NCJ Number
201418
Date Published
2003
Length
100 pages
Annotation
In this report, the International Narcotics Control Board reviews the economic consequences of illicit crop cultivation and the illicit drug trade, with a focus on the impact of the illicit drug trade on Nations' economic development.
Abstract
The review shows that drug trafficking does not contribute to the economic growth and prosperity of countries that are the source of such trafficking. Even illicit crop cultivation and illicit drug production, although they are labor intensive, do not generate very much additional employment; for example, in the late 1980's only 3 percent of the combined rural populations of Bolivia and Peru were involved in illicit drug production. At the end of the 1990's, the situation was about the same in Afghanistan and Colombia. Illicit crop growers in developing countries earn the equivalent of only 1 percent of the money that is ultimately spent by drug abusers. The remaining 99 percent of the global illicit drug income is received by drug trafficking groups that operate at various other points along the drug trafficking chain. Most of the money from drug trafficking is thus made in the countries where the end products are sold and abused rather than in the countries where the illicit crops are grown. The proceeds from illicit drug production prevent long-term economic growth even in the countries where the big-money traffickers reside. Huge proceeds from illicit drugs lead to conspicuous consumption, promote inflation, destroy production capacity, and result in negative economic growth. Further, whenever illicit crop cultivation and drug trafficking become significant components of a national economy, violent crime increases, and the rule of law is compromised. The emergence of a drug-based economy distorts the investment climate and destroys the basis of sound macroeconomic decisionmaking. Further, it increases the inflow of illicit profits, thus fostering lower economic growth and the overvaluing of exchange rates. Following this review of the economic consequences of illicit drug crop cultivation and drug trafficking, this report reviews the operation of the international drug control system, with attention to the status of adherence to the international drug control treaties, cooperation among governments, the prevention of diversion into the illicit traffic, control measures, and measures to ensure the implementation of the 1961 Convention. The report concludes with an analysis of the world situation regarding drug trafficking in Africa, the Americas, Asia, Europe, and Oceania. Appended regional groupings used in this report and the current membership of the International Narcotics Control Board