Illicit: How Smugglers, Traffickers and Copycats Are Hijacking the Global Economy

Naim reports that legitimate global trade has doubled since 1990 from $5 to $10 trillion. Meanwhile, money laundering has gone up tenfold, exceeding $1 trillion a year. Smuggling and money laundering have always existed, but Naim shows how they have increased at a staggering pace in the wake of globalization, despite new government controls since 9/11. The main culprits are the collapse of the Iron Curtain and state deregulation. As the reach of organized crime has expanded, governments have failed to keep up. Naim illustrates the problems with stories about A.Q. Khan, the father of Pakistan's atomic bomb who sold nuclear technology to North Korea and Libya; Walter C. Anderson, an American who was accused of hiding $450 million in offshore accounts to evade taxes; and Vladimir Montesinos, the Peruvian intelligence czar who is on trial for trafficking drugs and arms. The book, while a little dry, will be interesting to policy buffs and aspiring crooks alike. --Alex Roslin