Research Paper
Outline
Source 1: Gootenburg,
Paul, THE “PRE-COLOMBIAN” ERA OF DRUG TRAFFICKING
IN THE AMERICAS: COCAINE, 1945-1965
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Before the early 1940’s cocaine was legal to be
produced in a small factory in Peru. It saw limited usage
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In the 1950’s it was illegal but saw limited
demand and few smugglers coming from the Andean region.
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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.
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In 1949 Peruvian smugglers were arrested and
suspected of smuggling around $5 million of cocaine a month
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First recorded cocaine smuggler to be arrested
was 1939 in New York
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In 1959 the Cuban revolution sent expert drug
traffickers across the Andean Region.
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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.
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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
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In 1967 26 pounds of cocaine were taken from the
border
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In 1969 52 pounds
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Finally in 1971 436 pounds were taken
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Cocaine had become a Gourmet drug that was
described as the major drug of the 1970’s
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Cold war politics
Source 2:Grosse,
Robert"The Economic Impact of Andean Cocaine Traffic on Florida."
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Majority of cocaine is brought from Colombia
through Florida, specifically Miami.
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As a result of this trafficking, drug smugglers
spend their money into the Miami economy so it can be legal assets.
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Many of these investments take place in real
estate in Dade county (primarily Latino)
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Estimated that since 1988 10 billion dollars has
been transferred from panama banks to Miami bank accounts
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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.
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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."
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Miami is the most internationalized metropolitan
city in the United States
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From 1960 to 1990 Dade county doubled and grew
by 2 million in population. Over $56 billion in its economy
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Miami’s growth can be attributed to Latin
American immigration and the globalization of the city.
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In 1960 Latin’s made up 5% of Miami’s
population. Today Latin’s represent more the half of the population sitting 66%
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About 50% of residents of Miami were born
abroad.
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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.
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Of 352 multinational companies based in Miami,
over 70% were started after 1980
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Miami is third to only LA and NYC in foreign
banks. Recognized as the gateway from the Americas.
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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.
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The city appeals to the Americas South of it
because it has the securities of USA with the Latin culture. Also discrete
banking laws.
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Most immigrants came to Miami to advance there
economic worth. Cubans came to prove Castro wrong by becoming economically
wealthy without him.
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At the state and federal level many representatives
are Hispanic.
Source 4: Foundations
for the future
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During Cubans communist revolution many of its
smartest people fled to Miami.
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In 1980 Florida was two percent lower
unemployment rate then the rest of the country.
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Many of Miami banks are under foreign control
Source 5: Miami City,
Florida." American Fact Finder. United States Census
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83 % of Latino’s in Miami Dade County are
foreign born.
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65% of Miami Dade county is Latino 34% is Cuban
Source 6: The Economy of
Narco-Dollars: From Production to Recycling of Earnings
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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.
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Cocaine in grown in countries all over the Andean region.
However, the entire raw product is taken to Colombia where the cartels refine
it.
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Prices of cocaine have fluctuated from 50k per kilo to 10k
per kilo
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Three types of repatriated laundering
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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.
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Over-Under billing of exported merchandise
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International financial markets: secrecy rules in these
banks. And allows un regulated money to come in. very expensive
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Cost of laundering has increased from 5-8% in the 1980’s to
up to 15% in the 1990’s
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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.
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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.
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Different facets to drug trade. Exporters, centers, and
consumers
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Three views discussed. Trade openness goes against drug
trade, helps drug trade and doesn’t effect drug trade
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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”
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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.
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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.
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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.
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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.
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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.
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Indigenous people of the Colombian Andean region have been
producing coca plant for years and consider it a sacred part of there belief
system.
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Guerilla soldiers and Paramilitary often protect the growth
and transportation of the Coca leaf as a main source of their funding.
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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.
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Ernesto Samper has had allegations of receiving drug money
in his political campaign.
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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
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There is deep-rooted tension in the American south between
immigrants and residence.
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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.
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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.
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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.
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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
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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.
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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
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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
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Ways Laundering still
exists today. Front companies take drug money and invest it into there
legatimatly set up businesses.
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Boutique banks are set up
overseas and conceal information from the Treasury
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