UNIVERSITY OF CEBU

Graduate School
Master of Science in Criminal Justice with
Specialization in Criminology

REFLECTION PAPER

IN MSC213A

(ECONOMICS OF CRIME)

(2nd BATCH OF REPORTS 1-5)

JASMIN BONGGOT, Ph.D.

PROFESSOR

PEDRO D. FENELLERE, JR. RCRIM

MSCJ STUDENT
Reflection # 1 (Economics of Crimes)

Presented by:
Sir Cavite
(Topic: Illegal Markets and Organized Crime)

I. Brief Discussion

A black market is an economic activity that occurs outside of

government-approved channels. Illegal market transactions are typically
conducted "under the table" in order for participants to escape government
pricing regulations or taxes. The goods and services sold in a black market
can be unlawful, which means that their acquisition and sale are forbidden
under the law, or they can be legal but transacted to evade taxes. Illegal
markets are also known as illegal markets, shadow markets, or
underground markets.

Underground marketplaces either trade in illicit goods and services or

in legal goods and services in order to avoid taxes. The selling of illegal
drugs, guns, human trafficking, and the illegal wildlife trade are all examples
of subterranean markets. Because the activity is not reported and no taxes
are collected on the transactions, underground marketplaces can have a
negative influence on the economy.

One of the defining characteristics of the underground market was the

use of cash. This was done to prevent leaving any paper trail. Many
underground market transactions are now done online, such as on the dark
web, and are frequently conducted using digital currencies, because of the
rise of the Internet. Because illicit markets are shadow marketplaces where
economic activity is not documented and taxes are not paid, they can have a
 negative impact on an economy. It is commonly considered that a country's
GDP is not its actual GDP since it does not account for all business activity
occurring in underground marketplaces.

Meanwhile, Organized crime is a continuous criminal enterprise that

works intuitively to benefit from illegal acts that are frequently in high
public demand. Its continued existence is supported by public official
corruption and the use of intimidation, threats, or force to defend its
operations.

Organized crime is a network of highly centralized enterprises set up

to engage in criminal activities. Cargo theft, fraud, robbery, kidnapping for
ransom, and the demand for "protection" payments are all crimes committed
by such groups. The supply of illegal but continuing public demand goods
and services, such as drugs, prostitution, loan-sharking (i.e., usury), and
gambling, is the primary source of income for these criminal syndicates.

The most evident contrast between organized crime and other types of
criminal behavior is that it is "organized," which excludes random,
unplanned, individual criminal activities. Instead, it focuses solely on
planned, reasoned activities that reflect the collective effort of humans.
There are so many organized crime operates different illegal activities in
different countries, in example, Costa Rica, Ku Kux Klan, Yakuza, Triad
and so many other organized crime group that has notable effect to the
economic improvement of such countries.

II. Reflection

The reporter is knowledgeable with his topic as he has an idea how

this group of individuals work, based on his experience as a law enforcer. He
elaborated the given topic and connect with such organized criminal here in
the Philippine, as he mentioned that some of the public official/ employees
are involved in such illegal and illicit activities that weaken our economic
growth. He also emphasizes that, the public perception towards the PNP and
other government official before Former President Rodrigo Roa Duterte took
an office. The reporter is thankful when Rodrigo Roa Duterte became the
President, because of the obvious effort of the President to irradicate such
illegal activities in our country especially on illegal drugs, which I agreed
with his statement.
Reflection # 2 (Economics of Crimes)

Presented by:
Ma’am Moreno
(Topic: The economic effects of legalizing a selected drug)

I. Brief Discussion

Legalization, proponents claim, is required to redress the wrongs

caused by prohibition. The "War on Drugs," which began in the 1980s and
continues today, is intended to reduce the supply of narcotics entering the
country, avoid illegal drug use, and eliminate drug-related crime. However,
proponents argue that prohibition fails because (1) it raises the price of drugs
on the black market, attracting major criminal enterprises willing to take any
risk to keep their product in the American market, (2) drug addiction is a
disease that requires medical attention, and (3) addicts are immune to the
threat of punishment from the criminal justice system.

Some reason of the researcher in arguing that legalization of selected

drugs can provide the government the following opportunities: 1) Removing
the profit from the illegal drug trade; 2) save money on inefficient and costly
law enforcement activities; 3) Take the criminal justice system out of the
business of attempting to control drug addiction health concerns and place it
in the hands of the public health system; 4) halt the spread of AIDS caused
by the use of contaminated syringes; 5) lower the number of youngsters who
are victims of the temptation of rapid profits from drug dealing, drug-related
gun conflicts, or illegal drug use; 6) limit the amount of crimes committed
by addicts seeking money to purchase pricey drugs; 7) lower the number of
drug cases on court dockets and prison beds required for drug offenders; 8)
 Restore to each individual the freedom to self-determination, as well as the
right to engage in any peaceful activity that does not violate the rights of
others to free action; and 9) All dangerous substances, including opioids,
cocaine, marijuana, alcohol, and tobacco, must be treated equally.

In term of economic development, legalization of selected drugs will

help improve its growth as the government can have the following: 1)
Legalizing and regulating the sale of certain drugs can generate tax revenue
for the government. 2) The legal drug industry can create jobs in production,
distribution, and sales. 3) Economic growth: Legalizing drugs can stimulate
economic growth in certain industries. 4) Legalization can potentially reduce
the illegal drug market, leading to a decrease in associated criminal activity.
5) Legalization can impact healthcare costs, as drug addiction and related
health issues may increase.

II. Reflection

The reporter discusses the benefit of legalization of selected drugs in

other countries, she emphasizes that legalization of selected drug can
improve the economic growth of every country. On my own view,
legalization of selected drugs requires a long study, evaluation and planning
to its adverse effect not only on the individual who utilized such legalized
drug but the society as a whole. So many scholars also disapproved on the
legalization of selected drug, but many of them agreed on the legalization of
marijuana (canavis sativa) because of its scientific efficacy on healing
illness. Other country had already legalized marijuana but they are having
difficulties with regards to control illegal farming, and drug trafficking. In
Philippine setting, I strongly disagree of legalization of illegal drugs hence
our citizens are not well educated on this matter, this will become time-
costly effort for the government in which it will turn to failure because they
need to track down first those syndicate who illegally nurture or farming
marijuana and issuance license individual who are allowed to farm at the
same time.
Reflection # 3 (Economics of Crimes)

Presented by:
Ma’am Verbo
(Topic: International crime issue. The economics of human trafficking)

I. Brief Discussion

Human trafficking is a global issue that generates billions of dollars in

illegal profits. It involves the exploitation of people through force, fraud, or
coercion for the purposes of forced labor or commercial sexual exploitation.
The economics of human trafficking are complex and involve multiple
actors, including traffickers, recruiters, and buyers, who profit from the
exploitation of vulnerable individuals.
In the United Nation, Human Trafficking is defined as the
recruitment, transportation, transfer, harbouring or receipt of persons, by
means of the threat or use of force or other forms of coercion, of abduction,
of fraud, of deception, of the abuse of power or of a position of vulnerability
or of the giving or receiving of payments or benefits to achieve the consent
of a person having control over another person, for the purpose of
exploitation. Exploitation shall include, at a minimum, the exploitation of
the prostitution of others or other forms of sexual exploitation, forced labour
or services, slavery or practices similar to slavery, servitude or the removal
of organs.’’
Human trafficking supply refers to labor provided by individuals
trafficked for both labor and commercial sexual exploitation. Economics
models vulnerable individuals' labor supply decisions. As a result, the
 individual's decision to supply labor is critical to the economic model.
Whether the result of an individual's decision in human trafficking.
Reducing human trafficking needs collaboration across professional
domains to identify and address limited agency. Examples include law
enforcement dealing with trafficker coercion during transit, immigration law
violations, and the use of exploited labor. Some criminal justice studies
concentrate on prostitution. Sociological research improves the effectiveness
of legislation for diverse countries and conditions by increasing
understanding of cultural norms and responses.
Economic models must be built on assumptions. Cultural norms,
corruption, and family time allocation among individual family members
can be challenging to model. Because an economic model is a simplification
of reality, excluding some elements from the model may not fully describe
the complicated human trafficking market. The model, on the other hand,
will serve as a basic guideline for informing governmental decisions.
Human traffickers operate in a monopolistically competitive market,
providing a commodity in a variety of forms. The price the trafficker will
receive is determined by the availability of the desired product, the qualities
of the product, the number of similar products available, and the human
trafficker's negotiating skills. Human traffickers will be hesitant and unable
to offer trafficked humans at such cheap prices since costs surpass revenue.
If the trafficker's costs remain constant, an increase in the price paid results
in increased profit and, as a result, an increase in the number of trafficked
individuals supplied.

II. Reflection
 The reporter clearly explains the market model of human trafficking
can possibly outburst other trafficking issues because of its high profit
produce, wherein that there is always higher demand especially on sex
activities. This became a big problem and issues of different country. In my
point of view, in order to lessen human trafficking, all countries need to
strengthen the immigration policy, identify all companion who exit and enter
every country. But the main concern because human trafficking always
happened due to vulnerability of individual. Poverty is the main reason why
trafficker attacks the victims and offer amounts to them which they easily
attract. Another thing wherein victims of human traffickers exist because of
lack education and less fortunate people who attracted with the offers by the
traffickers.
Reflection # 4 (Economics of Crimes)

Presented by:
Myself (Pedro D. Fenellere, Jr.)
(Topic: The Market Model of Crimes Without Victims)

I. Brief Discussion

Victimless crimes, often known as consenting crimes, are illegal

behaviors that do not have a direct or identifiable victim. These crimes
involve acts committed willingly by consenting people, with no injury or
infringement on the rights of others. Drug usage, prostitution, gambling, and
certain forms of pornography are instances of victimless crimes, as are
corruption and other financial and corporate crimes.
Meanwhile, the market model of victimless crime is an economic
theory that explain the supply and demand of illegal good and services. The
model implies that buyers and sellers of victimless crimes make voluntary
transactions and are both aware of the dangers and advantages of their
activities. Wherein this topic particularly explaining the market model of
prostitution, wherein the price of vary on the supply and demand, when the
supply of prostitution is low and the demand is high the value will become
high, conversely when the supply of prostitution is high and the demand of
is low the price value will become low also.
I also discuss the different type of prostitution, among them, street
prostitution is the most common type and rampant everywhere even here in
the Philippines, while escort prostitution are those women who engage in
 sexual activity to support or finance their studies. Brothel prostitution are
those hired women who engage sexual activities as form of their job and
they where place in one location, like beer house and the like. And a kind of
prostitution which hard to track down is online prostitution especially in
country which has weak anti-cybercrime system.
Another topic that I discuss were financial and corporate crimes,
which were committed through hacking, phishing and social engineering,
which includes; fraud, embezzlement, money laundering and corruption.
Most common crimes faced by many countries is corruption, wherein, the
member of the government is involved that can affect the economic growth
and impact the lives of the underserve people, which can lead them or
motivate them to commit crimes. This type of crimes can impact the
economic growth of society or the nation as a whole because of the
following reason: 1) Reduced investment and economic growth: Corruption
can discourage businesses from investing in a country, and it can also lead to
inefficient use of resources. This can result in lower economic growth rates.
2) Higher costs of doing business: Corruption can increase the costs of doing
business for businesses of all sizes. This can make it difficult for businesses
to compete and to succeed. 3) Corruption can lead to increased poverty and
inequality. This is because corruption often leads to an uneven distribution
of public resources, making it more difficult for the poor and vulnerable to
access opportunities. 4) Reduced government revenue: Corruption can
reduce government revenue by making it difficult to collect taxes and by
encouraging tax evasion. This can make it difficult for governments to
provide essential services and to invest in public infrastructure.

II. Reflection
 Based on my report, I’d came up strong recommendation that death

penalty should reestablished to punish those public officials who are guilty

in plunder or corruption, and reestablishing this punishment will become a

deterrence to the public officials to commit corruption. In terms, of

prostitution, the government should provide training and job opportunities to

the less fortunate women, and those who engage in prostitution to provide

them an opportunity to become responsible citizens, that he can provide her

needs through formal job.

Reflection # 4 (Economics of Crimes)

Presented by:
Sir Palaca
(Topic: International crime issue: Economics of drug trading and drug abuse)

I. Brief Discussion

Economic of drug trading and drug abuse, talks about the extent of
illegal drug trading in the world black market. The worldwide community
has recognized the importance of the illicit drug misuse and trafficking
problem. The basic concept of this research released under the United
Nations International Drug Control Program (UNDCP) was the continuous
interest in the economic and social effects of the illicit drug problem.
The illegal drug trade, sometimes known as drug trafficking, is a
global black market dedicated to the cultivation, production, distribution,
and sale of illegal narcotics. Most jurisdictions use drug prohibition laws to
outlaw the commerce of numerous types of narcotics, except under license.
According to the think tank Global Financial Integrity's Transnational
Crime and the Developing World report, the global illicit drug market was
worth between US$426 and US$652 billion in 2014.With a global GDP of
US$78 trillion in the same year, the illegal drug trade may be worth nearly
1% of total global trade. Illegal drug use is common around the world, and
local governments continue to struggle to lower drug consumption rates.

II. Reflection

The reporter clearly discusses the statistics of illegal drug trade from

different countries and it’s kind of illegal drugs that they supply to other
countries. He also discussed based on the statistics that in US most

common users there are aged 12-15 years old wherein he implies that

despite of laws, minors engage in using illegal drugs, and emphasizes that

it is not about the poor enforcement, but the availability of the drugs where

these young people can easily acquire.

A wide problem with regards to illegal drugs or drug trafficking

suffered by the countries was due to the poor cooperation from other

country in which the different government were economically affected.

Organized crime syndicate involving illegal drug trade can play their

supply when some of the government officials, employees are corrupted.

The profit in illegal drug trade were difficult to trace due money

laundering, organized criminal has legitimate businesses while other do

investing to launder their money from illegal to legitimate income.

In the Philippine setting, illegal drug trade become worst before the

presidency of Rodrigo Roa Duterte, methamphetamine hydrochloride also

known as Shabu were cooked inside a penitentiary (National Bilibid

Prison). Some high-ranking officials were involved in illegal drug trade.

The time of President Rodrigo Roa Duterte so many drug users and pusher

were surrendered, and some high-ranking officials were publicly disclosed.

Since the beginning of the Duterte administration in mid-2016, officials

have destroyed 8,195 kilos of shabu, 5,111.76 kilograms of marijuana,

23.7 kilograms of ecstasy, and 534 kilograms of cocaine. and 3,491 kg. of

other harmful substances, as well as 1,197 drug dens and 19 covert shabu

facilities.

In the administration of President Bong Bong Marcos, an amount of

PHP23 has been confiscated by authorities. The Philippine Drug

Enforcement Agency (PDEA) claimed on Monday that the government has

seized 62 billion pesos in narcotics since the commencement of President

Ferdinand R. Marcos Jr.'s presidency. The data shows that there was a big

problem in terms of illegal trade in the Philippines. Moreover, with the

effort exerted by the government in battling illegal drug trade in the

Philippines with cooperation of different law enforcement agencies, such

as PNP, NBI, PDEA, a biggest supply of illegal drug will track down with

a total with 1024 kilos of Shabu, in which some of the PNP high-ranking

officials were involved.