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Transnational Organized Crime and the Palermo Convention: a Reality Check

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Transnational Organized Crime and the Palermo Convention: a Reality Check Transnational Organized Crime and the Palermo Convention: A Reality Check André Standing, rapporteur DECEMBER 2010 INTERNATIONAL PEACE INSTITUTE Cover Photo: A Montenegro customs ABOUT THE RAPPORTEUR officer throws cartons of smuggled cigarettes into an incinerator outside ANDR É STANDING is an independent researcher based in the capital Podgorica on August 8, Kenya. 2007. Authorities in the Adriatic Coast republic had seized 1.5 million counterfeit cigarettes. © STEVO ACKNOWLEDGEMENTS VASILJEVIC/Reuters/Corbis. IPI owes a great debt of thanks to its many generous The views expressed in this meeting donors. In particular, IPI would like to thank the govern - report reflect the rapporteur’s ments of Luxembourg, Norway, Sweden, and Turkey, whose interpretation of the discussions at a half-day seminar held at IPI in New support made this publication possible. York. The report does not necessarily represent the views of IPI. IPI welcomes consideration of a wide range of perspectives in the pursuit of a well-informed debate on critical policies and issues in international affairs. IPI Publications Adam Lupel, Editor Ellie B. Hearne, Publications Officer Suggested Citation: André Standing, rapporteur , “Transnational Organized Crime and the Palermo Convention: A Reality Check,” New York: International Peace Institute, December 2010. © by International Peace Institute, 2010 All Rights Reserved www.ipinst.org CONTENTS Introduction . 1 Trends and Developments in TOC Over the Past Decade . 1 GROWTH AND STRUCTURAL CHANGE EXPLOITING NEW OPPORTUNITIES AND TECHNOLOGIES DISPLACEMENT AND POWER VACUUMS CORRUPTION LINKS WITH TERRORISM SOCIAL AND ECONOMIC IMPACTS OF TOC AND THE CASE FOR DECRIMINALIZATION The International Response to TOC and the Palermo Convention . 9 THE NEED FOR FORMAL EVALUATION THE EVOLUTION OF INTERNATIONAL CRIME FIGHTING AND THE IMPACT OF TERRORISM DIFFICULTIES FACING INTERNATIONAL INVESTIGATIONS THE ROLE OF THE UN AND THE INTERNATIONAL COMMUNITY Conclusion . 12 Annex: Agenda . 13 1 Introduction as these is also a matter of interest to the program - matic work of the International Peace Institute. Ten years have passed since the adoption of the As part of this work, a half-day seminar took Convention Against Transnational Organized Crime place in New York on October 6, 2010. The aim of (the Palermo Convention ) by the UN General this event was to reflect on how TOC has changed Assembly on November 15, 2000. At the signing of over the past decade and to begin a discussion on the convention in Palermo, Sicily, in December the Palermo Convention as well as the challenges 2000, many government delegations welcomed the facing international efforts to counter organized Palermo Convention as an important step in the crime more generally. fight against organized crime. Some warned against viewing it as a final measure and stressed that the This report provides a thematic summary of the convention and its protocols should be considered presentations and discussions that occurred on th as a starting point rather than an end in itself. 1 October 6 . It is important to state from the outset that the event was not intended to provide a defini - The development of the convention followed an tive evaluation of the Palermo Convention ; rather, it increased realization during the 1980s and 1990s was an opportunity for experts to reflect on some that the threat of organized crime was no longer broad themes and indentify issues to take forward. merely a domestic one but had grown into one of Given the complexity of the subjects put forward global proportions. The realization that an interna - for discussion, there was an inevitable limit to what tional threat requires an international response could be covered, both in terms of the depth of became an important driving force. analysis, as well as geographical scope. However, as Government delegations attending the Palermo will be evident, the meeting was successful in conference in December 2000 could not have providing a rich debate on contemporary trends, known that less than a year later a new interna - and it benefited from the participation of leading tional threat would suddenly emerge that would be experts on this subject from the US, Latin America, regarded as far more immediate and dangerous Africa, and China. Indeed, the inclusion of a than transnational organized crime. The attacks on Chinese perspective on transnational organized the World Trade Center and the Pentagon resulted crime was one of the unique aspects of this in a shift of attention and resources toward meeting. countering terrorism, causing transnational The report is divided into two sections. The first organized crime (TOC) to drop on the priority and addresses some of the key observations in trends in threat lists. However, during the past five years the TOC occurring globally and within specific significant expansion and impact of transnational regions. The second considers the Palermo organized crime in different parts of the world have Convention as well as some of the main difficulties contributed to a renewed focus on the international facing the international community in addressing threat that it poses. National strategies to counter TOC. transnational organized crime have been dusted off and strengthened, and additional resources are Trends and Developments being made available to help in doing so. in TOC Over the Past This is part of a renewed international interest in transnational organized crime and in efforts to Decade counter it. The Palermo Convention , seen as the main international tool to counter TOC, has In discussing trends in the development of therefore also come under renewed scrutiny. How organized crime over the past ten years, differences has TOC evolved and changed over the past ten in regions are evident, as are rival views of how to years and what role has the Palermo Convention understand and conceptualize the problem. Indeed, played in countering it? Addressing questions such a point raised by several of the expert panelists was 1 A useful source of articles and perspectives on the evolving role of the United Nations in combating transnational organized crime can be found in Phil Williams and Ernesto Ugo Savona, The United Nations and Transnational Organized Crime (London: Frank Cass, 1996), and several articles published in the journal Transnational Organized Crime , e.g., Phil Williams and Dimitri Vlassis, “Combating Transnational Organized Crime: Concepts, Activities, and Responses,” Transnational Organized Crime 4, no. 4 (2001). 2 MEETING REPORT that in-depth research on organized crime, which Fraud and financial scams have also increased can help inform international efforts at reducing its dramatically. This is partly due to advances in prevalence, remains sparse and the issue requires technology. 6 For example, ten years ago those urgent attention. perpetrating so-called 419 scams from Nigeria were The following pages summarize the main restricted to sending out individual letters and thematic issues that were discussed and debated by emails. Now, criminals can access huge “sucker the panel of experts and participants at the meeting. lists” and can send out thousands of letters all over Here we have arranged these discussions into seven the world instantly. In the UK, it has been estimated key topics. that such fraud costs £30 billion every year. New forms of fraud include “romance fraud” where GROWTH AND STRUCTURAL CHANGE people using online dating fora are lured into A strong theme during the discussions was that the sending money to bogus partners. As Lewis put it at scale and profits of organized crime have increased the seminar, significantly over the past ten years. There was also Before the rise of cyber crime, the man in the street unanimous agreement that the structure of TOC felt largely untouched by organized crime. It was by has evolved; if there was ever a belief in the hierar - definition an “underworld” activity, and rarely chical mafia-style organization that dominated touched ordinary lives. In recent years though, the criminal markets, such organizations are now a home computer has enabled criminals to deliver child thing of the past. 2 The organization of contempo - pornography, fraud and extortion into the heart of rary crime is far more fluid and dynamic, which billions of family homes. poses unique challenges for law enforcement. In China, this growth in the financial profits of Nick Lewis of the UK’s Serious Organised Crime organized crime was also cited as a direct outcome Agency argued that drugs are still the most of the remarkable economic growth occurring in profitable element of TOC, with the latest estimates the country. Although not all of China’s new suggesting the annual turnover of illegal drug economic elite derive success from crime, criminal markets is as high as $1 trillion. 3 In Afghanistan, activities are thought to be behind the emergence of heroin production is valued at $50 billion per year, some very wealthy individuals who are increasingly and in the US $40 billion worth of cocaine is sold spending the proceeds of crime oversees. For annually, with a further $30 billion sold in the rest example, criminals from mainland China are of the world. New synthetic drugs have been believed to be one of the main groups of consumers created and stronger strains of cannabis have of luxury goods in Hong Kong; Wing Lo of the City entered the market, causing new mental health University of Hong Kong described how such problems. In the UK alone, £1.5 billion is spent on people arrive in Hong Kong with suitcases of cash cannabis every year. 4 to buy jewelry and real estate, or gamble in Macau. Some 20 percent of real estate in Hong Kong, Alongside drugs, there has been growth in especially the most luxurious apartments, is now human trafficking. The UN estimates that in 2000, bought by mainland Chinese, and it is thought that 1 million people were trafficked by criminal organi - some money-laundering activities are involved.
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