1. Organized Crime and Corruption Center for the Study of Democracy 2005

2. Organized Crime in Transition Countries – the Case of Bulgaria  Structure of Organized Crime  Organized Crime Activities  Corruption  The use of violence or threats to use violence  Age of the OC structure  Conspiracy  Establishing market monopoly  Division of labor  Internal rules and sanctions in organized crime groups

3. Organized Crime in Transition Countries – the Case of Bulgaria  Structure of Organized Crime  Organized Crime Activities  Corruption  The use of violence or threats to use violence  Age of the OC structure  Conspiracy  Establishing market monopoly  Division of labor  Internal rules and sanctions in organized crime groups

4. Organized Crime in Transition Countries – the Case of Bulgaria Specificities of organized crime activities in Bulgaria, just like in Russia:  Protection  Mediation of business conflicts Organized crime developments :  From violence towards investments and corruption  From large hierarchical structures towards networks

5. Origin and history of organized crime in Bulgaria  Former sportsmen, security services officers, and criminals  1991 – robberies and racketeering  1991-1992 – protection of business entrepreneurs and smuggling of regulated goods  1992-1994 – smuggling of embargoed goods into former Yugoslavia, nationwide racketeering schemes  Introducing the insurance racket VIS-2 и SIK

6. Origin and history of organized crime in Bulgaria ViolenceCorruption Organization Market Origin Sporadic Chaotic NoneNeighborhood based No participation 1991-1992 Widespread Chaotic Low-level policemen Primitive hierarchies Sporadic, protection 1992-1994 Private Security Companies Widespread, coordinated Mid-level, prosecution National levelControl over some markets 1995-1997 Insurance Companies Attempts to limit use of violence High-level politicians Competing groups at national level Control of some markets & investments

7. The Changing Nature of Organized Crime in Bulgaria  The end of the Yugo-embargo and the ban of crime-related insurance companies  Transition to networks and “grey import”  Legalizing businesses and investing black market profits  Control over domestic markets of raw goods  The heroin epidemics

8. The Changing Nature of Organized Crime in Bulgaria ViolenceCorruption Organization Market The Ban 1997-1998 Abandoning the protection racket Police, prosecution Fragmented, creating international links Searching new sources of income Legalization 1999-2000 TargetedEntire spectrum + Political elites Three levels of networks, internationalizatio n Privatization deals, “special markets” Redistributio n 2000-2002 Executions at the highest level Entire spectrum + courts Three levels of networks + hierarchies, regions Monopolizing markets, domestic and international investments. EU- integration Executions at the highest level Entire spectrum, +EU accessions funds Three levels of networks, redistribution

9. Organized Crime as a Network

10. Smuggling (cigarettes, alcohol, gasoline / gas) Parallel imports, Duty- free shops Lasting goods (home appliances, white goods) Grey import – under- declaring values and quantities of imported goods Smuggling of Turkish goods Importing Chinese goods at under-declared values The Changing Nature of Organized Crime in Bulgaria

11. Organized Crime Hierarchies Cressey- Mafia Stricture V.Volkov- Russian Stricture

12. Organized Crime Hierarchies and Corruption V.Volkov- Russian StrictureBulgarian Stricture

13. Organized Crime as Network and Corruption

14. Studies of Irregular Payments  Irregular Payments = (market size in terms of number of containers) x (irregular payment per truck)

15. Organized Crime Hierarchies and Corruption in Bulgaria’s Drug-Distribution Market Drug distribution areas coincide police precincts. Each is headed by its own boss Hierarchical structure under the area’s boss