Some estimates put the figure at 60,000 or more.Ī Paraguayan police officer guards 388 kilos of cocaine seized in an operation, February 2013. Since the conflict there intensified in 2006, at least 47,000 people have been killed in the crossfire. The fight between cartels for control of territory, trafficking routes and local distribution is a large part of the story behind that country’s drug war. Most cocaine is produced in Colombia, before being trafficked through Central America into the major narcotics transit hub of Mexico. So when it comes to cocaine, how does it get to Australia, and what other costs – whether monetary or not – are created along the way? Production We know about campaigns against sweatshop labour or initiatives like Oxfam’s Fair Trade which try to raise awareness about costs and consequences in relation to food and clothing. In the context of illegal markets, consider the introductory sequence to Lord of War (a film of debatable quality modelled loosely on the story of Victor Bout), which emphasises the role not just of the user, but also of the production, transportation and distribution of a bullet before it is fired.
There are negative externalities on the supply side of goods and services. It’s also important to bear in mind the costs and consequences associated not just with its use, but also with its supply. This is why as institutions like the National Drug and Alcohol Research Centre try to estimate the social cost of drug use. UNODC World Drug Report 2012Įconomists define the real cost of a good or service not just in terms of the cost paid by the buyer, but also the cost to other parties affected by the transaction – the negative externalities. The wholesale price of cocaine in Australia is one the highest in the world. Does that price reflect the real cost of cocaine? No.
In Australia, it’s been rare to see that wholesale price fall below 200 to 250 Australian dollars per gram, depending on purity. In the US you can expect to pay a wholesale price of around 20 US dollars per gram. So how much do we pay for our cocaine? By international standards, cocaine prices in Australia are high. There’s also evidence that Mexican cartels have become involved in the supply and distribution of the drug in Australia, and have been stepping up the scale of smuggling. Australian Crime Commission (ACC) data shows a marked increase in seizures of cocaine (measured by weight) in recent years.
Increased demand is being met by increased supply. Cocaine use is becoming more socially acceptable. The drug is being used widely by people on more moderate incomes (typically relatively well-educated and employed), usually in private with friends. And studies of our cocaine market suggest that alongside hardcore users, there is a large group of casual users who share Buttrose’s attitude. According to the United Nations Office of Drugs and Crime, Australians are now the world’s eighth highest per capita users of cocaine.Ĭocaine use within the wealthier echelons of society is so unremarkable that when he was convicted of cocaine dealing in 2010, Richard Buttrose described it as being “ much like having a glass of wine”.
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