Oil Price.com Headline: “Cocaine Outpaces Oil as Colombia’s Most Valuable Export”

In a shocking development, Colombia’s cocaine production, for the 10th year straight, soared to a new record high. The UN Office on Drugs and Crime (UNODC) estimates that the year’s annual output grew 52% year over year to a startling 2,664 metric tons, the largest amount ever produced. Despite the government in the capital Bogota, with U.S. backing, committing substantial resources to disrupt what is now an economically crucial illicit industry in rural Colombia coca cultivation and cocaine manufacturing keeps spiraling higher. The booming cocaine trade drives heightened insecurity and corruption which are damaging key economic sectors, notably the fiscally vital petroleum industry with oil Colombia’s most valuable export.

Since the 1990s, except for a brief period from 2011 to 2012, Colombia has consistently been the world’s leading cultivator of the coca plant. The bushy shrub’s alkaloid-rich leaves, long chewed by Indigenous South Americans to boost energy and ward off altitude sickness, are the vital precursor needed to manufacture the popular recreational narcotic cocaine hydrochloride which is widely consumed in developed nations around the world. The volume of cocaine produced is spiraling ever higher despite Colombia, since the 1980s, waging a multi-billion-dollar U.S.-backed war on drugs,

This conflict not only failed to stem the flow of cocaine but prolonged Colombia’s civil war and cost hundreds of thousands of Colombians (Spanish), mostly civilians, their lives. There are multiple reasons for this, but the key is the weakness of the Colombian state which is exacerbated by Bogota being caught in a protracted country-wide multiparty asymmetric conflict rooted in inequality, Cold War politics and foreign interference. Colombia’s widespread poverty and lawlessness create favorable conditions for the growth of illicit economies, such as smuggling, thereby allowing the cocaine trade to take root.

While the cocaine business has existed since the early 1970s in Colombia, it was the formation of the Medellin and Cali Cartels toward the end of that decade that put the Andean country firmly on the global map as a leading cocaine exporter. The vast profits cocaine generates caught the attention of a multitude of illegal armed groups across Latin America including those waging a vicious decades-long civil war in Colombia. This led to a significant escalation in the conflict among cartels, leftist guerrillas, and right-wing paramilitaries, all vying for control of the lucrative billion-dollar illicit industry. These events sparked a vicious cycle of escalating violence, which fueled further lawlessness thereby perpetuating the conditions that allowed the cocaine trade to thrive.

Read the full article at 

https://oilprice.com/Energy/Crude-Oil/Cocaine-Outpaces-Oil-as-Colombias-Most-Valuable-Export.html