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‘is there a connection between the economics (business) of illicit drugs and the legal treatment of those drugs?”
What are the economic factors at play in the war on drugs
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Drug trafficking is a very controversial topic because it is an illicit business that generates billions of dollars for the leaders of cartels. Due to those revenues since 2006 combatting drug trafficking for the government of Mexico has become a priority. Illicit drugs are illicit because they represent a threat to the health of consumers. And more often illicit drugs are presented to be part of millions of people’s daily life. To Mexico drug trafficking represents one of the 10 most important industry of the country because of the popularity drug trafficking has gain. Domestic and bilateral efforts to combat drug trafficking have not worked because of the size of drug trafficking an because the negatives of drug trafficking, corruption and violence and detrimental macroeconomic effects, far outweigh the positives, namely microeconomic benefits.
Drug trafficking provides many benefits to Mexico’s economy including employment, investments and cash flows (Rios, 2008). To analyze this benefits first a list of who benefits from drug trafficking its necessary. Starting with production, everyone included in the production stage benefits from drug trafficking. Farmers, drug couriers, truck drivers, chemists, street sellers, informants, armed security guards, and sicarios (hired killers) all of these who worked for a drug cartel receive payments for their jobs. Even though some evidence shows that these workers only receive about 1% of all money earned the drug trafficking market is estimated $320 billion and 1% is still a good amount of money (Rios, 2008). Workers chose to work for cartels because of the profits, though working for cartels is neither the easiest nor the safest job. Besides the employment generated the main reason to...
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Riddell, T., Shackelford, J., Schneider, G., & Stamos, S. (2011). Economics: A Tool for Critically Understanding Society (Ninth Edition). Boston, MA: Pearson Education, Inc.
Reichel, P. (2005). Handbook of Transnational Crime & Justice. Thousands Oaks, California: Sage Publications, Inc.
Rios, V. (2008). Evaluating the economic impact of Mexico’s drug trafficking industry. Retrieved from Harvard University, Department of Government website: http://www.gov.harvard.edu/files/Rios2008_MexicanDrugMarket.pdf
Robles, G., Calderon, G., Magaloni, B., (2013). The economic consequences of drug trafficking violence in Mexico. Stanford University. Retrieved from http://iis-db.stanford.edu/pubs/24014/RoblesCalderonMagaloni_EconCosts5.pdf
B. Background: The Sinaloa Cartel has become one of the most predominate suppliers of illegal narcotics in the entire world. The United States alone has provided the cartel with a huge amount of business The Human Rights Watch 2013 report of drug cartel income, "Mexican drug cartels take in between $19 and $29 billion annually from U.S.
Brue, S. L., Flynn, S. M., & McConnell, C. R. (2011).Economics principles, problems and policies. (19 ed.). New
Concerned authorities have focused essentially on criminalization and punishment, to find remedies to the ever-increasing prevalent drug problem. In the name of drug reducing policies, authorities endorse more corrective and expensive drug control methods and officials approve stricter new drug war policies, violating numerous human rights. Regardless of or perhaps because of these efforts, UN agencies estimate the annual revenue generated by the illegal drug industry at $US400 billion, or the equivalent of roughly eight per cent of total international trade (Riley 1998). This trade has increased organized/unorganized crime, corrupted authorities and police officials, raised violence, disrupted economic markets, increased risk of diseases an...
Mexico is a country rich in tradition, history and culture. Unfortunately, Mexico has not been talked about for any of those descriptions I mentioned above lately. Mexico has become a country full of death and violence. The Mexican government has been fighting a war with drug traffickers since December 2006. At the same time, drug cartels have fought each other for control of territory. More than 60,000 people have been killed (CNN). Despite the “war” launched at these multi-billion dollar organized crime groups, Mexico has not been able to stop its slide as a failed state. Almost every day there seems to be either dead bodies lying on the ground, a school closed due to vandalism, disappeared people, or bullet-riddled houses and cars. Sadly, there is not much the citizens of Mexico can do to ask for justice and change to the mess they are living in right now. So who is to blame for all of this? The Mexican drug cartels have completely taken over Mexico. They have become powerful through corruption and violence. The cartels use their power to intimidate and even murder anyone who tries to get in their way. They do not have a problem with decapitating heads in order to make a statement. The drug cartels also use their money to gain power. Given the amount of money they have, the cartels have millions of dollars invested in keeping authorities off their business. They can be very effective in bribing government officials at all levels, from border patrol just patrolling the border to state and high ranking federal officials. Given the resources they have, they can reach out and kill government officials at all levels. Since government officials are faced with bribes and or certain death, even the most unbreakable are caut...
...d legal means. By eliminating the black market through needle exchange programs, counseling and other medical aid, and even legalization, the cartels will lose their market. Furthermore, the Mexican government should provide similar assistance to those who have been impacted by the cartels, whether they have experienced human rights abuses or have lost land to cartel aggression.
Mexico has a long history of cartels the deaths, drugs and weapon trafficking is in all time high increasing year by year. “Mexico's gangs have flourished since the late 19th century, mostly in the north due to their proximity to towns along the U.S.-Mexico border. But it was the American appetite for cocaine in the 1970s that gave Mexican drug cartels immense power to manufacture and transport drugs across the border. Early Mexican gangs were primarily situated in border towns where prostitution, drug use, bootlegging and extortion flourished” (Wagner). They keep themselves armed and ready with gun supplies shipped from the U.S, taking control of the drug trades. The violence is spilling so out of control that they overthrew the Mexican government.
Over the last several decades, violence has consumed and transformed Mexico. Since the rise of dozens of Mexican cartels, the Mexican government has constantly been fighting an ongoing war with these criminal organizations. The cartel organizations have a primary purpose of managing and controlling illegal drug trafficking operations in Central America and South America to the United States. Violence on a massive and brutal scale has emerged due to the nature of the illegal drug trade. Because the drug trade is vastly widespread, cartels are often fighting one another and competing in business. Mexican authorities count at least 12 major cartels, but also talk of an untold numbers of smaller splinter groups. (Taipei Times). Five cartels from Mexico have risen to become the extremely powerful amongst all the drug organizations operating in Mexico. The Guadalajara Cartel, the Sinaloa Cartel, the Tijuana Cartel, the Juarez Cartel, and the Gulf Cartel. These organizations, along with other distinguished Mexican cartels, have plagued Mexico with violence, terror, and fear due to the essence and nature of illegal drug trafficking.
Drug trafficking and terrorism are illegal clandestine activities with strong national security and law enforcement threat components and operational similarities. Terrorists like drug traffickers, need weapons and engage in violence to achieve goals. Terrorists, like drug traffickers, are often involved in hiding and laundering sources of funds. Both terrorists and drug traffickers operate transnationally, and often get logistical and operational support from local ethnic satellite communities. Both groups often rely on the criminal community for support: they may need smuggled weapons, forged documents and safe houses to operate effectively. Finally, both groups need a steady cash flow to operate. In the case of terrorists, where state sources of funding are rapidly diminishing, drug trafficking is an attractive funding option. Increasingly, terrorist organizations are looking to criminal activity and specifically the drug trade as a source of funding. The FARC (Revolutionary Armed Forces, a guerilla force) in Colombia are but one of many cases in point.
in the International Drug Policy Debate - Drug Law Reform in Latin America N p n d Web 30 Jan 2014
11 Feb 2014. http://theweek.com/article/index/255503/a-mexican-drug-cartels-rise-to-dominance>. Inside the DEA. “Just think twice about it. N.P. Web.
Google Books, https://books.google.com/books?hl=en&lr=&id=bDEDBQAAQBAJ&oi=fnd&pg=PA196&dq=mexican+drug+cartels&ots=8goVXKwGf_&sig=UkmUGWh_lIrl9krS6hWNRCtzjoQ#v=onepage&q=mexican%20drug%20cartels&f=false "Drug Trade and Trafficking." Teen Health and Wellness, Rosen Publishing Group, Inc. June 2015. Accessed March 21, 2018. http://teenhealthandwellness.com/article/134/drug-trade-and-trafficking.
Retrieved from http://www.ctc.usma.edu/posts/the-current-state-of-mexicos-manydrug- cartels Logan, Samuel.
Drug trafficking has been a massive concern between the borders of Mexico and the U.S. “since mid 1970s” (Wyler, 1). Drug trafficking is “knowingly being in possession, manufacturing, selling, purchasing, or delivering an illegal, controlled substance” (LaMance, 1). A dynamic relationship exists amongst Columbia, Mexico, and the U.S. the informal drug trafficking economy. This growing informal drug economy leads to many individuals creating a substantial living through this undercover market. These individual drug cartels monopolizing the trafficking market are a growing problem for the U.S economy and need to be located and controlled. If this trafficking continues, the U.S. informal economy will crush the growth of legal industries. The trafficking and abuse of drugs in the U.S. affects nearly all aspects of consumer life. Drug trafficking remains a growing issue and concern to the U.S. government. The U.S. border control must find a way to work with Mexico to overpower the individuals who contribute to the drug trafficking business. This market must be seized and these individuals must be stopped.
The crucial importance and relevance of economics related disciplines to the modern world have led me to want to pursue the study of these social sciences at a higher level. My study of Economics has shown me the fundamental part it plays in our lives and I would like to approach it with an open mind - interested but not yet fully informed.
Sullivan, A., & Steven M., (2003). Economics: Principles in action. Upper Saddle River, New Jersey : Pearson Prentice Hal