Saturday, June 03, 2006

Afghanistan Drug Trade

From the AP:
Sixteen Afghan soldiers have graduated from a new training program at Fort Bliss, armed with knowledge on how to fly Russian-made helicopters in anti-drug missions over their war-torn country. The men will now make their final preparations to head back to Afghanistan, where they are expected to immediately get to work trying to halt the booming narcotics trade.

Fighting the heroin trade in Afghanistan is a recipe for disaster. It will not significantly reduce the amount of heroin produced and will cost Afghanistan lives as well as much needed revenue. Colombia has tried to battle its drug lords (significantly) for the last 30 years and has very little to show for it. The US invested several billion dollars in Plan Colombia, but after years of spraying and forays into the jungle, the total production of the crop has not significantly changed. The war on drugs in these countries should not be waged against the war lords, it should be waged against the economic poverty which gives poor farmers no better alternative.

In Colombia, farmers grow coca because it pays significantly more than any other crop; for many of them, it is the only cash crop they can grow, since it takes to long to get other produce to market.

According to a spokesman from the Afghanistan embassy in Washington: "Your [the Afghanistan Pilot's] graduation is a testament to the long-term commitment of the United States to Afghanistan." Interestingly, heroin production has significantly increased since the US invasion; however, I do not mention this disparingly. Heroin could potentially be very positive for Afghanistan if they were to legalize its production. Poppy is a valuable crop that grows well in the area, and offers a higher return than any alternative produce. As long as the country keeps a tight control on demand, it should not have negative spillovers into other parts of the economy. Legalizing the heroin production also wrests control of the most valuable industry in the country away from the war lords.

Money is a means to power, both in military and popular terms. The Afghanistan government cannot win this fight. Its best option is to tax the drug and let competition neutralize the relative power of the various producers. It should spend the tax money on developing alternative opportunities for its people and keeping its people from using the drug.

Evidence from Colombia suggests that most producers do not use the drug themselves.

Since the experience in Colombia suggests the US is unable to stop production in foreign countries, we need a better strategy. The US should allow Afghanistan to legalize the drug and should focus on lowering demand at home. If the US and Europe successfully lowered demand, prices would fall below an economically viable price in Afghanistan and producers would no longer have a reason to grow the poppy. Meanwhile, the increased economic activity in Afghanistan will allow the economy to expand into other areas. As people get wealthier, they'll find better things to produce. If we spend our money destroying their economy, there's no sign that the situation will ever improve.

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