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redistribution of power and wealth. These developments incite states, or the elites controlling a state, to look for new ways to accumulate such resources, control their societies and manage the interface with the outside world. Liberalising some activities thereby seems to go in parallel with the criminalisation of others. The War on Drugs is becoming one of the main legitimation venues for states to enhance their capacity to intervene in both national and international domains. In the next sections, I turn to how political and economic inter- ests and interactions between the illegal drug industry and state drug-control practices shape the dynamics and outcomes of the War on Drugs. redistribution of power and wealth. These developments incite for ‘natural’ drugs (marijuana, coca, opium and their derivatives) states, or the elites controlling a state, to look for new ways to can particularly be found in the Golden Triangle of South East accumulate such resources, control their societies and manage the Asia, the Golden Crescent in West Asia, some Middle East and interface with the outside world. Liberalising some activities Maghreb countries and in Latin America. These regions compete thereby seems to go in parallel with the criminalisation of others. increasingly with each other, with emerging production areas in The War on Drugs is becoming one of the main legitimation former Eastern Bloc countries and with producers in the Western venues for states to enhance their capacity to intervene in both world where synthetic drugs (ecstasy, amphetamines) are pro- national and international domains. duced. To this list can be added many other countries where drug In the next sections, I turn to how political and economic inter- entrepreneurs try to conquer a niche in national and international ests and interactions between the illegal drug industry and state drug markets. Some of these have an important transit function drug-control practices shape the dynamics and outcomes of the for drugs heading to the most lucrative consumer markets in the War on Drugs. United States and Europe. Others find a gainful role in the laun- dering and investment of drug profits, thanks to "liberal" banking THE DRUG INDUSTRY regulations (secrecy, confidentiality and financial investment Drug trafficking is to a large extent a transnational business. tools). We thus deal with a very heterogeneous competition, The drug industry consists of various stages: cultivation, refining, where different drugs, different drug entrepreneurs/trafficking transport, distribution, money laundering and investment of groups and diverse jurisdictions compete for market shares in proceeds. In every stage of this drug trajectory, from production many if not all of the subsequent stages of the drug trajectory. to distribution, profits are made that are consumed or invested but According to a recent estimate of the UNDCP (United Nations often demand some form of laundering to conceal their illegal Drug Control Program), the global illegal drug industry comprises origins. about eight per cent of internation- From the marijuana, coca and al trade (UNDCP, 1997). Its esti- poppy fields to the refining mated annual turnover of laboratories and further on to the US$400 billion constitutes a consumers, the drugs pass through large share of the income from many different routes of transport . illegal activities worldwide, and distribution, They thereby Repression of the drug trade which the UN believes to be cross many territorial frontiers, not only contributes to the growth US$1,000 billion. But how to formal and informal jurisdictions. assess such data? Reminiscent of More sophisticated laundering of the drug economy but also very distinct calculations like the techniques, equally, use an inci ietri i lobal accumulated production of elaborate international network of incites a redistribution of the razor blades (said tobe enough to financial institutions, trade and income from the trade. cover the surface of the Earth), investment firms to hide and invest we see that what matters more the drug profits. The various stages than aggregate numbers is the of the drug trajectory and the distribution of such profits and linking of these stages involve the their rents in terms of power and participation and sometimes wealth and their overall impact organisation of a great many on societies. ifferent people to see to the proper execution of activities, The drug industry does constitute the backbone of many nation- including protection against the encroachment of law enforcement _al and local economies, directly and indirectly offering income agencies and competitors. and employment opportunities for millions of people around the The transnational dimension of the drug industry therefore is globe. They serve the demand of many more. Countries like not only a function of the territorial distance between major pro- Bolivia, Morocco, Mexico and Afghanistan derive incomes from luction and consumption regions. It also consists of the links that this industry that pair with their formal export income. Morocco are made through networks and organisations with diverse home- earns an estimated US$5.75 billion, or 20 per cent of its gross bases that sometimes develop transnational operations. Thereby, national product from the production and export of cannabis and ifferences in countries’ legislations and law enforcement capabil- hashish (Ouazzani, 1996:122), supplying the lion's share of ities shape the opportunities for drug entrepreneurs to evade the Europe's demand for these products. The Mexican drug economy, risks of interdiction and prosecution and prop the flourishing of based chiefly on the export of homegrown marijuana and poppy their business. derivatives and the transit of Colombian cocaine to the United The variety of laws and systems of control and criminalisation States, is valued at more than US$20 billion. Important as the throughout the world, and the disparities in ability and determina- contributions of this illicit enterprise may be to overall income tion to control the drug problem displayed by various countries, and employment levels, the real impact should be measured in enable major drug traffickers to take advantage of the weak points relation to its effect on the economy at large, the distribution of its in such a patchwork (Van der Vaeren, 1995:350). proceeds and the social costs in terms of health, safety, political However, we might as well reverse this perspective, which then transparency, etc.* would suggest that a state's political and/or economic interests Such aggregate data for developing countries—estimative and demand it to create "weak points" or shield niches in which one or fluctuating as they are, as an indication of the wealth and power more of the stages of the drug trajectory can flourish (like coffee that might be derived from criminal sources—pale in comparison shops, bank secrecy, self-regulating stock markets, etc.).’ with the late-1980s consumer expenditures on illicit drugs in the Such features explain the existence of a very dynamic interna- United States alone. These likely exceeded the total gross domes- tional division of labour in the drug industry. Production centres tic product of 88 different countries (cited in Tullis, 1995:2; 80 APRIL — MAY 2000 NEXUS 31 income from the trade.