International Political Economy

Transcription

1 International Political Economy Series Editor: Timothy M. Shaw, Visiting Professor, University of Massachusetts Boston, USA, and Emeritus Professor, University of London, UK The global political economy is in flux as a series of cumulative crises impacts its organization and governance. The International Political Economy series has tracked its development in both analysis and structure over the last three decades. It has always had a concentration on the global South. Now the South increasingly challenges the North as the centre of development, also reflected in a growing number of submissions and publications on indebted Eurozone economies in Southern Europe. An indispensable resource for scholars and researchers, the series examines a variety of capitalisms and connections by focusing on emerging economies, companies and sectors, debates and policies. It informs diverse policy communities as the established trans-atlantic North declines and the rest, especially the BRICS, rise. Titles include: Caroline Kuzemko THE ENERGY SECURITY CLIMATE NEXUS Hans Löfgren and Owain David Williams (editors) THE NEW POLITICAL ECONOMY OF DRUGS Production, Innnovation and TRIPS in the Global South Timothy Cadman (editor) CLIMATE CHANGE AND GLOBAL POLICY REGIMES Towards Institutional Legitimacy Ian Hudson, Mark Hudson and Mara Fridell FAIR TRADE, SUSTAINABILITY, AND SOCIAL CHANGE Andrés Rivarola Puntigliano and José Briceño-Ruiz (editors) RESILIENCE OF REGIONALISM IN LATIN AMERICA AND THE CARIBBEAN Development and Autonomy Godfrey Baldacchino (editor) THE POLITICAL ECONOMY OF DIVIDED ISLANDS Unified Geographies, Multiple Polities Mark Findlay CONTEMPORARY CHALLENGES IN REGULATING GLOBAL CRISES Nir Kshetri CYBERCRIME AND CYBERSECURITY IN THE GLOBAL SOUTH Kristian Stokke and Olle Törnquist (editors) DEMOCRATIZATION IN THE GLOBAL SOUTH The Importance of Transformative Politics

2 Jeffrey Wilson GOVERNING GLOBAL PRODUCTION Resource Networks in the Asia-Pacific Steel Industry International Political Economy Series Standing Order ISBN hardcover Series Standing Order ISBN paperback (outside North America only) You can receive future titles in this series as they are published by placing a standing order. Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and one of the ISBNs quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England

3 Cybercrime and Cybersecurity in the Global South Nir Kshetri Associate Professor, University of North Carolina-Greensboro, USA

4 Nir Kshetri 2013 Softcover reprint of the hardcover 1st edition All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6 10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act First published 2013 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin s Press LLC, 175 Fifth Avenue, New York, NY Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN ISBN (ebook) DOI / This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress

5 Contents List of Figures and Tables Preface and Acknowledgements viii x 1 Cybercrime and Cybersecurity in the Global South: Status, Drivers and Trends Introduction Cybercrime and cybersecurity issues in relation to the international political economy Definitions of major terms A review of cybercrimes in the GS The GN GS structural differences in cybercrime and cybersecurity A typology of cybercrimes in the GS Concluding comments 28 2 Technological and Global Forces Shaping Cybercrime and Cybersecurity in the Global South Introduction Technological forces Global forces Concluding comments 49 3 Cybercrime and Cybersecurity in the Former Soviet Union and Central and Eastern Europe Introduction Assessing the nature, extent and impact of cybercrimes associated with the region Formal and informal institutions related to cybercrime The push and pull factors related to cybercrimes International collaboration, cooperation and partnership Case studies of some firms from the region engaged in cybercrimes Discussion and implications 75 v

6 vi Contents 4 Cybercrime and Cybersecurity in China Introduction A survey of cybercrimes associated with China Structure of the Chinese economy in relation to cybercrimes originating from and affecting the country Institutional factors Concluding comments 98 5 Cybercrime and Cybersecurity in India Introduction An overview of cybercrimes in India Structure of the Indian economy in relation to cybercrimes originating from and affecting the country Institutions related to cybercrimes A Case study of NASSCOM s efforts in enhancing cybersecurity in the Indian offshoring industry Discussion and implications Concluding comments Cybercrime and Cybersecurity in the Middle East and North African Economies Introduction A survey of cybercrimes associated with the MENA economies Structure of the MENA economies in relation to cybercrimes originating from and affecting them Institutions related to cybercrimes in MENA Discussion and implications Concluding comments Cybercrime and Cybersecurity in Latin American and Caribbean Economies Introduction The escalation of cybercrime activities associated with LAC economies Economic factors Institutional factors related to cybercrimes in LAC economies 145

7 Contents vii 7.5 Natures of organized crime and cybercrime groups in LAC economies Concluding comments Cybercrime and Cybersecurity in Sub-Saharan African Economies Introduction SSA s digitization: The cybercrime and cybersecurity dimensions Hollowness in Africa s digitization initiatives Externalities in the SSA cybercrime industry Progresses on the institutional and technological fronts Concluding comments Cybercrime and Cybersecurity in the Developing Pacific Island Economies Introduction Digitization of DPIEs and cybercrimes associated with these economies A framework for explaining cybercrimes associated with DPIEs Discussion and implications Concluding comments Discussion, Implications and Concluding Remarks Introduction Dominant and idiosyncratic forces related to cybercrimes in GS economies Evolution of cybersecurity-related institutions in the GN and the GS International relations and international politics issues related to cybersecurity Future research Final thought 202 Notes 205 References 206 Index 247

8 Figures and Tables Figures 1.1 A typology of cybercrimes 21 Tables 1.1 Explanation of some of the major terms used in the book Top cybercrime sources ( ) Top cybercrime sources and targets ( ) Some examples of cybercrimes associated with various categories of perpetrators and targets in the GS A 2 2 matrix for categories of cyberattacks representing jurisdiction of the target/victim and motivation: an illustration from China Various examples and some of the associated mechanisms related to cybercrimes associated with the GS Various flows related to cybercrime and cybersecurity Some examples of notable international cybercrime networks associated with the FSU&CEE economies Some representative studies on China s position in the global cyberattack industry Some notable examples of the engagement of ethnic Chinese in alleged cyberespionage activities against economic and industrial targets Some notable examples of China s alleged cyber espionage activities against military and political targets Cybercrime activities originating in LAC economies Cybercrime activities targeting LAC economies Some economies in Latin America and the Caribbean as top cybercrime sources Some of the top cybercrime-originating SSA countries Cybercrime-related laws in selected SSA economies 165 viii

9 List of Figures and Tables ix 8.3 Current states and future prospects of cybercrimes in SSA economies Digitization and escalation of cybercrime activities and evolution of cybersecurity-related institutions in DPIEs: Major milestones Externality mechanisms and feedback systems producing increasing return in cybercrime activities associated with DPIEs Various forms of controls for cybercrime activities in DPIEs Determinants and impacts of cybercrimes in DPIEs Dominant and idiosyncratic forces related to cybercrimes in the economies used in the book 194

10 Preface and Acknowledgements As cybercrime is becoming more and more pervasive in our daily lives, it has raised a multitude of challenges, ranging from theoretical foundations to public policy. Especially the complex, multifaceted and dynamic nature of cybercrime associated with the Global South is a critical but little-examined problem in social science research. This topic s importance is even more obvious with the emergence of some economies in the South as new centres of capitalisms, especially the so-called BRICS economies (Brazil, Russia, India, China and South Africa). At the same time, dominant economies in the Global South and Global North are deeply divided in their views regarding the governance of cyberspace. Although the popular press has paid considerable attention to cybercrime in the Global South, very little research has been undertaken to further our understanding of this phenomenon. Our understanding of the underlying drivers and effects of such crimes on the global society and economy is thus limited. The purpose of this book is to contribute to filling this void. Cybercrime in the Global South is a subject of interest to a number of disciplines ranging from political science and developmental economics to law, criminology and sociology. The book looks at the state and structure of cybercrimes in the Global South and attempts to highlight institutional, economic and social processes related to such crimes. It takes a close look at economies in the Global South with high incidence and origination of cybercrimes. The major thrust of this book is also on technological and global forces shaping cybercrimes in the Global South. Also examined in the book are specific country and regional cases, which can give deep insights, rich data and meaningful information on the dominant drivers, idiosyncratic forces and impacts of cybercrimes as well as the natures of inter-north/south and intra-south variations in such crimes. I am particularly grateful to Christina Brian, Senior Commissioning Editor IPE, Development & Environment, at Palgrave for her enthusiastic support of the idea of this book. Amanda McGrath s effective, timely and efficient communication and support have been helpful to facilitate the smooth flow of the project. I also received invaluable help and support from my graduate assistant Aroop Menon. Finally, I highly x

11 Preface and Acknowledgements xi appreciate the work that Sumitha Nithyanandan, Project Manager, Integra Software Services and her team put in the book production process, who demonstrated a high level of competence, efficiency and professionalism. As for the ideas, concepts, content and theories presented in this book, I am indebted and thankful to several people for comments, suggestion, support, encouragement and feedbacks. First, I would like to express my sincere gratitude to Tim Shaw, editor, International Political Economy Series, at Palgrave Macmillan. Tim s inspiration and guidance during the germination of the book were invaluable. Tim was the first to realize the need for a book on this important topic. His enthusiastic response gave me the energy necessary to develop my ideas into a book. Various papers related to this book were presented at scholarly meetings including IV Simpisio De Investigaciones es estudios de trabajo, Universidad De La Salle, Bogota, Colombia, April 2012; Pacific Telecommunications Council s (PTC) Annual Conference, Honolulu, HI, January 2012; Sixth Annual Mid-Atlantic Strategy Colloquium, University of North Carolina, Chapel Hill, NC, 2 3 December 2011; International Telecommunications Society Asia-Pacific Regional Conference, June 2011, Taipei, Taiwan; 11th Annual International Business Research Forum, Philadelphia, 9 10 April I thank the many professionals involved in these meetings, who provided comments and suggestions and helped me refine my thinking. Thanks go as well to anonymous Palgrave peer reviewers for their helpful and encouraging comments on the book proposal. There is nothing more important than having a loving and supportive family to create the foundation for a project such as this book. I express my love and gratitude to my wife and best friend, Maya. Without her support and encouragement this book would not have existed at all. Finally, I would like to dedicate this book to my mother, Manamaya Kshetri, for her love and support.