http://www.newsweek.com/id/185499?GT1=43002

Holy #$%!, Batman.

There's nothing "unofficial" about it; the LAPD had a special unit consisting of Bloods.

(Admittedly, probably not deliberately)

~J

This doesn't mention the rise of 'private security' due to conflicting business interests. Case in point, security of much of Mexico may be handled by either private militias or drug cartels. In the case of the latter, they've found a peaceful arena makes for better business, and police are effectively a competitor based off of an otherwise unrelated market. The cartels obviously have a bigger paycheck to run off of. So they establish themselves in the town, bring in money, paint the police as corrupt and/or worthless, and turn the town against the police, then move in and provide their own local security.

The only real police response, since police really can't compete, is to allow local militias to help push back against the cartels.

This guy:
http://globalguerrillas.typepad.com/globalguerrillas/
talks a lot about this sort of thing. Good cyberpunk stuff comes up all the time.

One has to wonder how this change, if it changes, given the availability (or lack thereof) of firearms to the general public. Mexico, for instance, has outlawed basically all weapons to civilians, but apparently cartels have a ready access of high-powered gear (through the 'gun-show loophole', so we're told ) In Shadowrun, were everyone has a gun, would this significantly change things? If so, in which direction?

Makes a certain amount of sense. Gangs or organised crime groups want to expand into an area that's got a crime problem they shake down the local businesses and landlords for protection but then also hand out little signs saying something like 'LCN Security Inc.' to put up by their front doors so other criminals know that if they rob them they'll get a serious beating or be killed. Only needs to be done a few times at the beginning and then once in a blue moon afterwards and it'll make people much more reliable in keeping up their payments, well that and the threat of having your business messed up or firebombed also helps, and might even generate some good will from the locals for a little bit.

Of course that's the idealised version, what actually happens would most likely be rather different.

"Every great cause begins as a movement, becomes a business, and eventually degenerates into a racket. "

Exactly. Just about every major gang around today began as a neighborhood association of one kind or another. Same goes for organized crime which often has it's origions tied with a profession. Even after becoming corrupt to the core some of these organizations still have a twisted semblance of there founding purpose which is usually something to do with protection.