A Literature-Based Qualitative Framework for Assessment of Socio-Economic Negative Impacts of Common Illicit Cross-border Freight Logistics Flows

TitleA Literature-Based Qualitative Framework for Assessment of Socio-Economic Negative Impacts of Common Illicit Cross-border Freight Logistics Flows
Publication TypeConference Paper
Year of Publication2014
AuthorsHintsa, J, Mohanty, S
EditorBlecker, T, Kersten, W, Ringle, CM
Title of ProceedingsInnovative Methods in Logistics and Supply Chain Management
Volume19
Page317
Publisherepubli
Conference LocationHamburg
ISBN Number978-3-8442-9878-9; 978-3-8442-9880-2
ISSN NumberISSN (print) 2365-4430, ISSN (online) 2365-5070
KeywordsFP7-CASSANDRA, Illicit Trade, socio-economic impacts, trafficking
Abstract

Global supply chains and freight logistics systems are commonly exploited in
trafficking activities: for example cocaine may be shipped from Colombia to the
Netherlands concealed in ocean liner structures while stolen cultural products
may be hidden inside an air container, shipped for example by express courier
from Egypt to Italy. In order to design effective and efficient governmental
policies and corresponding regulations, enforcement priorities, inspection
schemes and other countermeasures, one needs a clear picture of such
common illicit flows - such an integrated research paper does not exist today.
The objective of this paper is to capture and summarize some of the key
characteristics, in particular socio-economic negative impacts, of following six
common trafficking flows: trafficking in cocaine and heroin; counterfeit products;
ozone depleting substances; firearms; stolen cultural products; and endangered
species. The negative socio-economic impacts in this paper fall ultimately into
following six categories: Increasing health care and social security costs;
Increasing environmental damages; Increasing human suffering; Increasing
market place distortions and/or unfair competition; Losses in tax revenues
regarding indirect border taxes; and Losses in cultural heritage. The main
outcome of this paper is an integrated matrix derived from both practitioner and
academic literature to map the socio-economic negative impact –categories per
each illicit flow-type. Finally, this qualitative paper suggests several quantitative
research (sub-)topics for the future.