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The causes of illegal drug industry growth in the Andes, anti-drug policies and their effectiveness


  • Francisco E. Thoumi


This essay analyses the nature of the drug policy formulation problem,describes a theory of competitive advantage in illicit drugs, draws somepolicy implications from this theory, analyses the characteristics of the maindrug producing countries that make them prone to develop the illicit drugsindustry, surveys the evolution of anti-drug policies in the Andean countries,discuses some of the main challenges confronted by the policies currentlyused, summarizes the main effects that the illegal drug industry developmenthave had on those countries, assesses the viability of drug policy reform andmakes a few suggestions to marginally modify some policies and to improvepolicy dialogue as a pre-requisite to improve drug policy effectiveness.

Suggested Citation

  • Francisco E. Thoumi, 2005. "The causes of illegal drug industry growth in the Andes, anti-drug policies and their effectiveness," Borradores de Investigación, CEODD 4661, Universidad del Rosario.
  • Handle: RePEc:col:000175:004661

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    References listed on IDEAS

    1. Patricia Correa, 1984. "Determinantes de la cuenta de servicios de la balanza cambiaria," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 3(6), pages 47-125, December.
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    1. Mounu Prem & Juan F. Vargas & Daniel Mejía, 2023. "The Rise and Persistence of Illegal Crops: Evidence from a Naive Policy Announcement," The Review of Economics and Statistics, MIT Press, vol. 105(2), pages 344-358, March.

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