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The Economics of Crime by Zagros Madjd-Sadjadi

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CHAPTER 4

Organized Crime

In the United States, organized crime is, even with the introduction of the Racketeering, Illegal, and Corrupt Organizations (RICO) Act, the bane of law enforcement. It has been accused of “turf wars,” leading to the slayings of innocent bystanders, and is a source of corruption in the civil service of various municipalities.

Organized crime tends to fill in where government fails to govern. Repressive regimes rarely have problems with organized crime. The Russian Mafia only gained prominence after the collapse of the Soviet Union and the Taliban was highly successful in controlling the opium trade in Afghanistan. At the same time organized crime often works with corrupt government officials in a self-reinforcing web ...

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