To what degree does the War on Drugs bolster the already lucrative drug business? Politics writer Nathan Punwani explains his admiration for drug cartels' perseverence.

It is a pity that the narcotics industry is not a legal sector of theeconomy. In some ways, the industry has attributes that would be theenvy of most corporations. The sector is exceptionally lucrative,generating products that cost a fraction of their price.

In 2001, the illicit drug industry garnered $20 billion, about the same as Coca-Cola’s revenues. Drug cartels thrive by vigorously adopting the mantra of globalization; they have to cater to the tastes of millions of customers from all over the world. Traffickers constantly adjust their distribution networks, an achievement that would put most supply chain managers to shame. The cartels do not spend a penny on traditional advertising, yet their products enjoy a cult-like following among the youth. Narcotic sales also create employment not just for third-world workers, but also the developed world’s minorities and unskilled. Talk about an equal opportunity employer!

The War on Drugs is an abysmal failure. These unsustainable policies currently cost taxpayers over $45 billion per year. However, America is still home to the largest drug market in the world. This prohibition has been a gross affront to civil liberties while incarcerating a generation of young African-Americans and Latinos. The Economist argues, “Even though drug use is spread fairly evenly across different racial groups, three-quarters of those locked up are non-white.” Most crack cocaine consumers are white, but 90 percent of crack defendants are minorities. The preponderance of the evidence seems to highlight the racial bias of the U.S. legal system.

Since there is no legal market for drugs, most of the activities go underground where there is no regulation at all. As a result, there are no safety and quality controls on the narcotics. Rival groups, vying for additional market share, relentlessly engage in gang warfare. This has eviscerated inner-city neighborhoods, rendering many of them uninhabitable. The Drug War places a heavy burden on the urban parts of the country.

Conflicts over narcotics subvert America’s foreign policy by alienating the Latin American people, especially the Colombians. Under Plan Colombia, the United States doles out billions of dollars to the Colombian military in order to counter the “threat” posed by the drug barons. The U.S. does this in spite of the Colombian security forces being notorious for barbaric human rights abuses against civilians. Aerial fumigations, in a futile attempt to eradicate drug crops, have even ravaged the fragile ecosystems of the Amazon rainforest. The fumigations also result in the destruction of legal crops. These practices ruin the livelihood of destitute, third-world farmers.

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