NCJ Number
121070
Journal
Fortune Volume: 117 Issue: 13 Dated: (June 20, 1988) Pages: 27-29,32-33,36-38
Date Published
1988
Length
8 pages
Annotation
The international illicit drug industry in many ways resembles a huge, multinational commodity business with a fast-moving top management, widespread distribution system, and price-insensitive market.
Abstract
Its pervasiveness and the criminality employed by its bosses seem to have overwhelmed U.S. policy. The traders stay abreast of market conditions, change operating methods constantly, and invest their profits in legitimate businesses. For example, crack, the low-priced form of cocaine, came along just as the cocaine business seemed to reach its peak; experts fear a smokable version of heroin may be the next line extension. The huge profit potential is attracting a host of formidable competitors worldwide. Drug traders in Latin America have destabilized governments through bribery and intimidation, and much of the Asian heroin trade is controlled by self-styled Burmese rebels. The Medellin cocaine cartel is headquartered in Colombia's industrial center; cartel operations are glimpsed through U.S. indictments, testimony of arrested employees, and interviews with law enforcement personnel. The cartel operations are run through a decentralized management structure, with individual families making some decisions, such as assassinations. Although cartel leaders fear extradition to the U.S., they adapt to setbacks with violent reprisals. Laundering the profits seems to be the cartel's most vulnerable operation. Southeast Asian warlords have transformed a cottage industry of black opium users into a global heroin business, using the open border between Burma and Thailand to transport the drug to Europe and the U.S. Money laundering is accomplished easily, using Hong Kong's open economy and a maze of financial transaction among ethnic Chinese families operating throughout the region. The global flood of illicit drugs defies conventional law enforcement measures. International cooperation is the ultimate solution.