The effect of illicit economies in the margins of the state – The VRAEM

Christoph Heuser

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The analysis focuses on the influence of illegal economies on local order and questions the conventional rationale of instability and violence through illegal activities. In an in depth-case study the analysis provides evidence that illicit economies can contribute to the development of local order rather than destroying it. The VRAEM is the current epicenter of drug production in Peru and therefore a well-fitting case for the analysis. The paper builds on qualitative data from participant observation, interviews and theory-based questionnaires collected in 2016 and 2017. The paper focuses on current center for drug production and on the social consequences, deepens our understanding of the influence of illegal economies on the local order. Understanding this influence is essential for designing policies for and understanding dynamics of state intervention. The drug economy played a significant role in the evolution of local order particularly in the areas of economy, security and rule. Even if this order does not resemble a normative state order, it is in itself stable and legitimate.

Keywords: illegal economies; local order; VRAEM; Peru; drug production; stability; Violence (search for similar items in EconPapers)
JEL-codes: J01 N0 R14 (search for similar items in EconPapers)
Date: 2019-01-14
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Journal of Illicit Economies and Development, 14, January, 2019, 1(1), pp. 23-36. ISSN: 2516-7227

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:100341

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