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Effects of Crime on Economic Develoment Essay

Introduction This chapter contains the background of the study, statement of the problem, purpose of the study, objectives, significance, delimitation and limitations of the study, operational definition of terms. 1 . 1. Background of the Study Economic development cannot be attained in the absence of peace and security or in the absence of respect for all human rights and fundamental freedoms.

The researcher is of the opinion that economic development, social development and environmental protection are Interdependent and mutually reinforcing components f sustainable development, which is the framework for people’s efforts to achieve a higher quality of life for all people. It goes without saying that Jericho district, like other districts in Kenya, should share the conviction that economic development and social Justice are indispensable for the achievement and maintenance of peace and security within the district.

This study seeks to ascertain the impact of crime on the economic development at Jericho district. 1. 2 Statement of the Problem Crime is a universal social phenomenon in that it threatens the safety and security of people, their property, and their sense of well being, social order and most importantly, it reduces people’s quality of life (Intuit 1998:2). If the quality of life experienced

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by the individual and the community is affected by crime, then crime itself can be viewed as a social problem.

In the light of the above comments, the researcher is concerned with rise of crime at Jericho area, which is ear marked for development It has been argued that the Criminal Justice System with its three components, namely police, courts and correctional services institutions are either owing little or helpless to combat or prevent crime in this country particularly in Jericho district. It is an indisputable fact that where there is a high rate of Crime, one cannot expect viable infrastructure, I. E. Telecommunication, roads, water, accommodation, electricity, business, etc. T is the researcher’s concern that if crime prevails at these above mentioned areas and is not prevented by means of well thought of strategies: there will be unbeatable high rates of unemployment is one of the major causes of poverty, social disorientation, subculture, violation of human rights, etc. Police statistics show that all stakeholders (I. . Residents of the area, businessmen, Talked, agricultural officers, etc. ) are equal susceptible to crime and visualization at these areas as they are now, perceived as “no go areas”.

The prevention of criminal visualization should be prioritize at these areas because it undermines the society and may handicap, menace and prevent its successful growth and viable Effects of Crime on Economic Development By Tachometers the above developers. 1. 3 Purpose of the Study In view of the prevailing high crime rate in Jericho district, it then becomes necessary to highlight the impact of crime on development as it probably exists at Jericho region. 1. 4 Research Objectives 1. 4. 1 Broad Objective 1 .

The Impact of Crime on Economic Development in Jericho district 1. 4. 2 Specific Objectives The study will be guided by the following objectives; a) ascertain if there is any relationship between escalating crime levels and unemployment in Jericho; b) determine impact that the crime has on development in Jericho; c) determine what impact the political affiliation of leaders has on community development in Jericho 1. 5 Significance of the Study The study would be beneficial to different cadres of stakeholders concerned with taters to do with crime and development.

Policy makers in the local government and ministry of security would benefit from the study as it shows the impact caused by crime in the economic development of the country. They will also understand the general causes of crime and what can be done to manage crime for the benefit of the people of this country. 1. 6 Delimitation and Limitations 1. 6. 1 Delimitation The researcher is a resident of the area and so it will be easier for her to move around and do her research. 1. 6. 2 Limitations The following were likely to affect data collection;

Finances that are limited The researcher being a student does not generate income of her own hence relies on her parents contribution to facilitate the research project, transport, typesetting the project work. This calls for sourcing for more funds from finds and materials. 2. Distance Areas to be interviewed were distanced from each other hence researcher walked long distances to reach those interior schools. 4. Weather At times weather may be rainy which the researcher to have problems to reach some areas of study.

Crime – In the study it means relatively permanent change of acquiring knowledge ND skills Permanent – In the study it means acquiring of knowledge that cannot be changed but sticks holistically for along time Manipulate – It means handling things by using the hands for instance materials at school CHAPTER TWO: LITERATURE REVIEW 2. 0 Introduction This chapter presents a literature review on the main categories of crime, that is, violent crime (murder, assault, rape, abduction, etc. And property crime (theft, all other forms of theft, housebreaking, robbery and its all other forms of robbery vandalism, arson and so on) in relation to economic development in Jericho District. 2. Violent and Property Crimes According to Barman, J. D. (2004), the nature and extent of violent (personal) and property crimes in Kenya have proliferated out of all property, Jericho district in particular is no exception to the rule. Crime in this region has tended to directly affect development growth.

He goes on to state that the stability within Kenya has the potential to create an example for surrounding African nations. While the figures of crime facing Kenya are still some of the worst in East Africa, there is still considerable potential for a stable economy, government, and successful police force. First, the ratio of police to citizens needs to improve drastically. It is extremely unlikely for such a low number of police to actually make a significant difference in Jenny’s security.

In addition to hiring more police officers, the salary and living conditions need to improve. Low pay and a lack of public respect breeds a sizeable amount of corruption, which puts a severe damper on the economy. Until the relationship between the police and Kenya people improves, it is unlikely for crime levels to make any major statistical decline. Furthermore, the court system in Kenya needs a reorganization and overhaul cause the utilization of police prosecutors has proven itself to be ineffective and outdated, Main, E. , Book, Wickedly, Mahjong’s, Julius. 2004) 2. 1. 1 Violent crime Brown, Expenses and Gees (1996:391) argue that people mostly fear violent crimes (such as murder, rape, robbery and assault) Victims may be deeply angered when they are swindled or their houses are broken into, but these emotions pale in comparison to the fear of death or serious injury that can be inflicted by a violent crime. Shelley (1995: 169) maintains that violent crimes are more personal than any other hype of crime because victims of violent crimes are often fatally injured or physically injured or at least threatened with physical injury.

In addition, victims of violent crimes often suffer psychological trauma that can last for months or years after their Crime has tended to undermine the importance of development. Many people have been violently victimized in the past in this country, either by means of murder, attempted murder, robbery, rape, assault onto and so on. According to Gloater (1990) in Intuit (1998 :24) the terminology often refers to offences against the person and offences against habitation, which means that this is an offence against the state in the form of harm to the person as well as an offence against the state in form of harm to the society.

It is therefore, the view of the researcher that till such time that all stakeholders, that is, government, communities, private sectors and so on Join hands, the level of crime will always be high and directly affect development. Crime will continue to affect the economy of this country too. 2. 1. 2 Murder Deserved and Schwartz (1996:283) maintain that the more serious crime of murder usually reflects something like the willful killing of one human being by another. In the United States Jurisdictions tend to divide murder into first- and second- degree murder.

First degree murder requires planned and deliberate action Holmes and Holmes (1994) in Deserted ; Schwartz (1996283) add that it involves malice. Further, murder (homicide) that occurs while the offenders are committing crimes such as rape, robbery, burglary, kidnapping and arson, are also typically defined as first- degree murder. Second-degree murder involves malice but without premeditation or deliberation. A common example of such a crime is an act of passion in which a person may be totally overcome with anger at an insult or irrationally upset with Jealousy at seeing his lover dancing with another man (stranger).

Often, the person who takes out a gun and shoots someone in this frame of mind is charged with second-degree murder: the offender certainly wanted to hurt the victim but did not plan to kill anybody (Intuit 1998:28). 2. 1. 3 Rape Clotted and Stevens (1990) as well as Petitioner, Mazda and Shook (1989: 1 50) define rape as unlawful sexual intercourse with a woman. With the use of violence and force without her consent. Rape in Kenya has reached epidemic proportions. It occurs in all spheres of the society and all women are potential victims.

In many instances agricultural project officers, community workers, social workers and so on are females, if these women who render such essential services to the communities are raped, it means there will be no development. 2. 1. 4 Assault Assault encompasses normal assault which is unlawful and intentional violence (or threat of it against the body of another) and assault with aggravating circumstances, which is a deliberate attempt to do serious bodily harm or cause the death of the cacti (Petitioner et al. 1989:153).

It should be remembered that Jericho region which is the area of study, different types of liquor are available, where liquor is abused, 2. 1. 5 Abduction Literally, abduction is intentional and unlawful taking a person forceful without his/ her consent and keep that person in hostage for indefinite period without the knowledge of the relatives of such person or without being seen. This type of crime used to take place during apartheid days or during public violence or riot when members of a certain political organization took members of a certain party to destroy the evidence against them. 1. 6 Robbery Although robbery case falls into both categories; that is violent and property crimes, the researcher has arbitrarily included in Violent crimes category for comparison purposes. Robbery includes car-hijacking, bag snatching, armed robbery and attempted robbery. A new form of robbery by strangers, is car hijacking Car hijacking is the theft or an attempted theft of a motor vehicle by force or threat of force (Meadows 1998:93).

The economic development has dragged at Jericho district because the vehicles of the developers are allegedly hijacked or stolen when packed in some streets of Jericho. It goes without saying that where there is a high rate of crime, one cannot expect viable infrastructure, that is, telecommunication, roads, water supply, projects, etc. 2. 2 Causes of crimes In general, violent offenders are not professional criminals. Stevens and Clotted (1996:49) identified the following causes of crimes .

Provocation and alcohol: Provocation and the use of alcohol are two important factors that may play a role in committing murder In most crimes of violence, the criminal was under the influence of alcohol when he/she committed the crime. As far as family violence is concerned, the offender has often been a victim of family lenience as a child, while alcohol abuse also frequently play a role in this type of Wave of solving problems: In certain communities, violence is seen as a way to solve personal problems or to achieve certain goals.

Thus it is not regarded as an undesirable or objectionable action, nor do these people have any feelings of guilt after such violent action. Subculture of violence: The subculture in which they function has rules, values, norms and attitudes that focus mainly on violence here violence becomes the main theme of a lifestyle and a colonization process passed down from one generation to he next. The next. Violent and aggressive behavior is learned.

He maintains that criminal behavior is learned in association with those who define it favorably and in isolation from those who define such behavior unfavorable It is also learned by a process of international communication within intimately personal groups Briefly, children who grow up in a home where family violence takes place or in a community lifestyle that can be termed a violent subculture, learn violent and aggressive behavior in the family or community and consequently 2. Property crimes In this study, property crimes include theft (larceny), burglary, housebreaking, property damage (including cattle maiming), arson, vehicle broken into, vehicle theft, theft out of motor vehicle, vandalism, corruption and other forms of theft such as stock theft. Brown et al. (1996:435) contend that not all human beings have the desire to acquire things that belong to other people.

Jealousy of the property of others, lust for personal goods, and the competitive striving for material possessions derive from cultural emphasis, which also give rise to the crime of theft (taking of goods from another by stealth or force) These authors further maintain that people who are unable or unwilling to obtain these tokens of self-value, money and goods in a legitimate manner may be impelled to resort to criminal behavior to acquire wealth (that is. Y stealing, breaking Into immovable structures, for example, houses, schools, churches, shops and so on, and robbing other people). Property crimes have their roots in poverty and are often directly linked to violent and political crimes. Murder may be committed to cash or claim from insurance policy, and assault, particularly by members of organized crime groups. O collect a debt Robbery. 2. 4 The cost of Crime victims and society. 2. 4. 1 Monetary loss The direct loss caused by crime together with its control and prevention costs the state billions of shillings annually.

According to Bushman in Meadows (1998:6) millions of people are victimized while working, half of them lost millions of work days each year and millions of shillings in wages – excluding of days covered by sick and annual leave. Crime costs victims (people) billions of shillings, including the cost of stolen property, or repairing or replacing damaged property, of medical expenses, of pain, suffering ND reduced quality of life Costs of crime also include the dark figure” as a result of the secrete nature of crime I. The crimes that are not reported. The state loses a lot of money through corrupt government, community, No’s. Etc. Officials who abuse 2. 5 Crime and Economic development The relationship between crime and corruption can be represented by an ellipse in a Venn diagram. Corruption can be legal, such as making campaign contributions to secure a grant of monopoly privilege, or it can be an illegal payment of a bribe. Although not all forms of corruption are a crime, some activities are both corrupt ND criminal.

Crime includes not only some forms of corruption but also a wide range of other activities such as larceny, burglary, theft, murder, rape, ‘organized crime’, drug possession and distribution, tax evasion and so on. Although there is considerable overlap between crime and corruption, there is enough distinct about each that they need not have the same empirical effect on economic growth. Intuitively, most crime should have a negative impact on economic growth. Crime, like corruption, should reduce growth by raising the cost of doing business and increasing uncertainty.

This impact on economic growth, however, is not well documented in cross- country studies. Cross- country empirical studies on the determinants of growth do not explicitly control for crime. Studies sometimes include explanatory variables such as the rule of law, ‘political stability and ‘civil liberties’, which, though related to crime, do not fully measure what is generally thought of as Barron (1991) finds that political instability negatively influences growth. He uses the number of political revolutions per year and the number of political assassinations per million of population per year as measures of political instability.

He finds that both variables are significant and negatively related to growth across countries. In their cross country analysis of growth, Barron and Salad- I- Martin (1995) find that political instability exerts a negative though marginally significant influence on growth, whereas a stronger rule of law has a positive and significant influence. The authors interpret their finding as an indication that a better legal and political framework promotes growth by encouraging investment.

Their measure of the rule of law was taken from the International Country Risk guide, and examines the extent to which institutions provide effectively for implementation of laws, adjudication of disputes, and orderly succession of power’. Neither of these studies fully captures how crime impacts growth. Although political revolutions would be expected to be generally correlated with increased crime against people and their property, and political assassinations are clearly a form of murder, these are hardly all- encompassing measures.

Most crime committed against persons and property throughout the world would not fall into these two categories. The rule of law appears to be a good proxy for crime. When property rights are not ell defined and enforced, people have to resort to violence to enforce contracts rather than the court system. So lack of rule of law would tend to increase crime. This crime in a country. Countries with relatively stronger Judicial institutions have crime rates equaling or higher than countries with weaker ones.

For example, the homicide rate in the USA is higher than the homicide rate in some developing countries, which have weaker legal systems, and higher than most developed countries, which have comparable legal systems. Prison (1998) finds that enhanced economic security contributed significantly to riveter investment and growth in a sample of 53 developing countries from 1984 to 1995. Included in economic security are variables such as government leadership, external conflict risk, corruption, rule of law, risk of expropriation, repudiation of contracts and racial tensions.

He finds that reductions in expropriation risk and terrorism influence growth most prominently in the short run, while corruption and contract repudiation affect growth in the long run. Prison’s measure of economic security comes closest to a measure of crime’s effect on growth in a cross-country eating, but this measure includes things that are not crime, like government leadership, and excludes many traditional forms of crime. There is a sizable literature on the microeconomic impact of crime. As suggested by its ‘micro’ nature, this literature typically focuses on the local effects of various kinds of crime.

There has been an attempt, however, to aggregate these local effects and arrive at a ‘macro’ picture of the impact of crime. In his comprehensive study, Anderson (1999) estimates the annual burden of crime to be around $1 trillion for the USA in 1997 dollars. Crime is taken to mean any illegal behavior as specified under existing US law at the time. Unlike previous studies, Anderson incorporates the indirect costs of crime into his estimate, in addition to the conventional direct costs of crime. This leads to a substantial upward revision of the aggregate dollar cost of crime as compared to previous studies.

Along with the costs of a crime prevention system, legal system and direct victim losses, Anderson includes private crime deterrence costs, psychic costs to victims, as well as opportunity costs of time spent n crime prevention, criminal activity, serving Jail sentences for criminal activity, and recovering from criminal assault. He uses data from various sources such as the National Crime Visualization Survey, US Bureau of the census, federal bureau of investigation and insurance information institute. Previous some economists have estimated the cost of crime in other countries as well.

Olivares- Gambia (2007), for example, estimates an aggregate burden of crime for Chile at $1. 35 billion for the year 2002, representing 2. 06 percent of the GAP. Gardens (2002) attempts to explain the fall in Colombians average annual GAP Roth rate from 5 percent between 1950 and 1980 to 3 percent from 1980 through 2000 as a result of increased criminality. He argues that the fall of GAP growth can be wholly attributed to productivity losses stemming from a substantial increase in criminality that is directly correlated with Colombia emerging as a major producer of illegal drugs. N response to a high level of crime risk by moving to neighborhoods where they perceive this risk to be lower. Thus an attempt is made to estimate the impact of changes in crime rates on house prices in a neighborhood or city and thereby arrive t an estimate of the cost of crime. Narrow et al. (1980) estimate the elasticity of property value with respect to crime to be 21. 67 for Boston, while Lynch and Rasmussen (2001) find the figure to be 20. 05 for Jacksonville, Florida. Gibbons (2004) finds that when visible crime records a one- tenth standard deviation increase, it leads to a decrease of 0. 4 percent in property values in the Inner London area, and Linden and Rock(2008) find that the prices of homes within a 0. 1- mile radius off sex offender decrease by around 4 percent in Knuckleball County, North Carolina. The above micro studies all attempt to measure the impact of crime on economic out- comes, but they all do it in a static setting to estimate the current cost to an economy. In other words, they ask how far the economy is from its production possibilities frontier because of crime.

With the exception of Gardens (2002), they do not examine how crime impacts the expansion of the frontier over time. Although crime has not been directly used as an explanatory variable in cross- country studies on growth, there are studies that attempt to establish the effect of growth on crime in a Ross- country setting. Effaceable et al. (1998) and (2002) use a data set of crime rates for a large sample of countries and find that while the level of GAP per capita is an insignificant determinant of crime, the GAP growth rate has a significant negative impact on crime rates.

The intuition is that with an expanding economy there will be increasing opportunity cost of committing crime. Soared (2004) finds that across countries the available evidence for inequality as a determinant of crime is weak, while the evidence for development as a determinant of crime is strong. However, he contends that these results are not reliable because nearly all the previous studies do not control for the underreporting of crime rates. He overcomes this bias by constructing a corrected data set using both official records and previously unused visualization survey data.

With this corrected data set, he finds that the level of development (as measured by per capita income) previously thought to have a positive effect on crime in fact has no explanatory power and concludes that all previous studies that found such a relationship were inaccurate due to underreporting bias in the data. He also finds that inequality tends to have a positive effect on crime, while economic growth has a negative influence on theft only. According to Rose Inning, et. Al (2004) A rise in government expenditure in Kenya is coupled with a rise in crime level.

Government expenditure on public order and safety has increased in the last five years, rising from 1 . 76% of GAP in 1999/2000 to 2. 46% of GAP in 2003/2004. This is coupled with a rise in the number of reported cases of crime from 74,990 in 1999 to 77,340 in 2003. This may reflect an ineffective deterrent mechanism or a weak criminal Justice system. The respondents ere of the view that the Government machinery charged with ensuring law and order was not operating efficiently. System as inefficient and 48% rated the prisons as inefficient.

This may explain the indicated increase in crime even as the government increased expenditure on public law and order. A positive link is indicated between expenditure on crime, adequacy in provision of security services and perceived level of safety, which would imply that provision of adequate security services requires adequate expenditure. The high- income class that spends slightly higher (17% of total spending) in ensuring security eels safer compared to the low-income group, which is spending less (9%).

This means that when delivery of service is effective, high expenditure translates to more security. Business firms, however, do not reflect this pattern. The commercial sector, which seems to be spending a significant amount of sales (9. 5%) on security provision, has a higher rate of firms feeling unsafe (63%) as compared to manufacturing firms, which spend a lesser proportion (2. 3%) and reports a lower number of firms feeling unsafe (54%). Consumers of security services are spending exorbitantly on provision of security services.

With the perceived inefficiency in provision of public security services, households and business firms have taken to providing security services on their own. This is costing households about 9% of their recurrent budget or Asks 2,700 per month. This translates to about 1. 5% of GAP or 60% of Government budget on public order and safety. Business firms are spending 7% of their total sales, or 11% of their total costs on both infrastructure and personnel. In addition, business firms are spending 4% of their total sales on insuring property and 2% on neighborhood initiatives, Special Report No. 6 Noun 2004).

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