Journal 9: The Illegal Drug Trade: A very sophisticated business
October 17, 2011, 8:27 pm
Filed under: Weekly Posts | Tags: , , , , ,

Most people believe that drug trafficking is performed by people without education. This couldn’t be further from the truth. Drug Trafficking – the illegal trade of narcotics – is a global black market, with sale rates growing every year. Like stated before, drug trafficking is a very profitable business and, like any successful industry, it has rules, production goals, assessors, policies and regulations.

The Illegal Drug Trade business is a complicated market structure which almost operates like a Fortune 500 company. It is estimated to be a billion dollar industry and, according to some sources, in 2003 alone drug trafficking generated US $321.6 billion dollars. As incredible as it sounds, the Illegal Drug Trade’s gross income is higher than the GDP – Gross Domestic Product – of 88% of the countries in the world! The billions earned are not just stored, they are invested. Actually they’re people who claim that the most important contributors to global investment are drug lords.

Drug lords need to launder their money; banks need “liquid investment capital” – liquid, in banking, means easy to use or easy to convert into money – to support their financial growth problems, like the global crisis of 2009. Some believe the 2009 banking crisis was a special case in which the US Government bailed out the investment industry. In my opinion, it was the drug lords and their cartels that bailed out the financial sector of the US economy.

The leaders of these organizations are not your average street dealers; they are professionals and they have great supporting casts. This should be evident to governments, except that some people claim that the Illegal Drug Trade is such a powerful business that even governments support and fund their activities. Ever wondered why they find illegal drug cargos and there’s no one to pin the drugs to? This is one of the most successful and effective techniques used by drug lords: the money, the drugs and the boss are never in the same room at the same time.

The violence associated with illicit drug trafficking is proof that this business has flaws, like any other. However, the violence is performed by street dealers, the lower end of the drug hierarchy. The drug lords never go down to the battle field. They hire people to do that and, because a lot of people are down to making quick money, it is a smart investment. The street dealers are easily replaceable because they don’t have commercial or logistic abilities: they’re just pawns in a huge chess game.

Illegal Drug Trafficking is a seriously strong business. It is as robust as it is because it is fundamented on economic principles, trust, good decision making and bad intentions. While banks and governments exists, so will do illegal drug trafficking.



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