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Mexican Cartels as Vicious Firms

Many in the academic and policy communities share the notion that organized crime groups operate similarly to legitimate businesses. For example, the United Nations World Ministerial Conference on Transnational Organized Crime took the view that organized crime syndicates are similar to large-scale legal enterprises but whose use of violence is only secondary to the required organizational capacity to earn profit. The Conference stated that “Like any business, the business of crime requires entrepreneurial skill, considerable specialization, and a capacity of coordination, and this is in addition to using violence and corruption to facilitate the conduct of activities.”[1] Reflecting the business acumen needed to succeed in criminal enterprises, Mexican cartels derive illegal profit by using their capabilities to expand into new drug markets and to smuggle drugs and other illicit commodities through innovative and secret means.