Globalization and the Sex Trafficking Industry: Examination of Effects on Regional Value Chain Operations
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College of Saint Benedict and Saint John's University DigitalCommons@CSB/SJU Honors Theses, 1963-2015 Honors Program 4-28-2015 Globalization and the Sex Trafficking Industry: Examination of Effects on Regional Value Chain Operations Mary R. Gilbertson College of Saint Benedict/Saint John's University Follow this and additional works at: https://digitalcommons.csbsju.edu/honors_theses Part of the Ethics and Political Philosophy Commons, International Business Commons, Public Policy Commons, and the Women's Studies Commons Recommended Citation Gilbertson, Mary R., "Globalization and the Sex Trafficking Industry: Examination of Effects on Regional Value Chain Operations" (2015). Honors Theses, 1963-2015. 78. https://digitalcommons.csbsju.edu/honors_theses/78 This Thesis is brought to you for free and open access by DigitalCommons@CSB/SJU. It has been accepted for inclusion in Honors Theses, 1963-2015 by an authorized administrator of DigitalCommons@CSB/SJU. 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Globalization and the Sex Trafficking Industry: Examination of Effects on Regional Value Chain Operations An Honors Thesis In Partial Fulfillment of the Requirements for All College Honors and Distinction In the Department of Global Business Leadership April 28, 2015 College of Saint Benedict/Saint John’s University By Mary Gilbertson Under the supervision of Associate Professor Sanford Moskowitz Professor Jean Keller Professor John Hasselberg Table of Contents Chapter One: Introduction ...................................................................................................... 5 Case Study .............................................................................................................................................. 5 Purpose of Paper ................................................................................................................................... 6 Methodology and Organization ......................................................................................................... 7 What are Sex Trafficking and Some Generic and Commonly Believed Solutions? ............. 8 Definition of Sex Trafficking ........................................................................................................... 10 Size and Scope of the Sex Trafficking Industry ......................................................................... 11 Costs and Impacts of Sex Trafficking (Direct and Indirect) ................................................... 12 Next Chapters ..................................................................................................................................... 15 Chapter Two: Globalization and Sex Trafficking ........................................................... 16 What is Globalization? ..................................................................................................................... 16 Globalization and Underground Economies ............................................................................... 17 Globalization’s Relation to Sex trafficking ................................................................................. 19 Pre-Globalization Sex Trafficking ................................................................................................. 20 Sex Trafficking Trends in Global World ..................................................................................... 21 Three Global Drivers of Sex Trafficking: War, Economic Instability and Technological Advance ................................................................................................................................................ 22 War .................................................................................................................................................................... 22 Economic Instability .................................................................................................................................... 25 Technological Advance ............................................................................................................................... 27 Chapter Three: Value Chain of Sex Trafficking .............................................................. 30 The Value Chain Process ................................................................................................................. 30 Global Costs and Statistics of Sex Trafficking ........................................................................... 33 Costs .................................................................................................................................................................. 33 Numbers ........................................................................................................................................................... 33 Value Chain – 1st Participant: Pimps/Traffickers ..................................................................... 34 Demographics of Traffickers..................................................................................................................... 34 Levels of Traffickers .................................................................................................................................... 35 Motivation to Traffic.................................................................................................................................... 37 Value Chain – 2nd Participant The Victims: Initial Approach and Method of Entry ...... 38 Introduction ..................................................................................................................................................... 38 Social Conditions .......................................................................................................................................... 39 Religious Beliefs ........................................................................................................................................... 39 Immigration Status ....................................................................................................................................... 40 Presence of War ............................................................................................................................................. 40 Political Instability ........................................................................................................................................ 41 Economic Instability .................................................................................................................................... 41 Methods of Entry .......................................................................................................................................... 41 Value Chain – 3rd Participants - The Johns ............................................................................... 43 The Global Value Chain Process of the Sex Trafficking Industry ........................................ 45 Now that we have discussed the three major actors in the sex trafficking value chain, we will consider now, in more detail, the actual processes that make up the global sex trafficking value chain. ................................................................................................................................ 45 Introduction ..................................................................................................................................................... 45 Traffickers (Firm Infrastructure) .............................................................................................................. 46 Initial Approach/Recruitment (Resource Management) ................................................................... 47 Technology Development .......................................................................................................................... 47 2 Sale to Brothel or Trafficker (Procurement)......................................................................................... 48 “Breaking In” (Inbound Logistics) .......................................................................................................... 48 Transportation and Distribution (Operations and Outbound Logistics) ...................................... 49 Marketing and the Rise of Technology (Marketing and Sales) ...................................................... 49 Exploitation and Sale (Service) ................................................................................................................ 49 Government Regulators ................................................................................................................... 50 United States of America vs. India ................................................................................................ 51 Chapter Four: The United States ......................................................................................... 53 Case Study ........................................................................................................................................... 53 Numbers ............................................................................................................................................... 54 THE AMERICAN SEX TRAFFICKING VALUE CHAIN – ACTORS AND PROCESSES ....................................................................................................................................... 54 Pimps/Traffickers .............................................................................................................................