political economy of gangs and organize crime: the threat of the underground economy of illegal...
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Political Economy of Gangs and Organize Crime:
The Threat of the Underground Economy
Of Illegal Drug Trade
A final term paper to e sumitted in
partial fulfilment of the
re!uirements for the su"ect International Political Economy
#umitted $y:
DI%O&' (U)T %EU# *+
$A Political #cience ,
#umitted To:
#ir Distor' -ilo #e.erino
Political #cience /0
-arch /12,
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DEDICATION
Since this would be my probably last class standing in the undergraduate
program, I wanted possibly to do all my best and my interest to create this term
paper. I have chosen gangs and organized crime as a topic since I was exposed to
gang culture when I was at high school. I joined a gang when I was a sophomore
around the year 200. I become a passive and later a !ormer member around 2011
due to the things what I had seen which ma"es me realize #what I am doing in li!e$%
and recognize the bad things I do due to gang pressure. <hough I personally
observe all the activities that the gang is doing, I did not parta"e nor involve at any
illegal actions o! drug tra'c"ing, holdups, the!t, arm tra'c"ing or such. Some
people thin" (aguio youth)street gangs are just !or #payabangan% or !or prestige in
class as an example but the reality is that street gangs serves as a training ground
!or rising up criminals. &s a !ormer street gang member, I also have a lot o! !riends
who wasted their li!e !or the gang culture and pay their dues at the (aguio *ity
+enitentiary and some acuitances who are convicts at some other jails. Some are
&ldrin -ohn e /a *ruz who was caught with arijuana, /ester ontemayor who
attempted murder to a rival gang member and -un Sagun !or was caught with !ew
sachets o! shabupoor mans meth3.
+urely everything is determined by economics, good or evil. Since the evils o!
this world is motivated by greed. 4he issue o! gangs is always associated with
underlying economic problems o! the society such as poverty and unemployment
which results to another problem5 the underground economy or the blac" mar"et
which it is a threat to the society. oney is the culprit. 6angs also do show another
separate !orce o! power which is also a threat to the legitimate authority and to the
society since bac"ground o! gangs is violent and destructive which cause anarchy7
anarchy on the street or a war declared by the state against such organized crimes.
8e need to solve the issue o! gangs since it corrupts the young minds. It
could be a reason why youths join gangs because o! prestige or power to the youth
sector. (ut as these youths grow up or rather realize that the world is economic in
nature, the orientation o! gang culture would a9ect the youths mindset to apply
what he learns !rom the gangs to gain not just prestige and power but also wealth.
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8e should not allow gangs to in;ltrate the youth sector7 we should not let it destroy
the individuals dream and also we should not let gangs devastate the communities
or society through crimes and ma"ing the who
4itle +age....................................................................................................................1
<edication................................................................................................................2
< 4able o! *ontents...................................................................................................... :
<Introduction..............................................................................................................=
<>rganized *rimes and Street 6angs....................................................................=
< 4ypes and Structures o! 6angs............................................................................?
<6ang otives and &ctivities............................................................................... ?
< 4he (lac" ar"et................................................................................................. @
<*riminal >rganization...............................................................................................A
<*riminal Binancing....................................................................................................A
<+hilippine Setting......................................................................................................
<6ang Cconomics....................................................................................................... D
<+olitical Cconomy o! *riminal >rganization............................................................10
< 4heoretical International +erspective.....................................................................11
<Structural Bunctionalism....................................................................................11
<Symbolic Interactionism.................................................................................... 12
<Eeo5/iberal 4heory............................................................................................ 12
<*ritical 4heory................................................................................................... 1:
<*onclusion and Fecommendation..........................................................................1?
<Gocabulary.............................................................................................................. 1@
<(ibliography...................................................................................................... 1@51A
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I. INTRODUCTION
Organized Gangs and Street Gangs
#I am li"e any other man, &ll I do is supply a demand% uoted by a !amous
&merican mobster &l Scar!ace *apone. 6angs are "nown !or their deviant actions,
violent conducts, criminal activities and illegal per!ormances. (ut what is a gang$ &
gang is a group o! recurrently associating individuals or close !riends with
identi;able leadership and internal organization, identi!ying with or claiming control
over territory in a community, and engaging either individually or collectively in
violent or other !orms o! illegal behaviour iller . , 1DA?3. 8e must con;gure out
what is a gang !rom an organized crime because both have same motives.
>rganized crime or o!ten criminal organizations are terms which categorise
transnational, national, or local groupings o! highly centralized enterprises run by
criminals, who intend to engage in illegal activity, most commonly !or monetary
pro;t. Some criminal organizations, such as terrorist organizations, are politically
motivated. Sometimes criminal organizations !orce people to do business withthem, as when a gang extorts money !rom shop"eepers !or so5called #protection%
acionis, -ohn, H /inda, 20003. 6angs may become disciplined enough to be
considered organized. &n organized gang or criminal set can also be re!erred to as a
mob.
In joining gangs, some criminal gang members are #jumped in% or have to
prove their loyalty by committing acts such as the!t, doing hits "illing someone3 or
violence. <hough gangs exist internationally, there is a greater level o! study and
"nowledgeable in!ormation o! gangs speci;cally in the nited States. & member o! a
gang is called a gangster. 6angs are prominent in the larger cities and urban areas
such as in the nited States, in prisons and jails while many branches o! the originalgang are present in small towns. 4he gangs competed with one another !or various
reasons, such as during the prohibition era !or control o! illegal drin"s, and would
o!ten beat or even murder an opposing gang member !or attempting to sell or
distribute illegal liuor on their Jtur!Jterritory o! a gang3. 4his resulted in retaliation
and eventually a gang5war between the opposing gangs 4aylor, 2011.3. 4he word
gang o!ten carries a negative connotation7 however, within a gang which de;nes it
in opposition to mainstream norms, members may adopt the phrase as a statement
o! identity or de;ance.
In searching the origins o! gangs, discussing banditry in *hinese history,
(arrington oore, -r. suggests that gangsterism as a J!orm o! sel!5help which
victimizes othersJ may appear in societies which lac" strong J!orces o! law and
orderJ7 he characterizes Curopean !eudalism as Jmainly gangsterism that had
become society itsel! and acuired respectabilityJ oore, 1D@A3. Since dawn o!
history, a wide variety o! gangs appeared all over the world, such as the >rder o!
&ssassins, the amned *rew, &dam the /eperKs gang, +enny obs, Indian 4hugs,
*hinese 4riads, Sna"ehead, -apanese <a"uza, Irish mob, +ancho GillaKs Gillistas, ead
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Fabbits, &merican >ld 8est outlaw gangs, (owery (oys, *hasers, the Italian ma;a,
-ewish ma;a, and Fussian a;a crime !amilies have existed !or centuries. &ccording
to some estimates the 4huggee gangs in India murdered 1 million people between
1A=0 and 1=0 Fubinstein, 1DD@3. 4he origins o! modern gangs could be traced
!rom the nineteenth century to the twentieth century. uring the prohibition era, &l
*apone could be considered as the !ather o! modern gangs and also the !ather o! organized crime.
Types and Structures of Gangs
any types o! gangs ma"e up the general structure o! an organized group.
4here are street gangs, which are people with similar bac"grounds and motivations.
4he term #street gang% is commonly used interchangeably with #youth gang,%
re!erring to neighborhood or street5based youth groups that meet #gang% criteria.
iller 1DD23 de;nes a street gang as #a sel!5!ormed association o! peers, united by
mutual interests, with identi;able leadership and internal organization, who act
collectively or as individuals to achieve speci;c purposes, including the conduct o! illegal activity and control o! a particular territory, !acility, or enterprise% iller 8. ,
1DD23.
+rison gangs are groups in a prison or correctional institution !or mutual
protection and advancement epartment o! *orrections, 200D3. +rison gangs o!ten
have several Ja'liatesJ or JchaptersJ in di9erent state prison systems that branch
out due to the movement or trans!er o! their members. 4he 200? study neither 8ar
nor +eaceL International *omparisons o! *hildren and <outh in >rganized &rmed
Giolence studied ten cities worldwide and !ound that in eight o! them, Jstreet gangs
had strong lin"s to prison gangsJ Magedorn, 2003. &ccording to criminal justice
pro!essor -ohn Magedorn, many o! the biggest gangs !rom *hicago originated !romprisons. Brom the St. *harles Illinois <outh *enter originated the *onservative Gice
/ords and (lac"stone Fangers. <hough the majority o! gang leaders !rom *hicago
are now incarcerated, most o! those leaders continue to manage their gangs !rom
within prison. Magedorn, 2003
*riminal gangs may !unction both inside and outside o! prison, such as the
Euestra Bamilia, exican a;a, Bol" Eation, and the (razilian +**. uring the
1DA0s, prison gangs in *ape 4own, South &!rica began recruiting street gang
members !rom outside and helped increase associations between prison and street
gangs. In the S&, prison gang &ryan (rotherhood is in organized crime outside
prison.
ost gang members have identi!ying characteristics uniue to their speci;c
cliue or gang. 4he (loods, !or instance, wear red bandanas, the *rips blue,
allowing these gangs to represent their a'liation. &ny disrespect o! a gang
memberKs color by an una'liated individual is regarded as grounds !or violent
retaliation, o!ten by multiple members o! the o9ended gang. 4attoos are also
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common identi;ers, such as an K1K above the eyebrow to identi!y an 1th Street
gang3 member. 4attoos help a gang member gain respect within their group, and
mar" them as members !or li!e. 4hey can be burned on as well as in"ed. Some
gangs ma"e use o! more than one identi;er, li"e the Eortenos, who wear red
bandanas and have K1=,K KNIG,K Kx=,K and KEorteK tattoos. 6angs o!ten establish
distinctive, characteristic identi;ers including gra'ti tags, hand signals, clothing!or example, the gangsta rap5type hoodies3, jewelry, hair styles, ;ngernails,
slogans, signs such as the noose and the burning cross as the symbols o! the Olan
or the lion crown o! the /atin Oings3, Pags secret greetings, slurs, or code words and
other group5speci;c symbols associated with the gangKs common belie!s, rituals,
and mythologies to de;ne and di9erentiate themselves !rom other groups and
gangs.
Gang Moties and Actiities
sually, gangs have gained the most control in poorer, urban communities
and the 4hird 8orld in response to unemployment and other services. Socialdisorganization, the disintegration o! societal institutions such as !amily, school, and
the public sa!ety net enable groups o! peers to !orm gangs Magedorn, 2003.
&ccording to surveys conducted internationally by the 8orld (an" !or their 8orld
evelopment Feport 2011, by !ar the most common reason people suggest as a
motive !or joining gangs is unemployment 8orld evelopment Feport, 20113.
Cthnic solidarity is a common !actor in gangs. (lac" and Mispanic gangs
!ormed during the 1D@0s in the S& o!ten adapted nationalist rhetoric. (oth
majority and minority races in society have established gangs in the name o!
identityL the Igbo gang (a"assi (oys in Eigeria de!end the majority Igbo group
violently and through terror, and in the nited States, whites who !eel threatened byminority rights have !ormed their own groups, such as the Ou Olux Olan. Fesponding
to an increasing blac" and Mispanic migration, a white gang called 6aylords !ormed
in *hicago. Some gang members are motivated by religion, as is the case with the
uslim +atrol Magedorn, 2003.
6ang violence re!ers to mostly those illegal and non5political acts o! violence
perpetrated by gangs against innocent people, property, or other gangs /utrell,
200D3. 4hroughout history, such acts have been committed by gangs at all levels o!
organization. odern gangs introduced new acts o! violence, which may also
!unction as a rite o! passage !or new gang members.
? percent o! /.&.s murders were gang5related in 200@ urr, 200A3. Feports
o! gang5related homicides are concentrated mostly in the largest cities in the nited
States, where there are long standing and persistent gang problems and a greater
number o! documented gang members, most o! who are identi;ed by law
en!orcement.
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4here have been reports o! racially motivated attac"s against &!rican
&mericans 4he Cconomist, 200A3. embers o! the &zusa 1: gang, associated with
the exican a;a, were indicted in 2011 !or harassing and intimidating blac"
people in Southern *ali!ornia Eg, 20113. 6ang5related activity and violence has
increased along the .S. Southwest border region, as S5based gangs act as
en!orcers !or exican drug cartels.
T!e "#ac$ Mar$et
4he nited Eations estimates that gangs ma"e most o! their money through
the drugs trade, they are thought to be worth Q:?2billion in total Syal, 200D3. 4he
nited States epartment o! -ustice estimates there are approximately :0,000
gangs, with A@0,000 members, impacting 2,?00 communities across the nited
States >'ce o! -uvenile -ustice and elinuency +revention , 200@3.
6angs are involved in all areas o! street5crime activities li"e extortion, drug
tra'c"ing, both in and outside the prison system and the!t. 6angs also victimizeindividuals by robbery and "idnapping. *ocaine is the primary drug o! distribution
by gangs in &merica, which have used the cities *hicago, *ape 4own, and Fio de
-aneiro to transport drugs internationally. (razilian urbanization has driven the drug
trade to the !avelas o! Fio. >!ten, gangs hire Jloo"outsJ to warn members o!
upcoming law en!orcement. 4he dense environments o! !avelas in Fio and public
housing projects in *hicago have helped gang members hide !rom police easily.
Street gangs ta"e over territory or Jtur!J in a particular city and are o!ten involved in
Jproviding protectionJ, o!ten a thin cover !or extortion, as the JprotectionJ is usually
!rom the gang itsel!, or in other criminal activity. any gangs use !ronts to
demonstrate inPuence and gain revenue in a particular area Magedorn, 2003.
II. CRIMINA% ORGANI&ATION
Fesearch has !ocused on whether the gangs have !ormal structures, clear
hierarchies and leadership in comparison with adult groups, and whether they are
rational in pursuit o! their goals, though positions on structures, hierarchies and
de;ned roles are conPicting. Some studied street gangs involved in drug dealing 5
;nding that their structure and behavior had a degree o! organizational rationality
S"olnic, 1DD:3. embers saw themselves as organized criminals7 gangs were
!ormal5rational organizations, strong organizational structures, well de;ned roles
and rules that guided members behaviour also a speci;ed and regular means o!
income i.e. drugs3 Sanchez5-an"ows"i, 1DD?3. Mowever some have !ound these tobe loose rather than well5de;ned and lac"ing persistent !ocus, there was relatively
low cohesion, !ew shared goals and little organizational structure. Shared norms,
value and loyalties were low, structures JchaoticJ, little role di9erentiation or clear
distribution o! labor. Similarly, the use o! violence does not con!orm to the principles
behind protection rac"ets, political intimidation and drug tra'c"ing activities
employed by those adult groups. In many cases gang members graduate !rom
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youth gangs to highly developed >* groups, with some already in contact with such
syndicates and through this we see a greater propensity !or imitation. 6angs and
traditional criminal organizations cannot be universally lin"ed ec"er, 1DD3
however there are clear bene;ts to both the adult and youth organization through
their association. In terms o! structure, no single crime group is archetypal, though
in most cases there are well5de;ned patterns o! vertical integration where criminalgroups attempt to control the supply and demand3, as is the case in arms, sex and
drug tra'c"ing ec"er H 8eisel, 1DD3.
III. CRIMINA% 'INANCING
>rganized crime groups generate large amounts o! money by activities such
as drug tra'c"ing, arms smuggling and ;nancial crime. 4his is o! little use to them
unless they can disguise it and convert it into !unds that are available !or
investment into legitimate enterprise. 4he methods they use !or converting its dirty
money into clean assets encourages corruption. >rganized crime groups need to
hide the moneys illegal origin. It allows !or the expansion o! the groups, as thelaundry or wash cycle operates to cover the money trail and convert proceeds o!
crime into usable assets. oney laundering is bad !or international and domestic
trade, ban"ing reputations and !or e9ective governments and rule o! law. &ccurate
;gures !or the amounts o! criminal proceeds laundered are almost impossible to
calculate, and the Binancial &ction 4as" Borce on oney /aundering B&4B3, an
intergovernmental body in the nited States set up to combat money laundering,
has stated that Joverall it is absolutely impossible to produce a reliable estimate o!
the amount o! money laundered and there!ore the B&4B does not publish any ;gures
in this regardJ Binancial &ction 4as" Borce, 20013. Mowever in the S estimated
;gures o! money laundering have been put at between Q200 R Q@00 billion per year
throughout the 1DD0s S *ongress >'ce 1DD?7 Fobinson 1DD@3, and in 2002 this
was estimated between Q?00 billion to Q1 trillion per year E 20023. 4his would
ma"e organized crime the third largest business in world a!ter !oreign exchange and
oil Fobinson 1DD@3. 4he rapid growth o! money laundering is due toLthe scale o!
organized crime precluding it !rom being a cash business 5 groups have little option
but to convert its proceeds into legitimate !unds and do so by investment, by
developing legitimate businesses and purchasing property7 globalization o!
communications and commerce 5 technology has made rapid trans!er o! !unds
across international borders much easier, with groups continuously changing
techniues to avoid investigation7 and a lac" o! e9ective ;nancial regulation in parts
o! the global economy.
4he illegal drug trade is the main ;nancial resource o! all gangs. It is a global
blac" mar"et that is dedicated to the cultivation, manu!acturing, distribution, and
sale o! drugs that are subject to drug prohibition laws. & E report said Jthe global
drug trade generated an estimated S Q:21.@ billion in 200:.J 8ith a world 6+ o!
SQ:@ trillion in the same year, the illegal drug trade may be estimated as nearly
1 o! total global trade (oston, 200?3. *onsumption o! illegal drugs is widespread
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globally. ue to its illicit nature, statistics about pro;ts !rom the drug trade are
largely un"nown. In its 1DDA 8orld rugs Feport the E>* estimated the value o!
the mar"et at SQ=00 billion, ran"ing drugs alongside arms and oil among the
worldKs largest traded goods E>*, 20113. In ecember 200D, the Cxecutive
irector o! the nited Eations >'ce on rugs and *rime, &ntonio aria *osta,
claimed that illegal drug money saved the ban"ing industry !rom collapse. Meclaimed he had seen evidence that the proceeds o! organized crime were Jthe only
liuid investment capitalJ available to some ban"s on the brin" o! collapse during
200. Me said that a majority o! the SQ:?2bn T21@bn3 o! drugs pro;ts was
absorbed into the economic system as a result. JIn many instances, the money !rom
drugs was the only liuid investment capital. In the second hal! o! 200, liuidity
was the ban"ing systemKs main problem and hence liuid capital became an
important !actor. Inter5ban" loans were !unded by money that originated !rom the
drugs trade and other illegal activities. 4here were signs that some ban"s were
rescued that wayJ. *osta declined to identi!y countries or ban"s that may have
received any drug money, saying that would be inappropriate because his o'ce is
supposed to address the problem, not apportion blame Fajeev, 200D3. >ther types
o! gang activities involve gambling, drug usage, and arms tra'c"ing, white collar
crime such as counter!eiting, identity the!t, and !raud, and non5traditional activity o!
human tra'c"ing and prostitution.
I(. )*I%I))INE SETTING
Street gangs in the +hilippines seem less alarming although it could rise.
Institutions such as the !amilies, communities, local government, and especially the
schools sense the alarming growth o! gang members. Mowever deep inside the
structure o! gangs, whether street gangs or youth gangs or even prison gangs,
illegal activities actually happens. &t an early stage, high school student gang
members actually exposed to vices such as smo"ing and drin"ing liuor. 6igs or
meeting may include training o! young or new members to sell illegal drugs such as
arijuana and eth and also sell illegal weapons not registered such as pistols and
grenades. >riginal 6angsta or the gang leaders also teaches techniues on street
brawls, using guns and "nives or hiding drugs during drug trade.
It may not be seen in youth gangs but actually this is happening. Mere at
(aguio alone has a diversity o! street) youth gangs such as the Eorth Side 4errorist,
+inoy 4rue *rips, 6od obs *arnales, (lood own +osse, Fappers elta Boundation,
Feal +inoy *rips, +inoy Feal, Fec"less &siatic gang)Fagsta, Sudden eath 6ang,Cast Side 4errorist, og +ound, Samahang uslim, Gigilante +laya *rips, and Ill *ity.
&t (aguio *ity during the high pea"s o! gang activities, gang wars were common
a!ter class hours. & lot o! incidences happen such as the murder o! *harmaine #/il
4ri"""% *alpitowho is a #Fagsta% member3 and Fex &lbertEorthSide5+S member3
which are all gang related incident o! opposing gangs. Illegal drug and weapon
trade were also common. &ldrin -ohn e /a *ruz, a -unior >.6. o! +inoy Feal+F3 was
caught with bags o! arijuana, Belix #Buma%, a >.6 o! Cast Side 4errorist was caught
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with sachets o! #shabu% at Irisan, and a lot more such as home invasion, the!t,
physical injuries and attempted homicides and muders. 4he issue o! street gangs is
that it is the training ground o! criminals, it evolves the stepping stone to organized
crimes and causes increase o! crimes and ma"ing more youths to be criminal
oriented. (ut importantly, a street gang provides deviant culture and it is directly
lin"ed to criminal activities especially drug trade. Street gangs correlates withviolent crimes. (ut what alarms about gangs is its contribution towards the
underground economy or the blac" mar"et. 6angs are considered to be actors in
the underground economy. 6ang members could be the !rontliners o! illegal activity
such as drug tra'c"ing, illegal weapon trade and money laundry.
& bill has been ;led by two congressmen outlawing all street gangs and
!raternities with their big bosses and members !acing jail time between 1? and :0
years or li!e imprisonment. 4he Mouse has approved on ;nal reading a measure
which see"s to deter the proli!eration o! street gangs through a set o! sti9 penalties
against members, recruiters and anyone who commits gang5related crimes. Mouse
(ill ?2A or the J*riminal Street 6ang eterrence and +unishment &ct o! 200DJauthored by Fep. Fu!us Fodriguez ++, *agayan de >ro3 H Fodol!o 8. &ntonino o!
Eueva Ccija de;ne criminal gangs as a J!ormal or in !ormal group, club, organization
or association o! three or more members who, alone or any combination thereo!,
actss3 or agrees3 to act in concert in order to commit two or more predicate gang
crimes.JJ+redicate gang crime,J it said, is Jany threat or act or attempted act or
threat which is punishable under the revised +enal *ode and other special penal
laws and punishable by imprisonment o! more than one year.J 4he bill said
Jpredicate gang crimesJ are murder, attempted murder, gambling, "idnapping,
robbery, extortion, arson, obstruction o! justice, burglary, sexual assault, and
carjac"ing.
In accordance with gang related activities o! illegal drug trade and usage,
Fepublic &ct Eo. D1@? or the #*omprehensive angerous rug &ct o! 2002%. 4he
government shall pursue an intensive and unrelenting campaign against the
tra'c"ing and use o! dangerous drugs and other similar substances through an
integrated system o! planning, implementation and en!orcement o! anti5drug abuse
policies, programs, and projects.
G. GANG ECONOMICS
6angs and organized crime emerges out o! the power vacuum that is created
by the absence o! state en!orcement, and which can have many sourcesL
geographic, social, and ethnic distance, prohibition, or simply collapse o! state
institutions. 4here!ore appears to be a symptom o! state wea"ness, which it has
created its own dynamics that intensi!y the causes o! state !ailure. a;as and gangs
are hierarchically organized and can be thought o! as providing primitive state
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!unctions, with economic costs that are typically much higher than those associated
with modern governance. 4hough organized crime cannot be completely eradicated,
its control is necessary, since it can easily corrupt existing institutions o!
governance.
*ompetition ta"es the !orm o! an arms race with your neighbours. I! you havea large enough army you can deter your neighbours or ta"e some o! their tur!7 i!
not, you lose tur! or you can be ta"en over completely. 4he mar"et structure that
could best describe organized crime, then, is a curious sort o! monopolistic
competition, whereby each gang has the local monopoly o! protection within a
certain area and this local monopoly is maintained by the gangs capability o!
mobilizing and using !orce against other gangs. 4he absence o! alternative
providers o! protection locally implies that the gang can use its en!orcement powers
internally to extract a price !or its protection that is not just at its monopoly level
but is extortionist Rthe gang can name its price and its uantity especially i! the
gangs time horizonis short or the areas population does not have the resources to
move in areas without gangs Oonrad H S, 1DD3.
GI. )O%ITICA% ECONOM+ O' CRIMINA% ORGANI&ATIONS
6angs and organized crimes are a problem o! all nation5state since a gang is
"nown !or illegal activities. >rganized crime threatens peace and human security,
violates human rights and undermines economic, social, cultural, political and civil
development o! societies around the world.
4ransnational organized crime mani!ests in many !orms, including as
tra'c"ing in drugs, ;rearms and even persons. &t the same time, organized crime
groups exploit human mobility to smuggle migrants and undermine ;nancialsystems through money laundering. 4he vast sums o! money involved can
compromise legitimate economies and directly impact public processes by buying
elections through corruption. It yields high pro;ts !or its culprits and results in high
ris"s !or individuals who !all victim to it. Cvery year, countless individuals lose their
lives at the hand o! criminals involved in organized crime, succumbing to drug5
related health problems or injuries inPicted by ;rearms, or losing their lives as a
result o! the unscrupulous methods and motives o! human tra'c"ers and smugglers
o! migrants.
>rganized crime has diversi;ed, gone global and reached macro5economic
proportionsL illicit goods may be sourced !rom one continent, tra'c"ed acrossanother, and mar"eted in a third. 4ransnational organized crime can permeate
government agencies and institutions, !uelling corruption, in;ltrating business and
politics, and hindering economic and social development. &nd it is undermining
governance and democracy by empowering those who operate outside the law.
4he transnational nature o! organized crime means that criminal networ"s
!orge bonds across borders as well as overcome cultural and linguistic di9erences in
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the commission o! their crime. >rganized crime is not stagnant, but adapts as new
crimes emerge and as relationships between criminal networ"s become both more
Pexible, and more sophisticated, with ever5greater reach around the globe. In short,
transnational organized crime transcends cultural, social, linguistic and
geographical borders and must be met with a concerted response nited Eation
>'ce on rugs and *rime, 201:3.
Illicit economies o! these criminal organizations exist in some !orm virtually
everywhere. Bor example, some part o! the illegal drug economy R production,
tra'c"ing, or distribution R is present in almost every country. <hough the drug
trade is widely believed to be the most pro;table illicit economy, dwar;ng others
such as the illegal trade in wildli!e or logging, its impact on society and the intensity
o! violence and corruption it generates vary in di9erent regions and over time. any
things account !or the variation in violence, including demographic !actors, such as
the age o! criminal capos and the geographic concentration o! minority groups,
levels o! poverty, the balance o! power in the criminal mar"et as well as the
capacity o! policing agencies and their choice o! strategies. (eyond violence, thestrength and presence o! the state are critical in determining the impact o! illicit
mar"ets on society. >rganized crime has a particularly vicious impact on the state i!
it can create strong bonds with larger segments o! the population than the state
can. any people around the world in areas with an inadeuate or problematic state
presence, great poverty, and social and political marginalization are dependent on
illicit economies !or their livelihood. *riminal as well as militant3 groups provide the
marginalized population with employment and an opportunity !or social
advancement. 4hey can also provide a level o! security, suppressing robberies,
the!ts, "idnapping, and murders as well as providing in!ormal courts, despite their
being instigators o! crime and instability in the ;rst place. &s a result, criminalentities can gain political capital with local communities Belbab5(rown, 20123.
(II. T*EORETICA% INTERNATIONA% )ERS)ECTI(E
A. Structura# 'unctiona#is,
Bunctionalist euates gang activity on its ;nancial resources especially on
criminal activity such as illegal drug and weapon trade, the!t, robbery, or more.
Bunctionalists perceive gang related activities are ongoing partly because o! the
expectation o! monetary success in the society. Innovators, as de;ned by the
!unctionalist perspective are those who con!orm to the goals o! society through
improper means, !or example gang members who are drug dealer or gang
members who are robbers. 4he war against gang activities o! illegal drug trade
rages on because o! the innovators who pro;t !rom the e9orts against drug trade
that only end up ma"ing the drugs more in demand. 4he pro;ts !rom selling drugs
are great !or the innovators to con!orm to the standards o! a normal society.
8henever a set bac" to the drug trade occurs, it is the innovators, driven by the
idea o! success who come up with new and inventive ways to tra'c drugs.
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&lso, gang activity is a source o! income. It serves as an alternative. It
provides jobs !or thousands who are unemployed or sees gang activity as an
opportunity to climb up the social ladder. /oo" at the streets) ghettos. <oung boys
or young gang members may serve as loo"outs on the street corners in terms o!
home robbery invasion, carnapping, holpdapping or in drug trade. In example o!
drug trade, these young boys ma"e +h+=,000 or more daily which allows them topurchase !ood, housing, clothing and an investment !or weapon and in the
underground economy.
6angs whether street, youth or prison3 and organized criminal syndicates
such as the a;a and drug cartels who are responsible !or criminal activities are
labelled as a dys!unction by the !unctionalist perspective elegio, 20003. 8hile not
politically driven, gangs and organized crime do see" to establish their own !orm o!
social structure apart !rom that o! the normal society. 4he war against crimes o!ten
target gang activity because gangs are o!ten associated with drug tra'c"ing, sale
o! illegal drugs and weapon, robbery and as well as the use o! these illicit drugs.
8hile these groups, the gangs are not solely responsible !or "eeping the war ondrugs alive, because o! the allure gangs have to those with a rebellious mindset
toward society they are a constant recruiting tool !or the innovators who are
loo"ing !or more criminals and also more users 5 the law o! supply and demand.
". Sy,-o#ic Interactionis,
I will apply more sociological perspective in this theory. Symbolic
interactionism researchers investigate how people create meaning during social
interaction, how they present and construct the sel! or the #identity%, and how they
de;ne situation o! co5presence with others. >ne o! the perspectives central ideas is
that people act as they do because o! how they de;ne situations. Eow SymbolicInteractionism might suggest that those individuals involve in gang activities have
created their own social system, with a hierarchy, an internal police !orce and their
own laws. 6angs, organized criminal organizations, ma;as, drug cartel and criminal
syndicates have own uniue and diverse laws, own so5called constitution, own
sectors with speci;c !unction and culture such as tattoos, street slangs and dress
codes. Street gangs such as the in!amous (loods and *rips have constructed its
identity. (loods wear red while *rips wear blue. a;as such as the Italian *osa
Eostra have a code o! secrecy, -apanese <a"uzas determine their ran"s through
tattoos, /atin gangs reuires members to grow moustaches and shave their hairs,
and prison gang such as the (ahala na 6ang reuires all members to have a $3tattoo to pledge allegiance to the gangs.
C. Neo%i-era# T!eory
In neoliberal theory, I !ocused on the nited States since it is the main actor
!or globalization and ethnic and racial diversity which could be the basis o! gang
situation. Situation o! gangs in the nited States is signi;cant to neoliberal policies.
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Saliency o! race and ethnicity has become central to the sel!5identity o! gangs as
well as shaping the neo5liberal penal response. 4he ghetto remains central in the
S, and a global re5division o! space has created walls o! exclusion and segregation
in urban aras around the world, while promoting a homogenous, globalizing culture.
>ne response to a shrin"ing world has been a strengthening o! #resistance
identities,% including nationalism and religious !undamentalism, both o! whichinPuence gangs such as /atin street gangs, blac" gangs, Italian and Fussian a;as.
¬her theme is that globalization has excluded vast populations !rom the !ormal
economy. &n in!ormal economy, including a new global criminal economy, has
become a mainstay !or institutional gangs. 4he harsh response o! the S war on
drugs has been criticized world5wide, but also !ollowed by 6reat (ritian and neo5
liberal politicians across the globe. 4hese policies have created a permanent lin"
between the gang, the ghetto, and the prison. Eew social movements have arisen in
opposition to neo5liberal policies, and even in some places these movements have
incorporated gangs Magerdorn, 20023.
>n the subject towards globalization, Sas"ia Sassen loo"s at the meaning o!
space in the global era !or social organization o! the urban poor, including gangs.
4wo case studies !ollow. -an Fus and iego Gigil loo" at the changes in *hiapas
exican Fegion3 over the past several decades. 4hey document the salience o!
ayan ethnicity as well as the importance o! the drug trade !or youth and the
cultural di9usion o! S gang identity. *ameron Mazlehurst examines how the gang
problem in Eew Uealand has been observed !or the past several decades. Me
documents the signi;cance o! ethnicity in aori gangs and the globalization o! the
international criminal economy. 4he migration o! /atin immigrants as well as Bilipino
immigrants also shows the spreading o! gang culture and wider mar"et !or illegal
activities o! drug trade. 4he section is necessarily limited to a theoretical piece andtwo case studies7 it demonstrates the salience o! space and ethnicity in the global
era. -ohn +itts loo"s at the adoption in 6reat (ritain o! neo5liberal policies and their
implications !or a war on gangs and crime. Me loo"s closely at the construction o!
race as it shapes repressive (ritish policies modelled on the S. avid (rotherton
examines the case study o! the &lmighty /atin Oing and Vueen Eation 6ang in Eew
<or" *ity in the 1DD0s as an example o! a social movement designated to protect
/atin minorities which the city tried mightily to crush. ouglas 4homp"ins ends with
a loo" at inmate organization in S prisons and the relationship o! economics and
politics in terms o! correctional practices, the system o! penology in the nited
States and the -ail anagement with the support o! its *orrectional >'cers and the+oliticians to control the power o! prison gangs to dictate gang activities such as
commanding murder or assassinations, illegal drug and weapon trade, and more
Magerdorn, 20023.
D. Con/ict T!eory
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6ang activity could be another source o! income by other people especially to
those belonging to the lowest sector. >r gang activity is seen as a !ast lane or
opportunity to escape poverty or to climb to the social ladder. ue to some
economic problems such as poverty, recession and unemployment, people join
gangs7 gang members resorted to enter the underground economy or the blac"
mar"et in order to gain pro;t.
6ang activity is mostly a criminal activity. In !ocusing gangs, we must !ocus
on the science o! the criminal mind. In critical theory, criminology is both a
rePection o! and a !orce behind revolution. 4he emerging paradigm in criminology is
one which emphasizes social conPict5particularly conPicts o! social class interests
and values. 4he paradigm which is being replaced is one where the primary
emphasis was on consensus, and within which deviance or crime was viewed as an
irregularity shared by some minority in this case the gang. 4his group had !ailed to
be properly socialized or adeuately integrated into society or, more generally, had
su9ered !rom social disorganization. 4he shi!t in paradigm means more than simply
a shi!t !rom explaining the same !acts with new causal models. It means that westretch our conceptual !ramewor" and loo" to di9erent aspect o! social experience.
Speci;cally, instead o! resorting certainly to the normative system, to culture or to
socio5psychological experiences o! individuals, we loo" instead to the social
relations created by the political and economic structure. Father than treating
society as a !ull5blown reality rei!ying it into an entity with its own li!e3, we see" to
understand the present as a rePection o! the economic and political history that has
created the social relations which dominate the moment. 4he shi!t means that crime
becomes a rational response o! some social classes to the realities o! their lives. 4he
state becomes an instrument o! the ruling class en!orcing laws here but not there,
according to the realities o! political power and economic conditions *hambliss,1DA?3.
>ppression o! capitalistic entities could be a !actor o! creation o! gangs. In
the nited States along, a !eudalistic property o! !arm lands along counties causes
exploitation to the !armers. >riginally !armers who are mostly /atinos, &sians and
&!rican5&mericans create groups such as unions to protect the !armers interest but
which is ethnocentric. Mowever the culprit such as illegal drugs was seen as an
opportunity !or these groups to gain violent. &long with drug trade, violent crimes
also too" in place such as murder.
*reation o! gangs, drug cartels and organized criminal organizations could bea result o! imperialism. 6angs are euated with illegal actions o! drug tra'c"ing.
Mence the political economy o! gangs could be based !rom drug trade. In the world
o! the global drug trade the state is pretty much at the very heart o! the action, not
just simply criminal elements. It is the state that allows gaining and maintaining
mar"et share. & prime example is *olombia where it is "nown as the home o! the
*olombian cartel responsible !or drug supply not just the &merican continent but
majority o! the world , as boo" author >liver Gillar explains in this exclusive
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interview !or &sia 4imes >nline. #4here needs to be a complete restructure in the
way we examine the drug trade%, he says. Me also addedL #I! you loo" at the drug
war !rom a purely economic point o! view, the role o! the government is to protect
the drug cartel.% 4he most notorious example is the (ritish colonial opium trade,
where much o! that process was happening in a very wide scale, where the (ritish
not only gained ;nancially, but also used it as a political !orm o! social control andrepression. 8hat did they do$ In *hina they were able to uite e9ectively open up
their mar"et to (ritish control. 4his is just one example. &nd !rom there on the way
he loo"ed at other great powers and the way they also somehow managed to use
drugs as a political instrument, but also as a !orm o! ;nancial wealth, as you could
say, or revenue to maintain and sustain their power. 4he great power o! today that
he has to say is the nited States, o! course. In drawing upon past empires or great
powers, it becomes an imperial commodity because it is primarily serving the
interests o! that imperial state. I! we loo" at the nited States !or instance, it
becomes an imperial commodity just as much as opium became a (ritish imperial
commodity in a way it related to the *hinese. It means the imperial state is there to
gain !rom the wealth, the nited States in this case, but it also means that it serves
as a political instrument to harness and maintain a political economy which is
!avourable to imperial interests. 8e had the war on drugs, !or example. It is a way
how an imperial power can intervene and also penetrate a society much li"e the
(ritish were able to do with *hina in many respects. So it is an imperial commodity
because it does serve that pro;t mechanism, but it is also an instrument !or social
control and repression. 8e see this continuity with examples where this ta"es place.
&nd *olombia, he thin", was the most outstanding and uniue example which I
have made into an investigative case study itsel!. ¬her thing worth mentioning is
what actually ma"es the largest sectors o! global trade, what are they$ It is the oil,
arms, and drugs. 4he di9erence being that because drugs are seen as an illegalproduct, economists dont study it as just another capitalist commodity R but it is a
commodity. I! you loo" at it !rom a mar"et perspective, it wor"s pretty much the
same way as other commodities in the global ;nancial system Schall, 20123.
8hat we should "now is that there needs to be a complete restructure and
revision in the way we examine the drug trade. Birst o! all, its not crime that is at
the center o! the political economy, but is the state, imperialism and class that I
thin" is essential, or at least I ;nd it very use!ul in examining the drug trade. 8e can
see that clear in *olombia where you have a narco5bourgeoisie which is essentially
the main bene;ciary there. 4hese arent just the landlords, these are also the
paramilitaries, "ey members o! the police, the military and the government, but also
the connection to the nited States which is a political relationship, which is
;nancing them to ;ght their common enemy, which is at this point in time the le!t5
wing guerrillas, predominantly the Fevolutionary &rmed Borces o! *olombia, the
B&F*. So this again goes bac" to your previous uestion about this contradictionL
why are trillions o! dollars being waged to ;ght the drug trade in *olombia, but also
in &!ghanistan, when li"e in *olombia, everybody "nows &!ghanistan has a very
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corrupt regime and many o! them are drug lords themselves who are the main
bene;ciaries in that country$ It has little to do with drugs, it has little to do with
terrorists, and it has everything to do with empire building o! which the main
bene;ciary is the nited States Gillar, 2003.
(III. CONC%USION AND RECOMMENDATION
6ang activity such as illegal drug tra'c"ing sustains violence and chaos by
;nancing armed groups who are involved in it and provides an economic incentive
to maintain a !ailed state incapable o! exerting control over all o! its territory or
citizens. In a less obvious but similarly dangerous !ashion, criminal organizations
rein!orce and widen the divide between the state and citizens by providing the
public goods that the state o!ten cannotL economic opportunities and security. >n
the other hand, given the contribution that organized crime ma"es to state !ailure
and its resistance to e9orts to strengthen the state, steps must and can be ta"en to
wea"en its presence. 4o do so, it must be addressed as a proximate cause o! state
wea"nesses to control gangs rather than as merely a symptom o! deeper rootcauses. 4he participants who bene;t the most economically and who most actively
see" to wea"en the state politically are the gang members7 they are the most
important actors in the drug trade and other criminal activities, and o9er the most
immediate bene;ts !rom targeted counter5gang e9orts. 4he best option !or dealing
with them is by treating them in their proper roleL as criminals. 4heir source o!
income must be eliminating and they must be immobilized as actors without
directly rein!orcing the political and economic grievances o! the citizens and their
support !or anti5state actors. In this regard, monetary, training and "nowledge5
sharing assistance should be provided to strengthen the capacity o! the government
li"e the +olice Borce, Social wel!are, -uveniles *orrections as well as the educational
sectors such as the school teachers and guidance counsellors to e9ectively gather
intelligence on the gang activities such as drug trade and apprehend those
individuals involved. 8ithout capable and accountable police that are responsive to
the needs o! the people and are bac"ed5up by an e'cient, accessible, and
transparent justice system, the state cannot manage either legal or illegal
economies. Feducing the violence associated with gang activity should be a priority
!or police or also the military. 6overnments that e9ectively reduce the violence
surrounding illicit economies o!ten may not be able to rid their countries o!
organized crime7 they can, however, lessen its grip on society, thereby giving their
people greater con;dence in government, encouraging citizen co5operation with law
en!orcement, and aiding the trans!ormation o! a national security threat into apublic sa!ety problem.
(oca-u#ary
(loods5 & gang where it represents its identity with the color red
*arnales5 Mispanic term !or #(rotherhood%. /atin and Bilipino gangs use the term !orre!ering gang mates
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*rips5 & gang where it represents its identity with the color blue
6igs5 meeting or gathering o! gang members
a;a5 a secret criminal society originated !rom Sicily Italy
Eortenos5 & Mispanic gang who represents its identity with the color red. Subchaptero! the Euestra Bamilia
Euestra Bamilia5 Mispanic organized criminal organization who represents its identitywith the color red
Surenos5 & Mispanic gang who represents its identity with the color blue.
>riginal 6angsta5 Street gang leader, possesses gang leadership and with a ghettooriented li!estyle. &n >.6 is long time member which experienced gang li!e !or along length o! time. +robably attained his position by doing crimes such as murderand home invasion and probably went to jail.
4ur!5 territorial claim o! a gang or an organized criminal organization
"i-#iograp!y
(oston. 200?3. E report puts worldKs illicit drug trade at estimated SQ:21b.
Boston.com.
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1D
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ori!ins o# dictatorshi' and democracy p. 21=3. (ostonL (eacon +ress.
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8orld evelopment Feport. 20113.