1. Chapter 9: Drug Trafficking
PSY 302: Substance Abuse
Chapter 9:
Drug Trafficking

2. The Terrorism Connection
Terrorist groups and organized crime (drug cartels) have similar requirements for moving people, money, material, weapons, etc. across borders
Narcoterrorism
Terrorists acts carried out by groups that are directly or indirectly involved in cultivating, manufacturing, transporting, or distributing illegal drugs
Mutually beneficial for drug traffickers and terrorists

3. Narco-Terrorism
Known terrorist organizations trafficking drugs fund operations, gain recruits, expertise
Colombia
Revolutionary Armed Forces of Colombia (FARC)
United Self-Defense Groups of Colombia (AUC)
Peru
Afghanistan, Pakistan - Taliban

4. The Terrorism Connection
Narco-states
Afghanistan
Pakistan
Burma
Colombia
Peru
Bolivia
Mexico

5. The Terrorism Connection
Fine line between drug trafficking and terrorism
Taliban insurgents in Afghanistan
Southeast Asia’s Golden Triangle

6. The Terrorism Connection
Compartmentalization
Varying levels within an organization with specific goals and responsibilities related to these goals
Compartmentalized Organization

7. The French Connection
International Drug Trafficking
Long-time problem

8. Drug Trafficking into the US
Only about 15-20% of narcotics are seized
Why?
1. Enormous amount of entry points
a. Thousands of inlets and roads
2. All Caribbean Islands are less than
2,000 miles from Miami
a. most are less than 2,000 miles
from Washington DC

9. Colombia Drug Trade
The only country in the world where the three main plant-based drugs – cocaine, heroin, and marijuana – are grown in significant amounts
Colombia is the only South American country that has both the Pacific and Caribbean coastlines 

10. Colombia Drug Trade
These illegal drugs are being shipped to foreign countries including the US, and sold there for big $$$
Colombia is the world’s largest drug producing countries, and produces 90% of the worlds cocaine
Large, ruthless criminal groups that organize drug trafficking, and commit serious crimes including kidnapping and murder to anyone who gets in their way
Not only do these groups deal with government organizations, but they are also competing against rival groups in the country

11. Colombian Drug Trade
Marijuana
Cocaine
Colombia didn’t start supplying marijuana to excess until the late 1960’s
The origin of the marijuana boom can be traced to a search by US consumers for a new supply source of marijuana
The new Colombian drug lords soon took over the producing and distributing of the marijuana that was produced in Colombia
During the 1970's the Colombian Drug Lords began focusing their attention on supplying a vast amount of cocaine
In the late 1980's when law enforcement began to crack down on the transporting of coca base to Colombia, the Colombians began planting and growing there own coca plants
Cocaine can be transported much more easily and has a much higher profit than does marijuana

12. Colombia Drug Trade
Columbia-based cocaine trafficking groups in the United States operate through compartmentalized structure
Cell: Compartmentalization involves cells with about ten members, each operating independently; operates within a geographic area, the head of each cell reports directly to a controller
Controller: Responsible for overall operations of the several cells within a region
Central Command: oversees and coordinates operations through the controllers

13. Heroin Trafficking in Colombia
By 1999, Colombia had become major heroin wholesalers
Gave free sample of their high purity heroin to their cocaine buyers
Strategy worked
The high purity heroin permits it to be prepared for smoking, ridding the product of the dirty needle (high risk for HIV+) reputation

14. Mexico Drug Trade
Mexican drug trafficking organizations control most of US drug market
Varied transportation routes
Advanced communications
Strong affiliations with US gangs

15. Mexico Drug Trade 60,000 suspicious transactions in a 12-month period…
Only aproximately 300 of these transactions go through litigation
Banking controls are lax
Inefficient legal system due to the consequential life threatening fear
Drug cartels are glamorized

16. Mexico Drug Trade The Two Mexicos War on drugs
Mexican government with aid from US
War for control of drugs
Corrupt police and military fight for their share of the drug business
Bowden (2009)
Mexico Prison Break: 53 Walk Out While Guards Do Nothing. Click on picture 

17. Mexico Drug Trade
Now 45,000 troops involved in addition to state and federal police forces
2008: plans announced to double size of Federal Police
purging local police forces of corrupt officers
massive police recruiting and training effort

18. Mexico Drug Trade
Drug Cartel militarization and the Mexican government’s military response have resulted in fierce gun battles
Gunmen have refused to surrender and have ambushed soldiers and police officers
Continued corruption of local police departments with honest police assassinated

19. Mexican-Colombian Deal
In early 1990s, Mexicans struck a deal with Colombians whose cocaine they were moving from Mexico into US
For every 2 kilograms of smuggled Colombian cocaine, Mexicans could keep 1 kilogram as payment
Aided by new legislation
Led to structural changes: Compartmentalization

20. Mexico: Methamphetamine
Latecomers to the trade, Mexican drug organizations became dominant in the manufacture and distribution of methamphetamine
Profits substantial – ten-fold return on investment
Mexican restrictions on ephedrine and pseudo- ephedrine resulted in decrease production and resultant decrease in drug trade to US
Led to relocation of production in US

21. Mexico: Marijuana
As opposed to instability of US heroin and cocaine markets, marijuana continues to be active drug trade
Very profitable
Often just dumped over the border
Laws lessened smuggling but simply relocated cartel harvest to US side
Result has been pollution issues, poisoning of animals, etc.

22. Economy Drug Trade Analyze
Colombia Economy
Unemployment rate:14.2%
Population below poverty line: 55%
Drug Problem
New productions and imports of marijuana
Cocaine being produced in Colombia
Drug smugglers supplying the world with massive amounts of drugs
Mexican Economy
Unemployment: 3.7%
Population below poverty line:40%
Drug Problem
gangland killings have reached 5,376
117 percent increase of deaths have occurred in the last year

23. Golden Triangle
The Golden Triangle of Southeast Asia encompasses approximately 150,000 square miles of forested highlands, including the western fringe of Laos, the four northern provinces of Thailand, and the northeastern parts of Myanmar
Weak, corrupt governments
Dozens of armed ethnic guerrilla groups
Intense heroin and methamphetamine trafficking
Golden Triangle heroin also feeds a sizable addict population in China
Human traffickers “mules”

24. Golden Crescent
The Golden Crescent of Southwest Asia includes Afghanistan, Pakistan, and parts of Iran
Out of control opium growing leading to Afghanistan as world’s biggest producer of opium
Traffickers stronger than law enforcement
Growing domestic market for heroin in Pakistan
Rapidly growing, and poverty-stricken population
Easy access to heroin is leading to expanding addict population and drug organizations
Antidrug efforts have been futile

25. Domestic Drug Business
Goldstein (1985)
Norm violations result in violence
Three types related to drug business
Pharmacological Violence: Violence induced by the pharmacological properties of the drug itself
Economic-Compulsive Violence: Violence associated with efforts to obtain money to finance the high cost of illicit drugs
Systemic Violence: Violence associated with traditionally aggressive patterns of interaction within the system of drug distribution and use

26. Systemic Violence Penalties for street level norm violations
Death is usual punishment for a norm violation
Teenagers may be given lesser punishments
Gun shot wounds
Pithing

27. Street-Level Drug Business
Open-Air Markets
Represent the lowest level of the drug distribution network
Few barriers to access, and anyone who looks like a plausible buyer will be able to purchase drugs
Open-air drug markets operate in geographically well- defined areas at identifiable times so buyers and sellers can locate one another with ease. A variety of drugs may be sold, most commonly to include: heroin, crack, cocaine, and marijuana

28. Street-Level Drug Business
Open-Air Markets Enforcement Issues
Displacement
This often occurs after arrests are made; many new drug dealers ready to replace the one arrested
Clustering
Some believe its better to have competition; leads to larger customer base; affords protection from law enforcement that isolated dealing does not

29. Domestic Drug Business
Rural areas present their own issues
Production of methamphetamine prevalent in rural America
Meth labs often located in rural areas and usually set up and run by local residents similar to the operation of small-scale production and distribution of moonshine whiskey during the Prohibition Era
Nazi method: Outlaw chemists have been stealing anhydrous ammonia, normally used for fertilizer, for converting it into methamphetamine

30. Domestic Drug Business
LSD made by about a dozen chemists
Just these few chemists are believed to be manufacturing nearly all of the LSD available in the United States
Some have probably been operating since the 1960s
Cooks and traffickers work together to distribute LSD throughout the US

31. Domestic Drug Business
Money Laundering
The process of concealing the source of money obtained by illicit means
Three methods
Placement
Layering
Integration

32. Money Laundering Placement
The initial movement of criminally derived currency or other proceeds of crime, to initially change it’s form or location to places beyond the reach of law enforcement
Layering
The process of separating the proceeds of criminal activity from their origin
Disguising the origin through the movement of funds trough accounts and financial institutions

33. Money Laundering Integration
The process of using an apparent legitimate transaction to disguise the illicit proceeds allowing the laundering of funds to be disbursed back to the criminal

34. Money Laundering Suspicious signs Banks Wire transfers Obtaining loans
Loans given to offshore companies
Lavish lifestyles
Purchase of stocks (securities) or insurance

35. Credits Some slides prepared with the help of the following websites:
stephen.bruestle.net/sites/SDB/.../economics%20of%20drugs.ppt
pmaswork.wikispaces.com/file/view/drug+war+in+america.ppt
mendham.wmrhsd.org/FACULTY_FILES/npanfile/.../LADrugTrade.pptCached