International Drug Trafficking: Scope, Patterns, and Money Laundering

Introduction

A number of drugs — including cocaine, opiates, cannabis, and synthetic drugs such as MDMA (ecstasy) and methamphetamines — are considered illegal in most parts of the world. Declaring a substance illegal, however, does not mean that its use or demand can be eliminated, as was so famously demonstrated in the United States during alcohol prohibition in the 1920s. Prohibition simply results in the creation of a black market in which demand for banned substances is met by organized criminals.

Similarly, the current worldwide demand for illicit drugs is largely met through international drug trafficking — a multi-billion-dollar cross-border business that links the growers and producers of illicit drugs with consumers. This paper describes the extent of the problem, analyzes the reasons for drug trafficking and its changing patterns in recent times, and provides an overview of the major drugs being trafficked internationally. The related problem of money laundering, through which most of the global drug trade is financed, is also discussed.

The Extent of the Problem

Statistics about the production, trafficking, and consumption of illicit drugs are notoriously difficult to obtain due to the hidden nature of the trade. A recent report by the United Nations estimates that approximately 3% of the global population — or 185 million people — are current consumers of illicit drugs, translating to 4.7% of the world population in the 15-to-64 age group. Drug users include people from around the world, regardless of their cultural, social, or economic background.

It is generally agreed that the total number of illicit drug users globally has stabilized over the last few years, and that illicit drug use is far lower than, for example, global tobacco use, which is close to 30% among the same age group. These figures, though encouraging, cannot be cause for complacency, as notable increases in the use of certain drugs — particularly designer drugs (amphetamines and ecstasy) and cannabis — have been observed. Most governments, policymakers, and public opinion in a majority of countries agree that current levels of drug use are very high and need to be reduced considerably.

Concern about controlling drug abuse stems from several factors: the death and destruction caused by drug abuse, particularly among youth; the promotion of related criminal activities such as money laundering and terrorism; and the long-term effects on the social and political cultures of countries involved in the drug trade, including the promotion of violence, corruption, and the spread of HIV/AIDS along drug trafficking routes.

Reasons for Drug Trafficking

The single most important reason why people become involved in drug trafficking is the enormous profit that can be made due to the trade's illegal nature. Although considerable money is made from the growing and production of illicit drugs, trafficking is the most lucrative part of the business because the underground premium is greatest at that stage. The desire to accumulate power — arguably a corollary of money — is also cited as a motivation for involvement in the trade.

Some dealers of soft drugs such as marijuana, who operate on relatively low profit margins, cite a "philanthropic desire" to enable people to enjoy such substances and help them to get "high," rather than pure profit, as their main motivation. This may seem far-fetched in a capitalist culture where economic activities are assumed to be driven by the profit motive. However, it is worth recalling the idealistic nature of the counter-culture movement of the 1960s, which adopted marijuana use as a symbol of its disdain for materialistic values. There may, therefore, be some truth in the assertion. Nevertheless, there is little doubt that the overriding reason for drug trafficking — including that of marijuana — is the desire to tap the enormous profits generated by the high cost of an illegal product that is not very expensive to produce.

Conclusion

Drug trafficking is an important component of the international trade in illegal drugs. It is a multi-billion-dollar global activity that links the producers of illicit drugs with consumers while generating enormous profits. Because of the illegal nature of the business, most drug trafficking is carried out by organized criminal gangs and drug cartels originating from various countries around the world. Despite broad consensus among governments and the public about the desirability of eradicating the menace, and despite concerted efforts by drug-enforcement agencies to control the flow of illegal drugs, international drug trafficking continues — and is likely to continue for the foreseeable future. Realistically, the best outcome that can be hoped for is a stabilization of the trade at current levels.

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