The economic costs of crime : a case study for Malta

Abstract

The economic cost of crime is a significant issue that affects individuals, businesses, and governments. Policymakers and managers in the Criminal Justice System (CJS) make decisions on a daily basis that reflect implicit assumptions and judgments regarding the significance of different crimes, or about the gains earned from pursuing one approach rather than another. This thesis aims to explore the various ways in which crime imposes costs upon society, whilst promoting discussions and improvements in the data. The term ‘costs of crime’ in this study refers to the complete range of ramifications of crime, recognised in monetary terms whenever practicable. However, this does not imply that it is always correct to limit the repercussions of any crime to simply financial terms. Costs are incurred before crimes takes place (such as security expenditures and insurance administration costs), after crimes occur (such as property lost or damaged, emotional and physical effects, and health services), and during the investigation of crimes and prosecution of offenders, i.e. the costs to the criminal justice system. This study adopts a 'bottom-up' approach, specifically employing the 'Accounting Method,' while drawing upon data from sources such as the Malta Police Force (MPF), Malta Financial Services Authority (MFSA), National Statistics Office (NSO), and other relevant entities. Accurate estimates of these costs hold significant importance in aiding the government in optimizing the allocation of resources for addressing crime-related issues.