The Camorra and protection rackets: the cost to business
Based on the observations from the judicial and investigative evidence provided by prosecutors in Camorra areas in Italy, this investigation provides an estimate of the economic impact of extortion racket to businesses. In particular, the estimates refer to the total and average withdrawal of monetary amounts from the businesses victimised by Camorra clans. Further insights are provided in terms of economic activities mostly victimised, and specifically the construction sector, which is subject to a different type of extortion racket.
The cost of protection racket in Sicily
The purpose of this paper is to estimate the current cost of protection rackets in Sicily. By means of a database constructed on judicial evidence, it has been possible to come up with an estimate of the average and total costs of the protection-money system, as well as finding out in which sectors of economic activity and in which provinces is most pervasive. The average monthly payment is approximately 600 euros per business, with stronger effects in those areas with a relatively more traditional economic structure. As a whole, in monetary terms, the protection racket in Sicily accounts for over 1.4% of gross regional product. Finally, the paper supports the hypothesis that in most cases,…