DT20 | The Illegal Timber Economy: The Vicious Circle of Crime in Southern Chile

The weak presence of the State in the southern macrozone has allowed the escalation of the conflict arising from the violence of organized armed groups, which, in turn, has contributed to creating an environment in which the criminal timber economy has been able to develop. It is not the conflict or institutional weakness that creates timber mafias, but rather the viable economic conditions for the illicit business; although both factors have facilitated the growth and consolidation of this illegal trade.

The violent events that have recurred since the 1990s have weakened the State. This fragility has manifested through the failures of the various institutions responsible for addressing the issue, which have left the necessary spaces for the crime behind timber theft to advance. A vicious circle has been created that seeks to displace the State and formal actors to establish itself in a territory where it expects to profit without respecting any norms.

Thus, the factor of institutional weakness is fundamental for studying this illegal economy, as without it, the scenario would likely be very different, and timber theft would not have evolved into the organized groups that are evident today.

This research corresponds to the third publication on illegal economies. This series of studies aims to first review, theoretically, the factors that allow the development of illicit businesses and then apply those factors to selected cases. In this sense, the purpose of this document is to understand what enables the development of the timber mafia, how it operates, and what can be done about it.

In order to understand and comprehend the criminal timber economy, research was conducted based on information available in the media, interviews, field visits, and specific reports related to the topic. Notably, conversations were held with relevant actors associated with the issue in the southern macrozone, some of whom requested to remain anonymous. These meetings included a field visit to gain firsthand insight into how the timber industry operates, what gaps can be found, and what may facilitate the advancement of crime.