I'll play devil's advocate here.
Explaining via parallel underworld creates more problems than it purports to solve. How do 'illegal' wars circumvent CONCORD hi-sec safeguards? Why are there standardized fees, information transparency, and a total lack of fraud in a system maintained by a criminal underworld? How did a 'parallel underworld' come to be when the pirate factions are as diverse and divided as the traditional empire governments? They're not exactly all BFF. You're essentially pulling a criminal Yulai Convention out of a hat.
Here's an alternative pitch: CONCORD provides these services because it's an in-character and pragmatic decision for the organization to make.
Consider the following data points about CONCORD:
- It was founded under joint agreement by five diverse interstellar nation-states, each with fundamentally different value sets and moral outlooks. The organization draws personnel from all of these empires. This implies an organizational moral ambivalence or moral relativism concerning basic ethical concepts such as justice. What unifies the organization is its mission.
"The ever-expanding bureaucracy of CONCORD has become a-empirical, swearing fealty to no one race."- Nowadays, CONCORD's upper echelon isn't even drawn from the five empires but "rise from the ranks of its own employees."
- CONCORD's power was initially limited, but grew over time as the organization's financial independence became established. This financial independence is based on revenues arising from interstellar trade - customs, licenses, contraband confiscation.
The SCC is a branch of CONCORD.- CONCORD maintains a DED branch that targets high-profile criminals and criminal organizations. The definition of criminality is, of course, based on the laws of CONCORD's constituent 5 nations. (Hence, while Sansha's 'Nation' possesses the features of a sovereign entity, it is relegated to a 'pirate faction' by the CONCORD narrative. It's simply not one of CONCORD's constituents). One of the major duties of the DED is
assisting customs efforts, using its advanced technology.- While CONCORD regulates the new capsuleer class with direct violence, it also channels capsuleer energies via incentives. The most basic of these are automated bounties. At the higher levels of refinement, such as the measures taken to counter Sansha strikes, capsuleers are herded into fleets and directed against targets using military-style missions. Even capsuleers that have fallen out of favor with CONCORD can win back their security ratings by directing guns at approved targets. Because of automated CONCORD incentives, the majority of capsuleers are predisposed towards shooting the pirate factions and winning favor with the empire governments.
Starting off these lore points, what I see is an organization that is fundamentally amoral. It takes no stand concerning slavery, except when slaves are being shipped across boundaries an illegal contraband. It professes no opinion on democratic self-rule versus centralized megacorp control, except when the State designates privately-owned small-arms as illegal contraband. What it
is concerned with is maintenance of the status quo, which is the dominance of, and the precarious balance between, the five founding nations. CONCORD also has a vested interest in expanding interstellar trade.
The events leading to the Empyrean War threatened the status quo. With peace out of the question, CONCORD opted for the lesser evil of a controlled proxy-war fought largely by capsuleers over stretches of underdeveloped low-sec space. With the conflict clearly bounded into a well-paid ceremonial bloodsport, akin to the limited warfare of feudal samurai or knights, CONCORD avoided the "danger" of a decisive victory by any one nation or alliance of nations. A scenario of a single dominant Empire would have rendered CONCORD obsolete. Low-intensity conflict, however, could perpetuate the balance indefinitely.
The rise of the capsuleer class is another threat to the status quo. Fortunately, capsuleers are an egotistical and garrulous bunch, who are concerned mostly with shooting, romancing, trolling, and politicking each other. They pay scant attention to the baseliner population, dismissing non-capsuleer vessels as "rats" - vermin that aren't even worthy opponents in space. Additionally, capsuleers have been a major boon to interstellar trade and industry, individually contributing on a scale comparable to planetary economies.
How does CONCORD control capsuleers while profiting off of them? The same way they handle interstellar trade: regulations, punishments for breaking regulations, and paid-for licenses to bypass regulations. After all, CONCORD isn't against violence
per se. They pay well if a capsuleer pops a few Angel Cartel ships. And if you decimate a Sansha fleet, you may even get a pat on the back. It's
unsanctioned violence that's problematic.
A capsuleer launches a suicide attack on another capsuleer in hi-security space, without CONCORD sanction. Punishment is applied swiftly and efficiently. Is the victim compensated or the rationale behind the attack explored at all? No, that's not CONCORD's concern. What is established is that there's a rule, and breaking that rule incurs a penalty.
If you want to bypass that rule, you can pay a modest fee (modest by capsuleer standards) for a license. Renewing this license, also known as a wardec, is made easy by automatic deductions from your account.
What is a bounty but a transaction? And CONCORD profits from all interstellar transactions by means of the SCC. The sheer scale of capsuleer transactions means that processing and brokering fees alone probably account for an entire service economy ecology.
And if these sanctioned modes of violence allow capsuleers to focus on shooting each other rather than threatening the status quo, all the better.