[Translator's note: In June of 1997 the following analysis of neoliberalism appeared in a European publication. Cecilia Rodriguez of the NCDM]

Date: Tue, 15 Jul 1997 18:46:30 -0700 (PDT) From: Cecilia Rodriguez

<moonlight@igc.apc.org>

THE FOURTH PIECE:

Financial Globalization and the Globalization of Corruption and Crime

The fourth figure is constructed by drawing a rectangle

The mass media reward us with an image of the directors of global delinquency: vulgar men and women, dressed outlandishly, living in ridiculous mansions or behind the bars of a jail. But that image hides more than it shows: the real bosses of the modern Mafiosi, or their organization, or their real influence in the political and economic regions are never divulged publicly.

If you think the world of delinquency is synonymous with the world beyond the grave and darkness , you are mistaken. During the period called the "Cold W ar", organized crime acquired a more respectable image and began to function like any other modern company. It also penetrated the political and economic systems of the national States. With the beginning of the Fourth World War, the implantation of the "new world order" and its accompanying opening of markets, privatization, deregulation of commerce and international finance, organized crime "globalized" its activities as well.

"According to the UN, the annual global income of transnational criminal organizations are about 1000 billion dollars, an amount equivalent to the combined GNP of countries with weak income (according to the categories of the global banks) and its 3 billion inhabitants. This estimate accounts for the product of drug trafficking, the illegal trafficking of arms, contraband of nuclear materials, etc., and the profits of activities controlled by the Mafiosi (prostitution, gambling, black market speculation...).

However, this does not measure the importance of investments which are continuously realized by criminal organizations within the sphere of control of legitimate businesses, nor the domination which they exert over the means of production within numerous sectors of the legal economy" (Michel Chossudovsky, "La Corruption mondialisee" in "Geopolitique du Chaos". Op. Cit.).

The criminal organizations of the 5 continents have made theirs the "spirit of global cooperation" and, associated, participate in the conquest and reorganization of the new markets. But they participate not only in criminal activities, but I legal businesses as well. Organized crime invests in legitimate businesses not only to "launder" dirty money, but to make capital for their illegal activities. The preferred business endeavors for this are luxury real estate, the vacation industry, mass media, industry, agriculture, public services and ... banking!

Ali Baba and the 40 bankers? No, something worse. The dirty money of organized crime is utilized by the commercial banks for its activities: loans, investments in financial markets, purchase of bonds for foreign debt, buying and selling of gold and stocks. "In many countries, the criminal organizations have become the creditors of the States and they exert, because of their actions on the markets, an influence over the macroeconomic politics of the governments. Over the stock markets, they invest equally in the speculative markets of finished products and raw materials" (M. Chossudovsky, Op. Cit.)

As if this were not enough, organized crime can count on the so-called fiscal paradises. There are all over the world at least 55 fiscal paradises (One of these, the Cayman Islands, has fifth place in the world as a banking center and has more banks and registered companies than inhabitants). The Bahamas, the British Virgin Islands, the Bermudas, Saint Martin, Vanuatu, the Cook Islands, Luxembourg, Maurice Island, Switzerland, the Anglo-Normandy Islands, Dublin, Monaco, Gibraltar, Malta, are good places so that organized crime can relate with the great financial companies of the world.

In addition to the "laundering" of dirty money, the fiscal paradises are used to avoid taxes, so they area point of contact between those who govern, CEO's and capos of organized crime. High technology, applied to finances permits the rapid circulation of money and the disappearance of illegal profits. "The legal and illegal businesses overlap more and more, they introduce a fundamental change in the structures of capitalism of the post-war era. The Mafiosi invest in legal businesses, and inversely, they channel financial resources towards the criminal economy, through the control of banks and commercial companies implicated I the laundering of dirty money or which have relations with criminal organizations. The banks pretend that the transactions are carried out I good faith and their directors ignore the origin of the funds deposited. The rule is to ask no questions, the bank secretary and the anonymity of transactions, all this guarantee the interests of organized crime, the y protect the banking institution from public investigations and from blame. Not only do the large banks accept laundered money, in view of their heavy commissions, but they also concede credits to at high interest rates to the Mafiosi, to the detriment of productive industrial or agricultural investments." (M. Chossudovsky, Op. City.).

The crisis of the world debt, in the 80's caused the price of prime materials to go down. This caused the underdeveloped countries to dramatically reduce their income. The economic measures dictated by the World Bank and the International Monetary Fund, supposedly to "recuperate" the economy of these countries, only sharpened the crisis of the legal businesses. As a consequence, the illegal economy has developed in order to fill the vacuum left by the fall of national markets.

In accordance with a report by the United Nations, "The intrusion of the crime syndicates has been facilitated by the structural adjustment programs with the indebted countries have been obliged to accept I order to access the loans of the International Monetary Fund" (United Nations. "La Globalization du Crime" New York, 1995).

So here you have the rectangular mirror where legality and illegality exchange reflections.

On which side of the mirror is the criminal? On which side of the mirror is the one who prosecutes the criminal?

Continue on...

Fifth piece: "Legitimate Violence on Behalf of an Illegitimate Power?"