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A magazine of forecasts, trends, and ideas about the future
May-June 2003 Vol. 37, No. 3

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Economics

Alternatives to Growing Drugs
First World policies that keep food cheap counteract war on drugs.

A.jpg (1258 bytes)lternatives to growing drug crops in South America are not working, say University of Bonn researchers. As the international war against drugs cracks down on illegal crops, the monetary rewards of growing fruits and vegetables are not keeping pace with raising coca and opium. The sheer battle for survival often forces farmers in drug-producing countries into the drug business.

Coca growers can typically earn $2,500 a year in crop sales, according to the Center for Strategic and International Studies. Legal crops yield about $300 a year. The discrepancy in profits inevitably forces many peasants to continue growing coca, especially since alternative crops are harder to grow than coca and the yields are unpredictable.

Several countries have established alternative development programs that include cultivation of substitute crops, improved infrastructure, and access to markets. Instituting these programs is a daunting undertaking, however, and problems are compounded in regions of conflict and where violence is widespread. Peasants who voluntarily abandon coca in exchange for government-sponsored projects growing coffee, fruits, or vegetables face an uphill battle in cultivating these crops, says CSIS.

One factor keeping prices low for legal crops worldwide is subsidized farming in the developed world. Subsidies lead to crop overproduction, driving agricultural prices down and providing incentives to dump surpluses on world markets. Agriculture in developed countries received support amounting to $311 billion in 2001, according to the International Monetary Fund.

Banning illegal crop production has not been a successful solution to growing drug crops. "In Colombia, despite the ban, just as many hectares of new coca fields are brought under cultivation as the government manages to detect and destroy," says University of Bonn professor Jürgen Pohlan.

A national program in place since 1995 to control cultivation of illegal drugs in Colombia has had little success. Although the area used for cultivating opium has shrunk to just under a third since 1992, the area used for growing coca has quadrupled over the same period.

The Colombian government has urged farmers to cultivate Andean blackberries or Quito oranges and made easy credit available for farmers switching over to these crops. The discrepancy in moneymaking potential remains wide, however. Producing a kilo of tomatoes, for example, costs about twice as the same amount of opium for substantially less profit.

Land area used for growing coca in the Chapare region of Bolivia has dropped by more than 70% since 1989, thanks to a government-led initiative. The ecological costs have been high and have inadvertently led to illegal crop harvesting in areas that are less accessible to government drug fighters.

As illegal (and legal) crop growing shrinks, farmers and their families are forced to move either to urban centers or other rural areas, says the Transnational Institute. The forced migration has economic consequences throughout the industry: The temporary workforce hired to harvest coca leaf and the service sector that develops around the coca economy are forced to migrate also. Moving to provincial urban slums generates inhumane living conditions, unemployment, and misery.

"One of the most important solutions in future will be to encourage industrialization of the cities," says Pohlan. --Clifton Coles
Source: University of Bonn Media Relations Office, Regina-Pacis-Weg 3, D-53113 Bonn, Germany. Telephone 49-228/73-7647; e-mail presse.info@uni-bonn.de.

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