Drug War? Who’s Winning?
By Joseph R. Wheeler

For more than 2 decades, the U.S. government and its allies have proclaimed a "war on the illicit drug trade." Since inception, prison rolls have soared.

Today more than 5 million U.S. citizens are either incarcerated or under the jurisdiction of the court system. Depending on the quoted source, the worldwide illicit drug trade is now valued at between $45 - $400 billion annually.

The very nature of the underground networks and the difference in international currencies make it nearly impossible to determine an actual figure acceptable to the plethora of agencies involved in tracking the actual dollar value of the illicit drug trade.

All sources do agree that America is the largest market for illicit drugs.

Numbers released by the U.S. Attorney's Office in conjunction with the October 28, 2005 arrest of 23 members of the Detroit based Black Mafia Family, indicate the organization had laundered $270 million over a 15 year period.

Although significant, the number pales when compared to the total value of annualized sales of drugs in the U.S.

Numbers compiled by the United Nations indicate that the sale of cocaine, heroin, marijuana, methamphetamine, and other lesser known illicit drugs generate $142 billion annually in the U.S.

As a yardstick and to help visualize how much volume that represents, comparing the figure to the latest Fortune 500 list, the annual sales of illicit drugs in the United States exceeds the combined sales of Procter & Gamble, Bank of America, The Boeing Company and The Kroger Company.

Illicit drugs include more than the common names that proliferate daily media sources. The trade is broken into three categories: soft drugs, hard drugs, and pharmaceuticals.

"Soft" drugs refer to substances that require little processing or chemical formulations.

Drugs in this category include the $11 billion trade in Cannabis (marijuana) in all of its varied forms, Psilocybin containing mushrooms and even tobacco.

Wholesale prices of drugs in this category vary as widely as the variety. Schwag can sell for $500 a pound wholesale, while a pound of high-grade marijuana can fetch as much of $4,400 per pound.

Psilocybin mushrooms are sold by the gram and typically sell for $10 per gram.

The avoidance of taxes has historically fueled the trade in stolen cigarettes. According to the World Health Organization (WHO), International Conference on Illicit Tobacco Trade (ICITT) smuggled cigarettes account for 6% - 8% of world consumption.

It is estimated that 355 billion cigarettes are sold through contraband markets.

Hard drugs typically refer to substances requiring chemical processing and include: cocaine, heroin and methamphetamine.

Although the Columbians produce 75% of the cocaine, Mexican cartels have replaced the Columbians as the kingpins in the cocaine trade.

The Bureau for International Narcotics and Law Enforcement Affairs estimates that as of 2004, the Mexican gangs control 90% of all cocaine sold in the United States.

According to Admiral Jairo Pena of the Colombian Navy, 100 tons of cocaine was seized between January through October 2005. That represents 16 tons more than was seized in 2004.

This trafficking has switched from land and air to water.

Using high powered boats called "go-fasts," drug cargos valued at $1 million each are loaded in Columbia and shipped to destinations 1,100 miles away by sea.

Operated by a 2-man crew and equipped with (4)200 horsepower outboard motors, along with advanced communications and telemetry devices, most "go-fasts" literally outrun patrol boats or go undetected.

A report published in 2000 by the Office of National Drug Control estimated that Americans spend $10 billion a year on heroin.

The same report estimates that Americans spend $5.4 billion annually on methamphetamine.

Infringement on pharmaceutical patent rights generates $700 million a year for India's economy.

Drugs seized in a recent joint effort by Indian and US authorities include generic versions of Vicodin, Oxycontin, Ritalin, anabolic steroids and Viagra.

The drugs were originally shipped to India for domestic usage (at lower prices than U.S. and Canadian markets), then repackaged and sent back to rogue pharmacies servicing clients via the Internet.

In this single investigation, 5 million dollars in cash was seized and $7 million in bank accounts were frozen.

Sources at the United Nations indicate that there may be as many as 200 million illicit drug users globally.

As the so-called war on drugs continues to evolve, the users, wholesalers and retailers continue to multiply.

If the spoils of this war generated by 200 million users are valued at $400 billion today, what will the value be 10 years from now?


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