Cocaine's Effect on Bolivia


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South America
November 9th 2022
Published: November 10th 2022
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While it is not part of their GDP reports of course, the raw materials for the production of cocaine is Bolivia's largest export according to every person I have spoken with.

In most countries, the coca leaf is treated as a controlled substance. But here they are sacred in the indigenous culture. They are used for anything from traditional ceremonies, curbing hunger pains, to making tea to treat altitude sickness. The coca leaf will not get you high. The effects are more like a cup of coffee. Just like wine comes from grapes, cocaine comes from coca leaves.

Countries like America have ongoing programs to reduce the imports of drugs, but the export of raw materials from a country like Bolivia is more complex. It can bring money to this very poor country, but it also brings violence, corruption, and a reduced focus on food agriculture. In the 1980s while the Bolivian economy was crashing, the illegal export of raw cocaine materials was thriving. The government and businesses could acquire US dollars and people desperate for work took jobs at the illegal coca leaf farms.

There two very different types of coca leaf producers here. First is the small countryside coca leaf producer who is just growing enough for local consumption of the leaves. Coca is the most profitable crop a farmer can grow at altitude. They can harvest it 4 to 6 times a year compared to 2 to 3 times for food crops. It is not susceptible to disease and it does not require much land to flourish. This makes it 2-10 times more profitable than growing food crops.

Then there are the major cocaine producers and traffickers. The unground export of raw coca leaves for the production of cocaine (primarily in Mexico) now commands the whole country. The government is completely controlled by the money from this underground export. I would imagine it would be difficult for a high level politician to not be controlled by the drug cartels since violence is very common.

I am continuing to watch the effects of the protests in the country. The protests have now spread to majority of the main cities. We had planned to take a car on Friday to Uyuni, but we are told the roads may be blocked. To my knowledge airports are not effected by the protests so we could fly if needed. So far it has not given me a reason to think I need to leave early, but that could change if things get worse or if the shut downs prevent me from being productive.


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