Black Markets: Drug, Nuclear, and Human Trafficking

Introduction

The purpose of this paper is to introduce and discuss the recurring problem of black markets, including drug trafficking, nuclear weapons smuggling, and human black markets (consisting of organs, babies, and slaves). It will identify the difficulties associated with black marketing—including the obvious moral issues and resulting problems for communities—and attempt to identify solutions to the black market trade.

Black Markets and Why They Exist

Illegal substances have always been a magnet for black market profits. Prohibition failed largely because there was such a lucrative and enormous black market surrounding the manufacture and supply of illegal alcohol. Many family fortunes were made during Prohibition, when drinking was made illegal but people drank anyway. The same dynamic occurs when prices are fixed in an attempt to reduce or regulate consumption.

If prices are fixed so low that supplies fall far short of effective demand, widespread black markets are almost inevitable under the twin impact of a large number of potential patrons and the large profits that can be earned. It is generally believed that when 15 percent or more of the transactions in a given market take place illegally, the whole structure of price control for the affected product will disintegrate rapidly (Backman 636).

Drug Trafficking and Its Consequences

The drug trade worldwide is probably one of the best-known and most visible black markets today. In an attempt to control drug use, the governments of most countries have cracked down on illegal drugs such as cocaine, heroin, and marijuana, thereby paving the way for a flourishing black market. Whenever there is a larger demand for a product than is readily available, or prices on a particular item are controlled, a black market can develop and thrive. "The temptation is great to cut corners and to evade the controls. Inventiveness is turned to the exploitation of loopholes and to ways of giving only lip service to the law. The subversion of the controls breaks out in black markets" (Backman 629).

Illegal drugs sustain some of the most prolific black markets because of their addictive nature. Once a user is hooked on a drug, they need it to feel well, and as use continues, they need increasing quantities to achieve the same effect. Addicts are the perfect black market consumers because they continually need the product and need more of it over time. In many countries, black market drug traffickers wield more power than local governments and use it openly. In Latin America particularly, "drug interests have sought to undermine political institutions through bribery, defiance, intimidation, and occasionally through alliances with armed guerrilla movements. Colombia in particular has experienced the pains of 'narco-terrorism,' an open war by the Medellín cocaine cartel against the political establishment" (Smith 1).

The largest cartels and black markets exist in Latin America, and that region has been the focus of much of the United States' overseas drug enforcement effort. When marijuana production dropped in Latin America due to heavy enforcement, much growing shifted to Mexico. When Mexico, urged by the U.S., cracked down on cultivation, much of it moved to the United States. Today, over one-third of the marijuana grown for illicit use is grown domestically (Smith 8).

The power that these drug black markets wield is considerable. "In Peru, the Sendero Luminoso (Shining Path) terrorists extort levies from growers and transporters of coca while accepting money from drug dealers to protect them from the army and police" (Schweitzer and Dorsch 169). Much black market activity funds terrorist groups around the world, including in the Middle East and Asia. "In Lebanon, the Hizballah has participated in drug dealing that has been at the center of the political chaos over many years" (Schweitzer and Dorsch 169).

What can be done to curb drug trafficking around the world? Some experts believe a comprehensive national drug policy is one step in the right direction:

National drug policy should aim to improve the quality of neighborhood life and the safety of the streets. It has been extensively documented that the illegality of both the use and sale of heroin, cocaine, and marijuana has contributed tragically to the decline of neighborhood quality in cities all across the country, and that the decline is due primarily to the illegality of those substances and their attendant black markets and turf wars. A relaxation of controls would undercut the incentives to criminal sales—even at the risk of depriving many inner-city youth of the most lucrative youth employment program of the century (Vallance 104).

Many experts believe that reducing the penalties for so-called "harmless" drugs like marijuana would help dismantle black markets and also cut down on inner-city crime, health costs, and law enforcement expenditures. However, others argue that taxing and controlling such a drug would be more detrimental in the end. "Less and more-focused enforcement might prove beneficial to all countries; this option has not yet been seriously explored. Such a step requires collaboration" (Smith 326). While decriminalizing marijuana could reduce black market traffic, if the drug were controlled as to potency and taxed heavily, a black market would likely still exist for it, thereby counteracting the effects of legalization.

Clearly, there are serious societal problems associated with illegal drug use beyond the issue of black markets. Crime increases in areas with heavy drug use, as users steal and rob to fund their habits. Addicts become unproductive and costly members of society, and can harm their children—as seen in "crack babies" who are born addicted to crack cocaine because of maternal drug use. The cost of attempting to control illegal drugs is also extremely high in terms of societal support services (clinics, drug abuse counseling, and medical care), along with the costs of policing, prosecution, and incarceration.

The solutions are varied and each carries its own set of problems. Ultimately, the solution with the fewest associated problems should be adopted for a trial period and then evaluated based on its results. The controlled legalization of marijuana is a logical place to begin this process.

Conclusion

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