NCJ Number
43974
Date Published
1977
Length
9 pages
Annotation
THE HERION MARKET IN THE UNITED STATES IS ANALYZED IN A DISCUSSION CONCLUDING THAT AMERICAN LAW ENFORCEMENT AGENCIES HAVE SUCCEEDED IN ASSURING THE PROFITABILITY OF THE NARCOTICS BLACK MARKET.
Abstract
MOST HEROIN THAT REACHES THE UNITED STATES BLACK MARKET HAS COME FROM TURKEY, WHERE BLACK-MARKET OPERATORS OFFER FARMERS MORE THAN THE OFFICIAL PRICE FOR THEIR POPPIES. IF CULTIVATION OF POPPIES IN TURKEY IS HALTED, BLACK-MARKET OPERATORS WILL SIMPLY FOLLOW LEGITIMATE DRUG COMPANIES TO OTHER COUNTRIES. EVEN IF CULTIVATION IS BLOCKED THROUGHOUT THE WORLD, THE EFFECT WILL BE MINIMAL. NUMEROUS SYNTHETIC OPIATES ARE AVAILABLE. THE CONVERSION OF OPIUM INTO HEROIN CAN BE ACCOMPLISHED WITH SIMPLE, INEXPENSIVE, RELATIVELY MOBILE EQUIPMENT AND USUALLY IS DONE IN THE SOUTH OF FRANCE. FACED WITH THE PROBLEMS OF LIMITING HEROIN PRODUCTION, UNITED STATES LAW ENFORCEMENT AGENCIES HAVE CONCENTRATED ON PREVENTING ITS IMPORTATION. THE PROBLEM HERE IS THAT ONLY FOUR OR FIVE TONS OF HEROIN ARE NEEDED TO SUPPLY ALL ADDICTS IN THE UNITED STATES FOR 1 YEAR. THE BUREAU OF CUSTOMS MUST FIND THESE FEW TONS AMID 100,000,000 TONS OF OTHER IMPORTS. ALTHOUGH SEIZURES DO RESULT FROM NATIONAL AND INTERNATIONAL SURVEILLANCE NETWORKS, THREE FACTORS LIMIT POLICE EFFECTIVENESS: (1) THE NET EFFECT OF THE INFORMATION NETWORKS IS LARGELY TO KEEP OUT NEW COMPETITION (AND THUS BOLSTER PRICES) IN THE NARCOTICS INDUSTRY; (2) INCREASING HEROIN SEIZURES HAS ONLY A TRIVIAL EFFECT ON THE COST OF HEROIN IN A BAG; AND (3) THE SMUGGLER WHO IS CAUGHT USUALLY IS NOT THE OWNER OF THE HEROIN SEIZED. THE COMPLEX, MULTILAYERED HEROIN DISTRIBUTION SYSTEM MAKES IT POSSIBLE FOR EACH PARTICIPANT TO DEAL ONLY WITH A FEW OTHERS. A 1967 REPORT ESTIMATES THAT THE AVERAGE IMPORTER SUPPLIES EIGHT WHOLESALERS. EACH WHOLESALER REACHES SIX RETAILERS, AND EACH RETAILER SUPPLIES SIX PUSHERS, EACH OF WHOM SUPPLIES 15 ADDICTS. YET THE SUPPLIES FROM THE ORIGINAL IMPORTER REACH 4,320 ADDICTS. THE MIDDLEMEN ARE SUBJECT TO ARREST; HOWEVER, ARRESTING A MIDDLEMAN IS NOT LIKELY TO CLOSE DOWN A CHANNEL OF DISTRIBUTION. THE STRUCTURE OF THE BLACK MARKET ALSO HELPS TO EXPLAIN WHY BLACK-MARKET RETAILING OF NARCOTICS HAS CENTERED IN BLACK INNER-CITY GHETTOS. THE INCREASE IN ADDICTION AMONG WHITE, MIDDLE-CLASS YOUTHS OUTSIDE THE GHETTOS IN 1970 AND 1971 MARKED THE FIRST MAJOR EXTENSION OF THE HEROIN MARKET SINCE THE EARLY 1950'S.