Monday, May 12, 2014
Wednesday, May 7, 2014
Final research paper
Dru McInerney
Final research paper
Government 490
Char Miller
Monetary value of laundered cocaine
narco-dollars creating successful Latino community in the United States.
Outline
Overview
A: Beginnings and rise of cocaine smuggling from South
America
B: Evolution of Cocaine Money laundering
C: Effects of Laundered Narco-Dollars on Miami’s economy
D: Prospering Latino Community
Conclusion
Overview
When you talk
about laundered drug money, you often think of the violence of the drug trade.
The violence associated with drug cartels from South and Central America. The
money made and laundered from drug trade (narco-dollars) is considered blood
money. However, if looked at more closely could these narco-dollars have a positive
effect when they are being pumped back into local economies?
Lets take Miami,
Florida in the 1980’s for example. Miami pre 1980’s was a small quaint city
that was known for vacationing. Enter into the early 1990’s Miami is a booming
economic city. This can be accredited to large amounts of narco-dollars coming
from the cocaine trade with Colombia. When these cocaine dealers from Colombia
began to traffic cocaine through Miami, they started to make small fortunes in
narco-dollars. Narco-dollars are a monetary spending that is technically legal
in the United States. There is no proof that the money is from illegal entities.
So as most drug dealers tend to do, they spend their narco-dollars as fast as
they made them. This doesn’t just stimulate the luxury car and jewelry
businesses but a large majority of this money is going to real estate. As
cocaine became the largest business in Miami behind tourism in the 1980’s [i]the
skyline began to rise in the city. With the real estate boom you began to see
more Latino’s moving to the city. Most notably more jobs were being made behind
the sponsorship of narco-dollars.
You also see a
large development of Latino community in Miami as these narco-dollars are being
spent. Many people are coming from Southern and Central America to be part of
the booming economy. This begins to turn Miami into the hub of Latino culture
in North America. This can be compared to the use of religion to bring the
Ancient Greek community together. The sponsorship of narco-dollars was able to develop
a hub for the Latino community to gather and begin to live the American dream.
To support my
argument I have developed four different sections to help the reader understand
the dimensions that go into this process. I will first begin with a history of
the Cocaine trade. Specifically, I will highlight Cocaine being produced and
smuggled from South America to the United States. Secondly, I will explain the
history and the process of money being laundered from illegal narco-dollars to
legal liquid assets. Third, I will discuss the effects of these narco-dollars
and the economies they surround. Finally, I will discuss the Latino communities
and how they form a place of communal belonging in this economy.
A: The
Rise of Cocaine Production and Smuggling from South America
In the year 1996
the Colombian Government Estimated a total of 67,000 hectares of the coca plant
were produced. To put this into perspective, one coca plant can be produced in
to 800 grams of cocaine.[ii] The process
consists of a large majority of raw product being transferred to a refinery and
then converted to paste. From there it is sent to a factory be converted to a
final product. The current statistics on Cocaine production are daunting.
However, Cocaine comes from relatively modest production, stemming from the
turn of 19th century.
Pre
1940’s, cocaine was a small business that was mostly run in the Andean mountain
region. The country that produced the most coca leaf product was Peru. The
Peruvian government of that time allowed small factories to produce this
product. Cocaine had a limited usage in wealthy countries so it did not have a
high demand. In 1950, Peruvian government would make the manufacturing of
cocaine illegal. This would not stop the small factories and the several smugglers
from operating. [iii]
Pre
World War 2 cocaine was generally an accepted drug in South America. This would
all change post World War 2 when the spread of American influence would arrive
in South American Countries. During the late 1940’s and early 1950’s Cuba
specifically became a hotspot for cocaine usage and smuggling. There was a
culture spreading in Havana. Havana was place of freedom and fun. Havana would consume large amounts of
cocaine and even experiment in growing it. By the time of the Cuban revolution
Havana had become the hub of cocaine culture. During the Cuban revolution when
Fidel Castro came to power most of the Cubans involved in the cocaine smuggling
migrated to South America where the product was originating.
After
this migration of Cubans to the Andean region, cocaine production would start
to increase. The United States would take notice of this growth in production
of cocaine. In response to this growth, the United States would spread their
influence with anti-drug control in Bolivia. Bolivia at the time was the
largest producer of the coca leaf in the world. After the siege of many coca peasant-farming
villages, the peasants would flea to other Andean countries.
With the United
States new proactive stance they would confiscate 26 pounds of cocaine at the
border in 1967 and increase their findings to 52 pounds in 1969. Although the
United States was increasing there efforts on prevention it had become to late.
The demand for cocaine usage had increased and in 1971, 436 pounds of cocaine
were confiscated at the border[iv].
The
United States may have been able to prevent cocaine growth in Bolivia. However,
the migrations of peasants under the influence of Cubans lead to the growth and
manufacturing in other countries, primarily Colombia. Cocaine demand has only
increased since the 1970’s. The rise of coca leaf production can be seen as a
reflection of that. As I earlier noted in 1996 cocaine growth in Colombia had
hit an all time high[v].
2. Evolution of Cocaine Money Laundering.
It
has been measured that the international narcotics industry is the largest
growth industry in the world. It
has also been estimated that laundered money from the international narcotics
industry is the equivalent of more then three times the amount of money
circulating in the United States. [vi] When I am
discussing laundered money I am referring to money that is made from the
narcotics industry that is converted into legal unregulated liquid funds.
To
understand the laundering of narco-dollars in the United States, it is
important to understand the history of laundered money legislation in the
United States. The United States did not take any domestic action into
combating laundered money until 1970. In 1970 congress passed the Business
Secrecy Act (BSA). The main function of this act was to open information on
transactions in any bank under United States jurisdiction. The main clause in
this act was that banks had to disclose information to the IRS on any deposit
of $10,000 or more.[vii] The main
issue with the BSA was that there was no statute technically making the laundering
of money illegal.
Although
the BSA did not actually make the act of laundering illegal it helped expose
it. The next step for the United States government would take place in 1986.
Congress would pass the Money Laundering Control Act (MLCA); the main
supporting function of this act was to make the action of laundering itself
illegal. This gave way to new FBI task forces that were able to take down banks
and then ultimately take down the cartel members. This act deterred all banks
under American jurisdiction from participating in any sort of laundering
criminal activity.
Laundering
today still sees two main sources of productivity. The first being front
companies. Front companies act as businesses that sell legal product and
invest. When narcotics money is put into these businesses they are able to
purchase legal products and then sell them. Converting them into legal liquid
currency. The second popular way that money is laundered is through boutique
banks. Boutique banks are banks set up oversees in countries such as
Switzerland where there is no law allowing the United States to view the
deposits going in.
It
is important to understand the history of laundered money in America. You can understand
the internal struggle the United State has had with controlling laundered
narco-dollars. Most importantly you can see that whether the United State wants
laundered money going into its economy or not, is beyond their control.
Laundered narco-dollars are still a prevalent piece of infrastructure to many
economies throughout the United States, most notably Miami.
C: Effects of Laundered Narco-Dollars on Miami’s Economy
As
previously noted, during the Cuban revolution many big players in the cocaine
industry were forced to leave the country. While a large amount went to South
America, the others sought refuge in Miami. With connections in South America
where the production was taking place, the exiled Cubans began to make Miami,
Florida the vocal point of cocaine trafficking into America. From 1960-90 the
Miami, Florida economy would grow by over $56 billion[viii].
This economic growth can be directly attributed to laundered narco-dollars.
There
are several problems with measuring the amount of narco-dollars being put into
Miami’s economy. The biggest of which, there is no way to get exact figures.
The whole point of laundering money is so that it appears to be legal. The best
that can be done is to research some areas and make estimates in others. You can
take money transferred to Miami bank accounts from questionable offshore banks
that are notorious for laundering. The majority of this money may be laundered.
However, the margin of error may be large.
Regardless
of the challenges standing in the way, estimates where made in 1988. The total
amount of money transferred from Panama banks to Miami accounts was roughly $10
billion[ix].
A good amount of this money may come from legitimate business. 1988 it was
estimated that 400 metric tons of cocaine were manufactured and transported
across the border to Miami. 90 tons are on the books as being confiscated by
customs. This leaves 310 tons of cocaine successfully being smuggled across the
border[x].
310 tons of cocaine is estimated as being $4 billion dollars in laundered
narco-dollars.[xi]
With estimated $4
billion being put into the economy annually, Miami has prospered into the North
American hub of Latin culture. With this, many businesses desire to expand to
the Latino markets and have moved their headquarters down to Miami. There is
352 multinational companies based in Miami, 70% of the companies were started
after 1980[xii].
Additionally, with the large
amounts of money laundering, many banks have set up shop in Miami. Miami is
third to New York City and Los Angeles in number of international banks.[xiii]
With additions of
laundered narco-dollars and Latin culture Miami has become a model for an
international economic hub. In 1980 when America was at a low point for
unemployment, Miami was able to stay 2% under the national unemployment rate.[xiv]Since
the boom of cocaine and trafficking through Miami in the 1970’s the city has
steadily grown and prospered economically.
D: Prospering Latino Community
In the 1960’s
before Miami’s cocaine boom, the Latino population was at a mere 5%. Looking at
the most current United States census the Latino population of Miami stands at
66%[xv].
And over 50% of this Latino population was not born in the United States[xvi].
This large amount of growth can be attested to Latino immigrants seeking to
advance their economic worth.
With large
percentages of Latin Americans in Miami, a new cultural wave has set through
the city. Other Latino populations have struggled to find a home in the America
South. Many of the southern states are not welcoming to the Latino population
and there community. Southern states such as Georgia have attempted to pass
state legislation that would make children born in America with immigrant
parents unable to gain citizenship. Miami, unlike other southern American
cities has created a safe haven for there community. Currently many state and
federal representatives in the area are of Latino descent. Miami also has
increased numbers of state and federal employees in the area. Miami has truly
developed a strong Latino community.
Conclusion
Miami becoming the
hub of Latino culture in America can be attested to its economic prosperity.
Much of this economic prosperity is a result of the laundered narco-dollars
being put back into the economy. And finally the majority of these narco-dollars
are derived from cocaine production in Colombia and the Andean regions of South
America. Illegal cocaine production and smuggling through Miami has resulted in
a prosperous Latino community.
[i] Economist, "Foundations
For the Future."
[iii] Gootenburg,
Paul, THE
“PRE-COLOMBIAN” ERA OF DRUG TRAFFICKING
[iv] Gootenburg,
Paul, THE
“PRE-COLOMBIAN” ERA OF DRUG TRAFFICKING
[vii]
O'brian, Patrick, “Tracking Narco-Dollars: The Evolution of a Potent Weapon in
the Drug War“
[viii]
Nijman, Jan, “Globalization to a Latin Beat: The Miami Growth Machine”
[ix]
Grosse, Robert"The Economic Impact of Andean Cocaine Traffic on
Florida."
[x]
Grosse, Robert"The Economic Impact of Andean Cocaine Traffic on
Florida."
[xi]
Grosse, Robert"The Economic Impact of Andean Cocaine Traffic on
Florida."(
[xii] Nijman,
Jan, “Globalization to a Latin Beat: The Miami Growth Machine”
[xiii] Nijman,
Jan, “Globalization to a Latin Beat: The Miami Growth Machine”
[xiv] Economist,
"Foundations For the Future."
[xv] Miami City,
Florida." American Fact Finder. United States Census
[xvi] Miami
City, Florida." American Fact Finder. United States Census
Works Cited
1.
Bartilow, Horace.
"Free Traders and Drug Smugglers: The Effects of Trade Openness on States'
Ability to Combat Drug Trafficking." Latin American Politics and
Society. 51.2 (2009): 117-145. Print.
2.
"Foundations
For the Future." Economist [London] 16 10 1982, 7259 n. pag.
Print
3.
Gilbert, Alan.
"The Latin American City ." Canadian Journal of Latin American
and Caribbean Studies. 24.47 (1999): n. page. Print.
4.
Gootenburg,
Paul. "The "Pre-Colombian" Era of Drug Trafficking in the
Americas." Academy of American Franciscan History. 64.2 (2007):
133-176. Web. 17 Mar. 2014.
5.
Grosse, Robert.
"The Economic Impact of Andean Cocaine Traffic on
Florida." Journal of Inter-American Studies and World Affairs. 32.4
(1990): 137-159. Web. 17 Mar. 2014.
6.
Guizado, Alvaro.
"Perspectives on Narcotics Trafficking in
Colombia." International Journal of Politics, Culture, and Society.
14.1 (200): n. page. Print.
7.
"Miami City, Florida." American Fact Finder. United States Census, n.d. Web. 25 Mar 2014.
"Miami City, Florida." American Fact Finder. United States Census, n.d. Web. 25 Mar 2014.
8.
Nijman, Jan.
"Globalization to a Latin Beat: The Miami Growth
Machine." Annals of the American Academy of Political and Social
Science. 551 (1997): 164-177. Print.
9.
O'brian, Patrick.
"Tracking Narco-Dollars: The Evolution of a Potent Weapon in the Drug
War." University of Miami Inter-American Law Review. 21.3 (1990): n.
page. Print.
10.
Salama, Pierre.
"The Economy of Narco-Dollars: From Production to Recycling of
Earnings."nternational Journal of Politics, Culture, and Society .
14.1 (2000): 183-203. Print.
11.
Smith, Barbara.
"We're Here to Sta'y: Economic Restructuring, Latino Migration and
Place-Making in the US South." Transactions of the Institute of
British Geographers . 33.1 (2006): n. page. Print.
12.
Whitten, Norman. "Power
Structure and Sociocultural Change in Latin American
Communities." Oxford University Press 43: 320-329. JStor.
Web. 7 Apr. 2014.
.
Research Paper Outline
Research Paper
Outline
Source 1: Gootenburg,
Paul, THE “PRE-COLOMBIAN” ERA OF DRUG TRAFFICKING
IN THE AMERICAS: COCAINE, 1945-1965
-
Before the early 1940’s cocaine was legal to be
produced in a small factory in Peru. It saw limited usage
-
In the 1950’s it was illegal but saw limited
demand and few smugglers coming from the Andean region.
-
While cocaine was generally accepted by many
countries in South America and even Europe. The end of World War 2 saw the
exposure of Americans ideals of anti-cocaine ideals. Additionally American anti
communist influence would be spread to Peru and Bolivia. With this American Presence
would come anti-cocaine laws being implemented.
-
In 1949 Peruvian smugglers were arrested and
suspected of smuggling around $5 million of cocaine a month
-
First recorded cocaine smuggler to be arrested
was 1939 in New York
-
In 1959 the Cuban revolution sent expert drug
traffickers across the Andean Region.
-
Cubans would grow to use cocaine in there clubs
and across their countries culture. They even helped spread it to American
tourists. They started to experiment with making it in there own country.
However, when the revolution happened these dealers fled to expand this
business in places like Miami and Mexico.
-
After 1960 Cocaine’s main country of production
(Bolivia) came under United States anti-drug control. This lead many cocaine
farming peasant to disperse to other countries
-
In 1967 26 pounds of cocaine were taken from the
border
-
In 1969 52 pounds
-
Finally in 1971 436 pounds were taken
-
Cocaine had become a Gourmet drug that was
described as the major drug of the 1970’s
-
Cold war politics
Source 2:Grosse,
Robert"The Economic Impact of Andean Cocaine Traffic on Florida."
-
Majority of cocaine is brought from Colombia
through Florida, specifically Miami.
-
As a result of this trafficking, drug smugglers
spend their money into the Miami economy so it can be legal assets.
-
Many of these investments take place in real
estate in Dade county (primarily Latino)
-
Estimated that since 1988 10 billion dollars has
been transferred from panama banks to Miami bank accounts
-
It is hard to measure amounts of money laundered
because Florida banks have system where they are not allowed to disclose the
country the money is coming from.
-
In 1988 it was estimated 400 metric tons where
made and transported to the United States. 90 tons were seized by the police,
which leave 310 tons that made it into the country. Which equivalents to almost
$4 billion in profit.
Source 3: Globalization to a Latin Beat: The Miami
Growth Machine."
-
Miami is the most internationalized metropolitan
city in the United States
-
From 1960 to 1990 Dade county doubled and grew
by 2 million in population. Over $56 billion in its economy
-
Miami’s growth can be attributed to Latin
American immigration and the globalization of the city.
-
In 1960 Latin’s made up 5% of Miami’s
population. Today Latin’s represent more the half of the population sitting 66%
-
About 50% of residents of Miami were born
abroad.
-
When immigrants flocked to Miami it made it
desirable for companies that do business with Latin American countries to move
to Miami where there is access to human resources relative to there country.
-
Of 352 multinational companies based in Miami,
over 70% were started after 1980
-
Miami is third to only LA and NYC in foreign
banks. Recognized as the gateway from the Americas.
-
Miami is a city seen as an opportunity for
people from the north to connect with the Latin market and also to invest in
real estate.
-
The city appeals to the Americas South of it
because it has the securities of USA with the Latin culture. Also discrete
banking laws.
-
Most immigrants came to Miami to advance there
economic worth. Cubans came to prove Castro wrong by becoming economically
wealthy without him.
-
At the state and federal level many representatives
are Hispanic.
Source 4: Foundations
for the future
-
During Cubans communist revolution many of its
smartest people fled to Miami.
-
In 1980 Florida was two percent lower
unemployment rate then the rest of the country.
-
Many of Miami banks are under foreign control
Source 5: Miami City,
Florida." American Fact Finder. United States Census
-
83 % of Latino’s in Miami Dade County are
foreign born.
-
65% of Miami Dade county is Latino 34% is Cuban
Source 6: The Economy of
Narco-Dollars: From Production to Recycling of Earnings
-
It is very hard to measure the market of Cocaine. Some countries coca leaves are legal,
some is isn’t. Some allow certain amounts. This makes trafficking difficult.
Additionally some synthetic substances have sprouted.
-
Cocaine in grown in countries all over the Andean region.
However, the entire raw product is taken to Colombia where the cartels refine
it.
-
Prices of cocaine have fluctuated from 50k per kilo to 10k
per kilo
-
Three types of repatriated laundering
-
Contraband: Colombians buy large amounts of a product like
alcohol or cigarettes. They then sneak it through borders and sell it in there
country for straight profit.
-
Over-Under billing of exported merchandise
-
International financial markets: secrecy rules in these
banks. And allows un regulated money to come in. very expensive
-
Cost of laundering has increased from 5-8% in the 1980’s to
up to 15% in the 1990’s
-
It is hard to exactly measure the amount of narco-dollars
laundered in Colombia because the country also has illegal emerald money that
they launder as well.
-
40% of money from cocaine goes to the actual transport.
Mexican cartels have become major players.
Source 7: Free Traders and
Drug Smugglers: The Effects of Trade Openness on States' Ability to Combat Drug
Trafficking.
-
Different facets to drug trade. Exporters, centers, and
consumers
-
Three views discussed. Trade openness goes against drug
trade, helps drug trade and doesn’t effect drug trade
-
Arguments that trade openness is bad, More open the more
volume of cargo boxes and easier ways of contraband sneaking through, also
allows for more money laundering opportunities.
Source 8:Guizado, Alvaro “Perspectives
on Narcotics Trafficking in Colombia”
-
Demands for drugs in wealthy countries such as the United
States has caused most of the peasant population to be employed by the drug
cartels to increase raw materials used for drugs.
-
The influence of these drug cartels spreads into political
and professional spheres as well. There is employment of expert bankers and
lawyers who help launder money. Most notably of the politicians would be
Ernesto Samper who won a presidential election while under influence of
cartels.
-
According to Colombian agriculture statistics from the years
1991-6 the percent of coca cultivation increased from 37,500 to 67,2000
hectares. 1 hectare of coca is 800 grams of cocaine.
-
PLANTE program is set up to help other set up other crops
grown other then the coca leaf in rural Colombia. Many peasants continue to
grow coca regardless or in addition to other subsidized legal crops.
-
2% of cocaine’s street value is given to the producers.
Colombia’s entire private investment can be said to be comparable to there
profit from drug trade.
-
Indigenous people of the Colombian Andean region have been
producing coca plant for years and consider it a sacred part of there belief
system.
-
Guerilla soldiers and Paramilitary often protect the growth
and transportation of the Coca leaf as a main source of their funding.
-
Large amount of these illegal businessman have fallen into
the graces of the community. They own sports teams and give money to the
Catholic Church. These businessmen also reinvest in the community creating new
business and jobs. Also sponsor housing in their area as well. This gives a
feeling of inspiration and community. They have come from the poorest parts of
the community and have become rich.
-
Ernesto Samper has had allegations of receiving drug money
in his political campaign.
-
The United States would try and intervene and attempt to
implement new drug restrictions. This would ultimately fail to decrease
production.
Source 10: We're Here to
Stay: Economic Restructuring, Latino Migration and Place-Making in the US South
-
There is deep-rooted tension in the American south between
immigrants and residence.
-
The south is often made up of the non-traditional desired
demographics. The south is poor, rural and non-union. However, being rural and
non-union has been good for business at time. Slow to the industrial revolution
the south eventually became a hotbed for northern factories, with their lack of
unions.
-
With the lack of unions in the south there is a constant
need for workers who will take limited wages. There is always work demand for
immigrants.
-
The undocumented Latino employee is ideal. An able body that
can be dismissed at any point. Can work sporadic workweeks and switch projects
whenever needed.
-
Many people in the south heavily appose immigration, there
has been Georgia Litigation questioning whether a baby born from undocumented
parents should be allowed citizenship.
Source 11: O'brian, Patrick, Tracking
Narco-Dollars: The Evolution of a Potent Weapon in the Drug War
-
International Narcotics industry is the largest growth
industry in the world. There is three times more money in the International
narcotics industry then circulating in the United States right now.
-
First congressional statute to combat money laundering was
in 1970. Business secrecy act, made all banks under United States Jurisdiction
have to disclose the source of the income. All transactions of $10,000 or more had to be filed with the
IRS. Didn’t prohibit it but made reporting necessary in American Banks. Customs
and the Treasury department were slow to enforce the BSA
-
Money laundering control
act of 1986 helped improve the BSA and ultimately made money laundering itself
illegal. It made significant punishments to the banks that participated in
these practices
-
Ways Laundering still
exists today. Front companies take drug money and invest it into there
legatimatly set up businesses.
-
Boutique banks are set up
overseas and conceal information from the Treasury
Thursday, April 24, 2014
The Old Guitarist (Art Piece)
Dru McInerney
4/24/14
The Old Guitarist
A:
I chose to write
about a painting done by Pablo Picasso called The Old Guitarist. This painting is an oil painting done in the
year 1904. It is currently being held in The Chicago Museum of Fine Art. This
painting is off an old man hunched over on a street curb. In his hand is an old
guitar. He has grey hair and his head is hunched over as to have lost all hope.
His clothes are tattered and he seems to not even have the strength to play the
guitar. There are many different shades of blue in this painting. The shades
contrast from dark navy blues to very light almost gray in color. This painting
is a close up of the old man playing the Guitar; the guitar seems to be quite
large in contrast to his body.
B:
This painting
reflects a period in Picasso’s history called the Blue Period. In this period
you see many melancholy colors in his painting. Colors include dark blues and
grays. This specific painting was done directly after the death of Picassos
close friend. His friend had become depressed and suicidal after a failed
relationship. Picasso would move to Paris with his friend to pursue their Art
careers. Soon after their move Picasso’s friend would commit suicide. After
this Picasso began the blue period where his paintings like The Old Guitarist took a dark turn.
C:
Looking
at this painting gives a dark feeling of how lack of money can ruin a person.
This man seems to be playing guitar on the street corner to make some cash. He
does not look like the normal street performer who is doing it for the love of
music and to make a little pocket money. This is this old mans livelihood. He
is not performing on the guitar because he wants to. It is to show you that he
needs money but he is doing a little more then just sitting there begging. It
is his was of differentiating himself from the other homeless people who are
begging for money. He is struggling but he has not completely given up. In a
way it feels as if he is still working for his money, even if it is in this
form.
Thursday, April 3, 2014
Research Proposal
Dru McInerney
Research Proposal
4/3/14
Looking at the
monetary value of laundered money, specifically narco-dollars, can this form of
monetary value have a positive effect on community?
When you talk
about laundered drug money, you often think of the violence of the drug trade.
The violence associated drug cartels from South and Central America. The money
made and laundered from drug trade (narco-dollars) is considered blood money.
However, if looked at more closely could these narco-dollars have a positive
effect when they are being pumped back into local economies?
Lets take Miami,
Florida in the 1980’s for example. Miami pre 1980’s was a small quaint city
that was known for vacationing. Enter into the early 1990’s Miami is a booming
economic city. This can be accredited to large amount of narco-dollars coming
from cocaine trade with Colombia. When these cocaine dealers from Colombia
began to traffic cocaine through Colombia they started to make small fortunes
in narco-dollars. Narco-dollars are a monetary spending that is technically
legal in the United States. There is no proof that they are an illegal entity.
So as most drug dealer tend to do, they spend their narco-dollars as fast as
they made them. This doesn’t just stimulate the luxury car and jewelry
businesses but a large majority of this money is going to real estate. As
cocaine became the largest business in Miami behind tourism in the 1980’s
(economist 1982) the skyline began to rise in the city. With the real estate
boom you began to see more people moving to the city. More jobs were being made
behind the sponsorship of narco-dollars.
Miami is an
example of instance where narco-dollars can be considered as being able to
build and develop a community. You also see a large development of Latino
community in Miami as these narco-dollars are being spent. Many people are
coming from Southern and Central America to be part of the booming economy.
This begins to turn Miami into the hub of Latino culture in North America. This
can be compared to Seaford and the use of religion to bring the Ancient Greek
community together. The sponsorship of narco-dollars was able to develop a hub
for the Latino community to gather and begin to live the American dream.
Works Cited
1. Gootenburg,
Paul. "The "Pre-Colombian" Era of Drug Trafficking in the
Americas." Academy of American Franciscan History. 64.2 (2007):
133-176. Web. 17 Mar. 2014.
·
This source talks about what cocaine trafficking
was like before Colombia became the main country. It talks about what events
lead to Colombia becoming a major player in cocaine trade. It also talks about
what America was like before Colombia made cocaine more mainstream. This
article allows me to look into what economies were like before cocaine traffic
became such a large entity.
2. Grosse,
Robert. "The Economic Impact of Andean Cocaine Traffic on
Florida." Journal of Inter-American Studies and World Affairs. 32.4
(1990): 137-159. Web. 17 Mar. 2014.
·
This source was designed to teach the reader
about the relationship of narco-traffic from Colombia to Florida. This article
has five main points it talks about. All five points are the based on the
economic relationships between Colombian cocaine traffic and Florida. It talks
about the relationship with crime, the medical and rehabilitative costs,
employee production, Financial flows from laundered money and what Florida
would be like if there was no cocaine laundering. These are topics pertaining
to aspects of Florida’s economy based on cocaine trade. The topic about the money laundering is
key information for my argument. It helps me illustrate how much money was
available to help build Florida’s economy.
3. Nijman,
Jan. "Globalization to a Latin Beat: The Miami Growth
Machine." Annals of the American Academy of Political and Social
Science. 551 (1997): 164-177. Print.
·
This journal article discusses the economic
impact of Latin Americans on the Miami area. It specifically talks about the
perceptions of drug trade within this population. It also chronicles the growth
of the Latin American population from the late 1970’s until the mid 1990’s.
This helps me identify the economics of before and after the drug trade amongst
Latinos. It also helps me understand the economic impact of Latinos coming into
Miami and influencing it.
4. "Foundations For the Future." Economist [London]
16 10 1982, 7259 n. pag. Print.
·
This article discusses the economic recession
taking place in the United States in the early 1980’s. It specifically
highlights Miami, FL and how it has managed to have its economy grow in light
of the recession. It talks about how the banks having been growing and so has
the real estate market, even in lieu of an economic downfall. This helps
support my article that drug trade-affected Miami’s economy in a positive way.
5.
"Miami City, Florida." American Fact Finder. United States Census, n.d. Web. 25 Mar 2014.
"Miami City, Florida." American Fact Finder. United States Census, n.d. Web. 25 Mar 2014.
·
This is comes from an economic database called American Fact Finder. This Database
allows me to compare business, real estate and crime statistics from the 1980’s
all the way to 2010. It helps me produce all around statistics comparing the
height of the drug trade to more recent Miami.
6.
Salama, Pierre. "The Economy
of Narco-Dollars: From Production to Recycling of Earnings."nternational
Journal of Politics, Culture, and Society . 14.1 (2000): 183-203. Print.
·
This source describes the process into which
narco-dollars are made and then put back into the economy. It discusses the
trends of drug dealers and how they spend their money. This will help my
argument with direct evidence from Colombian drug cartels.
7.
Guizado, Alvaro. "Perspectives
on Narcotics Trafficking in Colombia." International Journal of
Politics, Culture, and Society. 14.1 (200): n. page. Print.
·
This article talks about the effect of the drug
business on cities in Colombia. It also discusses the migration to the United
States. This is important to my argument because it will help me depict the
migration and building of the Latino community in Miami, FL and in other United
States cities. Also provides perspective with opposing points of view. Dicussing
the negative effects of Latin culture.
8.
Bartilow, Horace. "Free
Traders and Drug Smugglers: The Effects of Trade Openness on States' Ability to
Combat Drug Trafficking." Latin American Politics and Society. 51.2
(2009): 117-145. Print.
·
This Journal discusses a legislative rule that
is controversial because some believe it makes it easy for drug smugglers.
Others argue that it makes it more difficult for smugglers. Provides
information on how drug smuggling is a global business. Provides estimation on
how much money is made in laundered money.
9.
Gilbert, Alan. "The Latin American
City ." Canadian Journal of Latin American and Caribbean Studies.
24.47 (1999): n. page. Print.
·
This journal talks about the “Latin City” in
America. Which talks about mostly Miami and Los Angeles. It discusses the Latin
community with percentages and figures. This will be important when I cross
reference this with the migration to
the United States due to narco-dollars.
10.
Smith, Barbara. "We're Here to
Sta'y: Economic Restructuring, Latino Migration and Place-Making in the US
South." Transactions of the Institute of British Geographers .
33.1 (2006): n. page. Print.
·
This article talks about the migration of
Latino’s to southern states in America. It discusses the obstacles and hardships
they face. But also discusses how this has built there community. Provides persepective
on the Latin American community in states and cities with high volumes of drug
trafficking.
11.
O'brian, Patrick. "Tracking
Narco-Dollars: The Evolution of a Potent Weapon in the Drug War." University
of Miami Inter-American Law Review. 21.3 (1990): n. page. Print.
·
This article discuses narco-dollars and the
process they go through to become legitimate money. It also discusses the
spending of this monetary value. Where drug dealers are most likely to spend
this money. This will help my argument because I will have more background
knowledge on narco-dollars and where they get spent.
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