Criminal Innovation and Illicit Global Markets: Transnational Crime in Asia

Roderic Broadhurst

doi:10.2139/ssrn.2842099

Abstract

The scope and form of organized crime in Asia, has been re-vitalized by the immense demand for the recreational use of methamphetamines ('ice'), ecstasy and new psychoactive substances (NPS) by the increasingly wealthy residents of the cities of East Asia and beyond. The scale of the problem has attracted serious attention by several governments. The Peoples Republic of China (PRC), for example, in October 2015 designated alpha-PVPalpha ('flakka' - a NPS) a controlled substance and placed restrictions on the export of a-PVP and another 115 chemical substances used to make synthetic drugs but without any legitimate medical or other use. Action on the suppression of the export of precursor chemicals is essential and India another major source of ephedrine, also needs to act. President Duterte's bloody 'war on drug traffickers' in the Philippines has already cost more lives than Thaskin's controversial war on drugs in Thailand in 2003 may also ultimately serve to consolidate organized crime groups, raise the cost of protection and temporarily displace activities to less hostile locations. This paper briefly reviews the scale and scope of the problem and the main actors engaged in illicit markets in the region. It concludes with comment on the effectiveness of countermeasures.

Highlights

The scope, diversity and form of organized crime in Asia have been re-vitalized by the opening up and intensification of the region’s economy
Asian crime entrepreneurs engage in an industrial-like global business, exporting precursor chemicals such as ephedrine or manufacturing illicit ATS or new psychoactive substances (NPS) drugs and importing opiates from the golden triangle or Afghanistan and cocaine via Africa or direct from South America, often for re-export to the USA and valuable markets in Europe and Australia (Hamilton 2016)
Complementary criminal investment in other illicit markets and the relative effectiveness of countermeasures addressing supply and distribution altogether play a role in shaping the quality and cost of the various national drug sub-markets

Summary

Introduction

The scope, diversity and form of organized crime in Asia have been re-vitalized by the opening up and intensification of the region’s economy. The black market in self-medication and escapism cuts across all levels of society Both wealthy and poor seek out ways of managing fatigue and life-stress, and markets in cheaper synthetic (analog) narcotics not dependent on variable opium, cannabis or coca yields have developed. This has helped create demand for the recreational use of methamphetamines (‘ice’), other amphetamine type stimulants (ATS, e.g. ecstasy) and new psychoactive substances (NPS) as well as synthetic opiates and cocaine. Complementary criminal investment in other illicit markets (notably, China trade in wildlife delicacies and exotic species used in traditional medicines, e-waste, and timber products) and the relative effectiveness of countermeasures addressing supply and distribution altogether play a role in shaping the quality and cost of the various national drug sub-markets. Strategies aimed at attacking crime groups, such as criminal association laws or other measures to disrupt the trade, like ‘war on drugs’ campaigns, will not impact broadly on illicit markets unless the markets themselves are regulated (UNODC 2010a; Broadhurst and Ly 2012)

Responses to transnational crime

Illicit drugs and pharmaceuticals

Organized crime groups and activities

Findings

Degrading the power of organised crime?