The Impact of Illicit Economies in Urban Activities. a Comparison between Three Megalopolis, Mexico City, Sao Paulo and Jakarta

Global illicit activities are significant components of the world economy, causing serious issues for people, economic actors, and governments as well. Illicit activities distort the articulation of the public sector and represent a heavy toll on individuals and communities. However, our understanding of how these transgressive activities are embedded within urban contexts, as well as the impact on regional and national territories, remains limited. This chapter aims to estimate the scale and impacts of local and transnational transgressions, by comparing two major urban centers in Latin America, São Paulo in the south and Mexico City in the North. We aim to contribute to the existing literature on city making, by shedding light on the destructive role of illicit global activities. Additionally, we will present some examples of economies of violence endured by/impact the lives of millions of people.
Cities are places where multiple forms of law transgressions take place in mixed environments, making it difficult to discern the extent of destruction
that illegal actors produce. To provide a more precise approach to this topic, our interpretation will be based on Bauer (2022: 6–7),1 who characterizes illicit economy as ... “all (individual and group) actions or behaviors leading to a benefit in terms of power and/or financial gains to the detriment of another
person, organization or institution.” The economies of violence can be either financial or economic gains (Bauer, 2022: 5),2 and might be motivated by the
lure of gain and/or the establishment of power relations. And ... “the harm endured by another person or entity following the perpetuated action, which
resulted in a financial gain, being physical/moral/psychological, remains a common denominator qualifying the latter act as “violent” (Bauer, 2022: 6).