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Regionalism and Criminal Economy
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Ch. 1 Problem Question: In this paper I research and analyze the way in which Regionalization affects/influences the role of the criminal economy in Latin America. I therefore aim to identify the correlation (if any) between the new form of regionalism (linked with liberalization) within the Latin American region and shifts in the criminal economy within this same region. The current problem question includes several “vague” terms that have to be brought into perspective before continuing, as this will no doubt cause much room for discussion in interpreting the analysis. The term regionalization here is understood as going beyond the classical integration theories and including social, political and cultural dimensions as well as the conventional economic features. The newly defined phenomenon no longer covers mere geographical territory but convergence between states and regions in general as well . Under this definition the role of the United States (among other countries) in Latin America can also be included seeing as they too influence regional policies as a whole with their bilateral and multilateral agreements. The second term that needs clarification is the term criminal economy. For the purpose of this paper, I will focus mainly on the role of the narcotics industry within the criminal economy, as this is believed to be the most influential in the region. The third and final word that needs further elaboration is the use of words Latin America. For the benefit of simplification I will focus on a case study, namely that of Bolivia, as it represents one of the core countries involved in both neo liberal regional cooperation (that is MERCOSUR) as well as a key participant in the cultivation and production of narcotics within the region. These terms will be explained in more detail throughout the paper. This paper therefore aims to link the newly defined phenomenon of regionalization with trends in the narcotics industry in Bolivia. The correlation or relation (if any is identified) between these two variables will prove to be of great importance in identifying the consequences of developments in current policies on the criminal economy and hence determine their success. 1.1 Specification of the Problem: The main aim of this paper is thus, as identified above, to identify (if possible) the correlation between the neoliberal regionalization of Latin America (taking Bolivia as a case study) and trends in the criminal economy (focusing specifically on the narcotics industry). To be able to tackle this problem most efficiently, however, I first break the problem up into several sub questions that will aid in finalizing the analysis. The following sub questions will be considered: a) How did the criminal economy develop throughout the region over the past three decades? Here the impact of Neoliberalism on the state is identified as well as the trends noticeable within the criminal economy over this same period. b) How has the wave of Neo-liberalism affected Latin America economically? This will describe trends in levels of poverty, unemployment, polarization, and so on that can be attributed to the economic restructuring due to the rise in neoliberalism. c) How have prospects of joining regional organizations changed the regulating policies of states with regard to the criminal economy? The role of Mercosur, the Andean community and the US among others are identified here in changing Bolivian policy towards controlling the narcotic industry. The efficiency of the policies will also be covered here. 1.2 Goal of Paper: The global criminal network has devastating effects on the world as a whole. The vast sums of money moved from place to place in short time spans with the hope of legalizing it (generally known as money laundering) increases the chances of destabilizing financial economies . The criminal economy also incorporates other activities such as the illegal weapon industry, prostitution, kidnapping, extortion and so on - all of which further destabilize the state, civil society and hence increases insecurity. The sale of illicit drugs has also been linked to increased levels of inequalities (between and within states) as well as decreases in economic development . In short, the criminal economy effects the state and its legitimacy, financial markets, civil society and thus indirectly also democracy. The purpose for engaging in all of these activities is to benefit from the short-term financial profits that are produced. With the global trade in drugs amounting to some US$500 billion (larger than the global trade in oil) the goal of this paper is to analyze the effects of regionalism (a current phenomenon) on this lucrative market to be able to predict future stability on a financial and social platform. Ch. 2 Theoretical Context: The theoretical basis on which this problem lies can be said to be threefold. The first of the three is based on the idea that current levels of globalization has led to the weakening of the state therefore making it easier for criminal organizations to maneuver. The second theory describes a connection between the global instability (both social and financial) of the global criminal economy and increases in the information technology and globalization itself. The third and last theory argues that regionalism is but a counter-reaction against globalization by the state in an attempt to control the problems taking place within their territorial borders. In this section I will go into a little more in depth on each of these theories. According to (what I personally term) the weakened state approach there are two main transformations taking place simultaneously both weakening the state, namely an economical and a political transformation.
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