This article analyzes the consequences of organized crime for the economy and politics in Italy. Of necessity, the nature and patterns assumed by the Sicilian Mafia are clarified. Central to the author's analytical model of organized crime is the distinction drawn between groups involved in illicit economic activities, i.e., drug trafficking, smuggling, organized prostitution, gambling, illegal lotteries, and those organized crime groups involved in the politico-military control of a geographical area, described in previous studies as the enterprise syndicate and power syndicate concepts. The author discusses the differences between these two concepts. He argues that studies have revealed an overlapping or interweaving of organized crime groups in Italy representing these two concepts, often resulting in conflict between and among criminal groups. According to the author, the distinctions between the two groups also help to explain the crisis of the Sicilian Mafia. References