Humans as Money Trafficking, Demography and Soft Currency: the political economy of changing structures of organised crime BILL TUPMAN DIRECTOR, UNIT FOR RESEARCH ON COMMUNITY SAFETY UNIVERSITY OF EXETER

DEMOGRAPHY Ageing European Population Skill shortage High price of labour Demand for labour in various areas Including illicit business/organised crime Chevenement estimated shortfall of 75 million by 2050

Statistics Need to distinguish between smuggling and trafficking. Most sources don’t UNODCCP estimates 4 million people being moved annually, generating $5-7 billion gross IOM estimates $10 billion $30-50,000 per person for Australia $15,000 for New Zealand and for US, but additional $25,000 demanded on arrival

All acts involved in the recruitment, abduction, transport (within or across borders), sale, transfer, harbouring, or receipt of persons, by the threat or use of force, deception, coercion (including abuse of authority), or debt bondage, for the purpose of placing or holding such person, whether for pay or not, in involuntary servitude, forced or bonded labour, or in slavery-like conditions, in a community other than the one in which the person lived at the time of the original deception, coercion or debt bondage.

Money Laundering is a misnomer Organised crime is cash heavy wrong to assume it always wants to legitimise ill-gotten gains money now goes where the rate of return is highest: often that is into illegal business moving money from soft currency economy to hard currency area not laundering but hardening

Soft currency problems Roubles don’t buy BMWs. Dollars do. Drugs buy dollars sex buys dollars: in all its varieties- straight, bent, paedophilia, photos, videos slaves buy dollars peons buy dollars

Three angles Recruitment transportation targeting potential employers

Players in the enterprise Arranger/investor recruiter transporter corrupt public officials guides and crew members Information gatherer enforcer support debt-collector money-mover

How is this organised? Not a huge Weberian pyramid Lots of small independent groups Some cash transactions, some barter Problems of contract enforcement and trust Who provides the coercive apparatus? How are prices set? Russian precedents?

Krysha or obshak? Obshak a shared violent group Krysha= “roof”: system of patronage and structured corruption “protection” Requires connection with bank Deep penetration of government structures deploys armed force, either illegal, “private security” or a local or national government unit of militsiya [30% of personnel involved] or army

Who wants people? Sex industry obviously domestic service hotels and catering places ignoring safety regulations seasonal: fruit-picking etc. Horrible places: Siberia, Brazilian jungle dodgy hospitals [for organs]

Areas requiring study Exchange of prostitutes for goods. Standard measure of exchange? Drugs as currency

Mission statement for organised crime Provide customers with services required in an area secure from police and petty criminal interference Maximise quality at reasonable price respond quickly to changing market conditions via franchising and secure agreements with suppliers improve quality of work force

Mission statement [cont] To establish clear regulated framework within which non-violent competition can take place concentrate on core business: leave niche markets to the specialist minimise risk ensure that profits can be used as investment capital in both legal and illegal businesses

Comment In changing market conditions, customer can become employee and provide greater added value problem of new groups trying to penetrate market problem of movement into activities which appear to offer low risk and high profits Problem of contract enforcement