The Function of the Drug War

                             by J. Orlin Grabbe

                 The  function  of  the  Drug  War  is  to
                 create  the Drug Crisis. The  Drug Crisis
                 involves  billions of  dollars of  hidden
                 cash  flow.  Addicted  to  this  flow  of
                 money are  law enforcement agencies, drug
                 producers    and   distributors,   covert
                 agencies who  use it as a source of black
                 funding, and  politicians and bankers who
                 are  hired to protect the  drug revenues.
                 Addiction to  drug revenues requires that
                 the drug  war be fought so as to be lost.
                 Failure  thus  becomes  the criterion  of
                 success.

                 Many   state    agencies,   and   federal
                 agencies  such  as US  Customs, the  Drug
                 Enforcement      Administration,      the
                 Department  of   Justice,  and  the  U.S.
                 Treasury, reward  themselves for fighting
                 the  Drug War  by claiming  a portion  of
                 the  loot  seized—helping  themselves  to
                 cash,  bank deposits, securities,  boats,
                 automobiles,   houses,   land,   on-going
                 businesses, as well as the
                 readily-marketable  drugs themselves. The
                 Drug  Warriors' financial focus  ("follow
                 the  money")   requires  them  to  devote
                 their energy  in the direction it will be
                 most  rewarded—to look for  juicy targets
                 flush  with success.  Such juicy  targets
                 consist   of  those   who  have   created
                 flourishing   drug  enterprises  in   the
                 midst  of the Drug War.  These successful
                 drug  enterprises make  up the  necessary
                 list  of  worthwhile  targets leading  to
                 successful   busts.    Big   drug   busts
                 involving   heretofore   lucrative   drug
                 businesses  are announced  in a blaze  of
                 publicity—emphasizing   the   amount   of
                 money   and  drugs  seized,   and  people
                 arrested.  Only the  failure of the  Drug
                 War  and the  continuing success of  drug
                 enterprises  can  sustain the  continuing
                 stream   of  assets   ripe  for   seizure
                 (off-budget  funding) and the  beneficial
                 media   publicity,  such   as  lurid   TV
                 footage  of   stacks  of  plastic-wrapped
                 money  and cocaine.  Thus the failure  of
                 the  Drug War becomes the  measure of the
                 Drug    Warriors'   success,   and    the
                 ineffectiveness  of   the  Drug  Warriors
                 becomes the  continuing justification for
                 their  existence. The  Drug Warriors  are
                 ever  justified  by  the continuing  Drug
                 Crisis  and  the  richness  of  the  Drug
                 Warriors'   targets.   Hence   the   Drug
                 Warriors  must  fight the  Drug War  ever
                 harder  in order to  ensure that  it will
                 be successfully lost.

                 Producers  and  distributors  of  illegal
                 drugs  require the Drug  War in  order to
                 eliminate    competition   and   maintain
                 profit  margins. Without the Drug  War, a
                 slew  of  small farmers  would take  over
                 the  growth of marijuana crops  and would
                 eventually  drive pot prices down  to the
                 marginal  cost of  production. The  giant
                 methamphetamine    kitchens   in   Mexico
                 require  the Drug-War-inspired monitoring
                 of chemicals  to prevent competition from
                 the   once  pervasive  amateur   labs  in
                 American  homes.  Cocaine  producers  and
                 distributors  require enforcer  watchdogs
                 such as the Drug Enforcement
                 Administration  to  keep  out new  lower-
                 cost  entrants  to  the  market.  General
                 Manuel  Noriega  received  an award  from
                 the  DEA for his cooperation  in the Drug
                 War.  Noriega served the  Medellin cartel
                 and kept  out Cali competitors by turning
                 them  in to the  DEA. The DEA  was happy,
                 Noriega  was   happy,  and  the  Medellin
                 cartel   was   happy.  By   cooperatively
                 fighting the  Drug War, the Drug Warriors
                 and Drug Suppliers ensured the
                 continuing   flow  of  money   and  drugs
                 through Panama.  But whenever competition
                 increases,  the Drug  War must be  fought
                 ever   more  vigilantly  to   ensure  the
                 continuing  success of its  failure. Only
                 if  competition  is  controlled  can  the
                 market  price  of illicit  drugs be  kept
                 well   above  their   marginal  cost   of
                 production,  thus  ensuring  the  massive
                 profits  upon  which  Drug Suppliers  and
                 Drug Warriors depend.

                 Covert  agencies are increasingly  tasked
                 with   supplying   intelligence  on   the
                 illegal  drug trade,  such as  in the  US
                 where   drugs  have  been   designated  a
                 national   security  problem.  The   best
                 vantage   point  from  which   to  gather
                 intelligence  on the illegal  drug market
                 is  to be in  the illegal  drug business.
                 Thus  covert agencies must deal  drugs in
                 order   to  assist  the  War   on  Drugs.
                 Moreover,  being  covert requires  covert
                 monies   for  financing,  and   the  most
                 obvious source  of "black market" funding
                 is drug  money. Drug money is obtained by
                 supplying  services  to  the drug  trade.
                 Here  in Costa Rica the  CIA provides air
                 transport  to  "the brothers"  who run  a
                 lucrative  trade  in illicit  substances.
                 In  other  locations  other agencies  are
                 similarly involved.  The NSA, through the
                 NPO (National  Programs Office), provided
                 secure   storage  for   cocaine  in   its
                 network  of secure warehouses  across the
                 US. In  another country, the DIA operates
                 a  drug  manufacturing facility.  Similar
                 statements   can   be   made  about   the
                 British, French, and Israeli
                 intelligence   services.  The  Drug   War
                 provides  black  market  funding for  the
                 covert  agencies, and justifies  the need
                 for  them   to  provide  intelligence  to
                 fight the  Drug War. The Drug War must be
                 fought  harder  to  ensure the  requisite
                 funds and  intelligence to fight the Drug
                 War.

                 The   Drug  War   provides  a   political
                 rationale  for the continuing  production
                 and   sale  of  military   equipment  and
                 consulting  services  in  the absence  of
                 obvious  enemies.  Just  recently the  US
                 sold Guatemala a sophisticated
                 electronic  fence to protect  its border.
                 Similar  sales  have been  made to  other
                 countries. References to drug
                 traffickers and  smugglers form as much a
                 part  of the political  justification for
                 these  expenditures as  do references  to
                 the  threat of invasion.  In the  case of
                 Guatemala,  what the US did  not tell the
                 local  military  was  that  it is  now  a
                 matter of  US national security policy to
                 only  install fences with holes  in them.
                 The  electronic  holes  are  intended  to
                 ensure  that US  bombers can reach  their
                 destinations  unimpeded by  surveillance.
                 When  someone   informed  the  Guatemalan
                 military  of   this  fact,  they  angrily
                 demanded  of the US to know  if this were
                 true.  Yes,   there  are  holes,  the  US
                 admitted;  but the  US also claimed  that
                 no  one  would  be  able  to  find  them,
                 because  of  the ultra-sophisticated  top
                 secret  technology  involved.  It  was  a
                 lie. A  consultant showed the Guatemalans
                 the  location of the  holes using  only a
                 few  hundred   dollars  of  off-the-shelf
                 electronic   equipment.  There  were   12
                 holes, each  roughly a quarter mile wide,
                 providing  an air corridor open  from the
                 ground  to the  heavens. The location  of
                 such  holes   is  usually  sold  to  drug
                 couriers  in  a matter  of  a few  weeks.
                 Thus  the drugs continue to  flow through
                 the  fences unimpeded, helpfully  keeping
                 alive   the    original   rationale   for
                 military  involvement  in  the Drug  War.
                 (In  the  case  of  Guatemala,  the  same
                 drugs  might  show up  at the  Guatemalan
                 airport,  where security  is provided  by
                 Wackenhut.   Wackenhut   is   a   private
                 security    firm    supplying    security
                 services  to top- secret US  military and
                 nuclear  facilities.  In  some  of  these
                 facilities,    computer    hard    drives
                 containing  nuclear  secrets  may  appear
                 and  disappear  behind  copying  machines
                 much  like  drug  planes may  appear  and
                 disappear  on either  side of  electronic
                 fences   with  well-  designed   security
                 holes.)

                 Drug  propaganda  supplies  an  essential
                 ingredient  in the  Drug War.  We see  an
                 endless  parade  of  TV  shows  in  which
                 photogenic  actors and actresses  protect
                 the  young and innocent from  the big bad
                 drug  dealers,   along  with  just-say-no
                 campaigns  of  mindless  emotionalism.  A
                 cigarette  looks  silly in  your ear;  it
                 looks   sillier  in  your   mouth.  Don't
                 think,  just be embarrassed  and believe.
                 Here   are  pictures  of   crack  babies;
                 aren't  they  revolting? The  cooperation
                 of   the   news   media   in   government
                 propaganda creates a pervasive
                 background   of  Pavlovian   conditioning
                 which  can be stirred up  to a hysterical
                 boil whenever the Drug War is
                 threatened,  or   when  it  needs  to  be
                 reinvigorated.   The  public  will   then
                 "demand  something   be  done",  and  the
                 hired  politicians will smoothly  respond
                 with the needed legislation.

                 Take  George  W. Bush  and  Al Gore,  for
                 example.  Whichever  man  is elected,  he
                 will  call for  a new  effort to  sustain
                 the  Drug  War's  vigor,  whether  it  be
                 called "Reinventing  the Drug War" or the
                 "Drug War  with Compassion", or something
                 entirely  different. Because, like  other
                 hired  politicians,   the  new  President
                 will  know the  Drug War  must be  fought
                 harder  to   keep  the  money  and  drugs
                 flowing,  and  everyone  happy.  Only  in
                 failure will there be success.
                 -----------------------------------------

                 J.   Orlin  Grabbe  is  the   author  of
                 International   Financial   Markets   and
                 resides  in Costa Rica.
                                  
                 From The Laissez Faire City Times, Vol.
                 4, No 37, September 11, 2000


There is NO War on Drugs!