This essay aims to critically assess the implications of illicit drug trade on democracy in Latin America. The reemergence of democracy in Latin America after the Cold War has been plagued by a rise in illicit drug trade, which generates tremendous wealth and poses challenges to legal economic and political institutions. The influence of rich crime syndicates has infiltrated national politics and democratic institutions. Transnational crime and regional security and stability are important geopolitical issues. Neither realism nor liberalism adequately address the impact of transnational criminal organizations on states and their institutions.