The Illicit Economy In Turkey

This book examines the transnational expansion of the illicit economy in Turkey and the unintended consequences of corruption scandals at the highest levels of the Turkish government that have resulted in the purging of important law enforcement and intelligence entities formerly responsible for countering terrorism and organized crime threats.

Economists explore the relationship between expanding international trade and the parallel growth in illicit trade, including illegal drugs, smuggling, and organized crime. As international trade has expanded dramatically in the postwar period--an expansion accelerated by the opening of China, Russia, India, and Eastern Europe--illicit international trade has grown in tandem with it. This volume uses the economist's toolkit to examine the economic, political, and social problems resulting from such illicit activities as illegal drug trade, smuggling, and organized crime. The contributors consider several aspects of the illegal drug market, including the sometimes puzzling relationships among purity, price, and risk; the effect of globalization on the heroin and cocaine markets, examined both through mathematical models and with empirical data from the U.K; the spread of khat, a psychoactive drug imported legally to the U.K. as a vegetable; and the economic effect of the "war on drugs" on producer and consumer countries. Other chapters examine the hidden financial flows of organized crime, patterns of smuggling in international trade, Iran's illicit trading activity, and the impact of mafia-like crime on foreign direct investment in Italy.

Unlike much of the existing literature on organised crime, this book is less focused on the problem per se as it is on understanding its implications. The latter, especially in fragile and conflict regions, amount to strategic challenges for the state. Whereas most commentators would agree that criminal activities are harmful, this volume addresses the questions of ‘how?’, ‘for whom?’ and, controversially, ‘are they always harmful?’ The volume is authored by experts with multi-year experience analysing criminal and other non-state activities. They do so through different lenses - conflict and security, development, and technology - engaging academics, practitioners and policy makers. They offer a comprehensive integrated response to the challenges of transnational organised crime beyond traditional law-enforcement driven recommendations.

Turkey: A necessary ally in a troubled region With the new administration in office, it is not clear whether the U.S. will continue to lead and sustain a global liberal order that was already confronted by daunting challenges. These range from a fragile European Union rocked by the United Kingdom’s exit and rising populism to a cold war-like rivalry with Russia and instability in the Middle East. A long-standing member of NATO, Turkey stands as a front-line state in the midst of many of these challenges. Yet, Turkey is failing to play a more constructive role in supporting this order--beyond caring for nearly 3 million refugees, mostly coming from the fighting in Syria--and its current leadership is in frequent disagreement with its Western allies. This tension has been compounded by a failed Turkish foreign policy that aspired to establish its own alternative regional order in the Middle East. As a result, many in the West now question whether Turkey functions as a dependable ally for the United States and other NATO members. Kemal Kirisci’s new book argues that, despite these problems, the domestic and regional realities are now edging Turkey toward improving its relations with the West. A better understanding of these developments will be critical in devising a new and realistic U.S. strategy toward a transformed Turkey and its neighborhood. Western policymakers must keep in mind three on-the-ground realities that might help improve the relationship with Turkey. First, Turkey remains deeply integrated within the transatlantic community, a fact that once imbued it with prestige in its neighborhood. It is this prestige that the recent trajectory of Turkish domestic politics and foreign policy has squandered; for it to be regained, Turkey needs to rebuild cooperation with the West. The second reality is that chaos in the neighborhood has resulted in the loss of lucrative markets for Turkish exports—which, in return, increases the value to Turkey of Western markets. Third, Turkish national security is threatened by developments in Syria and an increasingly assertive Russia, enhancing the strategic value of Turkey’s “troubled alliance” with the West. The big question, however, is whether rising authoritarianism in Turkey and the government’s anti-Western rhetoric will cease and Turkey’s democracy restored before the current fault lines can be overcome and constructive re-engagement between the two sides can occur. In light of these realities, this book discusses the challenges and opportunities for the new U.S. administration as well as the EU of re-engaging with a sometimes-troublesome, yet long-time ally.

Most policymakers see counterinsurgency and counternarcotics policy as two sides of the same coin. Stop the flow of drug money, the logic goes, and the insurgency will wither away. But the conventional wisdom is dangerously wrongheaded, as Vanda Felbab-Brown argues in Shooting Up. Counternarcotics campaigns, particularly those focused on eradication, typically fail to bankrupt belligerent groups that rely on the drug trade for financing. Worse, they actually strengthen insurgents by increasing their legitimacy and popular support. Felbab-Brown, a leading expert on drug interdiction efforts and counterinsurgency, draws on interviews and fieldwork in some of the world's most dangerous regions to explain how belligerent groups have become involved in drug trafficking and related activities, including kidnapping, extortion, and smuggling. Shooting Up shows vividly how powerful guerrilla and terrorist organizations — including Peru's Shining Path, the FARC and the paramilitaries in Colombia, and the Taliban in Afghanistan — have learned to exploit illicit markets. In addition, the author explores the interaction between insurgent groups and illicit economies in frequently overlooked settings, such as Northern Ireland, Turkey, and Burma. While aggressive efforts to suppress the drug trade typically backfire, Shooting Up shows that a laissez-faire policy toward illicit crop cultivation can reduce support for the belligerents and, critically, increase cooperation with government intelligence gathering. When combined with interdiction targeting major traffickers, this strategy gives policymakers a better chance of winning both the war against the insurgents and the war on drugs.

Based on unprecedented access to Kurdish-governed areas of Syria, including exclusive interviews with administration officials and civilian surveys, this book sheds light on the socio-political landscape of this minority group and the various political factions vying to speak for them. The first English-language book to capture the momentous transformations that have occurred since 2011, the authors move beyond idealized images of Rojava and the Kurdish PYD (Democratic Union Party) to provide a nuanced assessment of the Kurdish autonomous experience and the prospects for self-rule in Syria. The book draws on unparalleled field research, as well as analysis of the literature on the evolution of Kurdish politics and the Syrian war. You will understand why the PYD-led project in Syria split the Kurdish political movement and how other representative structures amongst Syria's Kurds fared. Emerging clearly are the complex range of views about pre-existing, current and future governance structures.

Heroin, Organized Crime, and the Making of Modern Turkey explores the history of organized crime in Turkey and the roles which gangs and gangsters have played in the making of the Turkish state and Turkish politics. Turkey's underworld, which has been at the heart of several devastating scandals over the last several decades, is strongly tied to the country's long history of opium production and heroin trafficking. As an industry at the centre of the Ottoman Empire's long transition into the modern Turkish Republic, as important as the silk road had been in earlier centuries, the modern rise of the opium and heroin trade helped to solidify and complicate long-standing relationships between state officials and criminal syndicates. Such relationships produced not only ongoing patterns of corruption, but helped fuel and enable repeated acts of state violence. Drawing upon new archival sources from the United States and Turkey, including declassified documents from the Prime Minister's Archives of the Republic of Turkey and the Central Intelligence Agency, Heroin, Organized Crime, and the Making of Modern Turkey provides a critical window into how a handful of criminal syndicates played supporting roles in the making of national security politics in the contemporary Turkey. The rise of the 'Turkish mafia', from its origins in the late Ottoman period to its role in the 'deep state' revealed by the so-called Susurluk and Ergenekon scandals, is a story that mirrors troubling elements in the republic's establishment and emphasizes the transnational and comparative significance of narcotics and gangs in the country's past.

The international financial system is not only economic, but political. Making a Killing explores the often-overlooked world of terrorist financing and the involvement of the international banking system. In order to address the threat of terrorist organizations in a post-9/11 world – and how they are funded and financed in particular – the international community has constructed a vast architecture of counterterrorist finance laws, policies, and institutions. Connecting the fields of security studies, political economy, and finance, Ian Oxnevad argues that a bank’s institutional link to a state (as a state-owned bank or a bank with strong state connections) will protect it from any enforcement action for violations of anti-money laundering and counter-terrorism financing regulations. In the face of states blocking such enforcement actions, these regulations prove ineffective in preventing the financing of terrorism, as the state’s self-interest supersedes its interest in preventing terrorist financing. Making a Killing seeks to assess how effective new laws and regulations have been, as well as to identify best practices for future attempts to counter the financing of terrorism.