draining development.pdf - Khazar University

198 Draining Development?of criminal money. Whatever the source of such money, the impact islikely to be similar.Our research is preliminary, but it already points to a somewhat modestconclusion, as follows. The money flows linked to human traffickingthat enter developing countries are merged into bigger flows of criminalmoney. There is no evidence that these flows have a specific uniqueimpact on these countries.Notes1. Orrenius (2001) and Orrenius and Zavodny (2005) have documented the supplyeffects of networks; see also Mckenzie and Rapoport (2007); Sana and Massey(2005).2. Organ trafficking is included if it refers to killings that are motivated by the desireto sell the organs internationally. The Palermo convention and the U.S. Departmentof Justice do not consider organ smuggling a part of human trafficking.3. See the website of the IOM, http://www.iom.int/jahia/jsp/index.jsp.4. It is unclear whether this includes only those who are enslaved or also those whouse the services of smugglers.5. Such an estimate uses trafficking in the narrow sense, that is, only those who areexploited.6. Feingold (2005) reports that statistics on the end use of trafficked people areoften unreliable because they tend to overrepresent the sex trade. For example,men are excluded from the trafficking statistics gathered in Thailand because,according to national law, men cannot qualify as victims of trafficking.7. In Manila, an employee at the consulate of a French-speaking country demandedUS$500 to issue a tourist visa to an ineligible person. According to our source,he spent three years at his desk providing not more than 20 visas per month.This last number is an approximation deduced from the waiting time for thevisas. The employee’s justification for a longer wait (three months) than normalfor the visas for the ineligible people was the necessity to merge the visas with asubstantial flow of real tourist visas. Imagine that five employees had undertakenthe same activity: the flow per year would be US$600,000. In Moscow, aFrench diplomat was questioned about the origin of the money he used to buytwo apartments in the most sought-after location in the city. He resigned fromhis job at the embassy.8. The estimate provided by the United Nations Office on Drugs and Crime ishigher, close to US$2,000 (UNODC 2010).9. At US$300 for each of 2 million entrants (allowing for some individuals, say 10percent, to make two or three entries) yields approximately US$700 million. At