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The effect of illicit economies in the margins of the state – The VRAEM

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  • Heuser, Christoph

Abstract

The analysis focuses on the influence of illegal economies on local order and questions the conventional rationale of instability and violence through illegal activities. In an in depth-case study the analysis provides evidence that illicit economies can contribute to the development of local order rather than destroying it. The VRAEM is the current epicenter of drug production in Peru and therefore a well-fitting case for the analysis. The paper builds on qualitative data from participant observation, interviews and theory-based questionnaires collected in 2016 and 2017. The paper focuses on current center for drug production and on the social consequences, deepens our understanding of the influence of illegal economies on the local order. Understanding this influence is essential for designing policies for and understanding dynamics of state intervention. The drug economy played a significant role in the evolution of local order particularly in the areas of economy, security and rule. Even if this order does not resemble a normative state order, it is in itself stable and legitimate.

Suggested Citation

  • Heuser, Christoph, 2019. "The effect of illicit economies in the margins of the state – The VRAEM," LSE Research Online Documents on Economics 100341, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:100341
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    File URL: http://eprints.lse.ac.uk/100341/
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    References listed on IDEAS

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    1. Benjamin Lessing, 2015. "Logics of Violence in Criminal War," Journal of Conflict Resolution, Peace Science Society (International), vol. 59(8), pages 1486-1516, December.
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    Cited by:

    1. Blume, Laura Ross, 2021. "Narco Robin Hoods: Community support for illicit economies and violence in rural Central America," World Development, Elsevier, vol. 143(C).
    2. Sauls, Laura Aileen & Dest, Anthony & McSweeney, Kendra, 2022. "Challenging conventional wisdom on illicit economies and rural development in Latin America," World Development, Elsevier, vol. 158(C).
    3. Grisaffi, Thomas & Farthing, Linda & Ledebur, Kathryn & Paredes, Maritza & Pastor, Alvaro, 2021. "From criminals to citizens: The applicability of Bolivia’s community-based coca control policy to Peru," World Development, Elsevier, vol. 146(C).

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    More about this item

    Keywords

    illegal economies; local order; VRAEM; Peru; drug production; stability; Violence;
    All these keywords.

    JEL classification:

    • N0 - Economic History - - General
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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