The Cali Cartels influence on the Colombian Economy

Introduction Illegal drug trade in Colombia is the practice of producing and distributing narcotics domestically and around the world. As of 2012, Colombia was the world leading cocaine producer in the world (Neuman, 2012). Cocaine, marijuana and heroin along with other illegal drugs have become a big part of Colombians lifestyle and a major source of income for many people. Since the establishment of the War on Drugs in the late 20th century, European countries and United States have provided billions of dollars, logistics and military aid to the Colombia government to combat the illegal drug trade (Lilley, 2006). As of 1999, Plan Colombia has been one of the biggest movements towards Colombia’s biggest rebel group, the Revolutionary Armed Forces of Colombia (FARC). The movement was implemented as Colombia supplies 80% of cocaine to American citizens (Vellinga, 2000). The US Drug Enforcement Administration estimated that Colombia’s annual profit ranges between $5-7 billion from drugs smuggled into the United States.

This paper will take an inside look into Colombia’s third largest city; Santiago de Cali in the department of Valle del Cauca, home of the Cali Cartel, to see how the production of illegal drugs affects the economy and whether Colombia is benefiting from the illegal activities. First we will focus on a general background of illegal drugs in Colombia then narrow down to see how the Cali Cartel greatly affected economy in Colombia. Employment, Money laundering and land ownership will play major roles in establishing the current situation in Colombia and whether or not illegal drugs are beneficial to the economy in Cali and Colombia entirely. Finally the paper will have my opinion on whether or not the illegal drug trafficking is benefiting or setting-back the economy in Colombia.

Methodology

Information for this paper has been taken from books located