Beyond
the Law:
Crime,
Counter-Crime and Globalisation
The rise of globalisation is occurring
hand in hand with a rise in crime of various sorts, ranging from petty street
crime through violent drug gangs to international terrorism. Rarely do we hear
the question of whether they are connected. Yet if we look in detail at the
connection between crime and globalisation, some surprising results emerge.
The end of the Cold War left the
This in turn seems to have laid the
ground for the
Yet it is not just a military
operation, nor even a military-plus-secret-service-plus-police operation. The
private sector is involved too. After all, private firms provide security
guards to virtually all business sectors. Though they are often poorly paid and
inadequately trained, it is private security guards who continue to provide
most of the front-line security services, despite government moves to
federalise security for airlines and some "sensitive installations"
such as dams and nuclear power stations.
The dramatic
expansion at the "sharp end" of crime prevention and investigation
following
Other businesses that ride the security
bandwagon include companies providing insurance against crime, manufacturers
and retailers of security products, and indeed the media, who have a tendency
to hype certain major crimes (the Washington Sniper phenomenon) while reporting
little on thousands of "ordinary" crimes, or indeed on figures that
some types of crime are actually decreasing. Finally, the entertainment industry
wraps it all up by supplying an endless stream of cops-and-robbers series and
films, often based on crime novels.
All this creates a background of fear,
which is then used to justify repressive measures that restrict freedom of
movement and speech. CCTV surveillance, the US Department of Homeland Security,
the development of "non-lethal" weapons (which, as the
Yet none of these new repressive measures
was able to cope with crime of a different kind: the global accounting scandals
which started with Enron and WorldCom. Indeed, "white-collar"
criminals seem often to receive relatively light punishments for defrauding
thousands of people of their pensions.
Enron and WorldCom is just the latest
development in a long history of
business outside the law. Businesses have often formed cartels and trusts
in an attempt to boost profits by wiping out competitors and hiking prices.
These cartels - often but not always illegal - have used a variety of tactics,
ranging from predatory pricing to Mafia-style intimidation to maintain their
grip on the market. Indeed, in some places even the Mafia itself has long been
in on the act - decades have passed since Mafia bosses started using the
proceeds of drug trafficking to take over and control entire sectors such as
garbage collection in New York City.
There is alarming evidence that this is
now happening on a world scale. Entire stages of the production chain that
leads from raw materials to products on the shelves are moving outside the law.
When subcontractors in export processing zones in
There is also the economic question of
why big business should be turning to crime, despite having a vast range of
legitimate business expansion strategies at its disposal. This can be looked at
from the perspectives of various economic traditions. A Marxist
analysis, for example, might indicate that, as competition and new
technology causes falling rates of return, big business is now turning to crime
in a new, ultra-parasitic form of capitalism. A "green economics"
analysis would probably claim that turning to crime is a response to being
unable to cope with ecological limits to growth. A traditional capitalist
analysis, however, might claim that it merely demonstrates the failure of two
recent trends: "crystal-ball
capitalism", in which vast amounts of money are gambled on future
expectations of business performance, and the trade in derivatives and
currencies runs ahead of conventional investments; and "financial
engineering", in which re-arranging a company's finances makes it appear
more healthy.
Yet, while big business sees crime and
crime prevention as a source of profit, innocent people are being turned into
criminals for having the wrong piece of paper. Asylum seekers, although not
guilty of any crime, are shut up in prison-like detention centres while
officials of the repressive regimes which they tried to escape from are treated
like VIPs. Still, with enough money it is possible to "buy" the right
to reside in almost any country in the world, illustrating how in practice
"human rights" are often only granted to rich people.
As well as affecting the economy, crime
has major social effects, so a sociological analysis of the criminalisation of
big business and ordinary people is also interesting. It requires the
abandonment of the classical sociological idea that criminal behaviour is a
subset of "deviant" behaviour, because of the emergence of socially
acceptable crime. This results in a new battleground between social acceptability
and the law, and it is interesting to speculate on the possible outcomes of the
battle.
At the same time, it is worthwhile
examining whether it is possible to counteract the criminal influences in the
economy, or at least escape their clutches. For example, when conventional
investments turn bad because of corporate fraud, this might raise interest in social and ethical investment.