Transcript How does it get to the United States

Colombia & South American
Cocaine Trafficking
Who produces cocaine
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Peru
Bolivia
Ecuador
Colombia
Brazil??
Map South America
How does it get to the United States
• Shipment to
processing labs in
Colombia
• Chemicals almost
impossible to
control
• Across Caribbean
• Central America –
Mexico
How does it get to the United States
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Shipment to processing labs in Colombia
Chemicals almost impossible to control
Across the Caribbean
Through Central America and Mexico
Western Hemisphere
Benefits of Cocaine to Latin Americans
• Exceeds income to be gained from any other
crop
▫ Individual farmers
▫ Hefty complement to legal exports
 Colombia 12% - 18% value of all other legal exports
 Bolivia 53% - 90%
 Peru 23% - 27%
• Employs 1,000,000 in Andean Region
• Ripple effect in the economy
• Stable demand
The Clout of the Drug Producers
• Constituencies
▫ Farmers – defend right to cultivate
 Dates to pre-Colombian times
 Aid in return for production
▫ Dealers – influence within the state
 Political elite
 Economic elite
Dealers: Strategy of Protection I
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Large outlays for weapons (guard forces)
Payoff of police
Maintain large networks of informants
Undermine judicial system (plata o plomo)
Dealers: Strategy of Protection II
• Influence public opinion
• Operate as power brokers
(finance election campaigns)
• Use of violence
Venezuelan Ties with
Narco-Guerrillas
Ideology
Narco-traffickers use Venezuela as a shipping
point
Corruption
Anti-Americanism
Benefits of Cocaine to Latin Americans
• Exceeds income to be gained from any other
crop
▫ Individual farmers
▫ Hefty complement to legal exports
 Colombia 12% - 18% value of all other legal exports
 Bolivia 53% - 90%
 Peru 23% - 27%
• Employs 1,000,000 in Andean Region
• Ripple effect in the economy
• Stable demand
The Clout of the Drug Producers
• Constituencies
▫ Farmers – defend right to cultivate
 Dates to pre-Colombian times
 Aid in return for production
▫ Dealers – influence within the state
 Political elite
 Economic elite
Dealers: Strategy of Protection I
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Large outlays for weapons (guard forces)
Payoff of police
Maintain large networks of informants
Undermine judicial system (plata o plomo)
Why the supply will not be stopped
• All past efforts have failed: 200-300 tons of
cocaine flow into U.S. markets yearly
• Supply is on the upswing
• U.S. programs to reduce supplies in Andean
countries only a fraction of what Latin American
kingpins earn
Structural Barriers are Close
to Insurmountable
• Success could dramatically increase
unemployment
• Latin American leader see economic growth
benefits
• U.S. efforts viewed as infringement on Latin
America sovereignty
• L.A. governments often have little control in
areas where cocaine produced
• Corruption has undermined judicial system
United States Policy Dilemma
• U.S. citizens favor policy that reduces the supply
of drugs over one that persuades U.S. citizens to
stop using drugs
• There may be no useful way to upgrade war
against cocaine that is not counter-productive
Options Suggested I
• Enhancement of drug-fighting capabilities in
producer countries; but could lead to higher payoffs
• Americanization of War on Drugs – carries
political risks for host government
• Income Replacement – how much will we
invest?
Options Suggested II
• Sanctions
▫ Cut trade
▫ Withhold aid
▫ Opens door to retaliation
• Negotiation of cutbacks in drug production
▫ Required dialogue with producers
▫ Many governments won’t negotiate
▫ Requires U. S. to monitor agreements in
foreign countries
Focus on the United States?
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Increased interdiction
Stepped up enforcement against dealers/pushers
Stiffer penalties for possession
Just say no programs
Short of legalizing the use of
cocaine most options
proposed for attacking the
problem of consumption in
the U.S. run the danger of
stimulating even more
addiction