ABSTRACT
Criminal groups use violence to operate in illegal markets. In the absence of enforceable legal contracts, violence becomes the main mechanism of communication between different groups. This chapter summarizes the theoretical arguments that explain the evolution of organized crime. It analyses the interaction between the government and criminal groups, and the causes and consequences of these interactions, including group fragmentation and the diversification of activities. The chapter explores how criminal groups use different techniques to communicate with each other, for example the use of messages left next to executed bodies, or various killing techniques used to signal their power to rival cartels, the government, or society at large. Public security and drug policies directly influence how organized crime evolves and behaves. The literature has explored the creation of alliances and fragmentations in civil war contexts, but not as they relate specifically to organized crime. The evolution of organized crime can be tracked through the analysis of territorial expansion.
