The Economy of Illicit Drug Industry and the Social Impact


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  • Cause and effect relationship.
  • 90% of pound notes in UK have traces of a cocaine.
  • By the turn of the century the Indian government licensed nearly 160,000 farmers to cultivate opium on 35,000 hectares. In the year 2000 over 1,300 metric tons of opium was harvested, the largest amount in many decades.
  • India continues to be a main source of illicitly manufactured amphetamines and methaqualone. Seizures of amphetamines by law enforcement authorities continue to increase; seizures of methaqualone have varied widely, from 2,382 kilograms in 2008, 33 kilograms in 2009, and zero kilograms in 2010.
  • Heroin, brown sugar, appeared on the Indian market in the early 1980s and it effectively displaced opium and cannabis as the drugs of choice.Rapid survey data on drug use show that the onset of drug use in various major cities starts as early as 15to 18 years of age. Experts agree that the ages of starting injecting are similar in most of the states.Sizeable number of drug users are from a lower socio economic status with substantial numbers having almost no education and they work in insecure positions or are unemployed. 42% percent among IDUs of Kolkata could not read or write: it was nearly 50% among the non-injectors. Delhi also showed near identical result, although in Mumbai it was little better. However, in Meghalaya among both injectors and non-injectors it was abysmally low(three percent).Addicts health condition in India is often poor. Improper usage of needle causes ulcers, abscesses, cellulitis and thrombophlebitis among IDUs. Most of them are undernourished and have experienced excessive drug intake.
  • US is world’s largest market with 44% share followed by EU with 33%.Consumption is from all strata of society.
  • 15% of the first time user become addicted to it.
  • Shaan State of MyanmarShining State in PeruRAF in ColumbiaTaliban in Afghanistan
  • Afghanistan: 60% of GDP.
  • 1)Destroy the big druglords and it leads to more small druglords and increase competition and thus reducing the price and increasing consumption.2)First Convention of UN in 1961- to use drug for medicinal purpose. Second-expanded the range of subs under international control and third in 1988 is the most effective one with focus production, sale, importation, exportation of illicit drugs as a criminal offence
  • when they started they think they want it and slowly it becomes their need.As the problem is psychological and so is the solution.
  • 90% of pound notes in UK have traces of a cocaine.
  • 90% of pound notes in UK have traces of a cocaine.
  • The prevelance rate in developing countries is more than developed countries.
  • The Economy of Illicit Drug Industry and the Social Impact

    1. 1. Presented By:Nikhil BhatiaNitesh KasanaNavneet GargNitin Shivani 1
    2. 2. 2
    3. 3. Why it Needs Attention• Annual worldwide illegal drug sales are greater than the gross domestic product of 88% of the countries in the world.• 5% of worlds adult population have taken an illicit drug at least once in 2010.• Around 2 lakh people die every year because of illegal drug overdose. 3
    4. 4. Flow Of Presentation• What is a drug and Types.• Brief History.• Worldwide picture.• Indian Scenario.• Analysis of Industry and Users.• Social And Economic Impact.• Steps to Tackle the problem.• Survey Report.• Future Trends 4
    5. 5. What is a drug?• A drug is a substance which when taken by a living body may have positive effects such as diagnosis , cure, prevention of a disease or cause negative effects to central nervous system that leads to it’s addiction. 5
    6. 6. Types of drugs• Natural drugs These are those drugs that are derived from nature such as drugs in plant form that are not human made. Examples of natural drugs are cannabis, opium, coca products, cocaine, morphine etc.• Chemical drugs These are those drugs which involves chemical substance in it. These are man made drugs. Examples of chemical drugs are amphetamine, ecstasy, LSD, benzodia zepines, heroin ,hallucinogen etc. 6
    7. 7. Brief history of drugsCannabisA drug derived from a family of plants that includes hemp.It was first originated around 6000 B.C. in China when cannabis seeds wereused as food in China.Opium It is a drug derived from the dried juice of unripe pods of the opiumpoppy.The first known cultivation of opium poppies wasin Mesopotamia, approximately 3400 BCE. In India around 1000 B.C.opium was cultivated. 7
    8. 8. Brief history of drugsCocaineIt is a drug derived from coca leaves. The drug was first originatedaround 3000 B.C. by the Incan empire of Peru.NicotineIt is a psychoactive constituent of tobacco.It was first used by the Europeans in the 16th century when Frenchambassador in Portugal sent tobacco and seeds from Brazil to Paris in1560. 8
    9. 9. Brief history of drugs Morphine In 1803, morphine is isolated from opium poppies by 20 year old German pharmacist Friedrich Wilhelm Adam. Heroine In 1898 Bayer company introduced heroin as a substitute for weaning addicts of morphine but it also appeared to be as addictive as morphineAmphetaminesIt is a group of drug that stimulate central nervous system. It was firstsynthesized in 1887 in Germany. 9
    10. 10. EcstasyEcstasy, "E" or "X" are the street names for MDMA, or (get ready for a longone)3,4-methylenedioxymethamphetamine.MDMA was first synthesized by a chemist looking for substances to stopbleeding in 1912. No one paid the compound much mind for the next half-decade, but by the 1970s, MDMA had hit the streets.LSDIt was first synthesized in 1938 in Basel, Switzerland by Albert Hoffman. LSD waspopularized in the 1960’s in U.S. when American students were encouraged to tuneon, tune in and drop out. This created a counterculture of drug abuse in U.S. whichwas spread to U.K. and the rest of Europe. 10
    11. 11. Current Scenario 11
    12. 12. Present State• Illicit Drug Use – stable over five years – 3.4 - 6.6% of the world adult population. – 10-13 % of drug users have drug dependence and/or drug-use disorders . – prevalence of HIV (20 per cent), hepatitis B (14.6 per cent) and hepatitis C (46.7 per cent) among injecting drug users continues to add to the global burden of disease . – approximately 1 in every 100 deaths among adults is attributed to illicit drug use. 12
    13. 13. Shift in the Patterns• Opium – declined usage over the last century. – Global opium production levels increased until 2000, and remained basically stable thereafter.• Cocaine – Global production of cocaine increased sharply in the 1980s and the 1990s and has only stabilized over the past decade.• Cannabis – continues to be the world’s most widespread illicit drug. – usage is still increasing in many developing countries. 13
    14. 14. Major Drug Producing Nations• Afghanistan – Grew 93% of opium poppy in the world in 2007. – Export value of this harvest - $4 billion; more than a third of the countrys combined GDP.• Colombia – Worlds #1 cocaine supplier, also a major supplier of heroin and precursor chemicals.• Burma – Worlds 2nd largest producer of opium poppy.• Bolivia – 3rd largest producer of cocaine in the world, accounting for an estimated 127 tons. – It is legal to grow up to 29,652 acres of coca leaf for traditional uses. 14
    15. 15. Use and Dependence 15
    16. 16. Major Transit Hubs• Cocaine – The Bahamas, Brazil, Dominican Republic, Guatemala, Mexico, Nigeria• Heroine – Dominican Republic, India, Ecuador, Nigeria,• Marijuana – Bolivia, Haiti, India, Jamaica 16
    17. 17. Major Trafficking Routes• Caribbean & Mexican Routes – Cocaine shipments from South America transported through Mexico or Central America are moved to sites in northern Mexico. Smaller loads are then smuggled across the U.S.–Mexico border. – Primary cocaine importation points - Arizona, southern California, southern Florida, and Te xas.• Chilean route – Primarily used for cocaine produced in Bolivia since the nearest seaports lie in northern Chile. While the price of cocaine is higher in Chile than in Peru and Bolivia, the final destination is usually Europe, especially Spain. 17
    18. 18. Trafficking Routes 18
    19. 19. 19
    20. 20. Estimated Economic Cost to SocietyDue to Substance Abuse and Addiction • Illicit Drugs: $181 bn/year • Alcohol: $185 bn/year • Tobacco: $193 bn/year ____________________________________ Total: $559 bn/year 20
    21. 21. Indian Perspective According to a 2004 United Nations Office on Drug and Crime (UNODC) and Govt. of India report, India alone has nearly 9 million cannabis users, followed by 2 million opiate users and 0.3 million sedative hypnotics users. 21
    22. 22. Historical Profile of Intoxicant Usage in India When all British restrictions attempted were Injecting to lifted, it drug users Brought to popularize had (IDU) India by its use to increased became the Arab increase to 2,555 increasingl traders revenue. tons. y prevalent Babar(1524 China India -1530) imported became encourage 15 tons of the only d poppy opium supplier of cultivation from licit opium India, incre for the asing to 75 world’s tons by requireme 1773 nts. 22
    23. 23. Present Scenario• India ranks second to Afghanistan in production of licit opium.• In 1999 an estimated 300 metric tons of licit opium was diverted to the black market, converted into heroin ‘brown sugar’ and sold.• Since the early 1980s use of opium derivatives like heroin has been wide spread in the major metropolitan cities of India like New Delhi, Kolkata, Chennai and Mumbai etc.• During the 1990s injecting pharmaceuticals, in particular buprenorphine took an epidemic proportion and often used as an alternative among heroin users.• Nearly 32% of heroin seized in India has its origins in Afghanistan or Pakistan. 23
    24. 24. Contributing States of India • Licit Opium poppy is grown in the central Indian state of Madhya Pradesh (Mansaur), Rajasthan (Kota, Jodhpur,etc.) and Uttar Pradesh (Gazipur). • Jammu and Kashmir, Uttar Pradesh, Manipur, Mizoram, Nagaland and Arunachal Pradesh have been found to be indulging in illegal growing of opium poppies. • A purer variety known as ‘white sugar’ is available in the states of Manipur, Nagaland and Mizoram, which are closest to the source of heroin. • In Manipur, heroin has been sold since 1973 and its use has become widespread. 24
    25. 25. Trafficking routes of India• Strategically located between Southwest Asia (the Golden Crescent) and Southeast Asia (the Golden Triangle), the two main sources of illicit opium.• The countrys geographic location makes it an attractive transshipment area for heroin bound for Europe, Africa, Southeast Asia and North America. 25
    26. 26. • Smuggling of heroin into India from Afghanistan via Pakistan continues to increase. • Licit and illicit manufactured opiate/psychotropic pharmaceuticals are often diverted in small quantities to the U.S. as illegal "personal use" shipments. • There is also evidence that opium is grown illicitly in India, especially in the northeastern regions.• . 26
    27. 27. Addiction Pattern• In rural Rajasthan swallowing and smoking of opium is very common.• Addictives are often used in India in open public places without any hesitation.• As a general rule injecting equipment is discarded inappropriately.• Intoxication of a mix of cannabis with tobacco is a common practice. 27
    28. 28. The table below outlines total drug seizuresmade in India during the period of 2004through December 2010. Total kg Total kg Total kg Total kg Total kg Total kg Total kg Name of Drug seized in seized in seized in seized in seized in India seized in India seized in India India 2004 India 2005 India 2006 India 2007 2008 2009 2010 Heroin 468 259 246 900 1,155 561 550 Hashish 394 430 955 3,766 4,347 2,321 2987 Opium 20 0 787 1,758 1,334 1,102 1282 Ganja (Marijuana) 10,502 5,572 14,919 75,407 113,025 135,922 144,487 Cocaine n/r .63 200 5 13 11 11 Methaqualone n/r 330 19 1 2, 382 33 0 27Acetic Anhydride (ltrs) 2,370 51 n/a n/a 1,200 478 Ephedrine 71 7 n/r 295 38,479 606 2,100 Amphetamines n/r n/r n/r n/r 22 11 47 n/r = not reported CBN,India 28
    29. 29. OI UN TP PU UT T 29
    30. 30. Analysis of Drug IndustryCountry and their role: Producing:• Developing Countries.• High Crime rate and Insecurity.• Social and Political instability. Distributing:• Close proximity to both manufacturing and consuming country.• Flexible laws and not so stringent rules and regulations. Consuming:• High in developed countries in terms of revenue.• Low-grade drugs consumed in poor countries. 30
    31. 31. Analysis of Drug IndustryDemographics Age: Around 70% of consumption is by people in age group of 15-27 years. Gender: More common among males and In US alone, in 2010 around 18% of male and 12.5% of females above 12 years of age have consumed illicit drug at least once.User Types: Addicted User: Regularly consumes and generally consume when alone and is less productive and less price sensitive. Recreational User: Ocassionaly consume and consume in social gatherings and is price sensitive. 31
    32. 32. Reasons for ConsumptionIndividualistic:• Loneliness.• Depression.• Work overload and difficult job conditions.• Built Physical endurance.• Poverty• To feel HighRegional:• Youth Protest Movements against war and oppression. Ex: Hippies movement in US in 1970’s.• A significant number of illicit drug users regarded themselves as progressive citizens and reject materialism, consumerism and conformist behaviour and is prevalent among the socialist class. 32
    33. 33. Social Impact• The biggest is the number of deaths which is 2 lakh and half of them are in their mid-30’s.• One in 5 persons receive treatment.• Drug use via injection is used by 16 million people and out of these 20% are HIV Positive and 20% are suffering from Hepatitis B and around 50% from Hepatitis C.• In UK almost 90% of the social and economic costs of crimes crimes(fraud, burglary, robbery and shoplifting) were related to drug abuse in 2010. 33
    34. 34. Economic Impact• In US in 2010, US $24 billion was spent on healthcare due to illicit drug use.• On average, the United States estimates resulted in a potential productivity loss of slightly more than $1 million for each drug-related death. • Average drug industry is around US $400 billion and it employs around 70 million people. • Economy of countries like Afghanistan and other African nations are surviving because of this industry only. 34
    35. 35. Comparative AnalysisParticulars Alcohol Tobacco Illicit DrugsPrevalence rate among global 42% 25% 10%populationGlobal Deaths Percentage 3.6 8.7 0.4Life years lost per 100 users 2 5 19 35
    36. 36. Steps to Reduce consumption Manufacturing Banned By a Country. Consumption Banned By a Country. Signed a Treaty by many countries to ban its production and consumption. ??? 36
    37. 37. Steps to tackle the Illicit drug consumptionLOGICAL:• Medical prescriptions suggested.• Its production and consumption banned.• Rules and regulations more stringent. 37
    38. 38. Steps to tackle the Illicit drug consumptionPSYCHOLOGICAL:• 12 Step Model.• Focus on Physical, emotional and spiritual level.• In this they are made to realise that the substance is the symptom not the disease.• 90 days minimum stay at centre.• Reduce the consumption and make them strong to face the outer world.• Challenge is high drop out rate.• NA- Daily meetings held at various locations across the world. 38
    39. 39. Survey Report Age Distribution 10% <20 40% 18% 20-25 25-30 >30 Occupation Distribution 32% Unemployed 20% Service 36% Student 12%Education Level Distribution Self 32% <12th PG 20% 30% Graduate 50% 39
    40. 40. Survey ReportReason for addiction distribution Curiosity Stress Others Depression 25% 37% 13% Frequency of Usage 25% Distribution Per Month <5 14% 5 to 8 24% >8 62% 40
    41. 41. Survey Report Legalisation Distribution Cant say Yes 18% 36% No 46%Place Of Procurement Distribution Friends Drug Paddlers Chemist Shops Others 10% 10% 48% 32% 41
    42. 42. Steps to Reduce consumptionShould Illicit drug consumption be legalised? Why? • Only less harmful one should be legalised. • Impose Tax on them. • Use the revenue in rehabilitation and de- addiction centre and promoting and launching campaigns. 42
    43. 43. Future of this Industry• Consumption shifting to developed countries which would mean heavier burden for countries relatively less equipped to tackle it.• Increase in poly drug use which is a combination of two drugs and is very dangerous.• Non-medical use of prescription drugs.• Switch from natural to synthetic drugs.• Technology has played a important role in evolution of this industry as it leads to faster and better communication. 43
    44. 44. Sources• World Drug Report 2012 by United Nations.•• Narcotics Anonymous.• Alcoholic Anonymous.••• Miscellaneous Articles and Readings. 44
    45. 45. 45