this presentation contains data copied from different sources and i have mentioned the sources too. thanx

1. ASSIGNMENT ON:
CRIMES AND THEIR EFFECT ON ECONOMY
SUBMITTED BY:
MUHAMMAD SAAD
CLASS NO. 28
SEMESTER 4th
SUBMITTED TO:
SIR TAHIR MUMTAZ
INSTITUTE OF CHEMICAL SCIENCES UNIVERSITY OF
PESHAWAR

2. WHAT IS CRIME?
A crime is defined in a number of ways. Some of famous definitions of crime are following:
 Any act that is contrary to legal code or laws.
 An act committed or omitted in violation of Public Law forbidding or
commanding it.
These simple definitions give us general idea of crime. Crime is any act that is done against the
constitution of that country either it is justified by the offender or not.
CATEGORIES OF CRIME:
There are generally two major types of crimes
1. Felony
2. Misdemeanours
The major crimes including rape, aggravated assault or homicide are included in category of
felony. Punishment for felony depends on its intensity, constitution of the country as well as it
ranges from a year’s punishment to death.
The crime that is typically punished by less than one year in jail is included in category of
misdemeanour.
Either it is a felony or a misdemeanour, a fine may be part of the sanction as well. Actions that
constitute felonies and misdemeanours are determined by the legislatures in the various states;
thus, their definitions vary from jurisdiction to jurisdiction. This means that any action
considered crime in Pakistan is not necessarily crime in America.
Other categories of crime include:
1. Violent crime;
2. Property crime;
3. Occupational and Corporate Crime;
4. Organized crime;
5. Consensual or victimless crime.
Further explanation of all types of these crimes is discussed below:
1. VIOLENT CRIME:
In this type of crime the victims are often physically injured or even lose their lives and also the
psychological trauma may last for years after the event.
Violent crime consists of actions— homicide, forcible rape, robbery, and aggravated assault—
involving force or the threat of force against others.

3. As far as forcible rape is concerned, there are always approximate perspective because mostly
the victims are hesitated or sometimes threatened to never tell anyone about this. Since more
females are the victims of forcible rape and because of social norms they remain silent and never
tell this.
Homicide, of course, is considered the most serious crime because it involves the taking of a
human life. As well, homicide data are considered more accurate than those for other crimes
because most homicides come to the attention of the police.
2. PROPERTY CRIME:
Property crimes include burglary (breaking into private property to commit a serious crime),
motor vehicle theft, larceny-theft (theft of property worth $50 or more), and arson.
Property crime by definition does not involve physical harm, it still makes us concerned in part.
Some offenses, such as robbery, are both violent crimes and property crimes.
3. OCCUPATIONAL AND CARPORATE CRIME:
Occupational crime is also called White Collar Crime.
White Collar Crime is a crime committed by a person of respectability and high social status in
the course of his occupation. It means that the offenders are involved in misuse of their power
and status for their benefits.
Example: Ahad Cheema (DG LDA), PTI 20 MPAs involved in horse trading etc.
When white-collar offenders get involve in crimes aimed to improve the market share and
benefits of a company then it is called as corporate crime. It is defined as
“Corporate crime—illegal acts committed by corporate employees on behalf of the corporation
and with its support.”
Examples: fraud, tax evasion (offshore companies), EXACT Scandal etc.
Corporate crimes are often more costly in terms of money and lives lost than street crimes. It is
because: Thousands of jobs are lost, Deaths resulting from corporate crimes such as polluting the
air and water, manufacturing defective products, and selling unsafe foods and drugs far exceed
the number of deaths due to homicides each year.
Here we get answer of most often asked question that why the supreme court of Pakistan is not
taking action against other crimes in country but is only centred on Prime Minister of Pakistan?
The answer to this is seriousness of corporate crime.
4. ORGANISED CRIME
Organized crime is a business operation that supplies illegal goods and services for profit.
Organized crime refers to criminal activity by groups or organizations whose major purpose for

4. existing is to commit such crime. Organized crime include drug trafficking, prostitution, loan-
sharking, money laundering, and large-scale theft. Organized crime exists and even thrives
because it provides goods and/or services that the public demands.
Criminal organizations initially gain control of illegal activities by combining threats and
promises. For example, small time operators running drug or prostitution rings may be
threatened with violence if they compete with organized crime.
5. CONCENSUAL CRIME:
Consensual crime is also called victimless crime. It refers to behaviours in which people engage
voluntarily and willingly even though these behaviours violate the law. Different forms of
consensual crime include prostitution, gambling, illegal drug use etc. These behaviours are not
entirely victimless, as illegal drug users, for example, may harm themselves and others, and that
is why the term consensual crime is often preferred over victimless crime.
EFFECTS OF CRIMES ON ECONOMY:
Crime not only leads to material and immaterial costs for those who have become victimized, but
crime also forces local and national authorities to spend billions on the prevention of crime and
the detection, prosecution and punishment of criminals.
The two main categories of economic effect of crime are:
Primary/direct economic impact
Secondary/indirect economic impact
Economists use two types of methods to further categorize the (primary) costs of crime.
The first way is by defining the subject who bears the effects (victims, society etc.).
 Individuals/households
 The commercial sector/companies
 The public sector/society
A second approach of categorizing, is by breaking down the costs in relation to individual
incidents:
In anticipation of crime: mainly costs of precaution measures to avoid crime such as locks, alarm
prevention programs.
As a consequence of crime: for instance, loss of property, medical and health care costs, victim
support etc.
In response to crime: costs considering police, prosecution, court proceedings, sanctions etc.

5. Secondary economic impact:
Crime not only leads to financial or physical damage and prevention costs, but also indirectly
influences the local/regional and national economy of a country (the so-called secondary
economic impact).
According to Desoto and Otranto (2010), “crime acts like a tax on the entire economy: it
discourages domestic and foreign direct investments”
On a macro-economic level crime influences:
 economic growth; income;
 labour force participation;
 Income spent on security measures; and
 Reallocation of resources creating uncertainty and inefficiency.
On a more local and regional level, economists define the following types of impact:
Business impact (crime reduces competitiveness of companies and investments), Tourism
impact, Impact on property value.
REFERENCES:
 https://saylordotorg.github.io/text_social-problems-continuity-and-change/s11-02-types-
of-crime.html
 Diana_Kendall-Sociology_in_Our_Times__-Wadsworth_Publishing_(2010)