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WK6_SOC2460_SP11

WK6_SOC2460_SP11 - SOC 2460 Drugs and Society Spring 2011...

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SOC 2460: Drugs and Society Spring, 2011 Mondays and Wednesdays 2:30-3:20, 253 Malott Hall Discussion Sections on Fridays (1) 2 30PM 3 20PM MCG 125 (1) 2:30PM-3:20PM MCG 125 (2) 2:30PM-3:20PM MRL 111 (3) 1:25PM-2:15PM MRL 111 (4) 10:10AM-11:00AM MCG 125 Instructor: Douglas Heckathorn, Professor of Sociology 344 Uris Hall 255 4368 255-4368 E-mail: [email protected] Office Hours: Fridays 1:30 to 3:30 or by appointment Teaching Assistants: Patrick Park Kyle Albert
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Structure of Drug Markets: The role of corruption Second, drug trade can be seen as resulting from economic opportunities created by drug trade Drug trade is important source of foreign exchange and employment, e.g., i B li i h 10% f j b in Bolivia more than 10% of jobs Corruption is the consequence of trying to suppress a profitable market This differs from usual form of corruption—”rent seeking” which reduces economic activity, e.g., by draining profits that can be reinvested In contrast, illicit drugs provide both employment and foreign exchange Rent-seeking” corruption versus drug corruption Most governmental corruption takes a form Gordon Tullock termed “rent seeking” seeking E.g., bribes to officials to start a business, or having to share profits with officials This type of corruption reduces economic activity According to may economists this is what limits economic growth in many According to may economists, this is what limits economic growth in many developing countries E.g., why reinvest profits to grow business, if gains will be seized by corrupt officials? Similarly funds for economic development end up in numbered Swiss 2 Similarly, funds for economic development end up in numbered Swiss accounts Such corruptions tends to be cyclic, expanding and then being suppressed when it becomes too burdensome
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Structure of Drug Markets: The role of corruption In contrast with rent-seeking corruption, drug corruption creates wealth Creates jobs and increases foreign reserves Hence, building a political consensus to stop it is difficult because of conflict between domestic economic concerns, and foreign political concerns History of opiates in China illustrate role of economic considerations Have long history of use in China, but vastly increased by the British after Have long history of use in China, but vastly increased by the British after 1729 British East India Company monopolized trade in opium Prior to 1729, British imported tea, in return for silver Result because Chinese bought little from west was a drain on British Result, because Chinese bought little from west, was a drain on British silver British solution—take over opium growing areas of India, and import it to China Result: “triangle trade”: cloth from England to India opium from India to Result: triangle trade : cloth from England to India, opium from India to China, tea from China to Britain Hence, British retained their silver Another famous example: Rum and goods from New England to Africa,
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