LATIN AMERICAN DRUGS I: LOSING THE FIGHT Latin America Report N°25 –14 March 2008 TABLE OF CONTENTS EXECUTIVE SUMMARY ...................................................................................................... i I. INTRODUCTION .......................................................................................................... 2 II. DRUG CROPS AND COCAINE PRODUCTION: COLOMBIA, PERU, BOLIVIA 2 A. COLOMBIA ............................................................................................................................3 1. Coca crops .................................................................................................................3 2. Cocaine production....................................................................................................3 B. PERU.....................................................................................................................................4 1. Coca crops .................................................................................................................4 2. Cocaine production....................................................................................................5 C. BOLIVIA................................................................................................................................5 1. Coca crops .................................................................................................................5 2. Cocaine production....................................................................................................6 III. DRUG TRAFFICKING: ACTORS AND ROUTES................................................... 6 A. THE ANDEAN REGION...........................................................................................................6 1. Colombia....................................................................................................................6 2. Venezuela ................................................................................................................11 3. Peru..........................................................................................................................14 4. Bolivia......................................................................................................................16 5. Ecuador....................................................................................................................17 B. BRAZIL AND THE SOUTHERN CONE .....................................................................................19 1. Brazil........................................................................................................................19 2. Argentina .................................................................................................................21 3. Chile.........................................................................................................................22 4. Paraguay ..................................................................................................................23 C. MEXICO, CENTRAL AMERICA AND THE CARIBBEAN............................................................23 1. Mexico and Central America...................................................................................23 2. Haiti and the Dominican Republic...........................................................................26 D. THE UNITED STATES...........................................................................................................27 E. EUROPE ..............................................................................................................................29 IV. CONCLUSION ............................................................................................................. 31 APPENDICES A. MAP OF COLOMBIA INDICATING COCA CULTIVATION.........................................................32 B. MAP OF PERU INDICATING COCA CULTIVATION..................................................................33 C. MAP OF BOLIVIA INDICATING COCA CULTIVATION.............................................................34 D. MAP OF COCAINE TRAFFICKING ROUTES ............................................................................35 E. ABOUT THE INTERNATIONAL CRISIS GROUP .......................................................................36 F. INTERNATIONAL CRISIS GROUP REPORTS AND BRIEFINGS ON LATIN AMERICA...................37 G. INTERNATIONAL CRISIS GROUP BOARD OF TRUSTEES.........................................................38 Latin America Report N°25 14 March 2008 LATIN AMERICAN DRUGS I: LOSING THE FIGHT EXECUTIVE SUMMARY Coca leaf and cocaine production in the Andean region Non-ideological policy rethinking is urgently required on appear to have set new records in 2007. Cocaine trafficking key aspects of supply reduction. Law enforcement and and use are expanding across the Americas and Europe. interdiction would benefit from closer coordination and Despite the expenditure of great effort and resources, the information sharing throughout the Americas and with counter-drug policies of the U.S., the European Union (EU) Europe, but much greater recognition is also needed of the and its member states and Latin American governments pressures produced by extreme poverty, lack of economic have proved ineffective and, in part, counterproductive, opportunities and basic infrastructure, and government severely jeopardising democracy and stability in Latin abandonment of indigenous populations in the Andean America. The international community must rigorously countryside. National and international policies must assess its errors and adopt new approaches, starting with include much larger investments to address the structural reduced reliance on the measures of aerial spraying and factors that make it easier for traffickers (in Colombia, military-type forced eradication on the supply side and illegal armed groups), to attract or compel rural families greater priority for alternative development and effective to cultivate coca. Aerial eradication, with impact on nearby law enforcement that expands the positive presence of food crops, and forced eradication by security forces, the state. On the demand reduction side, it should aim to nearly always accompanied by charges of human rights incarcerate traffickers and use best treatment and harm abuses, engender anti-government and anti-U.S. reactions. reduction methods to avoid revolving and costly jail sentences for chronic users. Cocaine demand is the driving force behind production and trafficking. That demand is largely stable in the U.S. Well-armed, well-financed transnational trafficking and and rising in some European and Latin American countries. criminal networks are flourishing on both sides of the Unless it can be significantly reduced around the globe, Atlantic and extending their tentacles into West Africa, there is virtually no possibility of overcoming the threat to now an important way station on the cocaine route to security in much of Latin America. The “one size fits all” Europe. They undermine state institutions, threaten criminal incarceration policies prevalent in the U.S. ignore democratic processes, fuel armed and social conflicts in the potential in greater attention to treatment of chronic the countryside and foment insecurity and violence in the users and stigmatising recreational users. At the same time, large cities across the Americas and Europe. In Colombia, the prevention, treatment and harm reduction measures armed groups derive large incomes from drug trafficking, more prominent in Europe, where too few resources are enabling them to keep up the decades-long civil conflict. dedicated to breaking up trafficking rings, have not stemmed Across South and Central America, Mexico and the increasing drug use. In 2008, ten years after the UN General Caribbean, traffickers partner with political instability. Assembly Special Session (UNGASS) on the world drugs problem, the international community needs urgently to Insufficient international cooperation and coordination – acknowledge mistakes and adopt fundamental policy in particular between the U.S. and Europe but also between improvements or transnational criminals will be the winners. them and Latin America – has worked to the advantage of the drug networks. Displaying great resourcefulness, Crisis Group’s detailed study is divided into two the narco-organisations exploit the policy divide between complementary reports published simultaneously. This the U.S. and the EU and some member states over how report principally examines the scope of the problem, best to define and conduct counter-drug strategies and including a detailed examination of cultivation and which aspects of cocaine supply and demand reduction trafficking. The second, Latin American Drugs II: efforts should be given priority. Since there is no shared Improving Policy and Reducing Harm, analyses policies vision of the problem and how to address it, there is no and their political and social ramifications and presents concerted response, which is a necessary condition for policy recommendations. success in dealing with transnational crime. Bogotá/Brussels, 14 March 2008 Latin America Report N°25 14 March 2008 LATIN AMERICAN DRUGS I: LOSING THE FIGHT I. INTRODUCTION say candidly that more cocaine – well over 1,000 tons – likely comes out of the Andean region annually than either UNODC or the U.S. government estimate. A decade after the UN General Assembly