It is little stories that appear in the press -- but which you never hear anything more about them -- that give the clues as to some of the big issues that are happening under the surface.

For example, there were two recent stories in the last few months which intrigued me. One was that a British Navy destroyer had stopped a speedboat in the Atlantic approaching the country. It was said in the brief report that it contained US$250 million worth of cocaine (or heroin or whatever). Nothing of this story ever appeared again. The point about this it is, of course, that any organisation that can risk that much in one transit must be quite an enormous one in terms of funds. It must be as large as any conventional multinational corporation in terms of turnover.

The second story was of a big gang-bust in London some three or four months ago in which several houses had been raided. In one of them, three or four US Treasury Bills amounting to $10 billion were found in addition to drugs. These, in case, readers don't know, can be paid on demand without proof of identity. The press report said that the authorities didn't know whether the bills were genuine or not. Once again, there has been no news of this since. (Since then there has been a quite separate case where someone had tried to counterfeit American Treasury bills for a much lesser amount but these were done very amateurishly and the two people concerned are now in prison. Plenty of publicity for that case!)

The drug business is a huge sector of the world economy. I seem to remember reading somewhere that it is as large as the total food import-export sector. I really don't know. But, because its dimensions are unknown, this is one of those subjects that are never mentioned in the economics text books. (One of the others is the amount of counterfeit money in the world. One of the clues as to the ridiculousness of both of these omissions in the text books is given by the fact that the total of all nations' trade deficit is of the order of US$150 trillion -- an enormous sum. Of course, one nation's deficit is another nation's surplus and the so-called world trade accounts should balance out completely -- it should be zero. This can't be explained in terms of cumulative arithmetical residues from botched currency exchange transactions. One day, if and when we have a world currency again, it will be possible for economists to start to tidy-up all these trade deficits and really get to understand what is going on.)

Back to the subject. The developed world (and the ex-developed world of Russia and its ex-communist allies) is now in a tightening grip of drug use. The supply of opiates has been vastly increased lately by the incompetence of the American intrusion into Afghanistan. The Taliban had stopped poppy growing previously but the acreage is now greater than ever before and, as the tribal warlords take over more control in the country, the acreage will undoubtedly grow further.

But will there be a limit to drug use in the developed world or will it grow pari passu with the growing numbers of the underclass -- those who live in inner city boroughs and suburban hellholes? I'm inclined to think that drug use will steadily grow, as indeed the underclass grows due to the increasing skill divide that is now a feature of the employment structure of developed countries' economies.

In the following article, Johann Hari opines that drugs must be de-criminalised. If this were to happen there can be little doubt that a vast proportion of crime, including the inreasing gun culture, would decline dramatically. The fly in the ointment is that, as the drug use has grown, a huge number of jobs -- police, prison warder, lawyers, social services, and so forth -- have now become dependent on the drugs culture for their incomes. This is quite apart from the depredations of corrupt politicians all over the world.

I could write further on the lines that hard drugs are those which are related to the opiate mechanisms in our brain -- that is, in the same areas of the frontal lobes that are also involved in "pleasure-seeking" generally, rather than the satisfaction of basic needs. The drug culture can thus be regarded as but being at the extreme edge of the same ordinary consumer culture that saturates us all. Also, what needs to be discussed at some stage (though not here and now) is whether the drug culture is a modern form of self-culling by those who can't take the increasing stresses of modern society and will thus always be with a proportion of us as the consumer society intensifies (or is hoped to intensify by the economic growthists)..

Keith Hudson

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THE TRUTH ABOUT DRUGS: PROHIBITION CAN NEVER WORK

Johann Hari

A month ago, the British police boasted that they had smashed the biggest drugs ring operating on our streets.

Detective Superintendent Sharon Carr declared: "We have knocked out this network .... The price of cocaine on the street will go up."

Another police officer explained that this would have a "massive impact" on the British drugs trade. It was the biggest victory for the drug prohibitionists in a decade; if their approach is ever going to work, it is at moments like this.

So, four weeks on, what has the practical effect of this unprecedented raid been? Are there fewer dealers on the streets? Is cocaine more expensive? Are addicts beating on the doors of the tiny number of rehab centres we have?

Ross Hawkins, in an excellent report for BBC Radio 5 Live, discovered that,  "Certainly, in Scotland, Liverpool and Birmingham, there was no impact on the price at all [or, therefore, on availability, since price responds to scarcity].... In London, there was a very short-term impact. It lasted for five or six days, with the price going up by a few pounds a gram. It was very much a tremor. It was all over in a week."

I cannot see how anybody can now defend the policy of criminalising drugs. Tens of thousands of police hours and millions of pounds have been invested in busting this massive drugs ring -- all to virtually no effect.  Prohibition's biggest success in years amounts to -- nothing. No matter how many police resources are thrown at this problem -- and the Government has increased them to an unprecedented level -- huge quantities of drugs still get through. All that time and money could have been spent on catching burglars, rapists and murderers, instead of running after the fantasy of a drugs-free Britain. You are less safe because of prohibition.

As Mike Trace, the former Deputy Drugs Tsar and now Chief Executive of the Blenheim Drugs Project, explains: "It's just too easy to get fresh drugs into this country.  The reality in Europe is the multiplicity of sources of supply.... If you take one source of supply out, however big, there are so many other sources of supply that they fill the gap very quickly."

This country has millions of drug users, and it always will have. Anybody who denies this -- who thinks prohibition can be effective if only we work even harder, or throw more money at it -- is deluded.

That much is now obvious; but there is another dimension to this debate that is too rarely acknowledged. The fantasy-politics of prohibition harms everybody in Britain, but the further back you travel along the supply chain, the more damage it does.

The drugs gang that our police ineffectively swatted was supplied with its heroin and cocaine from Colombia, so let's take a look at what our policy does in that country.

The biggest industry in Colombia is the drugs trade. Eighty percent of the world's cocaine originates there -- yet the Government cannot tax or benefit in any way from this massive indigenous network of businesses. This is solely due to immense US and European pressure to fall in line with strict prohibition. No; somebody else benefits entirely -- radical dissident groups, who use drugs trade profits to buy weapons and destabilise the entire Colombian state. They are either involved directly in trafficking themselves, or they charge a "tax" (effectively a protection-racket fee) on those who do.

The effect of a civil war fuelled almost entirely by the illegal drugs trade (with a neat sideline in kidnapping) is that two million Colombians have fled their homes due to the fighting, 35,000 Colombians have been massacred in the last decade, and 300,000 have been made homeless. All hopes of building a functional Colombian state have been scuppered and civil rights have been annihilated.

In the past five years alone, over a million people from the wealthy middle class have fled the country.

Drugs prohibition does all this. If the Colombian Government could shift strategy and legalise drugs -- thereby bankrupting the criminal gangs controlling the trade and constantly attacking the Government -- they could begin to raise a serious income and take control of their country as preparation for building a proper democracy.

As if this damage to ordinary Colombians is not bad enough, we then hammer them even more. As part of America's "Plan Colombia" (spearheaded by a smirking President, who is widely believed to have recreationally used cocaine himself), more than 200,000 gallons of herbicide have been sprayed from the skies on desperate peasant farmers. The toxins are designed to kill their coca crops, preventing them from supplying cocaine (and from earning an income -- but who cares about that?).

They also kill legal crops like banana and corn, devastating developing economies, and they destroy local ecosystems. Serious concerns have been raised by doctors that they might even cause cancer when ingested through the water supply.

And all for what? Thirty years after Richard Nixon launched the "War on Drugs", heroin and cocaine have never been easier to buy on British and American streets. This war is about as successful as his other huge fight -- in Vietnam. Here is one occasion when I can happily say to George Bush and Tony Blair: you really do have to stop the war.
The Independent -- 31 October 2003
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Keith Hudson, Bath, England, <www.evolutionary-economics.org>, <www.handlo.com>, <www.property-portraits.co.uk>