Organized crime and the visible hand: A theoretical critique on the economic analysis of organized crime
| DOI | 10.1177/1748895812465296 |
| Published date | 01 November 2013 |
| Author | Edward R Kleemans |
| Date | 01 November 2013 |
| Subject Matter | Articles |
Criminology & Criminal Justice
13(5) 615 –629
© The Author(s) 2012
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DOI: 10.1177/1748895812465296
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Organized crime and the visible
hand: A theoretical critique
on the economic analysis of
organized crime
Edward R Kleemans
VU University Amsterdam, The Netherlands
Abstract
The illegal enterprise-model has become very popular in the research of organized crime.
However, the theoretical foundations of the economic analysis of organized crime can be
criticized in a fundamental way, since two key explanatory principles, the model of ‘homo
economicus’ and ‘efficient markets’, do not seem to fit the empirical phenomena to be explained.
The shortcomings of the economic approach are demonstrated by presenting findings from the
Dutch Organized Crime Monitor, an ongoing research project based upon systematic analysis of
closed, extensive police investigations into 120 cases of organized crime. These findings highlight
social embeddedness (also in cases of transnational organized crime), social relations, work
relations, leisure activities and sidelines and life events shaping involvement in organized crime
and developments in criminal careers, and manipulation and violence embedded in social relations.
The latter demonstrate that offender behaviour is not so much driven by market mechanisms
(or the ‘invisible hand’), but rather by the ‘visible hand’ of social relations, and the ‘visible hand’
of manipulation and violence.
Keywords
Criminal careers, economic explanations, organized crime, social embeddedness, theory
Introduction
The illegal enterprise-model has become very popular in organized crime research.
Illegal enterprise theory emphasizes the – sometimes remarkable – similarities between
illicit activities and licit activities. It employs two key explanatory principles from
Corresponding author:
Edward R Kleemans, Department of Criminal Law and Criminology, Faculty of Law, VU University
Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands.
Email: e.r.kleemans@vu.nl
465296CRJ13510.1177/1748895812465296Criminology & Criminal JusticeKleemans
2012
Article
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