Very astute observation. We've already seen a lot of this in the Middle East, and elsewhere in the world (the Mafia is a classic example, and Hezbollah may be the best modern example). What might this mean in a place like New York or California where state governments right here in the U.S. are on the brink of financial collapse?
If you read the whole article, it paints a very bleak future not only for the Middle east, but for all of us who will suffer from the hands of the thugs who will take over when these states fail and there is no one to put things back together in a peaceful manner.