by
Antonio Maria Costa
Executive Director
United Nations Office on Drugs and Crime
Mr. Chairman,
Your Excellencies,
Ladies and Gentlemen,
Let me begin by thanking you for the opportunity to address this the Eleventh Meeting of the OSCE Economic Forum, held here in the beautiful city of Prague.
The issues you are considering are some of the most critical new security challenges that states, regions and the global community now face.
New trends and ongoing developments in what is trafficked, and the quantities of illegal commodities - be they drugs, small arms or people - that are shifted around the world, are undermining the quality of life of citizens, undercutting economic growth and eroding the foundations for democratic governance in some states. Addressing the issue of illegal trafficking is thus a matter of urgency.
I wish to demonstrate in my presentation the significant and detrimental impacts that illicit trafficking is having on the citizens of this and other regions. Of course, the impact varies between communities, cities and countries, but I believe that a strong case can be made that the threats posed by trafficking affect all of us as global citizens and as individual members of our local communities.
In an interdependent world - and in a Europe coming increasingly closer together - the damage to one's neighbour will also eventually be damage to one self. Trafficking and its impact therefore respect no borders, by-pass no community, leaves the life of no single citizen untouched.
Trafficking is truly a global phenomenon, touching all corners of our planet as illicit goods are transferred from source areas to their final destinations. Let me illustrate the extent of trafficking in four key regions of the world situated to the west, the east and the south of where we sit today. (Slide 1 - Latin America) (Slide 2 - South East Asia) (Slide 3 - Africa) (Slide 4 - Central Asia)
The problems of trafficking in Central Asia are worth considering in some detail. Events in Afghanistan - seemingly remote from the life of citizens elsewhere - have a dramatic impact. Ongoing increases in opium production in some parts of that country, effectively outside of the control of the central government, have resulted in greater quantities of heroin trafficked externally (Slide 5).
The impact of this is of course pronounced in countries with large domestic drug markets - more illicit drugs on the streets, more pushers, more users, the violence associated with local illicit drug economies, increasing crime rates... I could go on.
But there are also profound impacts in those less developed societies bordering on the areas of production and which serve as transit zones. Indeed, the fall-out caused by the drugs trade, includes growing numbers of users in transit countries. Let me illustrate this by pointing simply to the growth of illicit drug use in the states of Central Asia situated in close proximity to the drug producing zones of Afghanistan (Slide 6). This is reflected too in increases in illicit drug use in the Russian Federation (Slide 7).
Among the many costs of drug trafficking in this region is the spread of HIV/AIDs, through intravenous drug use. The increases here are significant, in particular, in the Russian Federation (Slide 8). Indeed, in a number of key states where the abuse of illicit drugs has developed into a serious problem, significant proportions of all new HIV infections are the result of injecting drug use (Slide 9). The longer term social, economic and indeed security consequences of the spread of HIV/AIDs must be viewed with great concern.
In the case of trafficking in human beings, you are all only too aware of the terrible costs to the victims themselves - the violence and deception they are subjected to. The transport of human beings for sexual exploitation and profit by other human beings remains the most visible blight on our claims to be building more equitable, safer and freer societies, across this and other regions to the benefit of all, including women and children.
New data from UNODC's database on trafficking trends shows some sobering conclusions for the Member States of the OSCE (Slide 10). Central and Eastern Europe and the CIS combined constitute the single most significant area both of origin and transit for trafficked individuals throughout the globe.
When this data is disaggregated, it is clear that - while Central and Eastern Europe constitute transit areas and to a lesser extent source countries for human trafficking - the CIS countries are a major source for trafficked victims, with an estimated forty percent of trafficked women globally originating in this region from countries like Ukraine or the Russian Federation. In contrast, Western Europe and North America are the most prominent places of destination for trafficked victims.
In the case of trafficked firearms, it is more difficult to present accurate statistics as to absolute trends. South-Eastern Europe in particular continues to suffer from the ill-effects of small arms proliferation. Here, and in other regions, the availability of small arms may prolong fighting, prevent international and non-government organizations from engaging in effective humanitarian relief, cause serious problems of violence and crime, increase the risks of terrorism and cause thousands of deaths.
It is clear too that firearms are increasingly common on the streets of many communities where this was not the case a decade ago. More and more crimes are committed using firearms. This is reflected, in amongst other statistics, in an upward trend for robbery (in many cases using a firearm) across the OSCE states. This increase is particularly noticeable for Eastern and Central Europe and the CIS states, where official crime statistics (as represented here) are likely to provide only a partial reflection of the actual extent of the crime (Slide 11).
The consequences of trafficking in the three commodities - drugs, human beings, small arms and light weapons - which are the subject of this meeting, cannot easily be separated from each other, and indeed often intersect at local level.
Take the case of the local criminal economy of a small town or city where there is an increase in illicit drugs pushed on the streets, the associated presence of prostitution (often a vehicle for the sale and abuse of drugs), connected to increased violence using unregistered firearms as criminal groups fight for turf. This all taking place against a backdrop of a growth in local crime levels, as users of illicit drugs commit crime (sometimes using firearms) to fuel their habit.
I could be referring, to a varying degree, to many a city or town in the countries that are represented here today. Indeed, such interconnectivity between global and local developments in the criminal sphere has been termed 'glocal' by one recent analysis of organized crime in the United Kingdom.
The key connecting factor between the global system and the local level are the activities of transnational organized crime groups. Such groups are the primary vehicle for trafficking, ensuring the movement of the illicit commodity from its source to destination market.
Criminal organizations involved in trafficking are not, whatever the public perception, purely creatures of the underworld. Their 'business' (and that's how they often see their activities - simply as business) crosses-over into the world of legitimate commerce.
This blurring between legitimate and illegitimate commercial activities is inherent to trafficking. The vehicles for illicit trafficking are almost always the same as for legitimate business. The underworld is very much present in the 'upperworld'.
The clearest example is that the arteries for the shipment of illicit drugs across the world are for the most part not unregistered ships or airplanes arriving at isolated ports and aerodromes, but commercial shipping and trucking containers - the transport network lying at the very heart of global trade.
This complicates our challenge. We must undercut the flow of illicit commodities without significantly disrupting the flow of licit goods - for the former bring misery, violence and social instability, and the latter, jobs, economic growth and prosperity.
When the illicit becomes mixed with the licit, the consequences are like a virus in the bloodstream, the weakening of the overall organs of the system - in this case, states themselves.
Such conclusions are confirmed by detailed cross-national analysis conducted by my Office which show a clear link between the failure of some countries to achieve sustainable economic development that benefits all citizens and the growth of organized crime. When country performance on organized crime - gauged by a composite indicator of organized crime activity as developed by UNODC - is measured against performance in UNDP's human development index, it is clear that those countries with high levels of organized crime have low levels of human development (Slide 12). At the macro level, organized crime and trafficking simply do not pay.
Furthermore, this cross-national analysis of over 80 countries, representing all regions of the world, suggests that the level of organized crime and corruption is closely linked to the ability of states to both enforce the rule of law and ensure acceptable levels of governance. If, for example, an index for the rule of law developed by the World Bank is measured against our organized crime index, the results show only too clearly that countries with high levels of organized crime measure poorly on the rule of law index (Slide 13).
It should be emphasized here that our analysis shows that the single most important predictor of economic growth appears to be the presence of an independent and professional judiciary. In short, the rule of law emerges as a critical success factor for creating an institutional environment conducive to sustainable development.
In sum, organized crime and lack of development are mutually reinforcing social evils. States characterized by these problems have little prospect of developing into prosperous democracies. In turn, the lack of development and the weakness of institutions provide the context in which organized crime and corruption thrive. Many countries are locked in a double bind of lawlessness and poverty.
Can this cycle be broken? The answer is an unequivocal yes. But, it must come with the recognition that both greater regional and international cooperation and sustained efforts to strengthen national institutions are prerequisites for success.
The trafficking activities of criminal groups, by definition, cross borders - indeed use the constraints posed by borders on law enforcement agencies as a comparative advantage - and so the fight against these phenomenon must be a cross-national, regional and global enterprise.
The United Nations, through the Convention against Transnational Organized Crime and its supplementary protocols against trafficking in persons, smuggling of migrants and trafficking of firearms, provides the legal and political framework through which such cooperation can occur.
The UN Convention sets in place processes and structures to initiate and sustain cooperation. It has been signed by the majority of countries in the world and is likely to enter into force later this year. There can be no better foundation for orchestrated action against trafficking and other forms of organized crime.
The success of the Convention itself, however, as well as other related efforts at police and criminal justice reform, must rely on support to those worst affected, and a commitment from these states to effective implementation based on the principles of the rule of law and the upholding of human rights.
The efforts of regional organizations such as the OSCE must be seen as critical in this regard. They are critical too in insisting that issues of development cannot be separated from achieving improved security (and thereby quality of life) through ensuring the effective rule of law. What is needed in this region - as in so many others - is security for prosperity.
It is for this reason, in particular, that I welcome the involvement of the business sector in this meeting. Given the overlap between licit and illicit activities that I have already pointed to, the legitimate business sector is a (if not the) key partner in ensuring that legitimate commerce is effectively regulated, and that the highest standards of integrity are maintained.
In our cross-national study, the results of which I have just outlined, the strength of institutions and regulatory mechanisms - be they in the private or public sphere - remains the single most important element for preventing the activities of criminal groups, and by implication trafficking. Our work, for example, shows that strong enforcement of accounting standards - such as the degree of reporting of general financial information, income statements, balance sheets, stock data and related information - and effective enforcement of banking and security regulations go hand in hand with lower levels of organized crime and corruption.
Problems of trafficking in illicit commodities and organized crime can be countered, but only if there is a fundamental commitment to state responses that rely on reinforcing, rather than undermining, the rule of law. Unless this choice is made, trafficking and associated problems of organized crime will undermine the ability of states to effectively govern their people, improving the quality of life of citizens and the economic opportunities that are open to them.
I thank you.