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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