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The price of illicit trade in Egypt: Illicit trade empowers criminals at the expense of ordinary people

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  • Ali, Maged

Abstract

Egyptians face a daily struggle, with rising inflation and high poverty rates. Beyond the economic pressures, many live under the threat of crime, including terrorism, trafficking, and organized violence. Illicit trade fuels these crimes by providing criminal networks with financial means and infrastructure. It also spreads lawbreaking and violence, and weakens the state's capacity to act. As a result, illicit trade harms ordinary Egyptians. Reducing illicit trade will weaken criminal networks and improve Egyptians’ safety. To reduce illicit trade, enforcement is needed at both entry points and within markets. New technologies such as big data and AI can render enforcement faster, smarter, and more effective. However, enforcement alone risks failing to effectively reduce illicit trade. As long as consumers continue buying smuggled goods, smugglers will find new ways to move them. Offering legal, affordable alternatives is therefore key to reduce demand for illicit goods.

Suggested Citation

  • Ali, Maged, 2025. "The price of illicit trade in Egypt: Illicit trade empowers criminals at the expense of ordinary people," Research in Economics, Elsevier, vol. 79(4).
  • Handle: RePEc:eee:reecon:v:79:y:2025:i:4:s109094432500064x
    DOI: 10.1016/j.rie.2025.101094
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