The dark underside of the global economy is thriving. Globalization has been good not only for legitimate businesses but also for those who traffic in illegal drugs, evade sanctions or taxes, trade stolen goods and intellectual property on the black market, smuggle immigrants, and launder money. Some of these activities are merely policing headaches. But others pose major security challenges to governments around the world.
These various illegal activities are often lumped together and categorized as global or transnational organized crime. According to a 2011 White House report, such crime has “dire implications for public safety, public health, democratic institutions, and economic stability.” That sentiment is shared by the UN Office on Drugs and Crime, which in 2010 declared that “organized crime has globalized and turned into one of the world’s foremost economic and armed powers.” Illicit trade has become a source of tension between major powers, as well: U.S. officials berate China for not doing more to prevent intellectual piracy and counterfeiting. Pundits have also sounded the alarm, fretting over the potential for international crime to cause conflict between states and perhaps even erode the foundation of the modern state itself. The journalist Moisés Naím, for example, describes efforts to curb cross-border crime as “wars of globalization” and argues that governments are losing the battle.
This anxious rhetoric has spurred governments to tighten controls and plug leaky borders, with Washington leading the way. In recent decades, the United States has aggressively and successfully exported its crime-fighting agenda
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