Free Economics of Drug Trafficking Essay Sample


Drug trafficking is a worldwide black market, competing with lawful drug trade devoted to fostering, manufacture, distribution and sale of those substances which are subject to drug prohibition laws. A report produced in 2009, projected that drug trafficking generated about $321.6 in 2009. Drug trafficking trade can be projected to be a little less than 1% of total global commerce.

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History of Drug Trafficking

From the 19th century when the citizens of Americans first made a discovery of some of the most fatal drugs like, heroin, and cocaine, the social order has confronted the vice of drug misuse and dependence.

From the beginning of the 20th century, the United States has been severely hit by this scourge. This led to the government of the USA coming up with laws to try to curb the sky rocketing vice. It put in place efficient limitations. This was done both within the country and outside the country. Within, it was done by domestic law enforcement. Consequently, law enforcement outside the USA was enhanced through formation of a world movement to limit opium and coca crops which was led by the USA.  As the World War II approached, American drug abuse was something that was so uncommon that it was seen as a trivial societal crisis. This was the first epidemic. Nonetheless, it seemed to be something of the past to the people of the USA. It completely was over and done.

But this was not to be the end. It turned out that there would be an eruption of another drug scourge. At some point in the 1960s, drugs like marijuana, amphetamines, and psychedelics came about. And as they suddenly came to scene, there would definitely be eruption of users of those drugs. They were embraced by a new generation. Drug abuse seemed to be completely in place and equally dominant. And with this drug culture blowing up, the government of the Unite States came up with new laws and agencies to deal with the crisis.

In 1973, the U.S. Drug Enforcement Administration was formed to put into effect federal drug laws. At some point in the 1970s something else that had seemed to have been completely wiped resurfaced. This was cocaine. After its reappearance, its use and addiction spread like a bush fire. Ten years later, something else was to appear and this new thing was to be crack appeared. Similar to cocaine, its addiction spread to extremely high levels.

At the moment, the DEA's main test is the spectacular change in planned offense. Despite the fact that American criminals once managed drug use and trafficking on U.S. soil, at the moment complicated and influential criminal gangs controlled from alien countries are in charge of the drug operations in the United States.

How Drug Trafficking Effects the Economy

Drug trafficking has an extremely large impact on the economy of a country. The effects of drug abuse are mostly negative. This was and is still being illustrated by the different movements against drug abuse. "Only one per cent of the money spent by drug abusers is generated as farm income in developing countries. The remaining 99 per cent of global illicit drug income goes to drug trafficking groups operating at various other points along the drug trafficking chain", the International Narcotics Control Board in recent times affirmed in a press release.

The funny thing about this is that it is just like a drop in the ocean. It is only one illustration of drug use impact on the economy. There are other sources of information that indicate that two-thirds of the earnings from drug trafficking is acquired in developed countries. The remaining one third is obtained third word and developing countries. Even if the data may indicate this, it is far and wide accepted that the negative effect is in particular high on the economies of developing and third world countries.


As per the United Nations estimates, the black market for illicit drugs accounts for 8 percent of the world's trade income. The world's biggest black market for illicit drugs is the USA. Usually, one who is in a position to traffic drugs from Latin America, Southeast Asia, and other parts of the world into the United States makes mammoth profits. Successfully smuggling of cocaine into the United States at some point in the 1990s made profits of between 700 to 900 percent over original product costs. Drug Enforcement Agency (DEA) officials approximate that a drug cartel may well have 70 to 80 percent of its produce confiscated before sale and still turn a profit.

The increase in drug use in the late 1960s drove President Richard Nixon to announce a "War on Drugs." Consequently, efforts to stop this were stepped up. In 1973 the DEA was created as part of the Justice Department to manage drug prohibition and drug trafficking intelligence gathering among federal agencies. There were other agencies involved too. These include the U.S. Coast Guard, the Department of Defense, the U.S. Customs Service, the Federal Bureau of Investigation and the State Department. The federal government used up more or less $1.5 billion on drug exclusion efforts in the year 1997.

Amongst the more well-known operations to bring to end drug traffic into the United States took place in the 1970s with the disintegration of the "French Connection," the name given to a heroin-smuggling course that began in Turkey, via the port of Marseilles destined for New York. The 1980s and 1990s saw further major operations resulting in the destruction of leading international drug traffic organizations, such as the Medellin and Cali Cartel in Latin America. In 2008 U.S. Customs seized 1.3 million pounds of marijuana, 2,550 pounds of heroin and 150,000 pounds of cocaine.

Examples of Actual Drug Dealers

Drug cartels involved and still involve youth gangs. There are two main Los Angeles gangs, the Crips and the Bloods, had become commercial. Indeed, they were growing their drug trafficking operations to markets in other cities. The National Drug Intelligence Center reports "a noticeable spread of Bloods/Crips gangs across the United States in the late 1990's and early 2000's.


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