Crime - alone among all economic activities in communist
societies - obeyed the laws of the free market. Criminals
had to be entrepreneurial and profitable to survive. Their
instincts sharpened by - often lethal - competition, they
were never corrupted by central planning.
Deprived of access to state largesse, criminals invested
their own capital in efficiently-run small to medium size
enterprises. Attuned to the needs and wishes of their
customers, criminals engaged in primitive forms of
market research, through neighborhood and grassroots
"pollsters" and "activists". They responded with agility
and in real time to changes in the patterns of supply and
demand by altering their product mix and their pricing.
They have always been pioneers of bleeding-edge
technologies.
Criminals are effective organizers and managers. They
excel at enforcing workplace discipline with irresistible
incentives and irreversible disincentives, at setting targets
and at networking. The superior felonious echelons are
upwardly mobile and have a clear career path. Every
management fad - from territorially exclusive franchises
to "stock" options - has been invented by criminals long
before they triumphed in the boardroom.
In east Europe, criminals on all levels, from the organized
to the petty, often substituted for the dysfunctional, or
ideologically hidebound organs of the state. Consider the
dispensation of justice. The criminal code of conduct and
court system replaced the compromised and lethargic
official judiciary. Debt collectors and enforcers stood in
for venal and incompetent police forces.
Crime is a growth industry and sustains hordes of
professionals: accountants and lawyers, forgers and cross
border guides, weapons experts and bankers, mechanics
and hit-men. Expertise, know-how and acumen, amassed
over centuries of practice, are taught in the criminal
universities known as penitentiaries: roads less traveled,
countries more lenient, passports to be bought, sold, or
forged, how-to manuals, goods and services on offer and
demand.
Profit margins in crime are outlandish and lead to feverish
wealth accumulation. The banking system is used both to
stash the proceeds and to launder them. Tax havens, off
shore financial institutions and money couriers - all form
part of a global web. Thus cleansed and rendered
untraceable, the money is invested in legitimate activities.
In some countries - especially on the drug path, or on the
trail of white slavery - crime is a major engine of
economic growth.
As opposed to the visible sectors of the east's demonetized
economies, criminal enterprises never run out of liquidity
and thus are always keen to invest. Moreover, crime is
international and cosmopolitan. It is accustomed to
sophisticated export-import transactions.
Public-domain text, read in full here on John Shaqi.
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