Editor’s Note: Today’s post comes from contributing editor Dr. Stefano Tijerina, a lecturer in management and the Chris Kobrack Research Fellow in Canadian Business History at the University’s of Maine’s Business School.
As I explained in my first post about Pablo Cáceres Corrales’s research and writing: “narcotrafficking is an essential part of the deregulated dynamics that allows the global market system to navigate the thin line between formality and informality” . In his book, Las Formas Cambiantes de la Criminalidad (The Changing Forms of Criminality), Dr. Cáceres explains how multinational corporations, local and federal governments, and numerous public and private stakeholders have capitalized on the informal market to strengthen or increase their own capabilities. Globalization under neoliberal principles facilitates interdependent relationships between the formal and informal sectors. Contraband, money laundering, state corruption, and the use of shell companies are integral parts of current international business strategies.
Dr. Cáceres argues that criminality changes with time and space; it adapts to the changing social, political, cultural, economic, and technological dynamics of local and international markets . Today, criminal organizations work side-by-side with legitimate business organizations; they feed off of each other, and—incrementally—depend more and more on each other. This type of symbiotic relationship that allows formal and informal sectors to work together is often today’s current spatial and temporal landscape. Governments, through their push for neoliberal adjustments, facilitate and enhance these symbiotic relationships.
Capitalism, says Dr. Cáceres, has historically and continues today to operate in both the formal and informal markets . He cites examples like the vibrant and underground markets in human trafficking, body organ trafficking, hair trafficking, child trafficking, animal trafficking, arms trafficking, drug trafficking, and the sale of innumerable types of contraband. The lucrative world of illicit activities has catapulted into the international market fictitious shell companies that facilitate the dynamics of this overwhelming counterfeit world.