ThePoisonous Household EnterprisesTom Wainwright, the author of this book, is the current editor of The Economist. Tom Wainwright is the current editor of The Economist, and was formerly the Economist's chief correspondent for Mexico, where he was familiar with Central and South America and the U.S. border. This book is based on his experience of interviewing and investigating the drug trafficking industry, and presents the supply chain and business model of the industry, as well as the author's own views on drug control. The author's views on drug control are also presented, making it a refreshing read on a subject that is difficult for the general public to access.
The book provides a fairly in-depth analysis of the drug trafficking industry chain. Nowadays, countries are mostly concerned with suppressing the supply of drugs (cracking down on crop cultivation or outlawing drug traffickers), however, according to the author's analysis, the demand for drugs is basically fixed, and cracking down on the supply is ineffective except for a small increase in the price of drugs. There are many reasons for this, in summary:
- Crackdowns on crop cultivation have been ineffective. The reason for this is that drugs, like other food industries, have a fairly long value-added chain. Cracking down on the source actually has little effect on the traffickers because the closer the source, the lower the price and the smaller the loss. The study points out that even if the price of raw cocaine tripled, the retail price of cocaine shipped to the U.S. would increase by a maximum of 0.61 TP3 T. In addition, in the case of cocaine, for example, since farmers who already grow large quantities of coca leaf (actually a traditional crop with the ability to alleviate the symptoms of high altitude sickness) for the production of cocaine have no choice but to sell even if the buyer lowers the price, or else they would lose too much, this type of crackdown only hurts the farmers who grow it, and the farmers who grow it will suffer less. Therefore, this type of crackdown can only hurt the farmers who grow it, not the drug cartels. What really affects the final price of drugs more dramatically is the cost of international smuggling to bribe officials and murder their rivals.
- The drug supply chain is similar to a multinational industry, with the supply of materials, manufacturing and processing originating from Central and South America, while the sale of drugs mainly takes place in Europe and the United States. The way Europe and the United States combat drugs is to hope that Central and South American countries will reduce the supply of drugs, but the population of drug users in Central and South America is not the main problem, and the economic growth and underground social order brought by the reduction of the drug supply industry will, on the contrary, jeopardize the interests of the people of Central and South America more. It should be realized that the total annual output of drugs is worth 300 billion dollars, which is not something that can be given up easily from the economic point of view.
Therefore, to reduce the impact of drugs, it may be more effective to analyze the overall operation of drug trafficking syndicates and find ways to disrupt their operations. If we look at drug trafficking syndicates as corporations, and analyze the drug trafficking industry in depth from a corporate perspective, we will find many similarities with corporations. The basic common methods of business operations and the problems they face, including supply chain control, talent management, partnership systems, offshore outsourcing, public relations management, technological innovation, etc., can also be seen in the operation of drug trafficking syndicates, which are in fact quite similar to ordinary businesses. For example:
- The search for talent will take place in fixed prisons, similar to a company recruiting at a university.
- Look for countries where regulation is lax or bribery is easier to manufacture and transport.
- Offers a franchise program that allows for small-time curiosity in different areas to join and provides military training, exchanging the Violent Alliance brand for a fixed upturn in profits.
- Drug traffickers began to use the dark web to sell and cultivate user reviews to provide real-time customer service, much like the characteristics of businesses that utilize the Internet. The development is also similar to the general business environment, starting with small-time drug dealers.
- Large-scale drug traffickers have diversified their operations, making use of their original "business advantages" to cross over to other industries, such as smuggling.
Of course there are differences between a drug trafficking business and a regular business. The main differences are due to illegality, such as the fact that it is more difficult to recruit members than in a normal business, and the need to use certain methods (perhaps in exchange for family protection, or even tattoos to make it difficult to switch gangs) to maintain loyalty. Another example is the fact that online businesses can only operate through the dark web and need to change their websites frequently.
The author concludes by arguing that legalization of drugs should be more conducive to control. Since drugs are illegal, when there is a demand for them, the market can only be controlled by gangs, which is not transparent and difficult to control, and the quality of drugs varies. Take the legalization of marijuana as an example. After legalization, new marijuana businesses in the United States competed legally, with low prices and an emphasis on quality, and the demand for illegal marijuana plummeted. After legalization, marijuana can be controlled from production to consumption, and the amount of marijuana used can be controlled by law, just like drug control. In this way, the overuse of drugs can be minimized in hospitals and pharmacies, just like drugs. The government would also be able to legally levy taxes, which could be invested in user education and tighter control.
After reading this book, I have a better understanding of the drug problem and the illegal industry. Perhaps we should all think about whether it would be better for society as a whole if more illegal industries, not just drugs, were brought under legal control, and if the trade that goes on in the dark corners of the world were minimized.
Thank you for reading this post. If you like my post, please follow up withFacebook Fan Specialist,Twitter,IGThe
