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: 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