Chapter 9: Drug Trafficking PSY 302: Substance Abuse Chapter 9: Drug Trafficking

The Terrorism Connection Terrorist groups and organized crime (drug cartels) have similar requirements for moving people, money, material, weapons, etc. across borders Narcoterrorism Terrorists acts carried out by groups that are directly or indirectly involved in cultivating, manufacturing, transporting, or distributing illegal drugs Mutually beneficial for drug traffickers and terrorists

Narco-Terrorism Known terrorist organizations trafficking drugs fund operations, gain recruits, expertise Colombia Revolutionary Armed Forces of Colombia (FARC) United Self-Defense Groups of Colombia (AUC) Peru Afghanistan, Pakistan - Taliban

The Terrorism Connection Narco-states Afghanistan Pakistan Burma Colombia Peru Bolivia Mexico

The Terrorism Connection Fine line between drug trafficking and terrorism Taliban insurgents in Afghanistan Southeast Asia’s Golden Triangle

The Terrorism Connection Compartmentalization Varying levels within an organization with specific goals and responsibilities related to these goals Compartmentalized Organization

The French Connection International Drug Trafficking Long-time problem

Drug Trafficking into the US Only about 15-20% of narcotics are seized Why? 1. Enormous amount of entry points a. Thousands of inlets and roads 2. All Caribbean Islands are less than 2,000 miles from Miami a. most are less than 2,000 miles from Washington DC

Colombia Drug Trade The only country in the world where the three main plant-based drugs – cocaine, heroin, and marijuana – are grown in significant amounts Colombia is the only South American country that has both the Pacific and Caribbean coastlines 

Colombia Drug Trade These illegal drugs are being shipped to foreign countries including the US, and sold there for big $$$ Colombia is the world’s largest drug producing countries, and produces 90% of the worlds cocaine Large, ruthless criminal groups that organize drug trafficking, and commit serious crimes including kidnapping and murder to anyone who gets in their way Not only do these groups deal with government organizations, but they are also competing against rival groups in the country

Colombian Drug Trade Marijuana Cocaine Colombia didn’t start supplying marijuana to excess until the late 1960’s The origin of the marijuana boom can be traced to a search by US consumers for a new supply source of marijuana The new Colombian drug lords soon took over the producing and distributing of the marijuana that was produced in Colombia During the 1970's the Colombian Drug Lords began focusing their attention on supplying a vast amount of cocaine In the late 1980's when law enforcement began to crack down on the transporting of coca base to Colombia, the Colombians began planting and growing there own coca plants Cocaine can be transported much more easily and has a much higher profit than does marijuana

Colombia Drug Trade Columbia-based cocaine trafficking groups in the United States operate through compartmentalized structure Cell: Compartmentalization involves cells with about ten members, each operating independently; operates within a geographic area, the head of each cell reports directly to a controller Controller: Responsible for overall operations of the several cells within a region Central Command: oversees and coordinates operations through the controllers

Heroin Trafficking in Colombia By 1999, Colombia had become major heroin wholesalers Gave free sample of their high purity heroin to their cocaine buyers Strategy worked The high purity heroin permits it to be prepared for smoking, ridding the product of the dirty needle (high risk for HIV+) reputation

Mexico Drug Trade Mexican drug trafficking organizations control most of US drug market Varied transportation routes Advanced communications Strong affiliations with US gangs

Mexico Drug Trade 60,000 suspicious transactions in a 12-month period… Only aproximately 300 of these transactions go through litigation Banking controls are lax Inefficient legal system due to the consequential life threatening fear Drug cartels are glamorized

Mexico Drug Trade The Two Mexicos War on drugs Mexican government with aid from US War for control of drugs Corrupt police and military fight for their share of the drug business Bowden (2009) Mexico Prison Break: 53 Walk Out While Guards Do Nothing. Click on picture 

Mexico Drug Trade Now 45,000 troops involved in addition to state and federal police forces 2008: plans announced to double size of Federal Police purging local police forces of corrupt officers massive police recruiting and training effort

Mexico Drug Trade Drug Cartel militarization and the Mexican government’s military response have resulted in fierce gun battles Gunmen have refused to surrender and have ambushed soldiers and police officers Continued corruption of local police departments with honest police assassinated

Mexican-Colombian Deal In early 1990s, Mexicans struck a deal with Colombians whose cocaine they were moving from Mexico into US For every 2 kilograms of smuggled Colombian cocaine, Mexicans could keep 1 kilogram as payment Aided by new legislation Led to structural changes: Compartmentalization

Mexico: Methamphetamine Latecomers to the trade, Mexican drug organizations became dominant in the manufacture and distribution of methamphetamine Profits substantial – ten-fold return on investment Mexican restrictions on ephedrine and pseudo- ephedrine resulted in decrease production and resultant decrease in drug trade to US Led to relocation of production in US

Mexico: Marijuana As opposed to instability of US heroin and cocaine markets, marijuana continues to be active drug trade Very profitable Often just dumped over the border Laws lessened smuggling but simply relocated cartel harvest to US side Result has been pollution issues, poisoning of animals, etc.

Economy Drug Trade Analyze Colombia Economy Unemployment rate:14.2% Population below poverty line: 55% Drug Problem New productions and imports of marijuana Cocaine being produced in Colombia Drug smugglers supplying the world with massive amounts of drugs Mexican Economy Unemployment: 3.7% Population below poverty line:40% Drug Problem gangland killings have reached 5,376 117 percent increase of deaths have occurred in the last year

Golden Triangle The Golden Triangle of Southeast Asia encompasses approximately 150,000 square miles of forested highlands, including the western fringe of Laos, the four northern provinces of Thailand, and the northeastern parts of Myanmar Weak, corrupt governments Dozens of armed ethnic guerrilla groups Intense heroin and methamphetamine trafficking Golden Triangle heroin also feeds a sizable addict population in China Human traffickers “mules”

Golden Crescent The Golden Crescent of Southwest Asia includes Afghanistan, Pakistan, and parts of Iran Out of control opium growing leading to Afghanistan as world’s biggest producer of opium Traffickers stronger than law enforcement Growing domestic market for heroin in Pakistan Rapidly growing, and poverty-stricken population Easy access to heroin is leading to expanding addict population and drug organizations Antidrug efforts have been futile

Domestic Drug Business Goldstein (1985) Norm violations result in violence Three types related to drug business Pharmacological Violence: Violence induced by the pharmacological properties of the drug itself Economic-Compulsive Violence: Violence associated with efforts to obtain money to finance the high cost of illicit drugs Systemic Violence: Violence associated with traditionally aggressive patterns of interaction within the system of drug distribution and use

Systemic Violence Penalties for street level norm violations Death is usual punishment for a norm violation Teenagers may be given lesser punishments Gun shot wounds Pithing

Street-Level Drug Business Open-Air Markets Represent the lowest level of the drug distribution network Few barriers to access, and anyone who looks like a plausible buyer will be able to purchase drugs Open-air drug markets operate in geographically well- defined areas at identifiable times so buyers and sellers can locate one another with ease. A variety of drugs may be sold, most commonly to include: heroin, crack, cocaine, and marijuana

Street-Level Drug Business Open-Air Markets Enforcement Issues Displacement This often occurs after arrests are made; many new drug dealers ready to replace the one arrested Clustering Some believe its better to have competition; leads to larger customer base; affords protection from law enforcement that isolated dealing does not

Domestic Drug Business Rural areas present their own issues Production of methamphetamine prevalent in rural America Meth labs often located in rural areas and usually set up and run by local residents similar to the operation of small-scale production and distribution of moonshine whiskey during the Prohibition Era Nazi method: Outlaw chemists have been stealing anhydrous ammonia, normally used for fertilizer, for converting it into methamphetamine

Domestic Drug Business LSD made by about a dozen chemists Just these few chemists are believed to be manufacturing nearly all of the LSD available in the United States Some have probably been operating since the 1960s Cooks and traffickers work together to distribute LSD throughout the US

Domestic Drug Business Money Laundering The process of concealing the source of money obtained by illicit means Three methods Placement Layering Integration

Money Laundering Placement The initial movement of criminally derived currency or other proceeds of crime, to initially change it’s form or location to places beyond the reach of law enforcement Layering The process of separating the proceeds of criminal activity from their origin Disguising the origin through the movement of funds trough accounts and financial institutions

Money Laundering Integration The process of using an apparent legitimate transaction to disguise the illicit proceeds allowing the laundering of funds to be disbursed back to the criminal

Money Laundering Suspicious signs Banks Wire transfers Obtaining loans Loans given to offshore companies Lavish lifestyles Purchase of stocks (securities) or insurance

Credits Some slides prepared with the help of the following websites: stephen.bruestle.net/sites/SDB/.../economics%20of%20drugs.ppt pmaswork.wikispaces.com/file/view/drug+war+in+america.ppt mendham.wmrhsd.org/FACULTY_FILES/npanfile/.../LADrugTrade.pptCached www.personal.psu.edu/djm8/456SPRMexicanDrug.ppt www.calstatela.edu/faculty/rcastil/ECON465/Drugs.ppt www.fintraca.gov.af/.../ppt/.../Examination%20Techniques%20part%...