Pubdate: Mon, 19 Nov 2001
Source: Dallas Morning News (TX)
Copyright: 2001 The Dallas Morning News
Contact:  http://www.dallasnews.com/
Details: http://www.mapinc.org/media/117
Author:  TOD ROBBERSON

DRUG CASH KEEPS POOR FARMERS AFLOAT

Colombians Struggle To End Their Dependence, Despite U.S. Incentives

DELICIAS, Colombia - In all his 75 years, Vicente Yalanda Tombe has never 
seen a dose of heroin and has no idea how or why a person might use it.

People have told him that the quarter-acre of purple and red opium poppies 
growing in his mountainside garden is capable of doing bad things to a lot 
of people. So he and hundreds of his fellow Guambiano Indians in Colombia's 
southern highlands agreed earlier this year to uproot their chief cash crop 
and try growing something different.

If only it were that easy, Mr. Tombe said.

This is the fourth time since 1997 that the Guambianos have tried to end 
their economic dependence on opium, the crop that provides the base 
ingredient of heroin. In all previous attempts, however, they have failed.

"That little patch brings us more money than everything else combined that 
our land can give us in legal income," Mr. Tombe explained as he pointed to 
his opium crop. "Nothing else pays enough to sustain my family."

Throughout the Western Hemisphere, tens of thousands of individuals find 
themselves in much the same situation as Mr. Tombe and the Guambianos, 
according to U.S. and Latin American government statistics. Their children 
and schools may be drug-free; their streets might be safe from the violence 
and evils of the drug trade. And yet they find themselves hooked ? not on 
drugs, but on the money that the drug trade provides.

The drug economy is thriving because of their desperation, said Roberto 
Steiner, a Colombian economist and specialist in the economic effects of 
drug trafficking. He listed poverty and lack of economic opportunity as the 
top factors contributing to the decision of farmers and smugglers to 
abandon their legal livelihoods and join the underworld of the drug trade.

Without their willingness to work cheaply and put their lives at risk for 
the sake of a few extra dollars, the drug trade would not be the serious 
international problem that it is today, he and other drug-economy 
specialists said.

Top U.S. officials concur, noting that with 150 million people in Latin 
America surviving on less than $2 per day, there is a seemingly endless 
supply of people who will risk everything for the chance to improve their 
lives through the drug trade. Attacking drug labs and jailing American 
pushers will not solve the problem, they say, unless something is done to 
ease the poverty that is driving so many people to begin cultivating or 
smuggling the drugs that are sold on U.S. streets.

In early May, Secretary of State Colin Powell called for a realignment of 
U.S. counternarcotics policy in the Andean region "not just to focus on 
narco-trafficking in Colombia but to see the problem as a regional problem 
and to invest in human-rights activities, to invest in infrastructure 
development, to invest in economic opportunities that will encourage people 
to move away from narco-trafficking, and to see this problem as a regional 
problem and not just a simple problem of narco-traffickers in Colombia alone."

He and other top officials from around the region are looking for a lasting 
solution to a problem that has confounded governments for decades. In the 
past, U.S. officials have tried naval and land blockades to keep drugs away 
from American borders. When that approach failed, they went to the 
drug-trafficking heartland of Colombia and, working with Colombian police, 
smashed the cartels that once dominated the trade.

Crop substitution

They tried various forms of crop substitution and 
infrastructure-development programs in areas where farmers are most 
vulnerable to the temptations of drug-crop cultivation. In countries such 
as Peru and Bolivia, those programs have shown positive short-term results. 
But in Colombia, the problem seems only to be getting worse.

Two years ago, the United States agreed to support a carrot-and-stick 
solution. With more than $1.3 billion in funding, Washington launched a 
program to send military helicopters, equipment, and trainers to forcibly 
eradicate drug crops and help Colombia's army and police combat the 
insurgents who now protect the drug trade.

The U.S. aid is part of a $7.5 billion package, known as Plan Colombia, 
which Colombian President Andres Pastrana designed to provide good-paying 
jobs and substitute crops to keep poorer Colombians from being lured back 
to the easy money of drug-crop cultivation.

It is too early to determine whether this multiyear program will succeed. 
It is, however, running into opposition from critics who say the solution 
lies elsewhere. Neighboring countries complain that the plan threatens to 
send guerrillas and drug cultivators across the border. Environmentalists 
say the eradication program uses chemicals harmful to plant and animal 
life. In the United States, many critics complain that the plan is doing 
nothing to address the demand for drugs by American consumers.

As long as demand remains, the drug problem will not go away, those critics 
say. Others say the simplest solution is to decriminalize drugs altogether.

The challenges to the kind of approach advocated by Mr. Powell are 
tremendous and complex. Those closest to the problem say it will not be 
enough simply to nudge coca and opium farmers into crop-substitution programs.

"Nothing else can compete. We've tried alternatives: onions, potatoes, 
fruits of all kinds," said Segundo Monta=F1o, vice governor of the 
Guambiano tribal council that issued an edict in January for all Guambianos 
to uproot their opium crops. "Before, when there wasn't any illicit 
cultivation, everyone got along fine. But that's not enough anymore."

Financial incentive is what drives people like Mr. Tombe to take great 
risks and continue growing drug crops even though the Colombian government 
has threatened to throw them in jail and send troops to eradicate their 
crops. For the sake of a few extra dollars, Colombians young and old are 
risking lengthy prison terms and ruined lives to smuggle drugs out of the 
country in suitcases, wheelchairs, dolls, coffins, military aircraft, and 
even a presidential plane, to name but a few of the methods used.

Across the Caribbean, Mexico, and Central America, hordes of poor people 
are strapping drugs onto their bodies or agreeing to swallow condoms filled 
with drugs for the daily assault on U.S. ports of entry. Getting caught 
means certain jail time, but getting away with it means a ticket out of 
poverty.

For many, the equation is a no-brainer.

Legitimate trade hurt

In Colombia, the influx of narco-dollars and contraband goods used to 
launder drug profits is wreaking havoc on the nation's financial system, 
altering the value of the national currency and putting billions of dollars 
worth of legitimate commerce and investments at risk, said Armando 
Montenegro, president of the National Association of Financial Institutions 
in Bogota.

"The effects of the drug trade on Colombia have been enormous," he said. 
"It corrupts the politicians, the judiciary, the law enforcement apparatus. 
It funds the guerrillas and paramilitaries.

"Drug trafficking has caused violence to go up, with murders, kidnapping 
and other types of extortion," he added. "And when violence goes up, 
investment goes down."

U.S. and Colombian military officials say that drug profits are providing 
the principal source of funding for the nation's two largest insurgent 
groups, the Marxist Revolutionary Armed Forces of Colombia, or FARC, and 
their arch-foes, the paramilitary United Self-Defense Forces of Colombia. 
In turn, the U.S. and Colombian governments now earmark billions of dollars 
in military expenditures to combat insurgent groups protecting the drug trade.

FARC leaders say they are fighting to oust the government and establish a 
socialist state. The paramilitaries say their primary goal is to stop the 
FARC and smaller leftist groups from gaining power. Both groups say drug 
income helps fund their military activities.

Due largely to drug income, the FARC today has the financial resources to 
recruit and equip its fighters at unprecedented levels, having grown from a 
force of about 8,000 guerrillas in 1995 to 17,000 today. The paramilitaries 
have grown from about 4,000 to 8,000 today, according to diplomats and 
military analysts.

Flush with cash, both groups are paying top dollar to import weapons, using 
neighboring countries as conduits. Corruption and security problems are 
growing for Colombia's neighbors. The government in neighboring Peru 
collapsed last year after top officials were implicated in a smuggling 
operation that delivered more than 10,000 AK-47 assault rifles to the FARC.

Huge profits

Within Colombia, the drug trade has become so lucrative that insurgent 
forces are fighting directly with each other for control of the turf where 
drug production is most widespread, said Brig. Gen. Mario Montoya, 
commander of a U.S.-funded eradication program in southern Colombia.

The traditional notions of a Marxist guerrilla group fighting against the 
oppression of the poor no longer apply to Colombia's groups, he said. This 
is business.

"They're not here to defend anything or anybody. They are here to traffic 
in drugs, because drug commerce is all they have here. There isn't anything 
else," Gen. Montoya said.

Often caught in the middle are the peasant farmers like Mr. Tombe, who 
occasionally are visited by members of the FARC and required to pay "war 
taxes" for the right to continue growing drug crops.

"We're not getting rich off this," said Octavio Rodriguez, a coca farmer in 
the southern province of Caqueta. "We don't grow coca because we want to. 
The state has abandoned us. It is the state that left us without the 
ability to survive growing legal crops that we can sell at fair prices."

Even though a two-acre plot planted with coca can produce more than $10,000 
worth of refined cocaine, farmers like Mr. Rodriguez are lucky if they earn 
more than $250 for each three-month harvesting cycle, Gen. Montoya said. 
Even at that low level, the payoff is higher than what the average peasant 
farmer can earn off legal crops.

The government agency responsible for administering crop-substitution 
funds, known as Plante, has had a checkered history of successes and 
high-profile embarrassments with its anti-drug efforts. Under Plante 
sponsorship, the Guambianos hosted a huge gathering of diplomats and 
government leaders in 1997 to kick off their landmark opium-substitution 
program.

A year later, tribal members turned guns on each other as Plante funding 
dried up, and ex-opium farmers were left with no way of making money. Many 
returned to opium cultivation, Mr. Monta=F1o said, although they are trying 
again to go straight.

Last November, Plante suffered its most embarrassing moment when a young 
man named Andres Felipe Lafourie Restrepo, 19, was arrested at the Miami 
International Airport carrying seven pounds of pure heroin. He is the son 
of Maria Ines Restrepo, the director of Plante, and is now serving a 
five-year prison sentence in Florida.

Widespread effects

The economic problems posed by the drug trade extend far beyond the 
cultivation fields, touching virtually every sector of Colombian society, 
said Mr. Montenegro of the National Association of Financial Institutions. 
Drug money is so thoroughly interwoven with legitimate commerce it is 
difficult, if not impossible, to distinguish between the two, he said.

U.S. and Colombian law enforcement officials say the principal culprit is a 
money-laundering network known as the Black Market Peso Exchange, or BMPE.

In the northern port city of Maicao, local customs chief Manuel Pi=F1eda 
explained how the BMPE integrates the drug economy with the world of 
legitimate commerce. Once the money from streetside drug sales is collected 
in the United States, money managers working for trafficking groups comb 
the country, contacting retail outlets, wholesalers, or anyone involved in 
selling goods who will not question the source of the money used in the sale.

Those goods are shipped to warehousing centers such as Panama's Colon Free 
Zone or similar import-export zones in Aruba or Curacao. Then they are 
re-shipped to merchants in northern Colombian ports such as Maicao, Mr. 
Pi=F1eda explained.

Another method is simply to smuggle bulk cash out of the United States to 
countries such as Haiti, the Dominican Republic and Mexico, U.S. Customs 
Service officials said. From those countries, the cash is sent by human 
courier to Panama, where it is used for large purchases of consumer goods 
that can be sent directly to Colombia.

A senior Haitian official said that on one flight bound for Panama last 
year, police seized $1.6 million from 10 Haitian women who had the cash 
stuffed in their underwear. One of those women, Rosaline Benoit, 28, was 
arrested with $170,000 stuffed in her girdle.

"I am a legitimate businesswoman," she insisted in an interview at the Fort 
Nationale women's prison in Port-au-Prince. "I used to use bank transfers, 
but it wasted too much time."

Before she was arrested, Ms. Benoit said, she traveled to Panama several 
times a year, using cash to purchase perfumes and jewelry from merchants in 
Colon. She said that she always filed a cash-declaration form with 
Panamanian customs, and that she hid her money in her girdle for fear of 
being robbed on the highway between Panama City and Colon. She remains in 
prison, awaiting trial.

In Maicao, stores and shops are loaded to the ceilings with low-priced 
appliances, textiles, and crates of cigarettes and liquors ? almost all of 
which come from the Colon Free Zone, Mr. Pi=F1eda said.

"My personal opinion is that all this is pure money-laundering," he said. 
But every time the Colombian customs service tries to shut down businesses 
or impose taxes to limit money laundering, violent protests erupt.

Actions defended

Francisca Sierra, an outspoken Maicao merchant, said her community has a 
long history of trading throughout the Caribbean. She said it is hard to 
believe that a toaster or a bottle of whiskey could be used as a tool for 
drug traffickers.

"We are not drug traffickers!" she said. "It's the government that is 
attacking us, and we don't want to be linked to drug traffickers. We've 
been involved in this business for 500 years. We were here doing business 
long before there were any narcos in this country."

Alvaro Iguaran, an attorney representing the merchants of Maicao, said a 
government crackdown on the contraband trade has virtually shut down the 
economy of northern Colombia. Residents are threatening more violence, and 
if economic conditions continue to deteriorate, they could begin turning to 
guerrilla groups for protection from the government.

"Maicao is turning into a time bomb," he warned.

Elsewhere in Colombia, black-market merchants are selling contraband items 
at a fraction of the retail price. The contraband trade has flooded the 
consumer market with billions of dollars worth of goods, priced so cheaply 
that legitimate commercial dealers cannot compete.

"So the legitimate stores are going out of business," driven out by 
contraband sellers helping to launder drug money, said Mr. Montenegro.

Once their drug cash is repatriated and "washed" of its illegal taint, the 
trafficking organizations are free to use it for all kinds of activities, 
legal and illegal. Part of it is reinvested in U.S. businesses, 
international stocks and bonds or anywhere else where the traffickers can 
receive a favorable rate of return.

Some of that money is handed over to compradores, or buyers, the people who 
travel around the Colombian countryside each month, purchasing the raw 
opium and coca base that people like Mr. Tombe and Mr. Rodriguez produce on 
their small farms.

Once the farmers are paid, they can begin planting and harvesting new drug 
crops for the following season. And with each new sprout that peeks out 
from Colombian soil, the drug economy is born anew.
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MAP posted-by: Keith Brilhart