I’m doing some research on Italian mafia-type organizations at the moment, and came across this “great article”:http://www.crim.ox.ac.uk/Site%20archive%20files/staff/StaffPub/MafiasMigrateLSR_260.pdf (PDF) by Federico Varese on the Calabrian ‘Ndrangheta and social capital. Those that have read Robert Putnam’s _Making Democracy Work_ will be familiar with his claim that the main reason for the differences between crime-infested and economically and politically underdeveloped Southern Italy and the relatively advanced North is their respective levels of social capital. Varese asks what happens when the ‘Ndrangheta tried to expand its operations from the low social capital South to the high social capital areas in the North. He finds that the ‘Ndrangheta has been more successful in transplanting its networks than social capital theory would suggest, but documents one case in which a ‘highly civic’ town – Verona – managed to repel mafioso drug dealers who were trying to infiltrate the city. The Catholic Church, the local Communists, and various social groups went into action to boot them out, and to get rid of officials and politicians who had taken bribes from the mafia. The end result of their successful efforts – a resurgent local heroin market run by vibrant community networks.
operators in the market belonged to the same social milieu that had given rise to a flourishing economy and adopted the same entrepreneurial spirit and straightforward commercial practices that characterized the legal sectors of the economy. Transactions in the illicit drug market took place according to shared rules of fair bargaining, and punishment took the form of exclusion from future exchanges and refusal to offer credit and discounts. In addition, a significant level of barter and individualized exchange existed in this market, and no third-party mechanism to punish defectors existed.
This did lower the rates of violent crime. Even so, I suspect that it’s not going to get prominent discussion in the Communitarian Newsletter anytime soon. Varese’s “book”:http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2FRussian-Mafia-Private-Protection-Economy%2Fdp%2F0199279497%3Fie%3DUTF8%26s%3Dbooks%26qid%3D1190750446%26sr%3D8-1&tag=henryfarrell-20&linkCode=ur2&camp=1789&creative=9325 on the Russian Mafia is also an excellent read – his description of the sociology of the _vory_ in Russian prison camps reads like something from Dostoevsky.