Economics of Drug Policy and the Drug War

41. Mexican Marijuana Imports to the US

"• Mexican DTOs’ gross revenues from moving marijuana across the border into the United States and selling it to wholesalers is likely less than $2 billion, and our preferred estimate is closer to $1.5 billion. This figure does not include revenue from DTO production and distribution in the United States, which is extremely difficult to estimate with existing data.
"• The ubiquitous claim that 60 percent of Mexican DTO export revenues come from U.S. marijuana consumption (Fainaru and Booth, 2009; Yes on 19, undated) should not be taken seriously. No publicly available source verifies or explains this figure and subsequent analyses revealed great uncertainty about the estimate (GAO, 2007). Our analysis— though preliminary on this point—suggests that 15–26 percent is a more credible range of the share of drug export revenues attributable to marijuana."

Kilmer, Beau; Caulkins, Jonathan P.; Bond, Brittany M.; and Reuter, Peter H., "Reducing Drug Trafficking Revenues and Violence in Mexico: Would Legalizing Marijuana in California Help?" International Programs and Drug Policy Research Center (Santa Monica, CA: RAND Corporation, October 2010), p. 3.
http://www.rand.org/pubs/occas...

42. US Counternarcotics Spending in South and Central America

"However, during fiscal years 2000-2005, the United States provided about $6.2 billion to support counternarcotics and related programs in the source and transit zones (see table 1).12 In the source zone, U.S. assistance supports eradication and interdiction efforts and related programs for alternative development and judicial reform, primarily in Bolivia, Colombia, and Peru. In the transit zone, the United States provided about $365 million in assistance—primarily to El Salvador, Guatemala, Haiti, and Mexico —to support interdiction and other law enforcement programs."
"For fiscal year 2006, the Administration has requested an additional $735 million for countries in the source zone and $77 million for countries in the transit zone."
"From fiscal year 2000 through 2005, the United States provided about $365 million in assistance to countries in the transit zone. Of this, Mexico received approximately $115 million to support its efforts to eradicate opium poppy and marijuana, and improve surveillance and intelligence capabilities."

"Drug Control: Agencies Need to Plan for Likely Decline in Drug Interdiction Assets, and Develop Better Performance Measures for Transit Zone Operations," Government Accountability Office (Washington, DC: USGAO, Nov. 2005), GAO-06-200, pp. 10 and 23.
http://www.gao.gov/new.items/d...

43. Diversion and Fraud

"According to law enforcement reporting, some individuals and criminal groups divert CPDs [controlled prescription drugs] through doctor-shopping and use insurance fraud to fund their schemes. In fact, Aetna, Inc. reports that nearly half of its 1,065 member fraud cases in 2006 (the latest year for which data are available) involved prescription benefits, and most were related to doctor-shopping, according to the Coalition Against Insurance Fraud (CAIF). CAIF further reports that diversion of CPDs collectively costs insurance companies up to $72.5 billion annually, nearly two-thirds of which is paid by public insurers. Individual insurance plans lose an estimated $9 million to $850 million annually, depending on each plan’s size; much of that cost is passed on to consumers through higher annual premiums."

National Drug Intelligence Center, Drug Enforcement Administration, "National Prescription Drug Threat Assessment," (Washington DC, April 2009), p. 20.
http://www.justice.gov/archive...

44. State Prison Costs, 2001

"Correctional authorities spent $38.2 billion to maintain the Nation?'s State correctional systems in fiscal year 2001, including $29.5 billion specifically for adult correctional facilities. Day-to-day operating expenses totaled $28.4 billion, and capital outlays for land, new building, and renovations, $1.1 billion.
"The average annual operating cost per State inmate in 2001 was $22,650, or $62.05 per day. Among facilities operated by the Federal Bureau of Prisons, it was $22,632 per inmate, or $62.01 per day."

Stephan, James J., "State Prison Expenditures, 2001," Bureau of Justice Statistics (Washington, DC: US Department of Justice, June, 2004), p. 1.
http://www.bjs.gov/content/pub...

45. Wholesale Price of Heroin in the US and Around the World

According to the United Nations Office on Drugs and Crime:

In the United States in 2015 (the most recent year for which data are available), the wholesale price of black tar heroin ranged from $12,000 to $100,000 per kilogram; the wholesale price of South American heroin ranged from $10,000 to $100,000 per kilogram and the price of southwest Asian heroin ranged from $50,000 to $85,000 per kilogram.

In Mexico in 2015 (the most recent year for which data are available), the wholesale price of heroin was $35,000 per kilogram.

In Colombia in 2015 (the most recent year for which data are available), the wholesale price of raw opium was $694.50 per kilogram; the wholesale price of illicit morphine was $3,746.10 per kilogram; and the wholesale price of heroin was $5,523.90 per kilogram.

In Hong Kong in 2015 (the most recent year for which data are available), the wholesale price of heroin ranged from $47,603.70 to $51,152.10 per kilogram.

In Thailand in 2015 (the most recent year for which data are available), the wholesale price of opium ranged from $519.70 to $779.50 per kilogram; the wholesale price of heroin ranged from $9,146.30 to $12,472.30 for 700 grams.

In Afghanistan in 2015 (the most recent year for which data are available), the wholesale price of raw opium was $150 per kilogram; the wholesale price of heroin was $2,229.50 per kilogram; and the wholesale price of high purity heroin was $3,294.50 per kilogram.

In Pakistan in 2015 (the most recent year for which data are available), the wholesale price of raw opium ranged from $322 to $439 per kilogram; the wholesale price of illicit morphine ranged from $600.90 to $1089 per kilogram; and the wholesale price of heroin ranged from $2,469.50 to $3,468.10 per kilogram.

Drug Prices Report: Opioids. Region: Americas. Retail and wholesale prices and purity levels, by drug, region and country or territory. United Nations Office on Drugs and Crime. Data retrieved via UNODC Statistics at https://stats.unodc.org on June 1, 2018.
http://drugwarfacts.org/sites/...

Pages