“Illegal Drug Production in Latin America: Developmental Implications and Policy Trade-offs”

Chris Humphrey
Guest Lecturer, Political Science Department, University of Zürich, Switzerland


In 2009 Antonio Costa, head of the U.N. Office on Drugs and Crime, said that the illegal drug industry generated an estimated US$350 billion in annual profit—more than five times the profit of the entire U.S. annual agricultural production. Many of the world’s poor, especially in Latin America, view the illegal narcotics trade as one of their best opportunities for economic advancement. However, political leaders in developed countries have generally ignored the economics of the drug trade, instead engaging for over thirty years in a moralistic "war on drugs," with an overwhelming focus on supply reduction and pursuit of high-profile cartel capos such as Pablo Escobar and "El Chapo" Guzman. As evidenced by the steady increase in drug availability and the stability or even decline of street-level prices, these policies have failed. Further, they have exacted a very high human, social and fiscal cost, especially in producing and transit countries. This seminar will consider some of the developmental impacts of the drug trade in Latin America, with a particular focus on production areas for cocaine in the Andes and opium/marijuana in Mexico, with a view to better understanding the policy trade-offs faced by governments.

For further information see:
"Cocaine Incorporated," New York Times, June 15, 2012
"Latin America Drugs II: Improving Policy and Reducing Harm," International Crisis Group, March 14, 2008
"Can Production and Trafficking of Illicit Drugs Be Reduced or Merely Shifted?" World Bank Policy Research Paper 4564, March 2008

CHRIS HUMPHREY

Chris Humphrey is a guest lecturer at the University of Zürich and recently submitted his doctoral thesis for examination at the London School of Economics, Department of International Development. The thesis analyzes the evolving role of multilateral development banks in Latin America. Humphrey worked for five years (1995-2000) as a journalist in Mexico City, where he wrote on a variety of topics including the drug war, after which he attended Johns Hopkins SAIS in Washington D.C. He subsequently worked in operations and research for the World Bank (2001-2008) on a variety of macroeconomic and development issues in Latin America, including the developmental implications of the drug trade in southern Mexico. Humphrey has also undertaken development consulting work with the African Development Bank in Mauritius and Mozambique.


Post Event Coverage: Seminar Report