Pubdate: Wed, 14 July 1999
Source: Guardian Weekly, The (UK)
Copyright: 1999 The Guardian Weekly
Contact:  75 Farringdon Road London U.K EC1M 3HQ
Fax: 44-171-242-0985
Website: http://www.guardianunlimited.co.uk/GWeekly/
Author: Anthony Browne, The Observer

DRUGS TRADE 'DWARFS ALL BUT THREE OF BIGGEST ECONOMIES'

The world's organised criminals have a greater economic output than Britain,
according to a United Nations report. Their turnover is now greater than all
but three of the world's economies.

The UN's 1999 Human Development Report estimates that organised crime
syndicates gross more than $1,500bn a year. The UK's economic output is just
over $1,200bn. The report says the syndicates' economic power rivals that of
multinational corporations.

The biggest growth area is drugs, which is now a bigger global industry than
motor manufacturing. Over the past 10 years, the production of opium has
more than tripled and the production of coca leaves has doubled. The illegal
drug trade - supplying 200m customers - is worth around $400bn, or 8% of
world trade.

Another growth industry is trafficking in women and girls for the sex
industry. It is now a business worth $8bn a year.

The report, due out this week, studies the advantages and disadvantages of
globalisation. It says crime syndicates have been particular beneficiaries
of advances in telecommunications and the opening up of borders.
"Globalisation creates new and exciting opportunities, and among the most
enterprising and imaginative opportunists are the world's criminals," it
says. "As the multinational corporations have led the drive to globalise the
world's economy, so the 'crime multinationals' have been quick to exploit
it."

It cites examples of a computer hacker in Russia who came close to stealing
millions of dollars from Citibank in New York, and Nigerian con men who take
advantage of the semblance of legitimacy that a fax machine gives to a
forged document.

Most of the main criminal groups have extended beyond their home
territories. The Chinese triads are in the restaurant trade in London, the
Sicilian mafia is selling heroin in New York, and the Japanese yakuza are
financing pornography in the Netherlands.

The Medellin and Cali cartels in Colombia, the Juarez, Tijuana and Gulf
cartels of Mexico and the Cosa Nostra in the United States are all exporting
their crimes. The report claims that "they are now developing strategic
alliances linked in a global network, reaping the benefits of globalisation"

The criminals have been particularly helped by the ease with which money can
now be moved between continents. "The precipitous removal of currency
controls, before a proper regulatory environment has been established, is
the perfect condition for laundering money," says the report.

It also suggests that the lowering of trade barriers has aided criminals:
"It helps the luxury car hijacked on a Johannesburg street to reappear for
sale in Moscow."

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