The Development Impact of the Illegality of Drug Trade
This paper reviews the unintended consequences of the war on drugs, particularly for developing countries, and weighs them against the evidence regarding the efficacy of prohibition to curb drug use and trade. It reviews the available evidence and...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/03/9584783/development-impact-illegality-drug-trade http://hdl.handle.net/10986/6871 |
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okr-10986-6871 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ABUSES ADDICTION ADDICTIVE SUBSTANCES ADVERSE SELECTION ADVERTISING AGED AGGRESSIVE ALCOHOL ALCOHOL CONSUMPTION AMBASSADOR ARMED FORCES ASSAULT BARRIERS TO ENTRY BLACK MARKETS CAFFEINE CANNABIS CARTEL CENTRAL AMERICA CENTRAL ASIAN COCAINE COMPARATIVE ADVANTAGE CONFLICT CONFLICT PREVENTION CONSTRAINT CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS CONSUMPTION INCREASES CONTAGIOUS DISEASES CONTAINMENT CORRUPTION CRACK CRIME CRIME RATES CRIMES CRIMINAL CRIMINAL ACTIVITIES CRIMINAL ACTIVITY CRIMINAL BEHAVIOR CRIMINAL JUSTICE CRIMINAL JUSTICE SYSTEMS CRIMINALITY CRIMINALS DAMAGES DEATHS DELINQUENCY DEMAND ELASTICITY DEMAND FUNCTION DEMAND FUNCTIONS DISTRIBUTION OF WEALTH DRUG DRUG ABUSE DRUG CONSUMPTION DRUG CONTROL PROGRAM DRUG DEPENDENCY DRUG SEIZURE DRUG SEIZURES DRUG TRADE DRUG TRAFFICKERS DRUG TRAFFICKING DRUG USERS DRUGS ECONOMIC THEORIES ECONOMIC THEORY ECSTASY ELASTICITY ELASTICITY OF DEMAND EMBASSY EXPENDITURE EXPENDITURES EXPORTS EXTERNALITY FAMILIES FINISHED PRODUCT FOREIGN POLICY FREE TRADE GANG GANGS GDP GDP PER CAPITA GOVERNMENT REGULATION GUERRILLA GUERRILLAS HARM REDUCTION HEALTH EFFECTS HEALTH SERVICES HEROIN HIGH CRIME ILLICIT DRUG ILLICIT DRUG TRADE ILLICIT DRUGS IMF INCOME INCOME EFFECTS INELASTIC DEMAND INTERMEDIARIES INTERNATIONAL BANK INTERNATIONAL SANCTIONS INTERNATIONAL SECURITY INTERVENTION LATIN AMERICAN LAW ENFORCEMENT LAWLESSNESS LAWS LIFE EXPECTANCY MACROECONOMICS MARGINAL COSTS MARIJUANA MARKET FORCES MARKET POWER MARKET SHARE MARKETING MEMBER STATES MENTAL HEALTH MIDDLE EAST MIDDLEMEN MILITARY PERSONNEL MONOPOLY MORTALITY MURDER NARCOTIC NARCOTIC DRUG NARCOTIC DRUGS NARCOTICS NARCOTICS CONTROL NATIONS NEEDLE EXCHANGE NEGATIVE EXTERNALITIES OBSERVERS OFFENDERS OFFENSE OFFENSES OFFICIAL CORRUPTION OPPORTUNITY COST OPPORTUNITY COSTS ORGANIZED CRIME PATIENTS PER CAPITA INCOME PERSONALITY POLICE POLITICAL ECONOMY PRICE CHANGE PRICE CHANGES PRICE ELASTICITY PRICE INCREASES PRICE STRUCTURE PRISON PRISONERS PRISONS PRODUCTION INPUTS PROPERTY CRIME PROPERTY CRIMES PSYCHOTROPIC SUBSTANCES PUBLIC HEALTH PURCHASING PURCHASING POWER REAL GDP RECONSTRUCTION RETAIL RETAIL PRICE RETAIL PRICES RETAILING ROAD SECURITY FORCES SLUMS SMOKING SOCIAL DEVELOPMENT SOCIAL NORMS SOUTH AMERICA SPREAD SUBSTANCE ABUSE SUBSTITUTE SUBSTITUTES SUPPLIER SUPPLIERS SUPPLY CHAIN SUPPLY COSTS SURPLUSES TACTICS TAXATION TERRORISM TOBACCO TOBACCO CONSUMPTION TOTAL COSTS VIOLENCE VIOLENT CRIME WAR WARS WEALTH WEAPONS WELFARE ECONOMICS WORLD DEVELOPMENT |
| spellingShingle |
ABUSES ADDICTION ADDICTIVE SUBSTANCES ADVERSE SELECTION ADVERTISING AGED AGGRESSIVE ALCOHOL ALCOHOL CONSUMPTION AMBASSADOR ARMED FORCES ASSAULT BARRIERS TO ENTRY BLACK MARKETS CAFFEINE CANNABIS CARTEL CENTRAL AMERICA CENTRAL ASIAN COCAINE COMPARATIVE ADVANTAGE CONFLICT CONFLICT PREVENTION CONSTRAINT CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS CONSUMPTION INCREASES CONTAGIOUS DISEASES CONTAINMENT CORRUPTION CRACK CRIME CRIME RATES CRIMES CRIMINAL CRIMINAL ACTIVITIES CRIMINAL ACTIVITY CRIMINAL BEHAVIOR CRIMINAL JUSTICE CRIMINAL JUSTICE SYSTEMS CRIMINALITY CRIMINALS DAMAGES DEATHS DELINQUENCY DEMAND ELASTICITY DEMAND FUNCTION DEMAND FUNCTIONS DISTRIBUTION OF WEALTH DRUG DRUG ABUSE DRUG CONSUMPTION DRUG CONTROL PROGRAM DRUG DEPENDENCY DRUG SEIZURE DRUG SEIZURES DRUG TRADE DRUG TRAFFICKERS DRUG TRAFFICKING DRUG USERS DRUGS ECONOMIC THEORIES ECONOMIC THEORY ECSTASY ELASTICITY ELASTICITY OF DEMAND EMBASSY EXPENDITURE EXPENDITURES EXPORTS EXTERNALITY FAMILIES FINISHED PRODUCT FOREIGN POLICY FREE TRADE GANG GANGS GDP GDP PER CAPITA GOVERNMENT REGULATION GUERRILLA GUERRILLAS HARM REDUCTION HEALTH EFFECTS HEALTH SERVICES HEROIN HIGH CRIME ILLICIT DRUG ILLICIT DRUG TRADE ILLICIT DRUGS IMF INCOME INCOME EFFECTS INELASTIC DEMAND INTERMEDIARIES INTERNATIONAL BANK INTERNATIONAL SANCTIONS INTERNATIONAL SECURITY INTERVENTION LATIN AMERICAN LAW ENFORCEMENT LAWLESSNESS LAWS LIFE EXPECTANCY MACROECONOMICS MARGINAL COSTS MARIJUANA MARKET FORCES MARKET POWER MARKET SHARE MARKETING MEMBER STATES MENTAL HEALTH MIDDLE EAST MIDDLEMEN MILITARY PERSONNEL MONOPOLY MORTALITY MURDER NARCOTIC NARCOTIC DRUG NARCOTIC DRUGS NARCOTICS NARCOTICS CONTROL NATIONS NEEDLE EXCHANGE NEGATIVE EXTERNALITIES OBSERVERS OFFENDERS OFFENSE OFFENSES OFFICIAL CORRUPTION OPPORTUNITY COST OPPORTUNITY COSTS ORGANIZED CRIME PATIENTS PER CAPITA INCOME PERSONALITY POLICE POLITICAL ECONOMY PRICE CHANGE PRICE CHANGES PRICE ELASTICITY PRICE INCREASES PRICE STRUCTURE PRISON PRISONERS PRISONS PRODUCTION INPUTS PROPERTY CRIME PROPERTY CRIMES PSYCHOTROPIC SUBSTANCES PUBLIC HEALTH PURCHASING PURCHASING POWER REAL GDP RECONSTRUCTION RETAIL RETAIL PRICE RETAIL PRICES RETAILING ROAD SECURITY FORCES SLUMS SMOKING SOCIAL DEVELOPMENT SOCIAL NORMS SOUTH AMERICA SPREAD SUBSTANCE ABUSE SUBSTITUTE SUBSTITUTES SUPPLIER SUPPLIERS SUPPLY CHAIN SUPPLY COSTS SURPLUSES TACTICS TAXATION TERRORISM TOBACCO TOBACCO CONSUMPTION TOTAL COSTS VIOLENCE VIOLENT CRIME WAR WARS WEALTH WEAPONS WELFARE ECONOMICS WORLD DEVELOPMENT Keefer, Philip Loayza, Norman V. Soares, Rodrigo R. The Development Impact of the Illegality of Drug Trade |
| relation |
Policy Research Working Paper; No. 4543 |
| description |
This paper reviews the unintended
consequences of the war on drugs, particularly for
developing countries, and weighs them against the evidence
regarding the efficacy of prohibition to curb drug use and
trade. It reviews the available evidence and presents new
results that indicate that prohibition has limited effects
on drug prevalence and prices, most likely indicating a
combination of inelastic drug demand (due to its addictive
properties) and elastic supply responses (due to black
markets). This should turn the focus to the unintended
consequences of drug prohibition. First, the large demand
for drugs, particularly in developed countries, generates
the possibility of massive profits to potential drug
providers. This leads to the formation of organized crime
groups, which use violence and corruption as their means of
survival and expansion and which, in severe cases, challenge
the state and seriously compromise public stability and
safety. Second, prohibition and its derived illegal market
impose greater costs on farmers than on drug traffickers. In
many instances, this entails the transfer of wealth from
poor peasants to rich (and ruthless) traders. Third,
criminalization can exacerbate the net health effects of
drug use. These consequences are so pernicious that they
call for a fundamental review of drug policy around the world. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Keefer, Philip Loayza, Norman V. Soares, Rodrigo R. |
| author_facet |
Keefer, Philip Loayza, Norman V. Soares, Rodrigo R. |
| author_sort |
Keefer, Philip |
| title |
The Development Impact of the Illegality of Drug Trade |
| title_short |
The Development Impact of the Illegality of Drug Trade |
| title_full |
The Development Impact of the Illegality of Drug Trade |
| title_fullStr |
The Development Impact of the Illegality of Drug Trade |
| title_full_unstemmed |
The Development Impact of the Illegality of Drug Trade |
| title_sort |
development impact of the illegality of drug trade |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/03/9584783/development-impact-illegality-drug-trade http://hdl.handle.net/10986/6871 |
| _version_ |
1764401026631204864 |
| spelling |
okr-10986-68712021-04-23T14:02:32Z The Development Impact of the Illegality of Drug Trade Keefer, Philip Loayza, Norman V. Soares, Rodrigo R. ABUSES ADDICTION ADDICTIVE SUBSTANCES ADVERSE SELECTION ADVERTISING AGED AGGRESSIVE ALCOHOL ALCOHOL CONSUMPTION AMBASSADOR ARMED FORCES ASSAULT BARRIERS TO ENTRY BLACK MARKETS CAFFEINE CANNABIS CARTEL CENTRAL AMERICA CENTRAL ASIAN COCAINE COMPARATIVE ADVANTAGE CONFLICT CONFLICT PREVENTION CONSTRAINT CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS CONSUMPTION INCREASES CONTAGIOUS DISEASES CONTAINMENT CORRUPTION CRACK CRIME CRIME RATES CRIMES CRIMINAL CRIMINAL ACTIVITIES CRIMINAL ACTIVITY CRIMINAL BEHAVIOR CRIMINAL JUSTICE CRIMINAL JUSTICE SYSTEMS CRIMINALITY CRIMINALS DAMAGES DEATHS DELINQUENCY DEMAND ELASTICITY DEMAND FUNCTION DEMAND FUNCTIONS DISTRIBUTION OF WEALTH DRUG DRUG ABUSE DRUG CONSUMPTION DRUG CONTROL PROGRAM DRUG DEPENDENCY DRUG SEIZURE DRUG SEIZURES DRUG TRADE DRUG TRAFFICKERS DRUG TRAFFICKING DRUG USERS DRUGS ECONOMIC THEORIES ECONOMIC THEORY ECSTASY ELASTICITY ELASTICITY OF DEMAND EMBASSY EXPENDITURE EXPENDITURES EXPORTS EXTERNALITY FAMILIES FINISHED PRODUCT FOREIGN POLICY FREE TRADE GANG GANGS GDP GDP PER CAPITA GOVERNMENT REGULATION GUERRILLA GUERRILLAS HARM REDUCTION HEALTH EFFECTS HEALTH SERVICES HEROIN HIGH CRIME ILLICIT DRUG ILLICIT DRUG TRADE ILLICIT DRUGS IMF INCOME INCOME EFFECTS INELASTIC DEMAND INTERMEDIARIES INTERNATIONAL BANK INTERNATIONAL SANCTIONS INTERNATIONAL SECURITY INTERVENTION LATIN AMERICAN LAW ENFORCEMENT LAWLESSNESS LAWS LIFE EXPECTANCY MACROECONOMICS MARGINAL COSTS MARIJUANA MARKET FORCES MARKET POWER MARKET SHARE MARKETING MEMBER STATES MENTAL HEALTH MIDDLE EAST MIDDLEMEN MILITARY PERSONNEL MONOPOLY MORTALITY MURDER NARCOTIC NARCOTIC DRUG NARCOTIC DRUGS NARCOTICS NARCOTICS CONTROL NATIONS NEEDLE EXCHANGE NEGATIVE EXTERNALITIES OBSERVERS OFFENDERS OFFENSE OFFENSES OFFICIAL CORRUPTION OPPORTUNITY COST OPPORTUNITY COSTS ORGANIZED CRIME PATIENTS PER CAPITA INCOME PERSONALITY POLICE POLITICAL ECONOMY PRICE CHANGE PRICE CHANGES PRICE ELASTICITY PRICE INCREASES PRICE STRUCTURE PRISON PRISONERS PRISONS PRODUCTION INPUTS PROPERTY CRIME PROPERTY CRIMES PSYCHOTROPIC SUBSTANCES PUBLIC HEALTH PURCHASING PURCHASING POWER REAL GDP RECONSTRUCTION RETAIL RETAIL PRICE RETAIL PRICES RETAILING ROAD SECURITY FORCES SLUMS SMOKING SOCIAL DEVELOPMENT SOCIAL NORMS SOUTH AMERICA SPREAD SUBSTANCE ABUSE SUBSTITUTE SUBSTITUTES SUPPLIER SUPPLIERS SUPPLY CHAIN SUPPLY COSTS SURPLUSES TACTICS TAXATION TERRORISM TOBACCO TOBACCO CONSUMPTION TOTAL COSTS VIOLENCE VIOLENT CRIME WAR WARS WEALTH WEAPONS WELFARE ECONOMICS WORLD DEVELOPMENT This paper reviews the unintended consequences of the war on drugs, particularly for developing countries, and weighs them against the evidence regarding the efficacy of prohibition to curb drug use and trade. It reviews the available evidence and presents new results that indicate that prohibition has limited effects on drug prevalence and prices, most likely indicating a combination of inelastic drug demand (due to its addictive properties) and elastic supply responses (due to black markets). This should turn the focus to the unintended consequences of drug prohibition. First, the large demand for drugs, particularly in developed countries, generates the possibility of massive profits to potential drug providers. This leads to the formation of organized crime groups, which use violence and corruption as their means of survival and expansion and which, in severe cases, challenge the state and seriously compromise public stability and safety. Second, prohibition and its derived illegal market impose greater costs on farmers than on drug traffickers. In many instances, this entails the transfer of wealth from poor peasants to rich (and ruthless) traders. Third, criminalization can exacerbate the net health effects of drug use. These consequences are so pernicious that they call for a fundamental review of drug policy around the world. 2012-06-01T16:21:40Z 2012-06-01T16:21:40Z 2008-02 http://documents.worldbank.org/curated/en/2008/03/9584783/development-impact-illegality-drug-trade http://hdl.handle.net/10986/6871 English Policy Research Working Paper; No. 4543 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |