Illegality Costs

A. La Spina and G. Lo Forte

Rivista economica del Mezzogiorno, 2006, issue 3-4, 509-570

Abstract: The paper is on the culture of illegality, unfortunately a very widespread event in Southern Italy, where it represents one of the most considerable obstacles to the economic and social development of area. Who has been already running a business in Southern Italy has a hard life and, moreover, who could run a business there, gives up and turns elsewhere, he prefers countries or areas where public institutions are considered more reliable by businessmen. The analysis focus on Camorra, an organized criminal group especially active in Campania, and it shows how various types of illegality (mafia-style crime, weak legality, common crime and corruption) can become both entwined and stronger reciprocally. Some "production" has become possible and highly profitable because in a certain territorial and social context the violations of commercial, environmental, town-planning or black-market work related regulations have been substantially and systematically tolerated, and this has allowed the clan to thrive and to increase its dangerousness. Thus, the comparison between Cosa Nostra's and Camorra's activities shows as well the necessity of strongly diversifying the analysis of the economic effects of illegality, considering the types of mafia-style organizations, territories, types of production, types of markets, types of businesses. For instance, what is observable in Campania doesn't happen exactly similar in Sicily, or in Calabria, where other illegal organizations are more deep-rooted.

Keywords: Illegal Behavior and the Enforcement of Law; Illegality; Organized Crime; Conditioning on Economic Development (search for similar items in EconPapers)
Date: 2006
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