NCJ Number
172888
Date Published
1997
Length
32 pages
Annotation
Illicit drug production and drug trafficking worldwide are examined from an economic perspective, with emphasis on research findings regarding the main industrial sectors associated with the illicit drug market, the interactions among stages and activities in the drug industry, and impacts on national economies.
Abstract
The discussion notes that the illicit drug industry resembles that of other agricultural products in some respects. In addition, the most prominent drug trafficking organizations appear to be characterized by highly centralized management control at the upper echelons, with compartmentalization of functions and task specialization at the lower levels. Vertical integration is another common feature of the drug industry. Drug seizures have little impact on the profits in the industry. However, economic analysis of an underground economy is necessarily problematic. Those who benefit from this economy are not always the same as those who bear the costs. Strategic alliances among criminal groups are becoming more common. Money laundering is a vital component of the drug industry. Money laundering does not always require the banking industry, but it undermines the integrity of the financial system. The drug industry distorts consumption, investment, and competition in national economies. Figures, photographs, reference notes, and attached discussions of the environmental effects of illicit crop cultivation and the issues of corruption and organized crime