ABSTRACT
While there is nothing new about the involvement of organised crime groups in legitimate businesses, we usually hear only about how the business community is victimised by such groups through intimidation and extortion. Business operators are forced to pay protection fees to stay in business and avoid punishment. In other words, organised criminals do not supply a real service but are merely parasitic. This view is held not only by the media and law enforcers but also by prominent scholars such as Schelling (1984), who firmly believes that the core business of organised criminals is extortion. Recently, some scholars have shown that organised crime groups are able to provide a variety of services to business operators. For instance, Reuter (1993) argues that in New York, mafia members were ‘invited’ by rubbish collectors to enable them to monopolise the market by limiting new entrants. Gambetta (1993) suggests that Sicilian mafiosi often intervene to collect debts or delay repayment, and protect ordinary businessmen against thieves and extortionists.
