Shadow/Illicit Economy: Narcotics Gangs ‘les maras’ The Sources of income for gangs are: Ransom money Protection money Armed robbery Extortion Narcotics 1990s emergence of cocaine markets. EL Salvador’ provides transportation network from the cocaine producers to the South to the Drug Trafficking Organisations in the North. DTOs Transportistas – Cartel de Texis and Los Perrones Orientales – State Complicity Gangs – Muscle – Evolving role (Steven Dudley 2010) – Strengthening role between gangs and transnational criminal organisations (Douglas Farah)

Shadow/Illicit Economy: Transportistas Transportista Operations Cartel de Texis - El Faro Quotation –“A highway worth millions of dollars to those who control it, composed of businessmen, ranchers, mayors, police, gang members, coyotes [those who handle human trafficking], and congressmen. Everyone plays a role.” Los Perrones arrests – (Douglas Farah) Perrones “integrated their corruption in a structured system of protection for their illicit activities” Key Points Reach of smuggling networks Continuum of criminal activity on which gang violence sits Blurred borders between state and non-state Policy implications given extent of state inflitration

Shadow/Illicit Economy: Historical PE approach From Civil War to Criminal Enterprises Transfer of personnel, skills and knowledge Failure of peace process to break down these networks Fact of Geography Weak State (Steven Dudley) Civil War lays foundations for trafficking Civil war weakens State Institutions Neo-liberal policies further undermine state capacity Narco traffickers, state agents and gangs capitalise upon weak state Vested interests in Violence (Nazih Richani) Economic vested interests in the perpetuation of a system of violence. (Scott Wallace) The gangs are “a convenient smoke screen to deflect attention from the activities of powerful criminal syndicates”

Shadow/Illicit Economy: Homo Economicus? Low Opportunity costs? (Nazih Richani) Deterrence theory? But it cannot: – explain why violence increased with Manu Dura – account for gang participation given lack of material rewards Motivation or means? Distinguish Gangs from Transportistas Money from drugs not the motivation although (Cruz) evidence that gang violence is becoming increasingly instrumental in nature i.e. for economic purposes. Gangs still overwhelmingly poor. Little evidence of great material incentives. A cost - benefit calculation can not adequately account for gang participation and violence.