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the dispute for their respective clients. The outcomes of such fights can be unpredictable, and neither racketeer would be able to guarantee a victory for his client. This would make their protection unreliable and of little value; their clients would likely dismiss them and settle the dispute by other means. Therefore, racketeers negotiate territories in which they can monopolize the use of violence in settling disputes. These territories may be geographical, or they may be a certain type of business or form of transaction.
362:(2017) examines protection rackets in China and suggests two types of extra-legal protectors, namely the Black Mafia (local gangs) and the Red Mafia (networks of corrupt government officials). Wang's narrative suggests that local gangs are quasi-law enforcers in both legal and illegal markets, and corrupt public officials are extra-legal protectors, safeguarding local gangs, protecting illegal entrepreneurs in the criminal underworld, offering protection to businesspeople, and selling public appointments to buyers.
179:, in exchange for payments at regular intervals. Each payment is called "protection money" or a "protection fee". An organized crime group determines an affordable or reasonable fee by negotiating with each of its payers, to ensure that each payer can pay the fee on a regular basis and on time. Protections rackets can vary in terms of their levels of sophistication or organization; it is not uncommon for their operations to emulate the structures or methods used by
230:. Through the credible threat of violence, the racketeers deter both third-party criminals and people in their own criminal organization from swindling, robbing, injuring, sabotaging, or otherwise harming their clients. The racket often occurs in situations and places where criminal threats to certain businesses, entities, or individuals are not effectively prevented or addressed by the prevailing system of
43:
340:, providing buyers and sellers the security they need for smooth transactions; but empirical data collected by Gambetta and Varese suggests that mafia groups are able to offer private protection to corporations and individuals in legal markets when the state fails to offer sufficient and efficient protection to the people in need. Two elements distinguish racketeers from legal
561:. It need not always be money. A lucrative job after leaving office may have been in exchange for protection offered when in office. Payment may also show up indirectly in the form of a campaign contribution. Stopping government agencies as a whole, and buying protection in the government is called
370:
A protection racketeer cannot tolerate competition within his sphere of influence from another racketeer. If a dispute erupted between two clients (e.g. businessmen competing for a construction contract) who are protected by rival racketeers, the two racketeers would have to fight each other to win
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Sometimes racketeers will warn other criminals that the client is under their protection and that they will punish anyone who harms the client. Services that the racketeers may offer may include the recovery of stolen property or punishing vandals. The racketeers may even advance the interests of
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attack by either themselves or third parties (other criminal gangs). In reality, the distinction between the two types of protection rackets is dubious, because in either case extortion racketeers may have to defend their clients against rival gangs to maintain their profits. By corollary, criminal
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by the degree of implied threat; the racketeers themselves may threaten and attack businesses, technological infrastructure, and citizens if the payments are not made. A distinction is possible between a "pure" extortion protection racket, in which the racketeers might agree only not to attack a
198:
from other dangerous individuals and groups or may simply offer to refrain from themselves carrying out attacks on the targets, and usually both of these forms of protection are implied in the racket. Due to the frequent implication that the racketeers may contribute to harming the target upon
390:
Protection racketeers establish what they hope will be indefinitely long bonds with their clients. This allows the racketeers to publicly declare a client to be under their protection. Thus, thieves and other predators will have little confusion as to who is and is not protected.
404:
notes on p. 49, "The warrior caste, supposedly society's protectors, often become protection racketeers. In times of war or crisis, power is easily stolen from the many by the few on a promise of security. The more elusive or imaginary the foe, the better for
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saw their financial backbone threatened and began asking for protection money from businesses ranging from convenience stores to clubs and restaurants with the threat of burning down the business, kidnapping the owners or killing everyone inside with assault
351:
Recent studies show that mafia groups or gangs are not the only form of protection racket or extra-legal protector, and another important form of protection racket is corrupt networks consisting of public officials, especially those from
254:), and/or because forms of government distrust exist among the entities involved. Hence, protection rackets are common in places or territories where criminal organizations resemble de facto authorities, or parallel governments.
203:. In some instances, the main potential threat to the target may be caused by the same group that offers to solve it in return for payment, but that fact may sometimes be concealed in order to ensure continual patronage and
314:
A protection racket is an operation where racketeers provide protection to persons and properties, settle disputes and enforce contracts in markets where the police and judicial system cannot be relied upon.
282:
business or entity, and a broader protection racket offering some real private security in addition to such extortion. In either case, the racketeers generally agree to defend a business or individual from
215:
party. In other cases, depending on the perpetrators' level of influence with authorities and the legality of the business being protected, protection rackets may also offer protection against
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gangs may have to maintain control of territories (turfs), as local businesses may collapse if forced to pay for protection from too many rackets, which then hurts all parties involved.
348:) that fall outside the limits the law normally extends to civilian security firms. The other element is that racketeers are willing to involve themselves in illegal markets.
499:, law enforcement was too underfunded and poorly trained to protect businesses and enforce contracts. Most businesses had to join a protection racket (known as a
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238:, or in cases of inadequate protection by the law for certain ethnic or socioeconomic groups. Protection rackets tend to form in markets in which the
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know all the thieves and fences in their territory, and can track down stolen goods and punish thieves who attack their clients.
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as a form of protection money to ensure they were not attacked. These agreements were called "Black mal", where "mal" was an
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Wang, Peng (2013). "The rise of the Red Mafia in China: a case study of organised crime and corruption in
Chongqing".
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Protection from theft and vandalism is one service the racketeer may offer. For instance, in Sicily,
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the client by forcing out (or otherwise hindering or intimidating) unprotected competitors.
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entered the
English language in 1530 as a result, but the word's meaning has changed since.
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cannot be counted on to provide legal protection, because of incompetence (as in weak,
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The
Chinese Mafia: Organized Crime, Corruption, and Extra-Legal Protection
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locally and resembles a de facto authority, or a parallel government.
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failure to pay, the protection racket is generally considered a form of
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ran a protection racket along the famous Lygon Street during the 1990s.
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something of value from citizens or corporations in the form of a
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Scheme in which a group protects a client through illegal violence
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Protection rackets are often indistinguishable in practice from
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group that specializes in the provision of private protection.
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The
Russian Mafia: Private Protection in a New Market Economy
462:, Italy, officials say that 80% of businesses in the city of
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Protection racketeers or mafia groups operate mostly in the
436:, local farmers would often need to make payments to the
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Protection racketeers are not necessarily criminals. In
250:), illegality (when the targeted entity is involved in
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and police involvement, especially if the perpetrators
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The
Sicilian Mafia: The Business of Private Protection
503:, the Russian word for "roof") run by local gangsters.
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During the late medieval and early modern era in the
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The perpetrators of a protection racket may protect
67:. Unsourced material may be challenged and removed.
258:is a great example of this phenomenon, where the
8:
487:escalated in 2008, criminal groups like the
273:rackets, and generally distinguishable from
538:Mahratta Sackings of Goa and Bombay-Bassein
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298:", as the racket is popular with both the
153:protection outside the sanction of the law
183:within legitimate governments to collect
127:Learn how and when to remove this message
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329:(2001) define the mafia as a type of
155:to another entity or individual from
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846:Barbara Mikkelson (April 16, 2012).
65:adding citations to reliable sources
901:Suben 57% denuncias por extorsiones
875:"Couple plans 'mafia-free' wedding"
226:The protection racket mostly sells
223:or threaten local law enforcement.
25:
921:Banditry Threatens the New Russia
444:word meaning agreement. The word
953:Andrew Cockburn (October 2000).
549:Government officials may demand
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975:The Kray twins - jailed in 1969
421:, was a protection tax paid by
52:needs additional citations for
973:Metropolitan Police Service -
681:Taxation of the Jews in Europe
514:ran protection rackets in the
472:, or protection money, to the
356:agencies. For example, Wang's
1:
611:Foreign Corrupt Practices Act
545:Government protection rackets
325:(1996) and Federico Varese's
534:Mahratta Invasions of Bengal
375:Providing genuine protection
397:A Short History of Progress
1021:
686:Transparency International
290:Certain scholars, such as
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796:10.1007/s12117-012-9179-8
784:Trends in Organized Crime
753:Varese, Federico (2001).
576:Abusive power and control
553:to look the other way or
510:in the 1950s and 60s the
451:In Melbourne, Australia,
848:"Etymology of blackmail"
730:Harvard University Press
636:Money trail - Money loop
495:In the early history of
823:Oxford University Press
759:Oxford University Press
691:Triad (organized crime)
661:Principal–agent problem
30:For the racehorse, see
899:El Diario de Juarez -
366:Territorial monopolies
304:Italian-American Mafia
932:Misha Glenny (2008).
407:manufacturing consent
919:The Washington Post
656:Political corruption
596:Conflict of interest
61:improve this article
821:. Oxford, England:
817:Wang, Peng (2017).
483:, Mexico, when the
76:"Protection racket"
980:2013-02-23 at the
960:Washington Monthly
906:2009-08-14 at the
616:Influence peddling
581:Bribe Payers Index
563:regulatory capture
516:East End of London
497:post-Soviet Russia
453:Alphonse Gangitano
323:The Sicilian Mafia
196:vulnerable targets
942:978-0-09-948125-6
832:978-0-19-875840-2
676:Taxation as theft
671:Revolutionary tax
651:Pizzo (extortion)
359:The Chinese Mafia
327:The Russian Mafia
228:physical security
175:, and other such
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790:(1): 49–73.
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59:Please help
54:verification
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936:. Vintage.
885:11 February
646:Pay to play
586:Bid rigging
423:Christendom
260:Cosa Nostra
994:Categories
923:2 May 1997
703:References
512:Kray twins
236:governance
165:ransacking
87:newspapers
1000:Extortion
859:April 23,
804:143858155
601:Extortion
446:blackmail
442:Old Norse
271:extortion
262:collects
201:extortion
189:taxpayers
173:vandalism
978:Archived
904:Archived
879:BBC News
724:(1996).
626:Lobbying
569:See also
559:kickback
526:Sambhaji
425:to stop
419:Danegeld
413:Examples
310:Overview
157:violence
934:McMafia
696:Tribute
506:In the
492:rifles.
464:Palermo
385:mafiosi
244:corrupt
213:coerced
211:by the
207:of the
205:funding
177:threats
161:robbery
101:scholar
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853:Snopes
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555:extort
551:bribes
530:Peshva
522:Chauth
501:krysha
460:Sicily
346:murder
145:racket
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800:S2CID
469:pizzo
296:mafia
246:, or
221:bribe
191:.
187:from
185:taxes
169:arson
108:JSTOR
94:books
938:ISBN
887:2015
861:2012
827:ISBN
763:ISBN
734:ISBN
536:and
528:and
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321:'s
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