The Relationship Between the Illegal Economy and Globalization - Coursework Example

THE RELATIONSHIP BETWEEN THE ILLEGAL ECONOMY AND GLOBALIZATION By + Introduction Political, economic globalization has been in the existence since 1970s. Globalization is the development of the interconnectedness of the counties of the universe subsequent to the global liberalization of the trade at the terminal of the Cold War. The illicit market is approximately worth US$2 trillion. Moreover, the majority of the black market prospers due to the illegal trade thus enabling the criminal non-state perpetrators to be active within individual countries thereby concealing money. Nevertheless, this does not imply that globalization solely assist illicit economy (Cusimano, 2009, pp. 234-278). Escalation of the global cooperation within the vigilance functions has compelled the prevailing crime syndicates to alter frequently their underlying structure in order to evade being fall a prey of the authority. There exist numerous negative impacts of the illicit world of the globalization. To curb the menace, various states have escalated border control and additional layers pertaining to the custom, immigration, and corresponding trade clearances. These measures have inadvertently hindered the global trade procedure and corresponding lawful human movement. Moreover, extra checks and appropriate measures have resulted in the generation of modern barriers thereby creating imbalance amidst Global South and corresponding Global North thus making the underlying comparative void. Illicit economy and globalization The illegal economy is the act through which goods and services are produced, brought within a state or a region where it is prohibited by the law. Illegal global economy entails of the system of transnational monetary actions that are mainly outlawed by the countries in the importation and exportation states. Illegal economy co-actors typically engage in the production and corresponding distribution of the prohibited goods and services. These prohibited goods and services entail drug, arms trafficking, and prostitution (Miklaucic, Brewer & Stavridis, 2013, pp. 123-189). The illicit economy functions within the shadows of the existing legal and approved political economy. Illegal and corresponding terrorist entities are extremely mobile and progressively migratory perpetrators proficient of flowing both their underlying locations and their aptitudes in bid to adventure geographic, political, execution, and supervisory susceptibilities. Several hubs within the illicit economy are mainly found within major cities that have the merits found within the robust states possessing organization, banking and standard level of the regulation (Cusimano, 2009, pp. 234-278). Transnational law breaking entails criminal actions spreading into and corresponding heretical the laws of more states. Trade liberalization escalates the lawful contributions indispensible to certain sectors of the illegal economy. The movement of populace around the universe has drastically increased in the previous years, which is approximated to be 200 million migrants moving amidst nations. Regarding the drugs and illicit economy, escalation of flows of human migration has had two main effects. Firstly, it has acted as the main subsidiary and important adjunct to the expansion of cross border trade (Barnet & Muller, 1975, pp. 81-83). Moreover, drugs from the viewpoint of traffickers have been secretly moved inside the human body across the borders. An individual possess massive potential of carrying bags of heroin and cocaine that possess high economic value. The escalating flow of individuals and the corresponding reduction of the border controls have made drug trafficking relatively easier thus powering the development of the drug accessibility, which supports their growth and consumption (Cusimano, 2009, pp. 234-278). Secondly, there exist social and cultural dimension to the human migration thus as individuals move with their underlying cultures and establish settlements they develop a variety of the new social associations amidst home and refugee community, home and the host cultures that did not previously exist. In the contemporary context, illicit economy prospers in numerous sectors with the major sectors resulting to the remarkable dent within the world financial systems such as drug trade, fake goods, migrant trafficking, unlawful timber trade, humanoid trafficking, individuality robbery, pornography, cyber theft, currency laundering and corresponding firearms trade. The global stature of the prearranged crime highlights at the underlying absolute size of the illicit economy, which is not mutually exclusive (Hall, 2012, pp. 12-98). Greer and Singh (2000) depict that illegal immigration coupled with human trafficking are presently amalgamated regarding the functions of the operators and victims since majority of the illegal migrants do not possess cash to pay substantial fees thereby ending up being joined laborer for their underlying expediter (Barnet & Muller, 1975, pp. 81-83). Similarly, cybercrimes are associated with the identity robbery, terrorism, and corresponding money laundering. In exceptional instances, the extreme diversification of the prevailing groups frequently involve in the illegal activities into the genuine enterprises shadows the line that conventionally distinguishes legal and illicit corporate activities. The prevailing cross industrial and corresponding transnational amalgamation of the economy is the main pointer of globalization within the illegitimate world. Even though globalization is highly undecided and misused in most sectors, it is commonly defined as the historical procedure that transforms the individual scale of the humankind social organizations. Moreover, the process connects distant groups and enlarges the reach of the power associations across the regions and corresponding continents (Hall, 2012, pp. 12-98). Globalization is frequently termed extraordinary, strictly transcontinental, and nonhierarchical, which possesses equivalent geographical demonstration. Thus, the illicit economy is more evident on the global economy scale than the corresponding legal economy. Moreover, the exponential increase in the telecommunication and transportation innovations have compacted the time, degree for the underlying legit social, traditional and monetary, and underbellies. The new stage of the globalization is depicted in the alteration of technology empower of individuals and companies that generally cooperate and compete tranquility across the escalating indiscernible borders (Barnet & Muller, 1975, pp. 81-83). Nevertheless, the illicit market operates in the expansion of the globalization freedom as globalization is considered a double edged sword as it enablers’ development of the open markets thus increasing global efficiency (Hall, 2012, pp. 12-98). Moreover, globalization also empowers the evil people. Technological alteration has become the object of devotion within the Western societies also acts as the false idol. For instance, every potentially desirable trend within the neoliberal globalization serves as the primary criminal downside, which compels analysis of the global alteration in terms of the negative externalities. Globalization entailing deregulation and privatization is depicted as the main culprit in the increase of the illicit economy. Deregulation of the prevailing airlines and shipping industries since 1980s has supported arms trafficking (Andreas, 2004, pp. 641-648). The shift fire sale of the state enterprises has resulted in the wide-scale corruption. Regional integration based on the free trade agreements typically weakens border control. Opening of the capital market facilitates the flow of the hot money around the universe. Shadow actors utilize modern technologies of globalization by the governments in policing the wrong people. For instance, global positioning system technology aids administrations to track criminal activities such as illegal timber harvesting coupled with the illegal waste disposal (Fijnaut & Paoli, 2004, pp. 127-256). Nevertheless, GPS also assist drug cartels to administer international logistical operations. Enterprises searching for the technical solutions to smugglings that are mainly embedded on the radio frequency emitters within the commodities are frequently being outsmart by the criminal Globalization has histrionically transmuted the universe economy, which is massively heightened and lengthened innovation and the efficiency, and authorized nonstate performers within the thrilling new means (Barnet & Muller, 1975, pp. 81-83). Nevertheless, numerous globalization promoters abandoned the noteworthy challenges presented by the underlying new global realism, the pliability of the prevailing nation-state as a structural model, and corresponding exhibition of the global pressures within the boundaries of the purportedly borderless universe (Cusimano, 2009, pp. 234-278). The amalgamation of the fragile nations, the development of the illegal economy, the advancement of irregular military systems, the problematic of the wobbly nukes and corresponding propagation of the weapons of mass obliteration depicts a persistent and basic challenge to the countries. International trade in illegal goods and services has existed since time immemorial. Moreover, it will continue to exist and thrive as long as there is demand. The commonly known illegal goods involved in the trade include drug trafficking, weapons of mass destruction, counterfeiting prostitution, trade in human body parts, smuggling of minerals, money laundering and tax evasion. The partners involved in this trade make profits by breaking laws governing trade policies, defying authority, breaking borders and using violence as a means of exploiting their subjects (Hall, 2012, pp. 12-98). The informal global economies consist of markets that are not taxed or regulated by the government. The people involved in the black trade view it as a source of income and follow some of the rules governing the legal trade as leveling of tariffs and use of advanced technology. This paper explores the relationship between the dark trade and globalization. Trade in drugs is estimated at 5-6% of the of the world’s overall trade. It is reportedly higher compared to the world’s trade in agricultural products and cars combined the use of drugs in the global economy provide a fertile ground for economic clashes that arise from the process of globalization (Mandel, 2011, pp. 234-289). Global corruption is thriving in the 21st century due to drug trafficking. Government officials have fallen victims to the drug lords due to large amounts of money they are given as bribes to allow smooth smuggling of the drugs passed the nation’s borders. It leads to the breeding of a corrupt economy affecting negatively on globalization. Countries such as Colombia that produce coca used in manufacturing of cocaine supply the drug to the rest of the world through their drug lords. This results in a moral clash as the drugs reduce the world’s population to a drug dependent generation. Drug trafficking contributes to raised levels of poverty among nations. Many countries remain poorer because the citizens direct their resources in the purchasing of drugs; this in turn results in the low gross domestic product as the industries are affected because too small production rates of the workforce. The presence of drugs in an economy results in the exploitation of the people (Miklaucic, Brewer & Stavridis, 2013, pp. 123-189). Drugs are expensive and snatch away the nation’s hard-earned resources. Dark trade involving drugs results in the social malpractices. Children who engage in drug abuse at a tender age often have problems coping with the requirements of the family, for this reason they run away from the home due to misunderstandings with their parents. Drugs have contributed to higher rates of divorces due to disagreements between spouses. It is evidently clear from history that that the gray market affects the natural resources has significant effects on the world’s security structure. Unstable governments and rebel organizations in developing nations need money to run their activities like buying weapons to safeguard their territories, pay their members and supporters, and finance activities within their borders. Achieving the object incorporates all parties in gaining controls of the mineral sources within their borders (Gilman, Goldhammer & Weber, 2011, 156-189). The export of the metals gains them the advantage of ensuring smooth revenue flow to finance their operations. The rebels secure complete control of the natural resources as a means of achieving significant political goals. Thus, international companies are compelled to purchase the minerals from the rebels and the corrupt governments controlling the mines. In an attempt to control these precious mines, war sparks between rebel groups or government and the rebel groups. The war in Sierra Leone resulted due to the illegal control of diamond mines that a rebel group used to finance their operations (Barnet & Muller, 1975, pp.81-83) Vodafone and Motorola cell phone manufacturers ceased from purchasing tantalum metal from Congo militias fearing that they would be accused of participating in financing the 1998 war in Congo (Barnet & Muller, 1975, pp.81-83). Analysts of illegal global economy support that corruption is a major problem in the global economy. Political economists try explaining why some countries develop, and others fall below the poverty lines (Hall, 2012, pp. 12-98). The degree of trade openness and political stability are some of the factors attached to an underdevelopment of these nations. The global economists see the cause of corruption as a combined participation of bad leadership and a transnational process in which many illegal economies participate. Smuggling of goods is one of the world’s oldest illicit activities. Business organizations seek to gain from moving goods across borders in defiance of the economic policies imposed on exchange rates. Among the world’s most smuggled goods include oil, animal parts, minerals and military machinery (Mandel, 2011, pp. 234-289). Smuggle item differ from nation to nation; a product may be illegal in the source country but legal in the receiving society or legal or illegal in both countries. These three cases determine the force with which a states in fighting the illegal practice. Smuggling has varied effects on a country’s economy, the when smuggling of a particular commodity is rampant in an economy; local products lose value because smuggled products are sold at cheaper prices than originally manufactured goods. Trafficking exposes the economy to health risks since the items are not medically screened before release to the market. The evasion of taxes by the smugglers lowers the economy as the goods flow in the markets without regulation The process of globalization in the recent years has stimulated citizens in less developed countries to migrate to developed countries. Under developed countries, face a significant challenge ranging from the scarcity of resources to less knowledge in running their economy. Factors such as still transformational process and low wages stimulate citizens of poor countries to migrate to West European countries to look to better-paying jobs and better life. With increased number of immigrants in the developed countries, the nation’s face significant challenges in job security and consequently unemployment as the locals and the immigrants compete for the available job opportunities (Miklaucic, Brewer & Stavridis, 2013, pp. 123-189). Globalization has increased the availability of capital for trade and reduced trade barriers between nations, and this has consequently led to smuggling of illegal goods such as animal parts and drugs across the nation’s borders. The use of information technology in the global economy is a contributing factor to the rise of cybercrime cases globally. The process of globalization is massively engrained within the universe economy. A progressively combined world economy allows human trafficking to prosper. Modern day traffic of the humans is a rewarding business that is profitable to the traffickers with the introduction of globalization (Andreas, 2004, pp.124-189). Moreover, globalization fosters interdependence amidst the states for commerce thus facilitating the transmission of underlying commodities. Comparative merit in goods and cheap labor in advancing countries has played a fundamental noteworthy role within the realizing and exploitation of human for economic ends. Unfree labor prevents workers from entering the labor market via a process of free contract thus making their labor power to be commoditized. Nevertheless, the process occurs via payment of wages. Migrant domestic employees are the peculiar typology of the unfreedom. Contemporary forms of the unfree labor entailing debt slavery coupled with the trafficking in the illicit economy occur as the new forms of slavery. Migration depicts that globalization; movement and unfreedom are closely linked. As employees, leave their prevailing counties to the new surroundings across the national borders. The new workers are new and unfamiliar with the environment pertaining to the working practices and corresponding employment legislature (Andreas, 2004, pp.124-189). This typically makes the migrant employees at a difficulty in seeking for the recourse to justice. Globalization is the advancement of the progressively integrated global economy marked particularly by free trade and flow of capital and corresponding tapping of relatively cheaper foreign labor markets that mainly transcend nation-state boundaries. Human trafficking is one of the main global crises that is inseparably connected with the present move of globalization within the sex industries entailing both women and children. Illicit economic discussion is normally recited on the underlying levels of intercontinental incorporation manufacture of services coupled with the investment as the main indicator of the globalization. Legal and illegal economic events are extremely much entangled since each sector of the prevailing illicit economy possesses its own illegitimate counterpart (Berdal, & Serrano, 2002, 256-189). Moreover, the existing contemporary tools of satellites and transportation have allowed nearly any personality to take part as the main contributor of the underlying global crime network. Exponential increase of the internet has presented fresh criminal prospects that do not demands physical attendance, which include mass media piracy and identity robbery (Gilman, Goldhammer & Weber, 2011, pp. 124-189). Impostors normally find victims within the wealthy states, which do not have the will to stop the operation of the illegal activities. There exist more than one hundred nations, which do not particularly control the matters pertaining to the child pornography within their underlying legislation. Moreover, twenty-four of the countries do not possess the sentence for the crime carried out via the computer technology. Money made from these illicit economic activities operations are quickly moved via dozen of underlying national banking systems is shortest time. Thus, such unparalleled comfort of actions has altered the whole structure of the illicit economy universe. During the reign of Cold War, illegal economy was depicted as the system entailing major prearranged syndicates. Moreover, the global nexus of the prevailing Italian mafia, Chinese triangles, Colombia cartels, Russians gangs coupled with the Japanese Yakuza coordinate their procedures with relatively minor highly structured gangs transversely the universe (Fijnaut & Paoli, 2004, pp. 127-256). Nevertheless, the evidence depicts that globalization has come with major challenges to the underlying syndicates thus compelling crime officialdoms to penetrate less hierarchal and more supportive networks of personality and grouped criminals crossways the borders. The global lawful economy has greatly decontrolled into the global illegal economy due to the increasing opening of the borders and liberalization thus resulting to the emergence of open economies (Gilman, Goldhammer & Weber, 2011, pp. 124-189). Illegal globalization have resulted to escalated criminalization, escalated policing and corresponding border controls. The largest elements of illicit globalization are human and drug trafficking. Human and drug trafficking occurs mainly due to the weakening binding policies and laws. Liberalization of many economies has favored transnational criminal gangs since the chances of attaching illicit products and services to international economic channels have drastically increased (Fijnaut & Paoli, 2004, pp. 127-256). Globalization has created favorable conditions for the development of the illicit economy by the cartels. Weak inter-borders policies and regulations have enables criminal gangs to engage locals in exportation and importation of illicit goods. Moreover, such weak policies of liberalization have made certain countries such as Mexico to be the best residing countries for the criminals. Emergence of the infrastructure of the global finance has greatly facilitated the deployment of the complex money laundering methods for the cleaning the proceeds of the prevailing drug trade. The menace of money laundering is massively worsened by escalated globalization and liberalization of the existing world’s financial markets. Similarly, banking system and other supplementary financial institutions have been demanded to execute a raft of the anti-laundering measures (Gilman, Goldhammer & Weber, 2011, pp. 124-189). Nevertheless, whereas strong evidence concerning the efficiency is within the short supply, there exist robust grounds supporting that laundering industry continues to prosper. Laundering entails entangling of the legal and illicit commerce coupled with finance with the aim of making the illicit money to appear legitimate (Barnet & Muller, 1975, pp. 81-83). Moreover, global measure of the capital and finance differentiations amidst the legal and illegal is fundamental in order to sustain the level of interdependence. Money laundering sometimes act the aid for support for the legal businesses. Thus, the large-scale illicit financial activities such as drug trade offer appreciated liquidity to the corresponding legal finance and banking system (Cusimano, 2009, pp. 234-278). Globalization of finance has greatly underpinned the expansion of the global drug trade in the past decade especially via the escalated volume of the system to maintain large-scale money laundering despite implementation of the laundering controls measures. Conclusion The global lawful economy has significantly decontrolled into the global illegal economy due to the growing opening of the borders and liberalization thus resulting to the emergence of open economies. The illegal economy result to production of goods and services within a state or a region, which are prohibited by the law. Illegal global economy entails of the system of transnational monetary actions that are outlawed by the countries in the importation and exportation states.The rise of the transnational Corporations has played a significant role in the development of globalization and development of the illicit economy is many countries. Development of illicit economy is dependent on the chains of illegal commerce and production. The emergence of the illegal economy results in suppression and weakening of the small economies. A number of TNCs pose more social and health problems to the people living in the host countries. If the host countries will ever achieve social, economic and political freedom, then globalization must be seen from a newly designed lens. This approach needs to address the significant challenges established in this paper, such as providing the host countries with a better, beneficial and safer social, economic, political environment than ever before. References Gilman, N., Goldhammer, J., & Weber, S. (2011). Deviant globalization: black market economy in the 21st century. New York, Continuum. Cusimano, M. K. (2009). Beyond sovereignty: issues for a global agenda. Boston, NY, Wadsworth. Fijnaut, C., & Paoli, L. (2004). 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