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Unintended Consequences: Drug Control and the Criminal Black Market

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Unintended Consequences: Drug Control and the Criminal Black Market 2.0 Confronting unintended consequences: Drug control and the criminal black market Last year’s World Drug Report reviewed 100 years of drug 2.1 Why illicit drugs must remain illicit control efforts, documenting the development of one of the first international cooperative ventures designed to Oddly, of all areas of international cooperation, drug deal with a global challenge. This pioneering work control is uniquely subject to calls that the struggle brought together nations with very different political should be abandoned. Despite equally mixed results in 1 and cultural perspectives to agree on a topic of consider- international interventions, no one advocates accepting able sensitivity: the issue of substance abuse and addic- poverty or war as inevitable. Not so with drugs, where a tion. Despite wars, economic crises, and other cataclysmic range of unintended consequences have led some to events of state, the global drug control movement has conclude that the only solution is to legalise and tax chugged steadily forward, culminating in a framework substances like cannabis, cocaine, ecstasy, methampheta- of agreements and joint interventions with few prece- mine, and heroin. dents or peers in international law. The strongest case against the current system of drug Today, a number of substances are prohibited in the control is not the financial costs of the system, or even 2 domestic legislation of almost every country. As dis- its effectiveness in reducing the availability of drugs. cussed below, this unanimity has created a bulwark The strongest case against drug control is the violence shielding millions from the effects of drug abuse and and corruption associated with the black market. The addiction. In the past, many of these substances were main problem is not that drug control efforts have failed legally produced and, in some cases, aggressively mar- to eliminate drug use, an aspirational goal akin to the keted, to devastating effect. The collective nations of the elimination of war and poverty. It is that in attempting world have agreed that this state of affairs was unaccept- to do so, they have indirectly enriched dangerous crimi- able, and have created an international control system nals, who kill and bribe their way from the countries that allows crops such as opium poppy to be produced where drugs are produced to the countries where drugs for medical use, with very little diversion to the illicit are consumed. market. Of course, the member states of the United Nations cre- ated the drug conventions, and they can modify or Despite this achievement, drug control efforts have annul them at will. But the Conventions would have to rarely proceeded according to plan. There have been be undone the way they were done: by global consensus. reversals and set-backs, surprising developments and And to date, they are very few international issues on unintended consequences. Traffickers have proven to be which there has been so much positive consensus as drug resilient and innovative opponents and cultivators dif- control. Drug control was the subject of broad-based ficult to deter. The number, nature, and sources of con- international agreements in 1912, 1925, 1931, 1936, trolled substances have changed dramatically over the 1946, 1948, and 1953, before the creation of the stand- years. None of this could have been predicted at the ing United Nations Conventions in 1961, 1971, and outset. 1988. Nearly every nation in the world has signed on to But then, very little has been simple or smooth about these Conventions.3 developments in international affairs over the last cen- Nonetheless, there remains a serious and concerned tury. Other international problems – including poverty, group of academics and civil society organisations who war, weapons proliferation and infectious disease – have feel the present system causes more harm than good. defied early projections of a swift resolution. Some Plans for drug “legalisation” are diverse, and often fuzzy efforts have been more successful than others, but, in all on the details, but one of the most popular alternative cases, the learning process could be described as “chal- models involves taxation and control in a manner simi- lenging”. Today, the enterprise of global coordination lar to tobacco and alcohol.4 This approach has appeal of and cooperation remains a work in progress. Tremen- ideological consistency, since all these addictive sub- dous gains have been made, however, and the need for stances are treated in the same way. collaborative solutions to the problems facing us all is greater than ever before. The practice of banning certain addictive substances 163 World Drug Report 2009 Fig. 1: Global deaths related to substance Fig. 2: Annual cocaine prevalence use in 2002 Source: 2009 World Drug Report Source: World Health Organisation7 3.5 3 6000000 3 2.3 5000000 2.5 2.2 2 4000000 1.5 3000000 0.9 1 0.8 0.8 2000000 0.5 % of adult population using annually 0 1000000 Peru Italy Spain 0 Bolivia Wales Colombia Tobacco Alcohol Illicit drugs England and while permitting and taxing others is indeed difficult to In most developing countries, street drugs are too scarce defend based on the relative harmfulness of the substances and expensive for most consumers. They are scarce and themselves. Legal addictive substances kill far more people expensive because they are illegal. Today, traffickers con- every year than illegal ones – an estimated 500 million centrate on getting almost all of the cocaine and heroin people alive today will die due to tobacco.5 But this produced to high-value destinations, placing the burden greater death toll is not a result of the licit substances of addiction on those well suited to shoulder it, at least being pharmacologically more hazardous than the illicit financially. If these pressures were removed, lower value ones.6 This greater death toll is a direct result of their markets would also be cultivated with market-specific being legal, and consequently more available. Use rates of pricing, as they presently are for most consumer goods. illicit drugs are a fraction as high as for legal addictive For example, cocaine use in the countries where cocaine drugs, including among those who access the legal drugs is actually produced is less than half as high as in many illegally (i.e. young people). If currently illegal substances European countries or the United States. This could were made legal, their popularity would surely increase, easily change. Bolivia is a poor country where 42% of perhaps reaching the levels of licit addictive substances, the population lives on less than US$2 per day8 and increasing the related morbidity and mortality. which produces about 10% of the global cocaine supply. Is the choice simply one of drug-related deaths or drug- According to reported figures, cocaine in Bolivia was market-related deaths? Some palliative measures would US$9 per gram in 2005, about 10% of the price in the be available under a system of legalisation that are not United States. But GDP per capita was 42 times higher available today. If drugs were taxed, these revenues could in the US than in Bolivia, so the price was effectively 9 be used to fund public health programmes aimed at four times higher in Bolivia. reducing the impact of the increase in use. Addicts In contrast, 27% of the adult population of Bolivia might also be more accessible if their behaviour were smokes cigarettes daily.10 A pack of cigarettes was priced decriminalised. With bans on advertising and increas- at just US$0.62 at official exchange rates in 2006, so ingly restrictive regulation, it is possible that drug use even the poor find an imported addictive substance could be incrementally reduced, as tobacco use is cur- more affordable than the locally-produced one.11 Bolivia rently declining in most of the developed world. is not unique in this respect: in many poor countries, more than 10% of household expenditure is for tobac- Unfortunately, most of this thinking has indeed been co.12 restricted to the developed world, where both treatment and capacity to collect taxes are relatively plentiful. It Indeed, the spread of tobacco to the developing world ignores the role that global drug control plays in protect- gives a hint of what could happen if other addictive ing developing countries from addictive drugs. Without substances were made legal. Many transition countries consistent global policy banning these substances, devel- have much higher tobacco use prevalence than the richer oping countries would likely be afflicted by street drugs ones, and Africa’s tobacco market is presently growing the way they are currently afflicted by growing tobacco by 3.5% per year, the fastest rate in the world.13 By and alcohol problems. 2030, more than 80% of the world’s tobacco deaths will 164 Confronting unintended consequences: Drug control and the criminal black market Fig. 3: Price of a gram of cocaine as a share Fig. 5: Share of national tobacco markets that of daily GDP per capita in 2005 are illicit (recent low end estimates) Source: 2008 WDR, Human Development Report 2007/2008 Source: Framework Convention Alliance, 200717 3.5 45% 3.2 40% 40% 3.0 35% 30% 2.5 30% 25% 25% 2.0 20% 20% 20% 1.5 15% 10% 10% 10% 8% 1.0 0.8 5% 0.5 0% Iran Days of income to buy one gram cocaine 0.0 Brazil EU-25 Russia Albania Canada USA Bolivia Vietnam South Africa occur in developing countries.14 These countries can US$65 billion market for illicit opiates and US$71 bil- ill-afford this burden of disease. They are even less capa- lion market for cocaine.18 As with illicit drugs, illicit ble of giving up a share of their productive work force to tobacco has been used to fund violence in places as more immediately debilitating forms of addiction.
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