Abstract
The primary purpose of this research is to examine how the force of globalisation influences economic markets of the world and conveys to the emergence of illicit economies, for instance, drug dealing or drug cartels. In order to comprehensively illustrate the scenario and look for the way to respond the future problems, this research involves the case study of one particular region, the Latin America, during its industrialisation period (1960s onwards) which was immensely affected by the force of globalisation and the whole region was recently opened up to external states and dominated by their economic schemes. By identifying the dilemma and providing existing organisational programmes in charge, this research will be permitted to have more analyses on how regional organisations should tackle the issue and address the appropriate solutions to prevent long term social turbulences in substantive manners.
Introduction
Though globalisation is an extremely intangible term with no exact definition and concrete illustration, one thing we all assured is that its force and impact is everywhere and is inevitable, as emphasised by the more interconnection of global market and broader range of both transportation and communication, by means of time and space compression. Not only globalisation remarkably affects the lives of all individuals, but also it changes the economic and cultural paradigm of systematic domain in every single part of this world. Theoretically, the term globalisation concerns the kinship and interdependence of social actors, people, state and market, however, its definition in the early 21th century also comes with the emergence of various non-traditional actors such as multinational corporations (MNCs) and transnational groups, many bring immense benefits while some bring huge problematic issue to the developing countries such as in the Latin America’s industrialisation era. Evidently, it is clear that globalisation cannot be trusted and relied on blindly with no rational discretion by the social actors, as stated by Joseph E. Stiglitz that “for much as globalisation, some see it as the way of future, bringing unprecedented prosperity to everyone and everywhere. Others symbolise fault globalisation as the source of untold problems, from the destruction of native cultures to increasing poverty and immiseration”.
Globalisation and illicit economies
Globalisation has enabled multinational enterprises as well as transnational criminal associations to perform misused economic activities. Transportation, innovation, logistics, and communication that are the main driving elements of globalisation are portrayed as moving effortlessly, quickly, and transnationally, dodging
and ruining states’ sovereignties and legal procedures, and that is what makes illicit economies dangerous. In my point of view, the states are playing inferior roles to non-state actors who are not abided by laws, and more gradual by the fact that they have to follow legitimate means and bureaucratic structures. In contrast, the unlawful non-state actors, who confront no such legal constraints like states, move freely and more effectively in performing their illegal agendas. In short, states are losing control, and in this scenario, globalisation is to be blamed in some senses. Moreover, to make the matter worse, the issue is portrayed as spreading speedily and complicatedly that it even entangles not only economic problem but also political and socio-cultural aspects. On one hand, globalisation would not be problematic if its force does not be transmitted into the factor that leads to intractable illicit economies and other problems, however, and unfortunately, it does.
By definition, the illicit global economy is defined by unlawful cross-border flows of people, goods, money, and information that are unauthorised by the sending or receiving countries. Typically this means flows that are prohibited (such as drugs and endangered species), regulated (such as cigarettes, arms, people), stolen (such as art, antiquities, and intellectual property), or counterfeit (such as prescription drugs or currency). Together, these flows reflect the illicit “underside” of economic globalisation. The illicit global economy involves a diverse cast of non-state actors: drug dealers, clandestine arms traders, money launderers, copycats, black market brokers, embargo busters, and wildlife smugglers, to name just a few. One issue we all have to concern as a political scientist is that what makes this issue problematic and what all of these state and non-state actors have in common is that they have traditionally been almost entirely overlooked by mainstream International Relations scholars. The problem is that most students and scholars tend to focus on the more formal and visible side of global issues, undertake only day-to-day dilemmas or long-term obvious problems like global poverty and financial breakdowns. Therefore, what is left behind unaccounted is the issue of illicit economies. How regional organisations should respond to the problem remains an essential question that is needed to be addressed.
Illicit economies in Latin America – Drug trafficking
Latin America is assumed to be a vital part in this powerful procedure of criminalisation. Different nations and zones experience the ill effects of large amounts of genuine wrongdoing that are brought about or disturbed by sorted out criminal systems. This is appeared in the high rates of social unrest in some urban focuses or outskirt zones in Central America and northern Mexico, and in the pressure of groups, lawful frameworks, security powers and political leaders. Not only that, during post-war period, globalisation also has led to the emergence of liberalist economic regime in Latin America. Big countries like Brazil and Mexico, for example, were opened up to the global market mostly impacted from the Western approach. Latin America back then was considered as the American Backyard, implying that it was the American political sphere of authority and was manipulated by the Western market. On bright side, the free flow of goods and services made Latin America enjoyed economic growth during 1960s onwards. The post-war atmosphere tended to favour
manufacturing development as the reaction to changing world order or emerging globalisation. Import Substitution Industrialisation emerged as the dominant economic policy for development in the region and for the developing countries. Almost three decades, Latin American industries grew and agricultural sector shrank. Governments encouraged private sectors to invest domestically with privileges provided such as subsidisation and tax relief. However, industrialisation and liberalisation also did attract the region into new kind of economy, which, in fact, can generate more money in more effortless way, and that is the illicit trading networks. Transnational illicit networks have become the subject of growing concern on the part of governments and international bodies as a result of their dynamism, adaptability and capacity to expand, whether through global financial centres or the new peripheral regions that have become the perfect breeding ground for illicit trafficking. Since it was agreed in 2000, 147 countries have signed the Palermo Convention. Despite the general lack of coordination of national, regional and global efforts, the level of attention focused on this topic has intensified in recent years, ranging from the publication of a new US strategy (Office of the US President 2011) and European Union (EU) warnings about the seriousness of this threat (Europol 2013), to ongoing United Nations (UN) efforts to strengthen its response to an illicit industry. The broad range criminal activities, both ordinary and organised, has contributed to Latin America’s unfortunate reputation as the most unequal, segregated and violent region in the world. People identified a lack of security as their most important concern. Latin America during 1980 was condemned as fallen region and sunk into the Lost Decade.
Drug trafficking
According to the statistic, the United Nations Office on Drugs and Crime released its annual World Drug Report, detailing the prevailing trends in global drug cultivation, trafficking, and use. Relying on surveys and other data, the United Nations estimated that one in 20 adults used at least one drug in 2014. That number, doesn’t appear to have grown relative to the global population over the past four years, but more than 29 million of the people are believed to suffer drug-use disorders. For example, Colombia is a country where the drug cartels and illegal trading activities are mostly originated. Illicit economy in Colombia remains a challenging issue that directly affect the public authorities and governmental organisations in judicial and legal system. Sometimes, besides from being the origin, Colombia is an outlier, however, the drug trafficking that transports into other neighbouring countries like Brazil, Chile, and Mexico still remains the most serious criminal activity that affect the country.
For cocaine, in the year 2014, the survey found that coca-bush cultivation in Colombia accounted for more than 50 percent of the global cultivation, while Peru accounted for around 30 percent and Bolivia accounted for around 15 percent. Colombia, Peru and Bolivia remain the most vital cocaine creating countries, yet the business has now spread to the greater part of South America, but nowadays Central American and Caribbean countries are included as well. (see figure below).
(Image from Business Insider, the United Nations World Drug Report 2016)
For heroine, regionally, heroin consumption appears to be increasing in North America, causing a spike in heroin-related deaths, while Western and Central Europe have seen stable or declining heroin-use rates. Heroin trafficking in the Americas has increased in line with production increases in the region over the past 20 years. As seen from the survey, with the increase consumption in North America, this affects the production countries like in Latin America to follow up the rising demand. Drug trafficking is no more an alternative choice but an essential jobs for lower class people to sustain their lives because it provides more income than normal occupations.
(Image from Business Insider, the United Nations World Drug Report 2016)
Responds from regional organisations
Many regional organisations have acknowledged the ongoing problems and are ready to tackle the issues with cooperative frameworks. They mainly join forces with one of the United Nations’ office, the UNODC, which is specialised in the areas of drugs trafficking and illegal trading issues. The UNODC was established to assist the Untied Nations in better addressing a coordinated, comprehensive response to the interrelated issues of illicit trafficking in and abuse of drugs, crime prevention and criminal justice, international terrorism, and political corruption. These goals are pursued through three primary functions: research, guidance and support to governments in the adoption and implementation of various crime-, drug-, terrorism-, and corruption-related conventions, treaties and protocols, as well as technical/financial assistance to said governments to face their respective situations and challenges in these fields.
The Regional Programme for Central America is the result of an in-depth consultation process fully supported by Member States of the region. UNODC organised a Regional Experts Meeting in Costa Rica in 2009 on priorities for action in Central America. The ”Programa de UNODC para el reforzamiento del plan de acción de la estrategia de seguridad en Centroamérica y México” was adopted at the Ministerial Conference in Managua, Nicaragua on 23-24 June 2009 by the seven Member States of the Central American Integration System (SICA). The representatives presented their national priorities and requested UNODC to provide advisory services and technical assistance in order to design and implement an appropriate answer to the problems of drug trafficking and related transnational organised crime.
Santo Domingo Pact / SICA-UNODC Mechanism is an interregional program which expects to improve arrangement coordination in the field of medication trafficking and wrongdoing. The goal is to encourage the coordination of local and national strategies.
Establishment of a treatment, rehabilitation and social reintegration network in Central America is a programme of social arrangement in Central America with a specific end goal to dynamically elevate a coordinated way to deal with the necessities of medication drug addicted people and encourage the combination of a local treatment.
Regional Centre of Excellence on Crime Statistics is initiated by the UNODC and the National Institute of Statistics of Mexico (INEGI) to tackle issue on Government, Public Security, Victimisation and Justice statistics in Mexico. The goal is to help strengthening capacity of statistic research in several areas. The Centre of Excellence will facilitate information for planning and developing database, and also promote the exchange of information in criminal areas.
Moreover, there is an attempt long-established by the United States known as War on Drug which aims to reduce and eradicate illegal drug issues. However, there is a criticism that it is just merely an excuse for the United States to use or trick Latin American governments especially the Colombian to eliminate drug cartels so that the land of coca-growing regions would be clear to serve the United States’ own future investment. Looking at another perspective, the US intervention could be seen as an imperialist in disguise, the United States diminishes Colombian people’s quality of life and drives them of the land. For the last resort, they have to turn their back against rightful job such as agricultural farming and relate themselves with illegal drug activities instead.
Underlying problem and solution
The problem is not because of the regional organisations or their frameworks, but the states themselves. And more importantly, in my opinion, the core problem that keeps the issue intractable is the fear of domestic politics intervention and reduction of state’s sovereignty. This is, in fact, how states hold to the realist practice while trying to pursue neoliberalist agenda, which is contradictory. To provide solution is easy, but not with the practice. If what obstructs long-term success is because the states’ fear of their sovereignties be intervened by bodies of regional organisations, the way out is just to have states accept the condition offered by them. But as mentioned, it is easier said than done. The problem is two-fold, by perspectives of the states and regional organisations. However, the ones who are in the hardest position are the states, not regional organisations. States must do everything it takes, besides of giving up sovereignties, to eliminate the problems of illlicit economy, and the assistance is provided by the regional organisations by only condition which is to strictly cooperate. But that could be seen by the states as to give up their sovereignties to the oursiders, external political orders, which in turn could be insecure to their domestic politics, and though paradoxical, it is reasonable enough to claim that. Therefore, the only solution is to require that all actors must team up to tackle the illicit economies for effective outcomes, and that is the only option since the problem might be transnational, which broader monitoring is essential. If states still insist on holding to fear, then it is up to states themselves to conclude their own problem of internal illicit economies, and there will absolutely be no light at the end of the tunnel.