Narconomics

Very interesting book. It explains the mechanics of a drug cartel from the point of view of economics. I didnt think issues like supply chain, HR/PR, competition/merges, offshoring, R&D, online business, diversification, etc were part of drug cartel, as you only think of those as part of a licit business. There were many things that I didn’t know like the birth of “legal highs” in NZ (and Matt Bowden)

The goal is to fully understand the “business” because the current laws/actions, etc against drugs are clearly not working. So this way you can really offer a different approach to tackle the issue. You are not going to destroy them 100%. Most of the actions are at the source of the drug business: growing the plant (decrease in growing area causes minimum increase in retail price). But the book shows that is not effective and prevention (done in the consumer’s land: like rehab, education in jails, etc) is much more productive (for the same investment). As well as legalization (ie marijuana) as that brings control (“safer drugs”, tax revenue, etc) and put out of the market the dealers/cartels.

This is a difficult pill to swallow (punt intended) for governments and citizens but the writing is in the wall.