With unregulated landfills and illegal toxic dumping, southern Italy has been gripped by a “waste crisis” spanning four decades. While the issue could be seen as a criminal spin-off, the problem actually runs much deeper. A team of researchers, including NEOMA’s Élise Lobbedez, investigates the entire framework of waste management and lays the groundwork for an alternative approach.

A health scandal could at last be drawing to a close. In early 2025, the European Court of Human Rights ruled that the Italian state was liable for its failure to take action against the Mafia’s illegal dumping and incineration of hazardous waste. It is even suspected that this practice, which has been ongoing for decades, has caused a spike in cancer rates in and around Naples. A recent study published in the Journal of Management Studies by several researchers – including  Élise Lobbedez, assistant professor at NEOMA Business School – argues that the problem is far from being an isolated issue. In fact, it is closely tied to the economic and socio-political structures inherent in a capitalist system.

In the early 1980s, companies in Italy were obliged to process and destroy their waste safely. Mafia clans such as the Neapolitan Camorra offered to take on the task at lower rates, bypassing environmental laws. The study highlights that in the chemical industry, for example, the Mafia handled 800 tons of hydrocarbon-contaminated soil for only 25 cents per kilogram – undercutting the standard market rate by 80%! This markdown was only possible because the Mafia had no qualms about disposing of waste by dumping, burying or burning it illegally, even if it was dangerous or toxic. In addition, they were happy enough to combine it with household garbage. The limited presence of the state in southern Italy allowed this criminal activity to flourish. At times the Mafia even operated with the permission of the various municipalities or the regional council. Whether through complicity or negligence, the public authorities allowed the Mafia to become a major force in waste management.

A mix of neglect and commodification

The researchers provide some background: at the time – and the same still holds largely true today – there were two approaches to understanding the issue of waste. On the one hand, it was considered a “negative externality,” i.e. something to be ignored or eliminated. This was typically the view of companies and local authorities, which saw waste as a by-product of their core business: it wasn’t their role to deal with it but they were forced to do so. On the other hand, waste was treated as a kind of commodity: effectively, it is bought, traded and resold on specialised markets; its value fluctuates according to supply and demand; and most importantly, it has the potential to generate profit if it is exploited properly. The Mafia seized control of this lucrative niche market.

In short, waste was seen as both a worthless surplus and a lucrative commodity. The study points out, however, that these twin perspectives are problematic and mutually reinforcing: factoring in environmental or societal criteria in waste management comes at a cost. Conversely, much more money can be made by disregarding the impact of waste on the environment and marginalised communities. In reality, the Mafia got rich by dumping waste in the open air in areas where the poorest social classes live, far from upscale neighbourhoods and tourist hotspots.

Misconduct by public authorities

In 1994, the Italian government tried to reclaim control by declaring a state of emergency and delegating full powers to a special body for waste management. The government worked hard to curtail the Mafia’s role, with mixed outcomes, and encouraged more eco-friendly reprocessing solutions. But this policy did little to challenge the dual dynamic of neglect and the commodification of waste. As a result, the drive to maximise profits led to the same abuses with a negative impact on disadvantaged areas and the health of local people. The state, for example, insisted on the construction of incinerators and recycling plants. But the public tenders generally leant towards the least expensive proposals rather than the most efficient and least polluting technologies.

To cite another example: decrees adopted in 1997 oblige each region to handle its own waste – a laudable intention since it is a way of holding local stakeholders accountable. But in reality, the regulation exacerbated inequalities between regions. The poorest areas were left struggling since they lacked the financial and structural resources required to handle such a significant influx. What’s more, the Mafia still has deep roots in the south of the country, where large volumes of waste from central and northern Italy – and beyond – continued to be imported.. For the locals and farmers, it’s a “double whammy”!

A systemic problem that calls for a paradigm shift

The authors of the study argue that the example of Naples exemplifies the wider reality that waste management is not simply a technical issue. Its foundations lie in the economic, political and social power dynamics that are inherent in a capitalist system. Throughout what is now known as the “waste crisis” in Italy, the pursuit of profit and the accumulation of capital systematically triumphs over environmental protection and the well-being of local communities. By leveraging waste or turning a blind eye to it, the handful of players that dominate the market – the Mafia, big businesses and sometimes even the public authorities – have perpetuated socio-economic inequalities in favour of private gain. This type of exploitative mechanism is typically the flipside of unfettered capitalist accumulation.

The researchers argue that we should recognise that waste plays a pivotal role in society. This change in direction should encourage public authorities to embrace more inclusive policies that take greater account of the viewpoints, voices and suffering of the impacted communities. This might include greater consultation and more democratic participation mechanisms, not to mention backing for citizen initiatives and greater transparency of information. At the same time, this approach would prompt governments to push back against a profit-focused market dynamic. It would also encourage them to adopt more sustainable, ecological and circular solutions that factor in the long-term socio-environmental impact of waste.

The study concludes that the challenge is to prevent further “wasted” lives in the future.

Find out more

Élise Lobbedez, Stefano Pascucci et Teresa Panico, Theorizing Waste as a Technique of Power in Capitalistic Stakeholder Relations, Journal of Management Studies, February 2025. doi.org/10.1111/joms.13190