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Terrorism and Organized Crime
Lecture 2
Organized Crime as business behavior
To avoid oversimplifications in regards to crime, try to interpret criminal acts as forms of economic, business behavior. Following such approach one may define three main types of crimes (which will be further discussed in the next class):
1) One way transfer of a good (like theft) - a criminal profits, victim loses something, there is no agreement, its relatively easy to discuss moral issues involved
2) Illegal exchange of illegal goods (like drug dealing) - both sides of the transaction gain something, there is an agreement between them, moral aspect of the transaction is different for those who are involved in it and for the rest of the society
3) Illegal exchange or production of legal goods or services (like human trafficking) - both sides of the transaction gain something, there is an agreement between them, moral issues are complex, it is hard to define who actually loses because sometimes it may be even somehow profitable for the economy
If we assume that organized crime is a form of business activity, we should accept that it's not about hurting someone but about answering a demand for illegal goods and services. That means that organized criminal activity follows usual market rules known to you from economy classes. That means that every organized criminal activity should aim to minimize the negative influence of externalities - mainly risk of getting caught. That means that brutal pictures known to you from first pages of tabloids are an exception rather than a rule.
To be continued.
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