Organized crime : where we were , where we are and where we are going

1. Petr Kupka Organizedcrime: wherewewere, wherewe are andwherewe are going

2. What is organized crime?

11. Definitions

12. Organized crime • Criminal organization • Criminal activity

13. List of characteristics • (1) totalitarian organization; • (2) immunity and protection from the law through professional advice or fear or corruption, or all, in order to insure continuance of their activities; • (3) permanency and form; • (4) activities which are highly profitable, relatively low in risk, and based on human weakness; • (5) use of fear against members of the organization, the victims, and, often, members of the public; • (6) continued attempt to subvert legitimate gov; • (7) insularity of leadership from criminal acts; and • (8) rigid discipline in a hierarchy of ranks. (Cressey 1969)

14. Formula definition • From this orientation comes a definition which highlights organized crime as a system of power and interaction, not as an invincible organization with mystical powers. (Homer 1974)

15. Definition „Criminal enterprise involved in criminal activities“ Varese 2011

16. Contemporary context • Ancient antecedents vs. modern manifestations • The growth of OC industry (scholars in the hands of policymakers ) • Legality vs. legitimacy • Blurring the policing and military functions • Overlap between national security intelligence and criminal intelligence • New phenomena related to OC (weak states, war economy etc.)

17. Developmentoftheconcept • Structural model • Kingship/patron-client model • Enterprise model • Multiple-constituency theory • Transaction-cost economics • Network perspective

18. Structural model • OC = authoritarian and bureaucratic system designed to maximalization of profit; ground with the code of conduct with specific rules and procedures • Modus operandi – functional roles in division the labour, sophisticatated management, bureaucratic atributes of precedents • Structure, not people, deepen the tradition and character of system

19. Structural model • Rationality = predominant determinant • Predictive level – law enforcement successes • OC viewed by the leneses of its internal form • OC = unified organized entity, not the set of variables

20. Structural model • Kefauver commission (1951) „There´s a natiowide crime syndicate known as the Mafia, whose tentacles are found in many large cities. It has international ramifications which appear most clearly in connecton with the narcotics traffic. Its leaders are usually found in control in most lucrative rackets of their cities. There are indicators of a centralized direction and control of these rackets, but leadership appears to be in a group rather than in single individual“

22. Structural model • No evidence ofsupportingtheviewof a centralizedSicilianorotherforeignorganizationdominating OC in the U.S. • Refers to outsidethreat • „Who“ is more importantthen „what“ • Focused on careercriminals, exclude (or de-emphasize) the part played by representativesofofficicaldomandthe „respectable“ classes (Woodiwiss 2005) • ConnectedwithItalianimmigration – arisingof LCN

23. Kingshipbased/patron-client model • Variationofstructural model • Providetheframeforthefamily-brotherhoodanalysis • Systemofsocialcontrol; can help withtheunderstandingof relations withintheclansorbetweenthem • Comesoutfromthe point ofviewofethnicaldiversity • Socialsystemscompletely in theopposition to modernbureaucraticinstitution

24. Kingshipbased/patron-client model • No structure, except for internal functional mechanisms – if culture values are decreasing, clans as units are decreasing as well and the system is dissappearing • Predictive level – relations will be weakening due to sequent assimilation of next generations to the „X“ society

25. Economic model • Market model – supply-demand • Legitimity spectrum – „saint“ vs. „sinfull“ • Market is formed by rules, not by conspiracy or strucutral conventions • Core technologies (general business procedures) – operational enviroment

26. Enterprise model • Organization = systemsopenedforovercomingtheuncertainity; closedsystemssubordinated to rationalityandnecessityofcertainity • Enterpreneurialuncertainityislocated in operationalenvironment (illegality = environemntdangerousforclassic business activities) • Core technology = effective fulfillment of defined certainity

27. Enterprise model • Interdependencyoforganizationandoperationalenvironment • The illegal market is working through dissatisfactionof potential candidates for products or services • Enterpreneurialcrimes – productionanddistributionof „new“ productsandservices via market relations betweensuppliersandconsumersandenterpreneurialsworth • Productsandservicesrefer to the risk ofdetection

28. Enterprise model • 2 type of crimes 1)Illegal markets 2)the penetration of legal spcetrum • the penetration of legal of spectrum is not the force that can shape the form of illegal markets

29. Multiple-constituencytheory • Organizationislegal fiction • Organizations are theresults, not initiatorsofanyactivities • Unificationofinterestswithincertainareas • Organizationis not thestructurebut center ofincentivechanges • Externalactors, quazi-insiders, internalelements • Cooperationandcompetition = conflict

30. Multiple-constituencytheory • Structureis not determined by theobjectives • Organizationis not located on thegeographical map ofitsmaterialassets; wecanlocateit on the base of dominant forces • Locationandstructurecanchangetheirforms • Satisfactionoftheinterestcanbesequential– time-share proces • Stability has minor influence compare to uncertainity

31. Network perspective • Relational structures of the group (or widen social system) consisted of the relation matters between the sets of actors • Each of the units has relation to another units and these units have relation with another units etc. • Set of actors = interacting units • Actors are no more independent, but interdependent

32. Model ofrelationties in the network, Schwartz-Rouselle 2008

33. Von Lampe, K. 2009– lecture in IASSOC Catania on 29/06/2009

34. Network perspective • Relations or relation ties are used as chanells for transmitting material or nonmaterial sources • Network environment offer the opportunities, but also the limits

35. Kleerks, P., ISSOC lecture Catania 2009

36. Bruinsma – Bernasco 2004

37. Arsovska, J., ISSOC Ohrid lecture, 2011

38. Arsovska, J., ISSOC Ohrid lecture, 2011

39. Network perspective • Actors • Relation; relational tie • Dyads, triads • Subgroups • System • Nodes • ….

40. Roles in thecriminalnetworks • Supplier (of raw materials, wholesale merchandise,machinery) • Customer (for goods or services) • Broker (puts criminal entrepreneurs into contact withpotential business partners) • Facilitator (supplier of support, such as logistical or institutionalfacilities) • Financer (investor, supplier of money) Source: Kleerks, P. (lecture in IASSOC Catania; July 2009)

41. Network perspective • Network structure characteristics (positions, density, the number of participants, cells and factions – cliques, brokers) • Upperworld + underworld = environment • OC as a mirror of political economy and civic society • Weak side: the reality of OC is not clear; just „usual suspects“

42. Zarkadoulas, N., lecture on IAASOC Ohrid 2011

43. Analytical model of OC Von Lampe, K. (2011)