![]() The price shock will also change the incentives and rents of oil-related criminal economies – and as a result, actors in these economies may behave differently. The recent oil price shock is likely to disrupt criminal economies the world over. The resource curse is not unique to Nigeria: most of the biggest oil exporters perform poorly on measures of organized crime and corruption. ![]() It has been estimated that US$42 billion worth of oil was stolen between 20 in Nigeria. The cost of this criminal impunity is immense. Nigeria ranks, for instance, 146th out of 180 on Transparency International’s Corruption Perceptions Index. The effect is that the country is more emblematic of the resource curse than of resource-led development. ![]() In Nigeria, for example, criminal interests exist at all levels, from politicians and military officers to oil company staff, militants and community members. Many oil-exporting countries are already hotspots of organized crime. All too often, the result is poor governance and entrenched crime. Oil rents tend to dominate the economies of oil-exporting countries to the detriment of economic diversity and price stability. Though these are an aberration caused by the way oil is traded, and the price has since recovered somewhat, many analysts believe that prices will never recover completely or will only recover slowly.Ĭheap oil may be here to stay, and this is likely to affect organized crime in several ways. In the United States, the prices of some oil futures dropped to negative values. On 20 April 2020, the global price of oil dropped dramatically. One effect of the pandemic with ramifications for organized crime is the reduced demand for oil. The coronavirus pandemic is affecting every aspect of global society – including organized crime.
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