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CRIME and ITS IMPACT on the BALKANS and Affected Countries

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CRIME and ITS IMPACT on the BALKANS and Affected Countries CRIME AND ITS IMPACT ON THE BALKANS and affected countries March 2008 For the purposes of this Report, the Balkans comprises the nine nations of the Stability Pact: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the former Yugoslav Republic of Macedonia, Moldova, Montenegro, Romania, and Serbia. This study was undertaken by the Research and Analysis Section of the United Nations offi ce on Drugs and Crime in the framework of the project “Illicit Market Studies”(GLO/H93). The author and lead researcher is Ted Leggett. Research assistance was provided by Steven Malby, Sasa Cvijetic, Petar Dragesic, and Frederic Lesne. Field support was provided by UNODC offi ces in Belgrade and Tirana. Cover photographs courtesy of OSCE. Photographers, from left to right, were OSCE Mission in Kosovo; Milan Obradovic; Marko Georgiev; and OSCE. Graphic design was conducted by Suzanne Kunnen and Kristina Kuttnig. Comments on preliminary drafts of the study were received from a wide range of authorities, including academics, international organisations, and Mem- ber States. Funding for this study was provided by the Governments of Hungary and Poland. The description and classifi cation of countries or territories in this publication and the arrangement of the material does not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations con- cerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. This document has not been formally edited. Table of contents List of acronyms 3 Preface 5 Executive summary 7 Introduction 21 The Balkans do not fit the profile of a high crime region 23 The Balkans do not have a conventional crime problem 35 Murder 36 Under-reported crimes 40 The real problem: Organised crime and corruption 45 The origins of organised crime 47 Current trends in organised crime 55 Trafficking: Drugs 58 Trafficking: Human beings 74 Trafficking: Smuggling of migrants 81 1 CRIME AND ITS IMPACT ON THE BALKANS Table of contents Trafficking: Firearms 82 Economic crime: Duty evasion and counterfeiting 85 Economic crime: Corruption and fraud 88 Economic crime: Money laundering 94 Declining opportunities for organised crime 97 The impact of crime on social, economic and political progress 99 Proposed impact: “Social progress” 99 Proposed impact: “Economic progress” 100 Proposed impact: “Democracy, the Rule of Law, Human Rights” 104 Proposed impact: “Stability” 106 Annex 1: Convention and legislative status 111 Annex 2: Note on methodology 113 2 List of acronyms ARQ United Nations Annual Reports OSCE Organisation for Security and Questionnaire Cooperation in Europe BiH Bosnia and Herzegovina PPP Purchasing Power Parity CoE Council of Europe SEE South East Europe CPI Transparency International Corruption SEESAC South Eastern and Eastern Europe Perceptions Index Clearinghouse for the control of Small Arms and Light Weapons CTS United Nations Survey of Crime Trends and Operations of Criminal Justice TI Transparency International Systems TIP Trafficking in persons EU European Union UNICEF United Nations Children’s Fund FYR Former Yugoslav Republic UNMIK United Nations Mission in Kosovo GDP Gross Domestic Product UNODC United Nations Office on Drugs and Crime ICVS International Crime Victims Survey UNOHCHR United Nations Office of the IOM International Organisation on Migration High Commissioner for Human Rights KLA Kosovo Liberation Army UNDP United Nations Development Programme KPS Kosovo Police Service WDR World Bank World Development Report OECD Organisation for Economic Cooperation WHO World Health Organization and Development 3 Preface Surprising as it may be, the Balkan region is one of the • more open borders have reduced incentives to crime safest in Europe. This Report shows that, at present, the rather than increasing them; levels of crime against people and property are lower • The Balkan cross-roads have become a magnet for than elsewhere in Europe, and the number of murders honest trade rather than crime and smuggling. is falling in every Balkan country. The trend is likely to continue as these countries strengthen their justice sys- The vicious circle of crime leading to instability, and vice versa, has caused much turmoil in the Balkans. This Re- tems, raise their living standards, become more inte- port shows this has been replaced by a virtuous circle of grated with the rest of Europe, and reap the benefits of stability lowering crime, and less crime promoting stabil- having a well-educated and highly skilled workforce. ity. Yet this progress is fragile. This Report provides evidence that the Balkans are The final part of the Report documents the wide-spread departing from an era when demagogues, secret po- and enduring collusion between politics, business, and lice, and thugs profited from sanctions busting, and the organized crime. To break this nexus, fighting corruption smuggling of people, arms, cigarettes and drugs. While should be priority number one. It would strengthen the South Eastern Europe is still a major transit route for rule of law, bolster the integrity of public institutions, and heroin, and some countries of the region remain affect- promote a healthy business environment. ed by organized crime and corruption, the stereotype of While dispelling a few myths and raising the profile of the Balkans as a gangsters’ paradise no longer applies the Balkans as a low-crime region, the main aim of this – though serious problems remain. report is to stimulate the delivery of technical assistance that can further encourage the positive trends and reduce How did this improvement come about? Greater re- the likelihood of a return to trouble in the Balkans. The gional stability and democracy have put an end to war highest priority is, of course, Kosovo, where stabilization profiteering. Closer integration with the rest of Europe started later, and where crime remains a problem. has opened borders and reduced the lure of illicit trans- frontier trade. Security sector reform, improved criminal justice, and closer regional cooperation have made or- ganized crime riskier and less profitable. As a result, all types of organized crime are in decline in the region. This suggests three observations: Antonio Maria Costa • crime in the Balkans is a product of post-communist transition and conflicts resulting from the break-up of Executive Director Yugoslavia rather than being endemic; United Nations Office on Drugs and Crime 5 Executive summary The United Nations Office on Drugs and Crime (UN- leads to the conclusion that things are getting better, ODC) is mandated to analyse drugs and crime situa- and while the potential for reversals remains, it seems tions around the world. The present report is a contribu- that an era of lawlessness is passing. tion to that objective, looking at a region stigmatised for Indeed, the crime issues in South East Europe appear its role in heroin trafficking, human trafficking, and other to be directly tied to this recent past. As in many tran- forms of organised crime. It is based on data gathered sition and post-conflict countries, the dividing line be- though Member States’ responses to the United Nations tween criminal enterprise and legitimate commerce had Survey of Crime Trends and Operations of Criminal Jus- become blurred and hazy. All indications are that this tice Systems (CTS) and the United Nations Annual Re- line is becoming firm and clear again. In time and with ports Questionnaire (ARQ), as well as a desk review of the appropriate international support, it is likely that the the published literature. It is hoped its findings will assist prominent role the Balkans has played in European or- Member States and the international community in the ganised crime will come to be regarded as a passing search for solutions to transnational crime issues. phase. This report argues that the crime situation in South East European countries is improving. There are several Low vulnerability to crime possible reasons for this development. The region is Long term prospects are good because the social con- “normalising”, as it completes the transition to democ- ditions in South East Europe are not the sort generally racy and market economy and as it recovers from the associated with high crime regions. In essence, the conflicts of recent years. This normalisation has been Balkans do not represent a favourable environment for supported though extensive interventions to enhance crime: cooperation on crime matters and to address deficien- cies in local criminal justice systems. Equally important, • The demographic makeup does not favour the de- many of the crime problems experienced in the Balkans velopment of street crime. For most countries, only are related to demand outside the region, and develop- 7% to 8% of the population falls into the group at ments in these areas have also contributed to declining highest risk of becoming involved in common crime: opportunities for organised crime. males between the ages of 15 and 25. This is not likely to change in the near future. Bosnia and Herze- Despite these improvements, there remain significant govina and Moldova report some of the lowest rates challenges ahead. The region continues to be the pre- of lifetime births per woman in the world (1.2). In pro- miere transit zone for heroin destined for West Europe, portion to the general population, Bulgaria has the human trafficking remains an issue, and problems per- smallest child
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