Crime as a Social Cost of Poverty and Inequality: A Review Focusing on Developing Countries



Crime os о Social Cost of Poverty
and Inequality: A Review Focusing
on Developing Countries

F. Bourguignon


existing economic inequalities -see, for instance, Benabou (1996). The
variable
H in the general crime function (4) thus provides a third channel
through which economic cycles or the equalizing or unequalizing nature
of the urbanization process may affect crime and violence. The first one is
through the direct benefit and cost of crime. The second one goes through
public decision making in matters of crime deterrence. This third one
goes through the influence of economic conditions on some sociological
factors behind the propensity of individuals to commit crime20.

In any case, the main economic mechanism directly linked to the honesty
variable is probably the one alluded to above, that is the way this part of
the social capital may be eroded durably by an increase in a crime rate
whose causes lie in the economic sphere. In the presence of more crime
resulting from the adverse effects on poverty and equality of a long and
severe economic recession, moral and social structures are likely to be
weakened, which in turn may increase the prevalence of crime and
violence21.

There may be an objection to this and most of the preceding arguments
that they are taking too much an economist’ view of criminal behavior
and therefore that they may be misleading for policy. For instance, many
observers insist that violence in big metropolitan areas of developed and
developing countries is often not directed towards the property of others
but takes place internally within specific segments of society located in
the poorest districts22. Obvious examples of this is all the violence related
to conflicts related to the control of illicit activities like drug dealing,
drug trafficking, and different types of gambling or prostitution. In many
violent parts of today's metropolises this, rather than more conventional
property crime like burglary or robbery, seems to be the single dominant
cause for the development of violence and the surge in homicides. Another
departure from the canonical model might lie in the very low probability
of crime detection and sanction noted in many studies of erime and violence


21-1 For a ⅛eneral analysis of these factors with a framework similar to the present one. see Ha⅛an
(1994).

21 On this relationship between societal values and crime, see Λker!of and Yellen ( 1994). See also
Vferdierand Bisin (1997)

22 .See, for instance. the taxonomy of violence proposed Irj .Moscr (1997).


78




More intriguing information

1. NATIONAL PERSPECTIVE
2. The Triangular Relationship between the Commission, NRAs and National Courts Revisited
3. The name is absent
4. Cyclical Changes in Short-Run Earnings Mobility in Canada, 1982-1996
5. Personal Income Tax Elasticity in Turkey: 1975-2005
6. Expectations, money, and the forecasting of inflation
7. Barriers and Limitations in the Development of Industrial Innovation in the Region
8. The Shepherd Sinfonia
9. The name is absent
10. Language discrimination by human newborns and by cotton-top tamarin monkeys
11. The name is absent
12. Tourism in Rural Areas and Regional Development Planning
13. From music student to professional: the process of transition
14. The name is absent
15. The name is absent
16. THE ECONOMICS OF COMPETITION IN HEALTH INSURANCE- THE IRISH CASE STUDY.
17. 03-01 "Read My Lips: More New Tax Cuts - The Distributional Impacts of Repealing Dividend Taxation"
18. Uncertain Productivity Growth and the Choice between FDI and Export
19. Food Prices and Overweight Patterns in Italy
20. The name is absent