PRESS RELEASE

Globalization's sinister entrepreneurs hurt economic growth, says UNODC

Français / French

Vienna, 27 January 2011 - "Transnational crime is undermining economic growth, posing an added challenge to the world's economies as they struggle to recover from the global fiscal crisis," said Yury Fedotov, Executive Director of the United Nations Office on Drugs and Crime (UNODC) at the annual gathering of the World Economic Forum (WEF) in Davos, Switzerland (25-30 January 2011). Criminals undercut legitimate commerce and divert billions of dollars from development into illicit enterprises whose profits are used to buy elections, politicians and power, and in some cases support terrorism. "We must disrupt and dismantle criminal networks as a matter of priority," he said.

The world's biggest economies are also the biggest markets for illicit trade. But organized crime has itself become one of the world's foremost economic forces, with illicit markets sometimes generating more than the GDP of many countries, he said.  Exploiting open borders and communications, criminals opportunistically cater to changing demands - endangered species, cultural artefacts, timber, counterfeit medicines, blood diamonds, child pornography or cheap labour.

According to a recent UNODC report on The Globalization of Crime: A Transnational Organized Crime Threat Assessment, here are some examples of crimes and the costs involved:

Mr Fedotov cautioned that law enforcement will not be able to deter the mafias if the white-collar criminals - lawyers, accountants and bankers -continue to launder their proceeds. It is important to go after dirty money, he said, by increasing the risks for criminals and lowering their incentives.  He called for more robust implementation of the United Nations Convention against Corruption, more effective anti-money laundering measures and a crackdown on bank secrecy.

At a session of the WEF on "Criminals without Borders," Mr. Fedotov said international cooperation was essential. Appealing for more development and technical assistance to reduce the vulnerability of poor nations, he said more vigorous and universal implementation of the United Nations Convention on Transnational Organized Crime and its Protocols was the best way to combat transnational crime. The Convention is a powerful tool that enables countries to work together more effectively to pursue and prosecute transnational criminals and provide support to their victims, he stressed.

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For more information please contact:

Preeta Bannerjee,

Public Information Officer,

Tel. (+43-699) 1459-5764,

Email: preeta.bannerjee@unodc.org