Bolivia's Narco State: The Drug Trade's Grip On A Country

Bolivia, a country in South America, has long been associated with the coca crop and the illicit drug trade. The term narco-state was first used to describe Bolivia following the 1980 coup led by Luis García Meza, which was allegedly financed by narcotics traffickers. The country's most lucrative crop in the 1980s was coca, which was clandestinely processed into cocaine. Bolivia was the world's second-largest grower of coca at the time, supplying approximately 15% of the US cocaine market. The country continues to be a significant coca grower and is currently the third-largest producer globally. The complex cocaine market in Bolivia is influenced by the legal cultivation and consumption of coca leaves for traditional purposes, with almost half of the leaves being commercialized illegally or used for non-traditional purposes. This situation has led to questions about whether Bolivia can be considered a narco-state, a term applied to countries where legitimate institutions are penetrated and influenced by the power and wealth of the illegal drug trade.

Bolivia's history of coca production

Coca has been cultivated in the Bolivian Andes since the Inca era, with the plant mostly being grown by small farmers in the Chapare and Yungas regions. In the 1980s, coca was Bolivia's most lucrative crop and economic activity, with the country becoming the world's second-largest grower of coca. The crop was attractive to farmers due to its quick economic return, light weight, and yield of four crops a year.

In 1983, the Bolivian government began efforts to eradicate coca cultivation, committing to a five-year program to reduce production. However, these efforts had little impact on the industry and were unpopular among peasants. In the late 1980s, Bolivia supplied approximately 15% of the US cocaine market, with exports of coca paste and cocaine generating an estimated $600 million to $1 billion annually.

In 1988, the Bolivian government passed Law 1008, which banned coca growing outside a specially mandated 12,000-hectare area in the Yungas. The law also established three zones of coca growing under separate regulations: a zone of traditional production, a zone of excessive production in transition, and a zone of illicit production. Despite these regulations, coca cultivation in Bolivia has continued, with the country becoming a producer of cocaine in addition to coca leaves.

In recent years, Bolivia has remained a significant producer of coca, with an estimated 42,180 hectares of cultivation in 2019. The country has also become a strategic hub for cocaine trafficking, with drug trafficking routes taking advantage of the country's geography. Efforts to combat drug trafficking in Bolivia have continued, with the government conducting anti-drug operations and working to diversify crops and promote alternative development in coca-growing regions.

The role of Evo Morales in the coca business

Evo Morales, Bolivia's first indigenous president and a former coca farmer, has played a significant role in the coca business. Morales has long supported the global legalisation of coca leaf chewing and urged the UN to declare it legal. He also heads a federation of coca farmers' unions in the Chapare region, reflecting his close association with the cocalero movement.

Morales' stance on coca has been a central aspect of his political career. As a congressman, he opposed forced eradication policies and was expelled from Congress in 2002 due to his association with anti-eradication forces. This position contributed to his surprising performance in the 2002 presidential election. In 2005, Morales won the presidency, with support from coca farmers playing a significant role in his victory.

As president, Morales' policies on coca were shaped by his support for traditional uses of the plant among indigenous communities and his desire to protect the livelihoods of coca growers. He opposed the aggressive focus on coca eradication, arguing that it failed to address the role of trafficking organisations and negatively impacted the livelihoods of farmers. Morales called for a balanced approach that targeted cocaine production and drug trafficking while allowing for controlled coca cultivation for traditional purposes.

In 2006, Morales signed a decree nationalising all natural gas reserves in Bolivia, which included a six-month transition period for foreign companies to renegotiate contracts. This move was in line with his broader agenda of increasing state control over natural resources and ensuring that the country benefited more from its natural gas wealth.

In 2019, Morales resigned as president following demonstrations and allegations of a fraudulent election. His role in the coca business and the controversy surrounding his policies have led to debates about the extent to which Bolivia can be characterised as a narco-state. While some critics argue that he enabled the illegal drug trade, others defend his efforts to balance drug control with the rights and needs of coca growers.

The impact of narcotics trafficking on Bolivia's economy

Bolivia is the third-largest grower of coca in the world, with the leaves processed into cocaine. Coca has been grown in Bolivia for centuries, and in the 1980s, it was the country's most lucrative crop and economic activity. The crop is mostly cultivated by small farmers in the Chapare and Yungas regions. In the 1980s, the country supplied approximately 15% of the US cocaine market, with exports of coca paste and cocaine generating between $600 million and $1 billion annually.

The cocaine trade has had a detrimental effect on the Bolivian economy. It accelerated the predominance of the US dollar in the economy and the black market for currency, fuelling inflation. The cultivation of coca also damaged the output of fruits and coffee, which were mostly for local consumption. The high prices of coca were inflationary and distorted other sectors, particularly the labour market. Manufacturers in the Cochabamba area struggled to match the wages workers could earn in coca, resulting in an unreliable labour supply and negatively impacting the formal economy.

The Bolivian government has attempted to eradicate coca cultivation, beginning in 1983 with a five-year program to reduce production. However, these efforts had limited success and were controversial among peasants. Bolivia has also collaborated with the United States on eradication programs, receiving funding and support to address the issue. Despite these efforts, Bolivia remains a significant producer of coca, and drug trafficking continues to impact the country's economy.

The country's weak state control and strategic location make it an attractive transit point for drug traffickers. Mexican and Colombian cartels operate in Bolivia, while Brazilian gangs control the traffic into their country and shipments to Europe. New illegal routes are being opened to increase drug shipments, particularly through rivers and air transport.

The economic crisis in Bolivia has blurred the line between politicians and the mafia. The massive expansion of government machinery at the expense of the private sector has strained the country's budget, and public debt is growing. The economic challenges have also led to a weak governance structure, with low salaries and an unprofessional bureaucracy creating incentives for corruption, clientelism, and patronage.

Overall, the impact of narcotics trafficking on Bolivia's economy has been significant, contributing to inflation, distorting labour markets, and leading to economic challenges that have weakened governance and facilitated corruption.

Bolivia's anti-narcotics efforts

In the 1980s, the Bolivian government recognised the negative impact of the narcotics trade and began efforts to eradicate coca cultivation. They committed to a five-year program to reduce coca production and created the Coca Eradication Directorate under the Ministry of Agriculture, Campesino Affairs, and Livestock Affairs. This directorate worked in conjunction with the National Directorate for the Control of Dangerous Substances to eradicate several thousand hectares of coca. However, these efforts had limited success and were met with resistance from peasants who relied on coca for their livelihood.

To address the issue, the Bolivian government signed an agreement with the United States in 1987, allocating $72.2 million towards eradication programs and rural development in the Chapare region. This agreement aimed to provide alternative crops to coca, such as coffee and citrus fruits. However, the economics of eradication proved challenging, as the destruction of coca fields drove up local prices, making it more attractive for growers to plant coca.

In the late 1980s, Bolivia also faced a wave of drug-related violence, with the Medellín Cartel from Colombia wielding significant power in the country. This period saw an increase in corruption within Bolivian security services and the judiciary, with drug traffickers bribing officials and exerting control over the media.

In the following years, the Bolivian government continued to implement anti-narcotics measures, including the creation of the National Council Against the Unlawful Use and Illicit Trafficking of Drugs. They also passed the 1988 Antinarcotics Law, which aimed to eradicate illicit coca production and penalise drug trafficking. This law established strict penalties for those involved in the drug trade, from manufacturers to transporters.

Despite these efforts, Bolivia continued to struggle with drug-related issues. In 1997, the country launched "Plan Dignidad", backed by the US government, to counter the drug trade. However, critics noted that the plan focused heavily on crop eradication rather than targeting trafficking organisations.

In 2008, tensions arose between Bolivia and the US when President Evo Morales expelled the US Drug Enforcement Administration (DEA) from the country, accusing them of fomenting the drug trade. Despite this, Bolivia maintained relations with the US on counter-narcotics issues, and the Morales administration made strides in reducing coca cultivation through voluntary participation of farmers.

In recent years, Bolivia has continued to be a key transit point for drug trafficking, particularly as an air bridge for Peruvian cocaine. The country's geographical location and weak security forces have facilitated the transit of narcotics to Brazil, Paraguay, the United States, Europe, and Asia. Additionally, there have been allegations of high-level political elites and law enforcement officials being involved in the drug trade.

While Bolivia has made efforts to combat the illicit drug trade, the country continues to grapple with the challenges posed by coca cultivation and drug trafficking. The complex nature of the narcotics trade and its deep roots in Bolivian society have made it a persistent issue.

The presence of international drug cartels in Bolivia

Bolivia's central location in South America, its proximity to other drug-producing countries, and its history of coca leaf production have made it an attractive hub for international drug cartels. The country's geography, with its remote borders and vast tropical forests, provides an ideal setting for clandestine drug production and trafficking.

Historically, Bolivia has been a significant producer of coca leaves, which are processed into cocaine. In the 1980s, Bolivia was the second-largest grower of coca in the world, supplying approximately 15% of the US cocaine market. This placed the country on the radar of international drug cartels, particularly those from Colombia and Brazil.

The presence of Colombian drug cartels in Bolivia has been notable. Pablo Escobar's Medellin Cartel wielded considerable power in the country during the 1980s, setting prices for coca paste and cocaine, and using hired assassins to terrorize the drug underworld. Colombian drug syndicates have continued to operate in Bolivia, taking advantage of the country's coca leaf production and its proximity to Brazil, a major consumer of illegal drugs.

In recent years, there has been a shift in the dynamics of the drug trade. While Colombia once dominated the US cocaine market, today it is the Mexican cartels that hold sway. As a result, Colombian drug syndicates have turned their attention to the more lucrative European and Asian markets, and Bolivia has become a strategic hub for this new trafficking route. Colombian cartels produce high-quality cocaine in Bolivia and smuggle it into Brazil and Argentina, where a portion is sold before being transported onwards to Europe and Asia.

Brazilian drug gangs, such as the First Capital Command (PCC) and Red Command (CV), have also established a permanent presence in Bolivia to secure supplies of cocaine and its derivatives for the booming Brazilian drug market. These groups are primarily based along the border in the departments of Beni and Santa Cruz.

In addition to Colombian and Brazilian cartels, there is evidence of the presence of other international drug syndicates in Bolivia. Mexican cartels and European traffickers, including Balkan and Italian mafias, have been reported to operate in the country. The country's porous borders and weak institutions make it an attractive transit point for drug trafficking.

The Bolivian government has made efforts to combat drug trafficking and reduce coca leaf production. However, the country continues to be a major producer and transit hub for cocaine, and the presence of international drug cartels remains a significant challenge.

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