Globalization and Transnational Crime

Economic Globalization and Transnational Crime: An exploration of how making the world smaller also made it more dangerous

Ken Kodadek

Law 300-A1 Globalization Seminar Professor Brietzke April 24, 2012

Globalization and Transnational Crime Economic Globalization and Transnational Crime: An exploration of how making the world smaller also made it more dangerous Initially, the main thrust for this project was going to center around the positive relationship between economic globalization and transnational terrorism. After conducting countless hours of research in preparation for a discussion on that topic, my findings led me to take a different track. The reason for this diversion is simple.

Undoubtedly, terrorism continues to be a serious threat to economic development and political stability. With that being said, there is a much bigger problem brewing, and whose dangerous effects are far more reaching. That problem is one of transnational crime and illicit trade. As such, this paper will address the following: 1. What is globalization, and how did it contribute to a surge in transnational crime and illicit trade? 2. The means and methods by which transnational crime groups and illicit traders are profiting from the global economy. 3. Taking global responsibility for failure. 4. Suggestions for fixing a broken system. It is my sincere hope, that at the conclusion of this paper, the reader will come to appreciate the negative consequences of globalization; the gravity of transnational crime/illicit trade and its impact on global security and security; what concerns the world community must address as it continues on its quest for the development of new technology, trade, and capital flows.

Globalization and Transnational Crime What is Globalization and How Did it Contribute to a Surge in Transnational Crime and Illicit Trade? According to Keohane & Nye Jr. (2000), globalization may be defined as an integration of economic, social and cultural relations across borders. Conversely, Kay (2004) states that globalization is best understood as the creation of a variety of transboundary mechanisms for interaction that affect and reflect the acceleration of economic, political and security interdependence (p.10). Arguably, increasing financial, trade and economic relations has had a positive effect on developed and developing nations. As a result of

globalization, many communities in developing nations can finally say that they have access to electricity, safe drinking water, health systems and education where none was available before. The keystone to globalization has been the tremendous advances made in technology. Technology enlarged the market by lowering transport costs, making it more efficient to engage in trade with certain countries where in the past, the thought of doing so would have been cost prohibitive. On the surface, this looks like a

win-win situation. Americans can enjoy bottled spring water from the Fiji Islands or apricot jam from Egypt for a reasonable cost at a local retailer. A producing country such as Egypt could then use the profits derived from their products to improve their social and political infrastructure. As a result, Egyptian citizens should recognize a higher standard of living. Unfortunately, this is not always the case. Globalization created many negative consequences and the marginalization of some groups, which led to global social and

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economic inequalities. Karacasulu (2006) contended that persons at the lower end of the social and economic spectrum realized that they cannot have equal shares in the global world legitimately; therefore these individuals turned their focus to illicit trade and transnational crime. The current landscape in Afghanistan is a prime example. The lack of alternative livelihoods, especially in the agricultural sector and the need to sustain the bare essentials of life are major factors which contribute to illicit opium cultivation there. The UNODC (2006) published a study that reported that the vast majority of Afghans still lack access to basic necessities needed for survival. In addition, it was noted that only 19 percent of Afghan households have televisions and 6 percent have refrigerators. Finally, of all Afghan farmers, only 2 percent own a tractor (p. 96). Debt in Afghanistan is extremely high, and farmers are much poorer than in other regions with a comparable level of debt. The UNRISD (1994) stated that opium poppy farmers in Afghanistan can make 10-50 times more in provisioning the illegal drug market than they can in any other agricultural pursuit (p. 15). Given this information, it should come as no surprise that Afghanistan is currently the worlds major producer and exporter of opium and its morphine derivative, heroin (UNODC, 2005). Assuredly, the situation in Afghanistan will be revisited in greater detail in the sections to follow for the following reasons: One, opium production and exportation in Afghanistan is but one problematic market there affecting world security and stability. Second, Afghanistan presents an opportunity to address the complications associated with the

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globalization process and how the world body can go about fixing that which is broken. Earlier, it was mentioned how technology enlarged the market by lowering transport costs, but technology did something else. Technology also enabled the trade of a whole range of goods that didnt exist before such as pirated software, genetically modified marijuana, counterfeit drugs that dont cure but kill, human organs, and nuclear weapons fissile material and. Transnational crime groups have benefitted by more efficient ships, roll-on/roll-off cargo container vessels, new loading and unloading tools, better port management, improved logistics, advances in refrigeration, new packing materials, satellite navigation and parcel tracking. To these-which serve all forms of trade, legitimate and otherwise-traffickers, have added creative applications of their own. Aggressive and inventive adoption of new technologies has helped traffickers to lower risk, increase productivity, and streamline their business (Naim, 2005). To be certain, this is far from the end of the story. Commerce of all kinds surged in the 1990s as country after country lowered its barriers to imports and exports. Whether it was the passage of the North American Free Trade Agreement (NAFTA) in 1994; the establishment of the World Trade Organization in 1995 or the enlargement of the European Union in 2004- one thing is clear. Participant countries reformed their trade rules, and lowered obstacles, which resulted in opportunity for transnational crime and the explosion of the illicit trade market. According to Naim, one huge obstacle removed for transnational crime and illicit trade was the

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reduction of border controls either in number or stringency (p. 19). It was largely thought that having border controls would result in inefficiency due to back-ups attributed to the inspection of vehicle cargo. Never were truer words spoken than the old adage that time is money. Back-ups result in delay of product processing and shipment, which in turn delays payment. Consequently, many border controls were virtually abolished. For the border controls that remain, one need not look farther than the problematic U.S.-Mexico border. Inspectors there are time-pressured to check vehicles quickly; to do otherwise will just tie up traffic for miles and overtax the meager resources allocated to border patrol agencies. A recently aired episode of Texas Drug Wars on the Discovery channel confirmed the challenges associated with effective border patrol. An interview with a border agent revealed that 4.5 million trucks cross the U.S.-Mexican border every year, and that only 10-15% are searched. Because of this scant number, traffickers are emboldened to transport contraband in this manner with virtual impunity. In the event that a rig is searched and its contraband is seized; the loss is simply chalked up as the cost of doing business. Even more problematic is the situation surrounding the worlds cargo container ports. More than 90,000 merchant and passenger ships dock at U.S. ports. They carry about 18 million containers with 400 million tons of cargo. Of these 18 million cargo containers that arrive by sea each year, only 2% to 10% of them are searched (McDonald, 2002). Finally, another 157,000 smaller vessels call at U.S. harbors (Naim, p. 180). In addition, Express custom clearance schemes, the

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spread of free ports and export processing zones, the ubiquity of air cargo and the impossibility of checking every FedEx or DHL package all offer smugglers new ways to traverse borders with little fear of being prosecuted (Naim, 2005, p. 19). Arguably, to find illegal contraband under such circumstances amounts to finding a needle in a haystack. At this juncture, it should be apparent that globalization has led to economic inequalities, lack of rule of law, insecurity, the need for survival by disadvantaged groups, and exaggerated expectations of bilateral assistance through alternative livelihood activities. Add the advances in technology to the cauldron and you not only provide groups with reasons for engaging in illicit activities and trade, but you also provide them with ease by which to make a living. The next section of this discussion will center on how transnational crime groups are hijacking the global economy. Specific attention will be given to some of the larger markets transnational crime groups and illicit traders are involved in and how technology enables them to turn a profit. The Means and Methods by which Transnational Crime Groups and Illicit Traders are Profiting from the Global Economy A. Drug Trafficking The trade and trafficking of illicit narcotics is an international enterprise involving producers, distributors, money launderers and the consumer (Shanty, 2008). It is a multinational business, which employs tens of millions of people, and is worth around $500 billion per year. The main source countries, for either

Globalization and Transnational Crime producing or trafficking, are Afghanistan, Bolivia, Columbia, Iran, Myanmar, Pakistan, Peru and Thailand (States of Disarray, n.d.). To understand the many layers involved in the production and sale of illegal narcotics, the following example is intuitive. Consider that the typical opium market includes the farmers (sharecroppers or landowners), hawalars, farm-gate traders, provincial/zone traders, main market traders, in some cases the military and government officials, and in almost all cases- warlords and drug cartels (UNODC, 2009). Cocaine and Marijuana production and supply line chains nearly mirror that of the opium example provided above. Using the opium production and supply line chain illustrated above, it would be appropriate to flesh out some numbers as it is imperative to gain a perspective on just how lucrative the drug business is. As such, the situation in Afghanistan will now be revisited for it is also one of the most documented. According to a survey conducted by the UNODC (2008), farmers from the southern and western regions of Afghanistan earned US $6.3 billion from opium between 2002 and 2008. During the same time period, Afghan drug traffickers earned more than US $18 billion. Further, Afghan farmers paid 10% of their total income, or $600 million to the Taliban, warlords, Mullahs or government officials as tax to ensure safe passage of the product across the Pakistan and Iran borders for distribution in those networks as well as China, India, and Central Asia (p. 99). Finally, processed heroin from Afghanistan, provided the Taliban with an estimated $8 billion in 1999 (Ehrenfeld, 2003, p. 52).

Globalization and Transnational Crime Other countries enjoying the fruits of drug revenues include Bolivia whose coca-cocaine revenues for 2005 were estimated to be worth as much as 20% of GNP (States of Disarray, n.d.). Kershaw (2005) reported that Canadas B.C. bud business netted $7 billion in that same year. Given the staggering amounts of drug revenues previously presented, one must wonder how traffickers are so successful in generating these figures. This question has many answers with technology being at the heart of it all. Take the Internet. Its value to traffickers is immense. One can broker the sale of narcotics behind a fictitious screen-name while sipping on a latte at a cybercaf. Once the sale is complete; the trafficker can then track his shipment online using the tracing services made available by the USPS, FedEx, UPS and others. The Internet allows traffickers to communicate privately and efficiently-consummating deals in virtual rather than geographic space, thus effectively covering their tracks and minimizing the odds of being caught. To demonstrate how prolific Internet use is in the drug trade, the DEA announced that in 2005, they successfully shut down a drug ring that used two hundred Web sites based in the United States, Costa Rica, Canada, and Australia to sell methamphetamine, ecstasy, ketamine, GHB, and other drugs manufactured in India and shipped illicitly anywhere in the world (Kaufman, 2005). The advent of cell-phones has also greatly benefitted the drug trafficker. By purchasing a pay-as-you-go phone, one can use it to orchestrate a specific purchase. When the sale has been completed, and

Globalization and Transnational Crime there is any apprehension of being prosecuted, the trafficker can simply remove the sim card and discard the phone. Like the Internet, cell-phones allow for great mobility. Prior to the introduction of this technology, groups usually had to come together at one place to

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conduct business. Such practices, more often than not, put everyone at risk and led to large scale arrests. Now, it is all about speed. Drug networks are simultaneously local and global, and operate with such speed that national and local governments cannot contain them. While much has been mentioned regarding the various forms of technology that drug traffickers employ to get shipments from point A to B, and at least another 20 pages could be committed to this endeavor, I would be remiss to end this topic without mentioning the utilization of honey coated latex condoms laden with pellet sized packages of heroin, which are then swallowed by human mules prior to entering an airport security checkpoint. Another common practice is surgically implanting packaged drugs into the thighs of humans or the backs of dogs and then surgically removing them in safe houses. Regular security measures used by the airport will generally render these methods undetectable. Britains High Commission in Jamaica estimates that one in ten passengers flying to the U.K. from that island is smuggling cocaine in this manner (Steele & Millward, 2002). As one can see, drug trafficking is an international epidemic. As new technology is developed as part of the globalization process, the unintended consequence is that traffickers learn to adapt the means and methods by which they operate. This is to say that traffickers and transnational crime groups either learn to negate the technology

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intended to impede their activities or they turn it into an advantage. B. Arms Trafficking The following are all examples of arms being trafficked: U.S. manufactured Stinger shoulder antiaircraft missiles (SAM), Sagger anti-tank missiles, long-range Katyusha rockets, rocket launchers, mortars, anti-tank mines, and AK-47 assault rifles. The foregoing is an example of the items being trafficked by arms dealers in Iran. These weapons are then distributed to regional neighbors such as Afghanistan and Syria. Coker (2001) reported that of the 550 million small arms and light weapons in circulation today, only 3% are used by government, military, or police forces (A1). It is thought that with the exception of the SAM, most of the weapons on the market today originated from the overstock weapons and military materials from the vastly oversize Warsaw Pact armies and the state owned factories set up to supply them (UNOCHA, 2006). Speaking only of AK-47s, the weapon is officially manufactured in fourteen countries, but with advancements in technology, illegal production has become quite common. The recipe for making an AK-47 has remained largely unchanged by technology. What did change, was the ability to establish production facilities where labor is cheaper and the ability to transfer the necessary know-how to locations far away from the headquarters RUAG Ammotec or Remington. As a result of clandestine AK-47 manufacturers, the price of the rifle has plummeted to about $200 in Nicaragua (Kipling, 2002). Moreover, Ghana now has over 2,500 clandestine small and medium arms manufacturers that produce fully functional copies of modern assault weapons and pistols

Globalization and Transnational Crime that are sold for as little as six dollars apiece (Aning & Florquin 2004). As of this writing, there appears to be much disagreement over how much revenue is generated globally each year due to the arms trafficking industry, and with good reason. In Afghanistan and Tajikistan, opium is used as a surrogate currency rather than cash to procure weaponry from northern stockpiles or trafficked from Central Asia (Ibrahimi, 2008). In addition, arms are traded for licit goods, which creates yet another obstacle in the revenue calculation.

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Finally, there is the issue of money laundering. Given the huge volume of financial transactions that occur on a daily basis- the most recent estimates place that number in excess of $1 trillion, and it becomes obvious that accurately tracking and computing revenues generated from arms trafficking and other forms of illicit trade is next to impossible (Weintraub, 2002). C. Alien Smuggling and Human Trafficking Economic desperation is at the root of political and social movements, and is a major source of pressure on people to migrate. Repression brought to bear on those movements also leads to migration (Bacon, 2008). A great starting point for this discussion is the current situation in Oaxaca. Oaxacan poverty is the result of failed Mexican economic development policies. For more than two decades, under pressure from the World Bank, the International Monetary Fund (IMF), and conditions placed on U.S. bank loans and bailouts, the government has encouraged foreign investment while cutting expenditures intended to raise rural incomes (Bacon, 2008, p. 25).

Globalization and Transnational Crime Oaxaca is comprised of small rural farmers, whose main crop is corn. Once NAFTA went into effect, U.S. corn products were then dumped on this region and Mexico government subsidies ended. Consequently, prices were decontrolled, and necessities like milk, gasoline, and

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other products rose dramatically while the price of Mexican grown corn tanked. Widespread poverty ensued and led to thousands of Oaxacans looking for work elsewhere in other parts of Mexico, but mainly in the U.S. This situation, and many others like it, plays right into the hands of human traffickers and smugglers. Alien smuggling is a $10 billion a year business and according to the UN (2012) and is the fastest growing business of organized crime. Technology has once again reared its ugly head as fraudulent document providers have little to no difficulty creating a high quality Social Security card or Drivers License that is almost indiscernible from genuine issue. The incurred cost for a new life is not cheap. The price of passage for an alien can range from $2,000 to as much as $60,000 (Meissner, 2003). In the event that the alien cannot afford the transport toll, modern day slavery takes hold. In such a case, the alien may work at a factory during the day, and be stashed in a safe house where they are beaten and raped until the smuggler is convinced that the debt has been paid. To avoid confusion, please understand that alien smuggling and human trafficking are two different concepts though their lines can be blurred depending on the specific circumstances. Alien smuggling can be defined as knowingly purchasing an illegal service to gain access into a foreign country (Miko, 2002). The National Security Council

Globalization and Transnational Crime (2002) estimated that 500,000 to 600,000 illegal migrants who entered the United States that same year were Mexican, and that there were another 225,000 from Central America. Given the bleak outlook in Oaxaca, it is understandable why aliens will pay a smuggler, and take the inherent risks associated with the process of traversing the border in search of a better life. In the next subsection, our focus turns to human trafficking. If Alien Smuggling is 1(C), then Human Trafficking is 2(C). In the case of human trafficking, the trafficker deceives or coerces the migrant and sells his or her labor. The U.S. Congressional Research Service issued a report of which stating that trafficking in persons-

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mainly women and children, involves upwards of 900,000 individuals who cross international borders. Of this number, at least 20,000 find their way into the U.S. Further, of the estimates presented, approximately 35% are under the age of thirty-five (Miko, 2002). Traffickers initially tempt victims with promises of lucrative careers such as modeling, clerical, and retail awaiting them in another country. These offers are possible through fictitious job placement services running ads on the Internet. In the case of children, impoverished villages are targeted whereby parents are coaxed through payment into allowing their children to leave with a handler on the premise that some wealthy family would like to adopt and could offer their child a more fruitful life (Naim, 2002). What is most repugnant, is that the U.S. Congressional Research Service (2002) reported that young girls are acquired in this manner from villages in Nepal and Bangladesh, and then sold to brothels in India for $1,000.

Globalization and Transnational Crime Sulavik (2003) states that numerous children are bought in Myanmar, China, Russia, and the Philippines and then placed for sale on online markets. From there, they are then sold to prostitution rings operating in Britain, France, Germany, Japan, and the United States. In the same vein, UNICEF (2002) reported that approximately 200,000 children are enslaved by cross border traffickers in Central and West Africa. Arguably, globalization did nothing to improve the lives of these victims. D. Money Laundering

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Perhaps the most challenging problem facing governments in their regulation of international commerce is that of money laundering. To fully understand the problem; one has to come to grips with its cause. Beginning in the early 1990s, criminal networks and illicit traders became privy to new technologies, resources, and possibilities that before this time did not exist. For instance, computers, chips, and satellites change significantly the structure of international finance, thereby reducing the risks associated with illegal transnational financial transactions. (Vaithilingham & Nair, 2007). The digitization of money blew the door open for the use of wire transfers and credit cards for the instantaneous transfer of funds across transnational borders. In addition, consider the cost of using a wire transfer or credit card to conduct such a transfer. It is minimal at best, and helps to explain why the sheer volume of financial transactions are astronomical. When banking fees are reduced, banking transactions increase. As a result, monetary authorities simply cannot exercise the level of oversight required to

Globalization and Transnational Crime curb the manipulation of international trade of between $800 billion and $2 trillion each year (Wechsler, 2001). Another issue complicating matters is that of banking secrecy. International banks are vying for new customers all of the time. Open

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competition among banks for new customers only exacerbates the problem of money laundering even more. If a bank cannot reassure a new customer that his/her privacy will not be compromised; the bank runs the risk of alienating the potential customer base and losing future profits. Li & Schaub (2004) prophesize that banks will continue to side with the customer and the business they bring, irrespective of how their clients funds were derived. The situation in the Cayman Islands seems curious. With a population of approximately 35,000, there must be a real need for 600 banks and trust companies, 2,200 mutual funds, 500 insurance companies, and 45,000 foreign businesses. Its banking system has almost $700 billion in assets (Wechsler, p. 42). Obviously this is but one example of an Offshore Financial Center (OFCs). Included in OFCs are shell banks and shell companies, all of which offer the owner of the funds anonymity and easy transferability (Offshore Financial Centers IMF Background Paper 2000). The same International Monetary Fund report placed estimates of global offshore assets at roughly $4.8 Trillion (IMF, 2000). Finally, the U.S. Treasury estimates that it loses $70 billion a year through offshore tax evasions by individuals, while developing countries lose about $50 billion a year in taxes through these modalities (Naim, p. 12). If you are interested in laundering money, and do not have access

Globalization and Transnational Crime to an OFC in the Cayman Islands or Switzerland, do not worry. One can still launder money by simply converting cash into money orders provided that the transactions are limited to less than $10,000. For those in Columbia, money can be laundered through systems similar to the Black Market Peso Exchange (BMPE). Columbian drug cartels make regular use of this method by selling Columbian drugs in the U.S. and receiving U.S. currency in exchange. The U.S. currency is then sold back to a BMPE agent in the U.S. at a discounted rate. The BMPE then deposits into the cartels account whatever equivalent sum in pesos the cartel and the BMPE agent previously agreed to. The U.S. dollars that were sold to the BMPE agent are then sold to Columbian businessmen who then use the dollars to import products from the U.S. into Columbia. In sum, the cartel has converted their drug proceeds

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into pesos without having to transfer money abroad, all while avoiding U.S. reporting requirements (National Money Laundering Strategy, 2002). The BPME recycles an estimated $5 billion annually (Naim, p. 79). The hallmark of globalization is the free movement of capital. Based on the aforementioned examples of money laundering, the movement of capital couldnt be any freer. Taking Global Responsibility for Failure It would be easy to squarely place all of the blame for globalizations many failures at the feet of NAFTA, the WTO, and the EU. Undoubtedly, the passage and or creation of these three, really motivated participant countries to relax (the term is used loosely) controls necessary to compete in the world market. The IMF and the World Bank seemed to have the picture of an ideal country, though we

Globalization and Transnational Crime know now that none such exist. The ideal country was supposed to have an economy that would be largely self-regulating through open competition, and its public sector would need not provide more than

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the minimum services necessary for the conduct of private business and the protection of societys weakest members. Judging by the examples presented in Oaxaca and Afghanistan, the theory of the IMF and World Bank couldnt have been more misguided. As a result, the poor got poorer because these institutions hedged their bets that short-term social costs could be offset against long-term economic gain. When farmers in Oaxaca could no longer make a living on Mexican grown corn, they became illegal migrants searching for jobs in the U.S. The day peasant farmers in Afghanistan found growing wheat and apples unprofitable, they adopted coping strategies by switching to opium poppy cultivation. At this juncture, it would be unrealistic to suggest that the current trend is totally reversible. The power of the profit is much too strong for those involved in licit as well as illicit trade. You see, profit is what unites these two groups together and creates a symbiotic relationship. For the illicit trader or crime group, many citizens see them as a provider of goods and services as well as jobs. Opium poppy cultivation is a labor intensive crop. As more poppies are cultivated per hectare, jobs become plentiful and the wages earned are then funneled into the local economy. For the licit trader, he/she depends on making money and in a place such as Afghanistan; the licit trader could care less who is buying his goods because at the end of the day it is all about profit and survival. Place the blame for this

Globalization and Transnational Crime situation where you will, but this is a global problem in need of a global solution. Suggestions for Fixing a Broken System Given that transnational crime and illicit trade are global problems threatening world security and stability, it would appear that the first place to start would be greater cooperation among governments. So much has been made about state sovereignty. Consider the recent stance of Venezuela. State sovereignty occupies a higher order than drug interdiction efforts led by the U.S. Venezuela is content to let drug growers and traffickers have free reign rather

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than allow U.S. planes enter its airspace because this is somehow seen as demeaning and a sign of weakness were Venezuela to allow otherwise. Another starting point would be one of value reduction. Governments and various agencies need to figure out how to make it less profitable for transnational crime groups and illicit traders to operate. Afghanistan presents an interesting opportunity. By legalizing opium production, supply goes up and prices should fall. Pharmaceutical companies such as Merck could benefit from this since many medications contain heroin derivatives. Mercks cost to acquire the heroin would be reduced, and the cost of the final product to the patient should also be cheaper. One glaring weakness to this theory is how this affects heroin addiction in Iran, which at the present time is rampant. If Irans problem could be integrated into a final solution, it may be possible to kill two birds with one stone. Next, the time has come to develop new mechanisms and institutions aimed at this problem. Common complaints one hears when

Globalization and Transnational Crime listening to law enforcement agencies is that of underfunding and understaffing. Perhaps the time has come for us to reevaluate what we are asking from agencies such as the DEA, ICE, INTERPOL, and others. If funding and staffing lie at the root of the problem, then those limitations need to be addressed. If it is determined that the creation of a new institution would be better suited for dealing with

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certain problems, then the duties of the DEA, ICE, and INTERPOL should be reduced or reconfigured so that limited resources (funding, staffing) are not overburdened to the point that they hamper enforcement efforts. Better yet, perhaps resources such as monetary, staffing, and intelligence could be merged between border patrol agencies in the U.S. and Mexico with the net result being greater effectiveness. Finally, as a whole, more effort must be expended in order to better understand differences between cultures and how laws, regulations, licenses, taxes, embargos, and all the procedures that nations employ to organize commerce, protect their citizens, raise revenues, and enforce moral codes, affect them for each will be affected differently and respond differently. From this information, the marginalization of certain groups could be avoided, which in turn would help to alleviate the problem of transnational crime and illicit trade rather than exacerbate it. Because of globalization, the world is smaller and it is more dangerous. Illicit trade allows for people to reject government, and it invites corruption. Economic shelter is provided for crime groups and terrorists. Further, economic development is impaired, which leads

Globalization and Transnational Crime to tremendous enforcement costs that could be better spent improving social and political infrastructures. As long as competition remains fierce within the world marketplace and technology continues to advance at the speed of light, there is no reason to think that we will be able to right the ship anytime soon. Transnational crime groups and illicit traders are like parasites. To kill a parasite, sometimes you have to kill the host. The host in this case is globalization.

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References Aning, E., & Florquin, N. (2003). The Anatomy of Ghanas Secret Arms Industry. Retrieved January 5, 2011, from http://www.smallarmssurvey.org/fileadmin/docs/D-Book-series/book01-Armed-and-Aimless/SAS-Armed-Aimless-Part-1-Chapter-03.pdf Annan, Kofi A. (2001, July 10). Small Arms, Big Problems, Remarks at the and United Nations Conference on Illicit Trade in Small Arms Light Weapons in All Its Aspects. International Herald

Tribune, p. 9. Bacon, D. (2008). Illegal People: How Globalization Creates Migration and Criminalizes Immigrants. Boston: Beacon Press. Coker, M. (2001, July 9). Illegal Small Weapons Pose Global Threat. Seattle Post Intelligencer, p. A1. Ehrenfeld, R. (2003). Funding Evil: How Terrorism is Financed- and How to Stop It. Chicago: Bonus Books. Ibrahimi, S. (2008). Turning Afghan Heroin into Kalashnikovs. Institute for War and Peace Reporting, 295, 1-15. Karacasulu, N. (2006). Security and Globalization in the Context of International Terrorism. Review of International Law and Politics, 2, 1-17. Kaufman, M. (2005, April 21). Internet Drug Ring Broken. Washington Post, p. A3. Kay, S. (2004). Globalization, Power, and Security. Retrieved January

Globalization and Transnational Crime 5, 2011, from http://www.comw.org/pda/fulltext/0403kay.pdf Keohane, R., Nye Jr., J. (2000). Globalization: Whats New? Whats Not? (And so what?). Foreign Policy, Spring 2000, 104-19. Kershaw, S. (2005, March 5). Violent New Front in Drug War Opens on the Canadian Border: Potent Marijuana at Center of Smuggling

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Chain. New York Times, p. A1. Kipling, G. (2002). Old Guns for a New War: The Resurgence of Arms Smuggling in Costa Rica. Peace Magazine, Jul-Sep 2002, 6. Li, Q., & Schaub, D. (2004). Economic Globalization and Transnational Terrorism: A Pooled Time-Series Analysis. Journal of Conflict Resolution, 48, 230-258. McDonald, M. (2002, February 11). Checkpoint Terror: Border Searches Snarl the Free Flow of Goods. US News and World Report, p. 1. Meissner, D. (2003). Americas Challenge: Domestic Security, Civil Liberties, and National Unity after September 11. Retrieved January 6, 2011 from http://www.migrationpolicy.org/pubs/Americas_Challenges.pdf Miko, F. (2002). Trafficking in Women and Children: The U.S. and International Response. Retrieved January 6, 2011, from http://fpc.state.gov/documents/organization/9107.pdf Naim, M. (2002). The Fourth Annual Grotius Lecture: Five Wars of Globalization. American University International Law Review, 18, 1-18. Naim, M. (2005). Illicit: How Smugglers, Traffickers and Copycats are Hijacking the Global Economy. New York: Doubleday.

Globalization and Transnational Crime Shanty, F. (2008). Organized Crime: From Trafficking to Terrorism. Santa Barbara: ABC-CLIO. Steele, J., & Millward, D. (2002, April 1). Britain Hit by Cocaine Flights from Jamaica. Daily Telegraph (London), p.5. Sulavik, C. (2003, August 25). Facing Down Traffickers: Europe Takes on Its Fastest-Growing Criminal Enterprise. Newsweek. Vaithilingham & Nair (2007). Factors affecting money laundering: lesson for developing countries. Journal of Money Laundering Control, 10, 352-366. Wechsler, W. (2001). Follow the Money. Foreign Affairs, 80, 40-57. Weintraub, S. (2002). Disrupting the Financing of Terrorism. The Washington Quarterly, 25, 53-60. Other Sources

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Globalization and Transnational Crime http://www.unodc.org/unodc/en/frontpage/unodc-launches-2009-annualreport.html http://www.unrisd.org/unrisd/website/document.nsf//States_of_ Dis_ES.pdf http://usinfo.state.gov/topical/global/traffic/crs0510.htm

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