Agents operating in illegal markets cannot resort to the justice system to guarantee property rights, to enforce contracts, or to seek protection from competitors' improper behaviors. In these contexts, violence is used to enforce previous agreements and to fight for market share. This relationship plays a major role in the debate on the pernicious effects of the illegality of drug trade. This paper explores a singular episode of transition of a market from legal to illegal to provide a first piece of evidence on the causal effect of illegality on systemic violence. Brazil has historically been the main world producer of big leaf mahogany (a tropical wood). Starting in the 1990s, policies restricting extraction and trade of mahogany, culminating with prohibition, were implemented. First, we present evidence that large scale mahogany trade persisted after prohibition, through misclassification of mahogany exports as "other tropical timber species." Second, we document relative increases in violence after prohibition in areas with: (i) higher share of mahogany exports before prohibition; (ii) higher suspected illegal mahogany activity after prohibition; and (iii) natural occurrence of mahogany. We believe this is one of the first documented experiences of increase in violence following the transition of a market from legal to illegal. -- illegal markets ; violence ; homicide ; mahogany ; Brazil

The Amazon region is the focus of intense conflict between conservationists concerned with deforestation and advocates of agro-industrial development. This book focuses on the contributions of environmental organizations to the preservation of Brazilian Amazonia. It reveals how environmental organizations such as Greenpeace, Friends of the Earth, WWF and others have fought fiercely to stop deforestation in the region. It documents how the history of frontier expansion and environmental struggle in the region is linked to Brazil’s position in an evolving capitalist world-economy. It is shown how Brazil’s effort to become a developed country has led successive Brazilian governments to devise development projects for Amazonia. The author analyses how globalization has led to the expansion of international commodity chains in the region, particularly for mineral ores, soybeans and beef. He shows how environmental organizations have politicized these commodity chains as weapons of conservation, through boycotting certain products, while other pro-development groups within Brazil claim that such organizations threaten Brazil's sovereignty over its own resources.