1. 1 THE POLITICAL ECONOMY OF DRUG TRAFFICKING INTRODUCTION 1. Pervasiveness of issue 2. Challenges for research 3. Categorizing “illicit drugs”— Marijuana Heroin Cocaine ATS/designer drugs 4. Note: Dangerous prescription drugs

2. 2 READING Smith, Talons, ch. 14 Holden&Zolov, Selection 132

3. 3 THE GLOBAL MARKET: SOURCES OF SUPPLY 1.Worldwide flows, variations by drug 2.Consumption around the world * 149-272 million users * 15-20 million “addicts” or problem users * $320 billion per year (est.)

4. 4 Global Production and Trafficking Amphetamine Type Stimulants Cocaine MDMA Potential Cocaine Production (mt) Heroin

5. Sources of Heroin * Values for Latin America are projected 3,4413,389 3,671 3,302 4,068 5,106 5,000 4,452 4,263 5,082 1,264 Metric Tons ONDCP/FEB02

6. 6 54 percent Mexico/Central American Corridor Estimated Cocaine Flows ca. 2000 43 percent Caribbean Corridor 3 percent Direct to U.S.

7. 7 Interdiction of Cocaine, 1999 512 Metric Tons Depart South America for U.S. Arrival Zone Seizures Transit Zone Seizures MEXICO / CENTRAL AMERICAN CORRIDOR -60 MT-37 MT 3% 15 MT 43% 220 MT 54% 277 MT 75 METRIC TONS DETECTED DEPARTING FOR NON-US MARKETS -14 MT-7 MT -12 MT DIRECT TO CONTINENTAL U.S. CARIBBEAN CORRIDOR 382 MT Potentially Arrives in the U.S.

8. 8 Where are the profits? Price structure of one kilo of pure cocaine, ca. 2000: Coca leaf (e.g., farmgate in Peru) $ 300 Coca base (farmgate) 900 Cocaine hydrochloride (export/Colombia) 1,500 Cocaine hydrochloride (import/Miami)15,000 Cocaine (67% pure/dealer U.S.)40,000 Cocaine (67% pure (retail/U.S.) 150,000 Who Are the Winners…?

9. 9 DIMENSIONS OF U.S. DEMAND % Reporting Past Month Usage, 1985-2000 Source: SAMHSA, National Household Survey on Drug Abuse. *The survey methodology was changed in 1999. Estimates based on the new survey series are not comparable to previous years. New survey series*

10. Drug Use by Age Cohort 10 Prime example of an aging cohort of drug users -- this group began use in 1970s.

11. U.S. DRUG USERS, 1990-2010 1990 = 13.5 million (6.7%) 2000= 14.0 million (6.3%) 2007= 19.9 million ( ̴ 8%) 2010 = 22.6 million (8.9%) 11

12. 12 Drug Use by Drug Type

13. Drug Use among Students, 2000 13

14. Expenditures on Drugs ca. 2000 ($63.2 billion est.) 14

15. And so… What to do? 15