Non-Violent Competition: Why Do Criminal Groups Provide Goods and Services?

What explains the provision of goods by Organized Criminal Groups? In various regions of the world, criminal groups such as mafias, drug cartels and gangs have resorted to the provision of substantial benefits and services in communities where they operate. Although previous research has analyzed the provision of public goods and services by violent actors such as terrorists and rebels, the literature presents partial explanations for the provision of goods by organized criminal groups. This article argues that local homicidal violence and intercartel competition motivates non-violent behavior such as the provision of goods and material benefits to civilians. In highly violent contexts, the provision of goods and services becomes a cost-effective strategy for criminals to make up for brutal casualties, gain better social standing within affected communities, and compete against rival groups and government agencies. The empirical analysis tests novel data on the provision of goods and supplies by criminal groups in Mexico during the outbreak of the COVID-19 pandemic.