Do you know how many businesses in Italy are linked to the mafia? Surprisingly, research shows that around 2% of Italian businesses are associated with the mafia. Of these, half were connected to the mafia from the start, while the other half were infiltrated by the mafia later on. In this article, we will discuss how the mafia impacts businesses and why companies choose to collaborate with them.
The Beginning of Secret Cooperation Between the Mafia and Businesses
The Mafia’s Strongholds and Businesses
Mafia-linked businesses are primarily found in mafia strongholds such as Calabria, Sicily, and Campania. In these regions, the mafia’s influence is so strong that many businesses end up cooperating with them. The mafia mainly targets small businesses engaged in risky ventures like construction, hospitality, and waste management.
Mafia and Financing
Businesses infiltrated by the mafia show significant differences in how they obtain funding. In situations where bank loans are difficult to secure, they turn to the mafia for financial support. This is because the mafia uses these businesses to launder illegal funds and earn money through loan interest. These businesses often face liquidity crises, making mafia financing a vital lifeline.
Relationship Between Big Corporations and the Mafia
Large corporations are not immune to the mafia’s reach. The mafia uses these companies to handle excessive cash and launder illicit profits. Additionally, when the mafia infiltrates a company’s board of directors, it can exert influence through its network of politicians and industry leaders. This allows the mafia to pressure the creation of laws that benefit their business interests.
Impact of Mafia Involvement
Economic Impact
Mafia-infiltrated businesses generally tend to have high liquidity. This is because the mafia continually infuses these businesses with funds for money laundering purposes. However, these businesses also face high volatility and risk, keeping them in a state of economic instability.
Political Impact
The mafia seeks to protect its interests through political influence. By entering corporate boards, the mafia leverages relationships with politicians to weaken law enforcement and pass legislation that favors them. This political influence allows the mafia to control significant portions of the economy and politics.
Conclusion
The secret cooperation between the mafia and businesses has a profound impact on Italy’s economy and politics. Businesses, facing liquidity crises and funding difficulties, are driven to collaborate with the mafia. In turn, the mafia uses these opportunities for money laundering and political leverage. This relationship extends beyond economic issues into political problems, deeply affecting Italian society.
Reference: Klement on Investing, “Going to bed with the mafia”