Causes of the Political-Criminal Nexus
                                  Annelise Anderson
                               Senior Research Fellow
                               The Hoover Institution
                                       for the
                  Colloquium on Confronting the Security Challenge
                                       of the
                              Political-Criminal Nexus
                        National Strategy Information Center
                                  Washington, D.C.
                                  October 30, 1997

               In the early days after the United States entered World War
          II, a U.S. government official met with a leading American mafia
          figure--who happened to be in prison--and they made a deal.  What
          the government wanted was protection of the New York harbor from
          Nazi sabotage.  The New York harbor was indeed protected, and at
          the end of the war Lucky Luciano was deported to Italy.

               This is an example of the political-criminal nexus, and
          there are several points to note.

               First, the government--specifically, the Office of Naval
          Intelligence--initiated the contact.  It wanted something, and it
          had something to offer--in this case, amelioration of law
          enforcement.  Lucky Luciano also got moved from upstate New York
          (Danamorra state prison) to a location closer to Manhattan.

               Second, we can assume that in securing the New York harbor
          against sabotage, the mafia and the longshoremen's unions, which
          it controlled, used techniques that the government--the armed
          forces and the local government as well--were unwilling to use.
          Longshoremen were selected for jobs at the "shape up" in hiring
          halls, and perhaps those who looked or sounded German were no
          longer hired.  Perhaps suspicious characters on the docks ended
          up in the water with few questions asked.

               Third, the mafia control of the docks already existed when
          the government approached Lucky Luciano.  

               And fourth, the political-criminal nexus was not a
          continuing relationship; it ended when the war was over.

                    *                *                *

               The case studies of the political-criminal nexus that have
          been presented at this conference[1] are fascinating in their
          detail about the development of these relationships in different
          countries and over time.  

               They define mafias in much the same way as I have defined
          them in my own work[2]--as profit-oriented criminal enterprises
          that use violence or the threat of violence, try to discourage
          their members from cooperating with the police, and corrupt
          legitimate government authority--or are approached corruptly by
          it.  In other words, the political-criminal nexus is central to
          the existence of organized crime.

               The various causes of the political-criminal nexus are also
          recounted in the papers presented at this conference.  In my own
          work I have used a framework of three contributing causes,
          perhaps operating in combination with one another:

                    1) An abdication of power, or anarchy:  There is an
          unwillingness or inability on the part of the government to
          achieve its ends with means available to it.  This is similar to
          the "weak government" hypothesis seen as a cause of the
          development of mafias in Southern Italy and in Colombia, and I
          have used this hypothesis and summarized the literature about it
          in my own work on the Sicilian mafia.  But I am less convinced by
          it than I used to be.

                    Consider a country where law enforcement is spread very
          thin, too thin to respond effectively to hijackings and robberies
          and counterfeiting.  A country where the economy is expanding
          rapidly and the population is moving into new areas; where the
          legal structure itself is just getting established, law
          enforcement institutions are new and inexperienced, and new laws
          need to be passed to deal with new conditions and new kinds of
          scams--a situation like the economic frontier of the Internet
          today.  

                    I am talking about the 19th century United States.  We
          have here the difficulty of what sociologists called U.S.
          exceptionalism: the United States is often different from other
          countries, including those of Western Europe.  It doesn't seem to
          fit, and it didn't in this case either.  The response of the
          people was vigilante groups.  These groups sometimes performed
          well and sometimes did not, but often leading members of the
          community were members, and they were committed to law and
          order--the rule of law, contracts, property.  They generally
          disbanded when formal law enforcement became more effective.  

                    There was no mafia.

                    2) Excessive bureaucratic power.  A second cause to
          which I attribute mafias and the development of the political-
          criminal nexus is excessive bureaucratic power, where it is
          necessary to go to the authorities for a wide variety of permits,
          allocations, tax deals, and so forth.  Excessive bureaucratic
          power may produce episodic corruption, which is widespread and
          does not necessarily lead to mafias.  Such corruption may extend
          to the use of violence to exclude competition, and at this point
          it is possible to say that a mafia and a political-criminal nexus
          has emerged.

                    3) Illegal markets.  Illegal markets--in drugs,
          alcohol, gambling, pornography--are a major impetus for the
          development of mafias.  Certainly the prohibition of alcohol in
          the United States during the 1920s was a major cause of the
          development of mafias in U.S. cities.  In the Soviet Union
          private markets in virtually everything except small crafts were
          illegal, and corruption was widespread during the Communist era.
          Illegal markets are an extreme case of excessive bureaucratic
          power, and also an example, in the area where trade is made
          illegal by the state, of anarchy:  the refusal of the government
          to enforce contracts and property rights in a particular area.

               I find that the overcontrolled economy is a major reason for
          the development of mafias and the political-criminal nexus.  But
          the overcontrolled economy provides only the setting.  It is the
          political half of the political-criminal nexus that often takes
          action, for personal gain or to achieve political objectives,
          allowing the criminal half of the nexus to achieve extraordinary
          profits, win contracts unjustly, and defeat its competitors with
          the help of the authorities in return for the benefits the
          criminals deliver to the political sphere.  Often it is not the
          criminals who engage in bribery, but the authorities who shake
          down the criminals.

               The correct response to this sort of activity is outrage and
          action on the part of citizens--demands for reform, hearings,
          anti-corruption commissions, new legislation, and the opportunity
          for politicians to run on a reform platform--the opportunity to
          change the government, to throw the rascals out.  A free press,
          freedom of association, sufficient resources in the private
          sector, the inability of the government to control dissent
          completely, and genuinely competitive elections are critical to
          this process.

               The overregulated economy as the major origin of the
          political-criminal nexus is the "strong state" hypothesis.  To
          evaluate this hypothesis, we have to look at and explain heavily
          regulated states where mafias do not seem to have developed--for
          example, Sweden and other Scandinavian counties.

               This brings up the question of what we mean by a strong
          state.  Were Nazi Germany and Stalin's Soviet Union strong
          states, or was the United States when Richard Nixon was the head
          of the executive branch, and the people said "We're sorry, but
          you're going to have to resign" the really strong state--the
          state where the people held the ultimate control and were able to
          change the government when they decided it was performing
          unacceptably?  

               The ability of people to control their government is (or
          should be) the central issue of political science, and is more
          unusual than commonly supposed, being found primarily in the
          countries whose political systems have been heavily influenced by
          Great Britain, in the countries of Scandinavia, and perhaps in
          some other countries of Western Europe.

               Perhaps I have raised more questions than I have answered
          about the course and causes of the political-criminal nexus, but
          maybe that is as it should be.

          Notes


          1.  The seven case studies include Lee, Rennsselaer and Francisco
          Thoumi, "Colombia;" Lo, T. Wing, "Hong Kong;" Paoli, Letizia,
          "Italy;" Pimental, Stanley, and Peter Lupsha, "Mexico;" Ebbe, Obi
          N.I., "Nigeria;" Shelley, Louise, "Russia;" and Kelly, Robert,
          "United States."  They are scheduled to be  published by the
          National Strategy Information Center; contact nsic@ix.netcom.com
          for additional information.

          2. See Anderson, Annelise.  "Organized Crime, Mafia, and
          Governments."  In Gianluca Fiorentini and Sam Peltzman, eds.  
		  The Economics of Organized Crime.  Cambridge, Eng.: Cambridge
          University Press, 1994; _____. "The Red Mafia:  A Legacy of
          Communism."  In  Edward P. Lazear, ed. Economic Transition in
		  Eastern Europe and Russia. Stanford, Cal.: Hoover Institution
          Press, 1995.