John Robb points to today's must-read, Nils Gilman on the world's "other" economy. He uses the polite term "deviant" but it's just the old-fashioned black market in goods and/or services that are unobtainable legally. Very thought-provoking read.
The withdrawal of states from their commanding role in many economies and the declining capacity and authority of many states (including states in the so-called developed world) have opened up operational spaces for what I call "deviant globalization"—human trafficking, drug dealing, gun running, cross-border waste disposal, organ trading, sex tourism, money laundering, transnational gangs, piracy (both intellectual and physical), and so on.
The structure of the current global economy is not designed for equitable, plodding growth; it's designed to reward opportunistic, risk-seeking innovators. It follows logically that illicit industries (which will naturally be led by opportunistic, risk-seeking entrepreneurs) form a particularly high-growth sector. Were one to construct an investment portfolio of illicit businesses, it would no doubt outperform Wall Street.
Countries prone to deviant globalization tend to share certain family resemblances: a weak or fragmented central state; long, poorly guarded borders; and a large supply of or demand for goods with dubious moral properties—drugs, antiquities, valuable minerals, exotic wildlife, human organs, sex, oil, highly enriched uranium, and so on. The traditional world leaders in deviant globalization have been probably Russia, Nigeria, Brazil, China and the United States—though today the most deviantly globalized place on earth may be Iraq.
Western pundits and politicians like to describe these sorts of spaces with highly misleading terms such as "failing states" or "undergoverned zones." The implication of such terminology is that the people living there want to be just like us, but that somehow they're unable to get there. But such a belief is, if I may be blunt, a narcissistic delusion masquerading as political science. Contrary to what the bien-pensants claim, most so-called failing states don't want to get fixed. In many of these zones, the local powers that be are quite content with these novel, informal political arrangements. It allows them to make fabulous amounts of money running globe-spanning commercial empires, while being recognized as the "big men" within the communities that they care about. They have no desire to attain the West's ideal of an inclusive, welfare-providing modern state. These guys are "postmodern" in the sense that they realize that the West's form of modernity will never include them, and they're charting an entirely different path. It's very different from the classic revolutionary movements of the twentieth century.
Lots more at the link. I wish Congress would pay attention. The war on drugs is a transparent, fabulously expensive failure and Yugoslavia's poppies may prove in the long run to be more threatening to the rest of the world than terrorism.
Here is a variant on the old line by Lincoln Steffens...
I am looking at the future and it doesn't work. Dystopia is closer than we imagine.