impacts on the economic, social,
political, and environmental stability of all countries. The negative effects of a given criminal market—
whether it is worth US$50 billion or US$150 billion—remain predominately unchanged and require the
same policy responses and coordination.
The transnational crimes examined in this report are frequently committed by organized crime groups
(OCGs). For some, the mention of OCGs or organized crime brings to mind the mafia and films like The
Godfather: glamorous, hierarchically-structured criminal organizations aligned along family and/or ethnic
lines with codes of honor. These stereotypes represent a portion of organized crime, but they do not
represent all OCGs. The United Nations Convention against Transnational Organized Crime defines an
OCG as “a structured group of three or more persons, existing for a period of time and acting in concert
with the aim of committing one or more serious crimes or offences… in order to obtain, directly or
indirectly, a financial or other material benefit.” 1
Transnational OCGs are, at their core, businesses: they are overwhelmingly motivated by financial
gain and seek out opportunities that offer high profits and low risks/costs. For both legal and illegal
enterprises, financial management is critical to the success of the business. Criminals not only derive
financial benefit from illicit revenues, they use the proceeds to sustain operations and to fund further
criminal activity, all of which is a threat to individual nations and the international community.
OCGs as well as terrorist and insurgent organizations are often highly adaptive to changes and
opportunities. They exploit crises such as natural disasters, social upheavals, and civil wars for the
trafficking of illicit goods, including humans, organs, arms, and cultural property, all of which compounds
the impacts of the situation. These groups are quick to adopt new technology, for example moving
operations online or using anonymous digital currency, that enables them to maximize profits as well as
stay ahead of law enforcement.
The report proceeds with 11 chapters on different transnational crimes, a section on recommended
policy responses, a conclusion covering the main themes and takeaways, and an appendix with
1
United Nations Office on Drugs and Crime, “United Nations Convention against Transnational Organized Crime and the Protocols Thereto” (New
York: United Nations, 2004), 5, http://www.unodc.org/documents/treaties/UNTOC/Publications/TOC%20Convention/TOCebook-e.pdf. Emphasis
added
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