Colombia & South American Cocaine Trafficking

1. Colombia & South American Cocaine Trafficking

2. Who produces cocaine • Peru • Bolivia • Ecuador • Colombia • Brazil??

3. Map South America

4. How does it get to the United States • Shipment to processing labs in Colombia • Chemicals almost impossible to control • Across Caribbean • Central America – Mexico

5. How does it get to the United States • Shipment to processing labs in Colombia • Chemicals almost impossible to control • Across the Caribbean • Through Central America and Mexico

6. Western Hemisphere

7. 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

8. 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

9. Dealers: Strategy of Protection I • Large outlays for weapons (guard forces) • Payoff of police • Maintain large networks of informants • Undermine judicial system (plata o plomo)

10. Dealers: Strategy of Protection II • Influence public opinion • Operate as power brokers (finance election campaigns) • Use of violence

11. Venezuelan Ties with Narco-Guerrillas • Ideology • Narco-traffickers use Venezuela as a shipping point • Corruption • Anti-Americanism

12. 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

13. 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

14. Dealers: Strategy of Protection I • Large outlays for weapons (guard forces) • Payoff of police • Maintain large networks of informants • Undermine judicial system (plata o plomo)

16. 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

17. 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

18. 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

19. Options Suggested I • Enhancement of drug-fighting capabilities in producer countries; but could lead to higher pay-offs • Americanization of War on Drugs – carries political risks for host government • Income Replacement – how much will we invest?

20. 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

21. Focus on the United States? • Increased interdiction • Stepped up enforcement against dealers/pushers • Stiffer penalties for possession • Just say no programs

22. 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