Mafia - Protection Rackets

Protection Rackets

Protection racketeering is one of the Sicilian Mafia's core activities. This aspect of the Mafia is often overlooked in the media because, unlike drug dealing and extortion, it is often not reported to the police. But many scholars, such as Diego Gambetta and Leopold Franchetti, see it as the Mafia's defining characteristic, the source of their power and place in Sicily society. Gambetta describes the Mafia as a cartel of "private protection firms" who act as guarantors of trust and security in areas of the economy where such things are scarce and fragile. In exchange for money or favors, mafiosi use the credible threat of violence to protect their clients from fraudsters, thieves, and competitors.

For example: suppose a meat wholesaler wishes to sell some meat to a supermarket without paying taxes. Neither the seller nor buyer can turn to the police or the courts for help should something go wrong, such as the seller supplying rotten meat or the buyer not paying up. The law does not enforce black market agreements; it punishes them. Without the arbitration of the law, the seller could cheat the buyer with impunity or vice versa. If the parties both do not trust each other, they cannot do business and they could both lose out on a profitable deal. Instead, the parties can approach the local mafia clan to supervise their illegal deal. In exchange for a commission, the mafioso promises to both the buyer and seller that if either of them tries to cheat the other, the cheater can expect to be assaulted or have his property vandalized. Such is the mafioso's reputation for viciousness and reliability that neither the buyer nor the seller would consider cheating. Only a fool would dare cheat somebody protected by the Mafia. With the traders satisfied that this mafioso can discourage cheating, the transaction proceeds smoothly and all parties leave satisfied.

The Mafia's protection is not restricted to illegal activities. Shopkeepers often pay the Mafia to protect them from thieves. If a shopkeeper enters into a protection contract with a mafioso, the mafioso will make it publicly known that if any thief were foolish enough to rob his client's shop, he would track down the thief, beat him up, and, if possible, recover the stolen merchandise (mafiosi make it their business to know all the fences in their territory).

Mafiosi have protected a great variety of clients over the years: landowners, plantation owners, politicians, shopkeepers, drug dealers, etc. Whilst some people are coerced into buying protection and some do not receive any actual protection for their money (extortion), by and large there are many clients who actively seek and benefit from mafioso protection. This is one of the main reasons why the Mafia has resisted more than a century of government efforts to destroy it: the people who willingly solicit these services protect the Mafia from the authorities. If you are enjoying the benefits of Mafia protection, you do not want the police arresting your mafioso.

It is estimated that the Sicilian Mafia costs the Sicilian economy more than €10 billion a year through protection rackets. Roughly 70% of Sicilian businesses pay protection money to Cosa Nostra. Monthly payments can range from €200 for a small shop or bar to €5,000 for a supermarket. In Sicily, protection money is known as pizzo; the anti-extortion support group Addiopizzo derives its name from this. Mafiosi might sometimes ask for favors instead of money, such as assistance in committing a crime.