Organization of American States. Topic A: Combating Drug Trafficking and Cartel Violence Topic B: Modernizing Technology in Industry

Transcription

1 Organization of American States Topic A: Combating Drug Trafficking and Cartel Violence Topic B: Modernizing Technology in Industry

2 EXECUTIVE LETTER Dear Delegates, Welcome to MUNUC 30 and to the Organization of American States! All of us here at the University of Chicago have been working throughout the year to prepare an exciting conference for you all. We look forward to a weekend full of debate, policy formation, problem resolution, and education. My name is Rohan Gandhi and I am your chair for this committee. I originally come from Philadelphia, Pennsylvania (or Philly as we say). I am a second year student here at UChicago and am double majoring in Economics and Germanic Studies. Ja, ich kann ein bisschen Deutsch sprechen. In addition to MUNUC, I am also an executive for ChoMUN, our college conference. Outside of MUN, I am involved in Moot Court here on campus. Some of my favorite non-school activities are watching college football and exploring Chicago. I am excited for all of you to come and discuss the topics for this committee. The Western Hemisphere has a prominent place in the world as an emerging powerhouse. Combating Drug Trafficking and Modernizing Technology in Industry have special effects in the Americas that is unique in the world. I hope you enjoy reading the background guide, and that it assists you in your own research. Please do not hesitate to reach out if you have any questions. See you at conference! Rohan Gandhi 2

3 History of the Committee From October 1889 to April 1890, delegates from thirteen countries attended the First International Conference of American States in Washington, D.C. 1 This was the first time that the nations of the Western Hemisphere decided to meet regularly for the purpose of acting as a regional organization. This meeting marked the formation of the International Union of American Republics which later became the Pan American Union. 2 These meetings continued as the Pan American Union grew in size and function until the Organization of American States (OAS) was chartered in 1948 in Bogota, Colombia. 3 The OAS was founded on the basis of peace and justice, solidarity, sovereignty, and independence in the Americas. 4 The OAS charter also establishes itself as a regional body within the United Nations. 5 The charter has been modified in 1967, 1985, 1992, and 1993 through four Protocols of Amendment. 6 Today, the OAS focuses on carrying out the goals of its charter and making sure its principles of democracy, human rights, security, and development are present in the hemisphere. 7 The body acts similar to the United Nations by creating a setting for reasoned debate, encouraging cooperation between member states, and passing resolutions specific to issues facing the body. It differs, however, from the UN by having a distinct focus on the unique challenges facing the Americas. The unique history of the region and its development have created an identity not shared by all countries of the world. By examining issues from a regional perspective, the OAS is able to form solutions better suited to the Americas than those that the UN could form. The OAS holds periodic summits of world leaders and serves as the summits for Ministers of Justice, Labor, Science and Technology, and Education in the Americas. 8 The forum that the body creates for international dialogue and cooperation has been and continues to be a positive force in the hemisphere. 1 Organization of American States: Democracy for peace, security, and development, Organization of American States, last modified August 01, 2009, 2 Ibid. 3 Ibid. 4 Ibid. 5 Ibid. 6 Ibid. 7 Ibid. 8 Ibid. 3

4 TOPIC A: COMBATING DRUG TRAFFICKING AND CARTEL VIOLENCE Statement of the Problem For decades, illegal drug trafficking and the resulting violence has plagued the Americas in many areas within society. Drugs themselves lead to addiction, medical costs, poverty, and death, especially in densely populated, sprawling urban communities. This affects not only drug users and addicts, but also their families, friends, and local communities. As others see drugs become more prevalent, they themselves become more likely to use and fall victim to drug addiction. The drug trade also creates issues for governments with the formation of drug cartels, large organized drug trafficking groups, who perpetuate violence against other cartels and the police and military, distribute and profit from drugs at the cost of the nation s people, and show a lack of respect for national sovereignty by ignoring borders and the law. Cartels are not simply a collection of drug traffickers but organized groups with their own internal policies and regulations. They have evolved from simple cooperative agreements into massive businesses with many reaches into areas of legitimate operations. Cartels are responsible for the vast majority of violence linked with drugs and the subsequent addiction of millions of drug users in the Americas. It is important to first understand the definition of drugs or narcotics in this context. The most commonly produced and shipped drug in the Americas is cocaine, a stimulant. Approximately 70% of all cocaine in the Western hemisphere originates from Colombia. 9 The largest cocaine market in the world is North America, with Europe as a somewhat distant second. 10 With most of the world s cocaine originating, traveling through, and being consumed in the hemisphere, it is highly relevant to the Organization of American States as it is a unique drug that can be incredibly lucrative. While marijuana is consumed across the continents in higher amounts, it is generally more available legally, and as a result is not trafficked in the same volume as cocaine. 11 Several factors play into this effect. The 9 Rebecca Wabwoba, Mexico, Central America and the Caribbean, United Nations Office on Drugs and Crime, last modified 2017, World Drug Report 2010, United Nations Office on Drugs and Crime, last modified 2010, WDR_2010/World_Drug_Report_2010_lo-res.pdf. 11 Ibid. 4

5 primary factor is that there is not a large demand for trafficked marijuana. This is not to say that marijuana is not consumed in large amounts. However, both local legality of marijuana in some OAS states, as well as the ease with which it can be grown in the different climates throughout the Western Hemisphere, means it is not often trafficked. The risk of trafficking marijuana is the same as for trafficking other drugs, but with far less reward for cartels, making it undesirable to smuggle across international borders. Other drugs such as opiates and amphetamines are trafficked in sizeable amounts despite not having the same impact as cocaine. 12 Amphetamines are not as cheap as cocaine, making them less attractive to the general population. This makes them less attractive for large scale trafficking, as they cannot be sold in quantities as large as cocaine. This makes distribution inefficient, and is an incentive to traffic drugs other than amphetamines. Opiates are more commonly used in other areas of the world outside of the Americas, such as Asia. 13 Most large scale trafficking occurs in countries in these areas and as a result, the drug is not as relevant to the topic of drug trafficking in the Americas. 12 Ibid. 13 Ibid. 5

6 Cocaine production is primarily based in Colombia, although states such as Bolivia and Peru have taken their share of production in recent years. 14 Production is usually vertically integrated in the cartel organization, meaning that the cartel controls their own growing fields for the coca plant, the laboratories and manufacturing facilities to produce the drug, and the transportation of the finished product to distribution channels. Most farmers of the drug are paid by the cartel. 15 The vast majority of drugs shipped into North America go over land routes through Mexico and into the United States. An estimated 90% of all cocaine leaving Colombia goes this way. 16 Pacific routes take up the bulk of the remaining portion. In addition to the United States, other countries in South America, most notably Brazil with its large cities and slums, are the targets of the drug cartels. 17 While some product goes through channels in the Atlantic towards Europe, these remain a problem due to the border policies of home nations, as well as refueling stops in the Caribbean. 18 Border security is another complication with the smuggling routes throughout the continent. Cartels usually have established strategies for crossing international borders that are safe due to bribery, secrecy, or force. 19 In order to combat the distribution process, many nations have implemented strict border controls with varying success. To complicate matters, human traffickers can often use the same routes used by drug traffickers, and they often cooperate with cartels. The drug cartels themselves are also a source of violence. The structure of these organizations relies upon a large network of foot soldiers and lookouts. Cartels have many internal groupings and are often conglomerates of smaller, local drug dealers. 20 The proliferation has increased in recent years with as many as twice the number of cartels in some areas as there had been merely five years prior. 21 While violence usually hurts drug sales, cartels continue to lash out against rivals in order to maintain control over their selling areas. 22 Fighting is not continuous, however, due to the economic incentive for peace. Turf wars will often occur sporadically with longer periods of rest in between. 14 Wabwoba. 15 Bruce Bagley, Drug Trafficking and Organized Crime in the Americas: Major Trends in the Twenty-First Century, last modified August 2012, accessed May 11, 2017, 16 Wabwoba. 17 Ibid. 18 World Drug Report Ibid. 20 The OAS Drug Report, Organization of American States, ed. Patricia Esquenazi and Gina Ochoa, last modified 2014, accessed April 3, 2017, 21 Bagley. 22 The OAS Drug Report. 6

7 Violence against governments is often a consequence of raids and other attempts to enforce the law. Cartels are often pushed to the limit and see their only option as fighting back against the government and continuing the bloodiness of this trade. 23 Violence is, sadly, often not limited only to cartels and governmental forces. Civilian death rates increase anytime there is an outbreak of any kind of cartel violence. This fighting also undermines the authority of the government and its legitimacy amongst its people, as governments can seem powerless to stop the violence when it breaks out in large scale cartel wars. In some more remote villages, or even city slums, the local drug lords are viewed as more powerful and authoritative than the government itself and the regulations of the cartel reign supreme. 24 This threatens the legitimacy of governments to exist in their own right. Besides the direct consequences of the drug trade, drug trafficking also has many less visible effects. The two most prominent are legal issues over extradition and money laundering. The battle over extradition has a lengthy history. Extradition, the removal of a person to another country for committed crimes, became prominent with the Medellin Cartel in the 1980s. Originally formed as a way of protecting drug lords and allowing them to stay in Colombia, the cartel focused its efforts on fighting Colombia s recent agreement to extradite some traffickers to the United States. 25 Through the cooperation between the two nations, Colombian special forces were able to slowly eradicate the cartel and alleviate a long withstood burden on the country. The fight over extradition persists and is often the subject of much debate, even among cooperating nations. While extradition greatly deters large scale organized crime, it can also weaken a country s image and status as a capable combatant against trafficking. 26 Extradition is an issue that is complex and remains a touchy subject in the discussion of how best to combat drug trafficking. Money laundering is the introduction of money made from illegal activity into the economy by means of passing currency into clean hands. This often means using a legitimate business operation such as a grocery store or taxi service as a front for accumulating wealth. Drug traffickers can use their profits by falsifying records in these businesses and claiming to have profited enormously from completely legal means. 27 This allows cartels to spend large amounts of money legally. Without money laundering, cartels would be forced 23 Ibid. 24 Ibid. 25 World Drug Report The OAS Drug Report. 27 Ibid. 7

8 to resort to spending their profits only in cash based transactions. The ease of money laundering allows cartels to scale up their operations and become the overarching organizations they are today. It allows them to fully enjoy the benefits from large scale trafficking. Money laundering is also detrimental to a country s economy, because the money it generates is untaxed. 28 This unaccounted for money can lead to a thriving black market, harming business and national production values. This is an international issue, as a country relies on a steady and sound economy for their standing in international markets. Without faith in its money, a government will face economic pressure from every direction and could in extreme cases crumble. Drug trafficking and cartels have spawned suffering in the Americas for decades and continue to do so today. Almost no area of the Hemisphere is free from the influence of these problems in some form or another. Because of the interconnectedness of modern society, the effects of drugs spill into economic, political, and social spheres. While the problem may seem daunting, history shows that it can be resolved with proper effort and dedication to find a solution. Countries are in fact more equipped to tackle the root causes of drug trafficking and cartel violence than ever before. International cooperation, thorough planning, and a committed effort by the OAS will all go a long way in creating a future without trafficking and cartels. 28 Ibid. 8

9 History of the Problem Drug use in the Americas has its origins in Peru. The native population of the region chewed the leaves of the cocoa plant, from which cocaine is made, for hundreds of years. Around the turn of the nineteenth century, scientific communities in the United States and Europe began to take an interest in cocoa for uses such as anesthetics and pharmaceuticals. 29 A legal market for cocaine soon developed in Peru. The drug became common and a popular choice for sellers who wished to turn a profit. In the 1920s, however, the United States, the largest market for cocaine, banned the substance on moral grounds. 30 Politics in the country had shifted and turned its focus to creating a society which adhered to the moral standards of its leaders. Other countries began to enact similar moral legislation with varying degrees of strictness. This varied from discouraged used of drugs in public places to large, widespread blanket bans on all kinds of substances deemed detrimental to a moral society. Drug producers could still sell their product freely in Peru but now faced the challenge of getting the drug into its target markets. The lack of legal means to create a profit did not stop drug producers, and they turned to illicit activity to keep up their lucrative businesses. Meanwhile in Mexico, the opium trade was developing due to demands from illegal markets in San Francisco and Los Angeles. Mexico served initially as an intermediate zone for opium coming from Europe and heading towards the United States. When the Mexican government banned the importation of opium in 1920, domestic production was no longer enough to meet the demand of the market and traffickers began importing the drug from India and what is now Myanmar. 31 Networks of traffickers began working together, and cartels resembling the organizations of today started to form. Early cartels ranged from simple agreements between smugglers to being the focus for existing organized crime. 32 Cartels often worked closely with government officials who had the incentive of the local economy to cooperate. Local governments also regulated the trade as a way to keep levels of violence low in their respective areas. Cartels were originally based mainly in Peru and Mexico, the centers of trafficking, but also spread to Colombia, Panama, and Cuba. Here, organized crime groups in the United States became involved in smuggling the drugs into the United States. 29 Steven Hyland, The Shifting Terrain of Latin American Drug Trafficking, Origins: Current Events in Historical Perspective, last modified September 2011, accessed May 11, 2017, 30 Ibid. 31 Ibid. 32 Bagley. 9

10 After World War II, the world shifted to a more supranational mindset. International cooperation became more common as the world realized that drug trafficking was an issue that affected all countries and would require a dedicated and focused multilateral approach to solve. The newly formed United Nations placed an emphasis on combating drugs, and in 1948, it set the lofty goal of fully eliminating the growing of the cocoa bush in the Andes mountain region of South America. 33 Cartels, however, continued their production, and drug trafficking became even more interconnected throughout the Americas. In the 1950s, Cuba emerged as a central distribution hub with Havana as a global sin city. 34 Argentina and Chile began to export cocaine while working with organized crime groups in the United States who had the largest networks of distribution and access to the biggest markets. These crime groups worked to obtain drugs more directly through the supply chain and use their resources and connections to funnel the drugs directly into major cities in the country. Due to revolution in Cuba in 1959, the drug trade moved back towards the continent where more favorable governments were located. These governments either had loose regulations, or in the case of the dictator Manuel Noriega of Panama, open support of drug use and distribution. Cartels began to take deep root in local politics and entrenched themselves in social institutions. 35 Local authorities were often bribed and drug traffickers improved their image by supporting the local community by providing money, schools, small hospitals, and other attractions. Trafficking continued successfully with far less resistance than it faces today. In the 1970s, the drug trade again saw upheaval as a direct result of two major shifts. The first was the sharp increase in the demand for marijuana from the previous decade combined with a similar spike in the usage of cocaine in the 1970s and 1980s. The second was the United States launching what it called the War on Drugs in 1971 under President Richard Nixon. 36 The War on Drugs was unique due to its strong, and often criticized, measures to eliminate cartels and drug trafficking through intervention at the source. The United States set the initiative to not only apprehend traffickers and cartel leaders, but also to extradite them to the United States for trial and presumed imprisonment. This was the first policy that strongly shaped what drug trafficking has become today. It did, however, have its critics both then and now as it used a hard line approach in combating drug trafficking. 33 Hyland. 34 Ibid. 35 World Drug Report Bagley. 10

11 Under pressure from and with the help of the United States, many South American nations began to criminalize cocaine and crack down on illicit practices in government. Countries took bold action both domestically and through international agreements to create a new united front in combating drug trafficking. Smuggling routes were in a state of turmoil as a result of new government attention but eventually settled in Colombia, making the country the undisputed center of the cocaine trade in the 1980s. Violence also spiked across the Americas with the murder rate, strongly linked to drugs and gang violence, jumping to 70 deaths for every 100,000 people in Miami, Florida. 37 While the murder rate is not fully dependent on drug related violence and many other factors play a role, it remains an indicator of at least large effects of violence perpetuated by cartels. Violence was also not limited to the streets. Guerilla warfare in Colombia, partly due to the inequality of wealth in the country, worsened as groups of fighters who initially concerned themselves only with ideological causes became involved with trafficking themselves. These revolutionary groups, including the Revolutionary Armed Forces of Colombia-People s Army (FARC), gained more power through their drug connections. Violence and death rooted themselves into everyday life turning what used to be vibrant communities into war zones. Amid fears of extradition, several traffickers in the Medellin region of Colombia gathered in 1981 to form the Medellin Cartel. 38 The Medellin Cartel, with its notorious leader Pablo Escobar, was the dominant force in drug trafficking throughout the 1980s. It is estimated that at the height of its power, the cartel controlled around 80% of all cocaine trafficked in the Americas. 39 The cartel was also incredibly violent and began to change the public attitude towards drug traffickers. The cartel s violence against police, military, and informants made Colombia one of the most dangerous countries in the world. The cartel s power also served to promote more international cooperation and extradition in an effort to get rid of traffickers. 37 Hyland. 38 Ibid. 39 World Drug Report

12 The Colombian cartels began to decline in the early 1990s due to a large scale collaborative effort between the Colombian and United States governments. With the help of the United States Drug Enforcement Agency (DEA), Colombian forces were able to slowly arrest and kill major members of the Medellin cartel. Other major cartels in Colombia such as the Cali Cartel also folded through a combination of force and cooperation with government in exchange for lighter sentences. After the decline of the Colombian cartels, the bulk of the drug trade shifted back towards Mexico. The Mexican government, however, was no longer complicit, with President de la Maridad giving more support to the military in combating drug traffickers in the mid-1980s. 40 With Mexico in financial straits, the United States financial sector also began to place a financial burden on Mexico. This financial burden angered many Mexican citizens and led to an appearance of the government as less than fully legitimate, and rather as a client state of the United States. The Mexican government has tried to reign in drug cartels, but the relationship between the United States and Mexico could not replicate the success of the relationship between the United States and Colombia in the 1980s. Mexican cartels have taken the opportunity of less political and police pressure on their activities to organize themselves and become strong through independence. 41 The cartels of Mexico have also gone through their own period of organization and alliance. While some worked together, the modern climate is one of combat with each cartel vying for power over the others. 42 Collusion is no longer the dominant strategy for these cartels as each believes that it can succeed on its own better than it could in a cooperative agreement. The number of organizations has increased in recent years as the number of cartels in Mexico doubled from six to twelve between 2006 and The fracturing of the large cartels means that each smaller cartel cannot operate in as large operations. This provides the prime opportunity for the international community to become a more united front than the cartels and to create a lasting impact on their power. The risks involved in combating cartels are, however, still not fully minimized by these smaller scale operations. While power among the cartels has somewhat dispersed, they are still dangerous. An international approach will most likely be the best way to reduce their influence and damaging effects on society. 40 Carmen Boullosa and Mike Wallace, How the Cartels Were Born, Jacobin, last modified March 16, 2015, accessed May 11, 2017, Ibid. 42 Hyland. 43 Bagley. 12

13 Past Actions The most comprehensive plan from the Organization of American States to combat cartels and drug trafficking is the OAS Hemispheric Plan of Action on Drugs. Passed in a style similar to a United Nations resolution, the plan was originally made in , and then updated and extended for It outlines and calls for several key components as part of a broader solution to the problem of drug trafficking specifically in the Americas. The plan identifies five main sections, or root causes, as areas of focus for combating drugs: institutional strengthening, demand reduction, supply reduction, control measures, and international cooperation. Institutional strengthening focuses primarily on developing institutions within nations to be able to both handle negative effects of trafficking, while also being able to implement new strategies for positive change. This approach places an emphasis on national sovereignty and self-sufficiency. 45 By setting up institutions instead of temporary measures, countries can set up a future without harmful drugs and violence. Demand reduction is the process of reducing the current demand for drugs in international markets. The main tenets of this area of focus are education and rehabilitation. 46 The funding of educational programs describing the dangers of drugs will provide invaluable information for potential first time users. By preventing drug use and its possible subsequent addiction, countries can reverse the tide in this battle. Rehabilitation also cuts into drug demand by removing potential buyers from the drug market. By helping people to overcome their addictions, governments have been able to see cartels looking harder for new buyers, indicating that their time is limited. Supply reduction tends to use more immediate methods. For example, the Bolivian government began paying farmers to grow crops not related to the drug trade that would not be sold to cartels. 47 This helps to form a long term solution to the problem, as farmers now can sustainably grow their crops without any connection to the drug trade. This independence allows not only the farmers themselves to grow what they want, but also cuts off supply for the drug cartels in a systematic manner. This method is not unique to Bolivia, and could be replicated across the hemisphere. Similar methods could have success in reducing the volume of drugs available to traffic across the Americas. 44 Plan of Action on Drugs: , Organization of American States, last modified November 4, 2016, accessed August 10, 2017, Ibid. 46 Ibid. 47 Plan of Action on Drugs:

14 Control measures seek to rectify issues such as disrupting money laundering to confront cartels. This strategy is not direct confrontation of cartels in the field, but rather the combating of cartels through channels of legitimacy. These channels are the methods by which cartels convert their illicit activity into forms of benefit that they can more freely enjoy. For example, a cartel needs to launder drug money by making the money appear to originate from a legal source in order to freely spend their profits in transactions that are not solely cash based. This allows their operations to become large scale. Control measures aim to damage cartels ability to do this and force them to shrink their operation size. The eventual goal is to not only shrink but eradicate their operations. 48 Control measures also include diverting chemicals away from drug manufacturing, strengthening national forces to combat cartels, and supporting intelligence gathering. This can be achieved through both legislation within countries, as well as setting up trade agreements so that there is oversight and procedures in place to monitor the movement of supplies that are beneficial to cartel operations. Intelligence gathering entails both domestic intelligence gathering, as well as sharing information. 49 This is not always easy as countries can feel that their sovereignty may be threatened if there is a specific requirement for sharing intelligence. These methods used in combination with long term measures allow government to close in on cartels and safely end drug trafficking. International cooperation remains a key component of any plan to combat trafficking in the Americas. By working together, governments have been able to eliminate many cartel leaders and serve justice to those who have propagated violence across the Americas. 50 International cooperation plays into many of the other aforementioned areas of focus in the Hemispheric Plan of Action. Each area of focus works well alone, but in order to combat such large scale drug trafficking in the Americas, isolationism and lack of cooperation can have no place. Measures such as extradition, intelligence sharing, and foreign aid have all played integral roles in the past, most notably in the example of Pablo Escobar and the Medellin cartel. International cooperation is an important cornerstone and high ideal of the OAS and is necessary to show a united front against trafficking. Because it is a relatively new plan, the OAS Hemispheric Plan of Action on Drugs still needs time for its effects to be fully seen. Initial reviews from the Hemispheric Drug Strategy, the partner policy to the Hemispheric Plan of Action, look promising, particularly in regard to the previously outlined areas of focus. The strategies 48 Ibid. 49 Plan of Action on Drugs: Ibid. 14

15 in the Plan of Action are also concurrent with the ideas behind many proposed solutions to drug trafficking which suggests success for the future. 15

16 Possible Solutions Many current proposed solutions to drug trafficking stand in opposition to previous failed policies. In many intellectual communities, the War on Drugs is seen as a failure which has led to more problems than solutions. Continued international cooperation is a constant aid in directly combating cartels. This approach has shown success with extradition, and is part of the OAS plan to continue to combat trafficking. While useful in direct confrontation, this strategy does not fully address the underlying causes of trafficking in the Americas and how it could be ended for good. In combating cartels specifically, reforming drug law is a powerful tool to allow more government oversight and involvement in regulating the drug trade. Uruguay voted for the legalization of recreational cannabis in 2013 and now enjoys moderate sales of the drug in legal settings. 51 While not in the OAS, New Zealand has a program where drugs can be brought to market if shown to be safe enough for larger scale production and use. 52 While full legalization may be quite a step for some countries, decriminalization can also alleviate prisons burdens. This also opens the door for rehabilitation programs instead of incarceration as a means of punishment. In terms of addressing violence, the Mesoamerican Working Group recommends other root cause initiatives, namely addressing violence against women, and changing migration policies. Migration policies which focus on acceptance mean that people living in areas under cartel control can escape the presence of drugs and violence in their lives. Focusing on violence against women examines a portion of the population which is often ignored or considered an afterthought. Current policies allocate large amounts of money to arms sales and funding of police and military forces. This money could be given out less in an effort to incentivize abusive security forces to change their conduct. 53 The aid can also be diverted towards job creation and defending human rights among migrants and workers. This incentivizes people to not cooperate with traffickers and allows them the opportunity of a better life away from drugs and violence. The main question regarding the above policies is their effectiveness in fighting such large scale drug operation seen in the Americas. Many of these initiatives take a long time to develop fully and can be hard 51 Advancing Drug Policy Reform: A New Approach to Decriminalization, Global Commission on Drugs, last modified 2016, accessed August 10, 2017, 52 Ibid. 53 Rethinking the Drug War in Central America and Mexico, Human Rights Documents, accessed May 11, doi: / _hrd

17 to measure meaningful results. Opponents often say that while the strategies of the War on Drugs are not perfect, they are the most effective use of time and money in combating trafficking. Further action can also stem from the goals of the current OAS Hemispheric Plan of Action on Drugs. A more widespread use of rehabilitation methods could lead to a decline in the demand for drugs. First time drug users can often become dependent in a short period of time and then face no easy prospect of escape from addiction. 54 This leads them down a path of continued reliance and dependency on drugs and cartels as ultimate suppliers. Today, approximately 80% of all drugs are used by 20% of users. 55 Focus on demand reduction through rehabilitation would drastically lower drug trafficking in terms of volume and could cripple cartels as viable organizations. These methods require a dedicated focus from governments and the patience for a long term strategy to develop and become effective. Despite the best intentions of the War on Drugs and implementations such as the Merida Initiative, violence has risen in many areas across the Americas, as evidenced by the increased murder rate across Mexico. 56 Proponents of alternative solutions oftentimes recommend implementing oversight and reform measures into any new actions. Oversight is a broad term which can have many specific areas of focus. The Mesoamerican Working Group recommends focusing on effectiveness and transnational methods, as well as looking closely at human rights. Human rights is a large area of focus due to the type of organization governments are fighting. Cartels are prone to use violence and are often responsible for mass crimes. The Group recommends using general methods of conducting anti-drug operations as the way to focus on protecting human rights. 57 In many cases, traffickers do not conflict with the government directly, but rather through contractors or in some cases farmers of the plants. The use of police forces instead of the military provides more reassurance for citizens that their rights will be maintained and are looked after by their respective governments. These strategies are neither perfect nor imperfect. Implementation is often the key to a particular strategy s success, as well as how the international community responds to and works with any initiatives taken. Proper implementation goes hand in hand with planning and developing policies targeted at specific situations. 54 Advancing Drug Policy Reform: A New Approach to Decriminalization. 55 Christopher Hallam et al, Drug Policy Guide, International Drug Policy Consortium, last modified March 2012, accessed May 11, 2017, 56 Rethinking the Drug War in Central America and Mexico. 57 Ibid. 17

18 These situations include geography of an affected area, the local population and demographics, and the relationship between the people and implementers of policy, which can be from the government, the private sector, or non-governmental organizations. 18

19 Bloc Positions Canada and the United States Canada and the United States of America together form a bloc as two global leaders in the fight against drugs. The two countries have taken a strong stance against the influence of cartels and the prevalence of drug use. The United States in particular has long supported a hard line policy with the most notable example of the War on Drugs. These hard line attitudes have resulted in numerous successful drug raids, but the effects of such policy have placed a toll on other OAS members. 58 It is possible that this attitude may change or lessen in magnitude due to the trend of decriminalization and legalization of marijuana in some areas, as well as increased conversation about the role of countries in forming a multilateral solution to the problem. This trend could reflect a more flexible attitude focused on safe use and regulation of some drugs, and policies focused more on cooperation and solving the root problems of drugs rather than temporary fixes. Central America Belize, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, and Panama form the Central American bloc. The vast majority of drugs pass over these lands in trafficking routes. Mexico houses many of the most powerful cartels today. These countries, generally speaking, are willing to take action against cartels, but can be under equipped to do so properly 59. Cooperation with other members of the OAS will go far in gaining access to solutions for both the short term and long term problem of drugs. Influences from the surrounding regions can often lead to these countries being caught in the middle of the path of the supply and demand for drugs. The Caribbean The Caribbean is made up of Antigua and Barbuda, Barbados, Cuba, Dominica, the Dominican Republic, Grenada, Haiti, Jamaica, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, the Bahamas, and Trinidad and Tobago. These island nations are the main alternative to the land routes across Central America and Mexico. Used as intermediate stops, these countries feel the effects of drug addiction on already poorer populations. The island hopping in which some cartels engage leads to a greater presence of cartels in 58 Bagley. 59 Bullosa and Wallace. 19

20 local communities, as well as the increased presence of drugs themselves. 60 Drugs further compound the problem of poverty by becoming an allure people to spend their income rather than necessities such as food. The main focus in the bloc is on recovering from the effects of drugs themselves rather than violence from cartels. South America The South American bloc of Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela is the home to the growth and development of drugs in mass quantities. Drugs start here from plant form and are shipped out towards the main markets. Many South American nations firmly believe in international cooperation and use assistance to shut down drug centers. 61 Difficulties arise when drug cartels have rooted themselves firmly into local communities. The power of the government can be less than that of the cartel, which would make small scale and grassroots solutions more effective than a top down approach. 60 Bagley. 61 Ibid. 20

21 Glossary Amphetamines: a type of stimulant which can notably increase heart rate to dangerous levels Cartel: an organization which manufactures and distributes illegal drugs, often using violence to gain control Cocaine: a highly addictive stimulant which is the primary drug trafficked in the Americas Drug Enforcement Agency (DEA): a United States government agency dedicated to controlling the use of specific drugs. Extradition: the deportation of a criminal to another country s jurisdiction for crimes committed in or against the foreign country Marijuana: a mild hallucinogenic and depressant which is commonly used throughout the Americas. It is legal in some countries and regions. Money Laundering: the process of circulating money obtained through illegal means into the legitimate economy Narcotics: a drug with sleep inducing properties. The term is more often used to refer to any illegal drug. Opium: a term used to refer both to the opium plant and the drug within the seeds of the plant. Heroin is a derivative of opium. Rehabilitation: medical and psychological treatment to reduce or eliminate the addiction to a substance Revolutionary Armed Forces of Colombia-People s Army (FARC): a former leftist paramilitary group in Colombia which increased its power with the drug trade. It ceased military operations in June Stimulant: a drug which increases the body s activity Trafficking: illegal trading or dealing 21

22 Bibliography Advancing Drug Policy Reform: A New Approach To Decriminalization. Global Commission on Drugs Accessed August 10, ENGLISH.pdf. Bagley, Bruce. Drug Trafficking and Organized Crime in the Americas: Major Trends in the Twenty-First Century. August Accessed May 11, Boullosa, Carmen, and Mike Wallace. Jacobin. How the Cartels Were Born. March 16, Accessed May 11, Cordero, Isidoro Blanco. Bidal Project. Organization of American States Accessed May 11, Decomisados%20-%20BIDAL.pdf. Hallam, Christopher, Dan Werb, Gloria Lai, Marie Nougier, Martina Melis, and Matt Curtis. Drug Policy Guide. International Drug Policy Consortium. March Accessed May 11, fortalecimiento_institucional/planesnacionales/docs/guia_politicas_drogas_eng.pdf. How to develop and implement a national drug policy. World Health Organization Accessed May 11, Hyland, Steven. The Shifting Terrain of Latin American Drug Trafficking. The Shifting Terrain of Latin American Drug Trafficking Origins: Current Events in Historical Perspective. September Accessed May 11, Organization of American States. Inter-American Drug Abuse Control Commission. Hemispheric Plan of Action on Drugs, May 17, Accessed April 3, aspx?id=1091. Organization of American States. Inter-American Drug Abuse Control Commission. Hemispheric Plan of Action on Drugs, November 4, Accessed August 10, PoA/PoA-Version_Final-ENG.pdf. Organization of American States. The OAS Drug Report. Edited by Patricia Esquenazi and Gina Ochoa Accessed April 3, Rebecca Wabwoba. United Nations Office on Drugs and Crime. Mexico, Central America and the Caribbean Accessed April 3, The Mesoamerican Working Group. Rethinking-the-drug-war-in-central-america-and-mexico-analysisand-recommendations-for-legislators;hr. Human Rights Documents online. Accessed May 11, doi: / _hrd World Drug Report United Nations Office on Drugs and Crime Accessed May 19, unodc.org/documents/wdr/wdr_2010/world_drug_report_2010_lo-res.pdf. 22

23 TOPIC B: MODERNIZING TECHNOLOGY IN INDUSTRY Statement of the Problem The growth and development of technology today is moving at a faster rate than ever before. As technology continues to improve, it becomes an integral part of a country s industries and national economy. The effects of this growth can be felt throughout the nation. From social impacts to modern infrastructure and sustainable development, the effects of technology in industry are profound. The task facing the Organization of American States today is to determine how to use this growth as a force for good. International cooperation and sharing will be a key component in order to promote a new world wherein technology is the solution and not the problem. Because technology changes so rapidly, there is a strong need for a well-organized and constantly updating infrastructure to accommodate this evolving nature. Things such as new operating systems for computers, telecommunications, and manufacturing all require current systems and plans in order to run efficiently. While the capabilities of nations to increase their output exists, many nations face challenges in reaching that potential. In a globalized world, this creates an issue of staying connected with the global economy, and maintaining influence both as countries and as a hemisphere on the global scale. Countries often face two types of economic growth with regards to the economy: inward and outward growth. Inward growth is the development of home infrastructure and the public s access to technology. 62 Outward growth is the development of new networks and communications which aid in globalization and trade. 63 Both types of growth are vital for the members of the OAS to develop well within the global economy. Part of the problem facing members of the OAS is the level of investment into new technology and infrastructure. While member states of the OAS have increased their investment into technology recently, the levels of investment are still very low compared to those of developed nations. 64 The problem complicates when infrastructure and systems set up for technology are not sufficient or advanced enough for the latest 62 Globalization of Technology: International Perspectives National Academies Press, accessed October 20, 2017, read/1101/chapter/13# Ibid. 64 Andrés Aguilera and María Gabriela Ramos Barrera, Technological Unemployment: An approximation to the Latin American Case, AD Minister, accessed October 20, 2017, 23

24 technology. All public sectors including healthcare, education, transportation, and many others are affected by this gap. Technological change has in many ways been a force for good. As industries and citizens gain access to new technologies, their quality of life usually goes up in several areas. Citizens have, for example, been able to enjoy the benefits of improved educational systems. As technology improves accessibility, more children are able to learn, both in a traditional classroom setting, as well as through digital or remote tutors. 65 Furthermore, real economic output tends to increase with technological change over time, strengthening both industrialized and developing economies. 66 Industrial growth, however, has already produced some problems of its own. In 1982, twenty current member states of the OAS ranked in the bottom half of GDP across the world. 67 This disparity has created an asymmetrical interdependence where countries who do not have the same technological infrastructure as others must rely on richer nations and global organizations for support in their economies. 68 The effects are not simply coincidental either, as studies have found that indicators of technology even as simple as internet access can boost income levels between % in both developed and developing nations. 69 Perhaps one of these countries biggest problems is the increase of technological unemployment. Technological unemployment is the substitution of technology for human labor, and the consequential unemployment for those workers. While technological unemployment is not a new issue, the exponential growth in the sophistication of technology and artificial intelligence means that it is advancing faster than ever before. In the United States, manufacturing jobs have taken a smaller and smaller portion of the national workforce while services surge. 70 Without proper planning and careful implementation of focused policy, the countries of the OAS may find themselves in unprecedented economic turmoil. The potential severity of technological unemployment cannot be understated. The example of the transportation industry stands out as particularly prominent. With the ever increasing affordability of selfdriving cars, or autos, more and more companies are able to use this technology as an alternative to human 65 Darrell M. West, Technology and the Innovation Economy, The Brookings Institution, last modified September 28, 2016, accessed October 20, 2017, 66 Automation and anxiety, The Economist, last modified June 25, 2016, accessed October 20, 2017, special-report/ will-smarter-machines-cause-mass-unemployment-automation-and-anxiety. 67 Globalization of Technology: International Perspectives. 68 Ibid. 69 West. 70 Automation and anxiety. 24

25 drivers and operators. Autos are safer, more efficient, and significantly cheaper than the equivalent human labor. While estimates vary, many millions of jobs, on average, rely on the transportation industry. The risk of mass unemployment goes beyond single industries. An estimated 47% of job categories are at risk of being eliminated, with the majority of those fields being composed of white collar work. 71 White collar work is professional or administrative work performed in an office. As countries continue to develop their respective economies, the direction of their development becomes increasingly important. While traditional models and history suggest to develop towards creating more white collar jobs, there may be a new path ahead. History itself has shown an example with real output per person decreasing in Britain during the Industrial Revolution. 72 Jobs can be transformed for new economies. While many outlooks seem bleak, some projections support the idea that technological change will mean an easier life for humans. Economist John Maynard Keynes ideal of the fifteen hour work week, which is the prediction that automation will reduce the requirement of human labor to only fifteen hours a week per person, is perhaps closer to reality than ever before. 73 For example, computers are able to automatically generate contracts, calendars, and memoranda, leading to a decrease in the work of administrative positions. Much of this, however, relies on clear and directed development. Alternatives to current economic models have already been proposed and are under serious debate. The OAS must act urgently if it is to foster international cooperation in this truly global crisis. Countries of the OAS are at a particular risk due to the nature of their economies. The majority of nations in the Americas are considered developing economies and have workforces composed more of unskilled labor than specialized, white collar work. While artificial intelligence is making great strides to take over all kinds of jobs, the technology already exists and is in use to replace human workers for unskilled labor. The impact would be felt strongly across the OAS and other effects of a slow economy would soon start to compound on a nation s troubles. With economic planning and planned technological development, countries can avoid massive, unpredictable upheaval. 71 Ibid. 72 Ibid. 73 Ibid. 25

26 While many signs point to massive unemployment, there is not a complete consensus on the effects of technological change on unemployment. According to one study, there is an incredibly small relation-- approximately 1%--between expenditures on technology and unemployment. 74 This discrepancy may be due to the measurable indicators of unemployment today conflicting with the projections and future indicators of unemployment. Economic theory suggests that any unemployment will have more of an effect in the short run, with little to no effects in the long run. 75 The problem lies more within the transitional period and not the ultimate future outcome. The gap can be measured by various factors such as the difference in market wages versus past wages for the same products. What workers used to be paid is higher than the amount companies would spend on artificial intelligence or other technologies to get the same product. 76 Citizen access to technology also remains a key concept which is intertwined in a sustainable and advanced future. People rely more often on technology as a means of improving everyday life. When combined with industry targeted directly at these common goals, technology can play a greater role in improving quality of life than any other external factor. Countries can promote this development and further the causes of innovation and creativity in problem solving for its citizens. Globalization makes this issue relevant to the entire OAS. Globalization is the increase of international flow of ideas, technology, culture, and money, which leads to the subsequent increased interaction of people. The movement of ideas and new designs is incredibly helpful and fosters collaboration among teams. With many countries facing similar problems because of culture, geography, history, and more, members will often find their best partners to be the ones in such close proximity and with such similar situations. Sharing and cooperation within the OAS can lead to faster and improved innovations for technology both for industries and the people. The future remains bright for countries if they take the necessary steps to ensure proper planning. With the inevitable advance of technology, it is important to act soon in order to capitalize on the opportunity to create a profitable strategy. If countries can act decisively, they will lay the foundation for the best possible future for themselves and their fellow nations. 74 Aguilera and Barrera. 75 R. H. Mabry and A. D. Sharplin, Does More Technology Create Unemployment? Cato Institute, last modified March 18, 1986, accessed October 20, 2017, 76 Ibid. 26

27 History of the Problem Rapid technological change and technological unemployment both stem from changes in technology and society. While technology is constantly changing, the history of technology itself is not as useful as the change or lack of change in surrounding systems, infrastructure, and planning. It is useful to think of the problem as one with two parallel branches, rapid technological change and technological unemployment, each with its own specific and important history. Rapid Technological Change Many countries in the Americas have throughout history been subject to long periods of imperialism. These countries began to take their current form in the 1820s when several gained independence from their respective colonial powers. When the imperialists left, these nations were left to build and develop themselves sustainably. During these respective nation building periods, these countries began to develop their own infrastructure and technologies. The current state of rapid technological change and the disparity between many member states of the OAS and other countries around the world began to accelerate in the 1940s and the post-world War II period. Within the OAS itself, the Cold War and other factors motivated the United States and Canada to invest heavily in technology. Due to their economic status, other countries in Latin America and the Caribbean lagged behind. In the postwar world, globalization began to take effect. Countries participated in an international economy and had to devote their resources likewise. In the case of Latin America and the Caribbean, the area of devotion was in raw materials, such as wheat, coffee, sugar, iron ore, tin, and gold, and not services or manufactured goods. 77 This led to the development of a strong natural resources sector at the cost of a manufacturing and service industry which meant a lack of economic diversity. Focusing on raw materials was advantageous in the economic short run as it meant labor, which was generally unskilled, could be used in the most efficient way possible. Countries would use their comparative advantage, their ability to produce a certain good or service more efficiently than others, and benefit from resulting trade with other nations Globalization of Technology: International Perspectives. 78 Ibid. 27

28 However, the trading partners of the OAS countries tended towards purchasing manufactured goods instead of the raw materials themselves. This meant that the price of manufactured goods remained high, but the price of raw materials fell, creating a lack of demand and finance for the Latin American and Caribbean markets. 79 This economic disparity has continued on past the post war era. In the 1980s, the region suffered from widespread negative GDP growth. 80 From 2006 to 2011, foreign investment in natural resources as a percentage of total foreign investment in South America went up at the cost of services and manufactured goods. 81 Mexico, Central America, and the Caribbean s percentages remained steady and only Brazil s percentages shifted away from natural resources to service and manufacturing. 82 This has created a disparity and an already mentioned asymmetrical interdependence on the global scale. This has continued because countries have continued to invest in natural resources and not as much in technology throughout the 1960s and 1970s. 83 Even today, almost every member of the OAS, beside the United States and Canada has an investment as a percentage of GDP in research and development (R&D) below the world average. 84 Cost has been one major deterrent to more investment in technology and surrounding infrastructure. From 1986 to 1995, in order to grow GDP by 4-5%, a country would need to spend $600 billion (USD) just to maintain the technology and infrastructure needed. 85 This steep price was impossible for the OAS as many countries had currencies much weaker than the U.S. dollar. 79 Ibid. 80 Science, technology and innovation in Latin America and the Caribbean region, United Nations Commission on Science and Technology for Development, last modified January 9, 2013, accessed October 20, 2017, Castillo.pdf. 81 Ibid. 82 Ibid. 83 Globalization of Technology: International Perspectives. 84 Science, technology and innovation in Latin America and the Caribbean region. 85 Globalization of Technology: International Perspectives. 28

29 The burden is not unique, however, to only countries with developing economies. In New York, infrastructure requires massive capital to maintain, despite its existence, and current use and maintenance. The rapid increase in demand also makes it hard for countries to keep up with the rest of the world. Investment and rapid technological change together have created a disparity for the member states of the OAS. Even in the recent past, old trends remain. It will take a sustained and radical new effort to bolster necessary investment in technology. Technological Unemployment Technological unemployment has existed, at least to some degree, as long as technology itself, even in its most elementary forms. While this may be true in the strictest sense, technological unemployment in the form of the problems of today and the future have taken many shifts. It is easiest to think of the modern problem as the potential of mass unemployment beginning with the Industrial Revolution. In the 1860s, inventions such as the steam engine and mills began to take an increasing role in industry and the economy of developed nations. Some protests arose from the Luddites who were textile workers worried that the new machines would take their jobs. 86 The Luddites did indeed have serious, legitimate cause to worry as the workforce shifted dramatically during the Industrial Revolution. Jobs went from cottage industry to large factories and the landscape changed as people moved more to urban areas in order to work in large scale production. The question, however, is how severely the Industrial Revolution affected total employment. While the type of work changed dramatically, unemployment did not rise to the predicted levels in the long run. 87 Some unemployment did result in the short run, but this has been widely credited as either part of a natural cycle, or an inevitable temporary lag while infrastructure and systems catch up to technology. 88 Technological replacement of old human jobs continued throughout the 1920s worldwide as many agricultural workers saw their jobs lost to new tractors and other farm equipment. 89 The 1930s saw the global depression wherein unemployment levels rose worldwide to unprecedented levels in some parts. The 86 Automation and anxiety. 87 Joel Mokyr, Chris Vickers, and Nicolas L. Ziebarth, The History of Technological Anxiety and the Future of Economic Growth: Is This Time Different? Journal of Economic Perspectives, accessed October 20, ep Mabry and Sharplin. 89 Automation and anxiety. 29

30 aforementioned economist John Maynard Keynes first used the term technological unemployment during this time. 90 This was not due mainly to technological change, but it served as an example for the catastrophic effects of unemployment as the debate continued on. The 1960s saw again a renewed interest in the debate over technological unemployment and the first speculations of both the potential of mass global unemployment and the need for action. 91 Debate focused towards the long run and the economic effects of large scale technological unemployment. The auto industry saw many of its jobs start to go towards robots and the first examples of countries seeking to control the rent gap through governmental means. 92 With the information age and recent developments in artificial intelligence, the debate over technological unemployment has shifted towards the effects that new technologies currently and will have on the economy. The debate is different because of both the astonishing growth rate in capabilities of artificial intelligence as well as the number of jobs which could be replaced. The Luddites of the Industrial Revolution were wrong not because of reason but because of magnitude. The number of jobs that were lost during the Industrial Revolution were not nearly enough to create serious economic effects in the long run. 93 Globalization has also played a key role. Globalization is defined here as the increased flow of ideas, technology, money, and information across international borders. This leads to greater interaction between people of different countries. As a regional bloc within the international community, the OAS and its member countries rely heavily on foreign powers for trade, information sharing, and other exchanges. These exchanges happen at a rate of minutes instead of weeks or months as in the past. 94 The potential for technological unemployment increases, but so does the potential for a lasting solution to such a problem. By creating unique policies that serve its own particular needs, the OAS can prevent the catastrophic effects that large scale technological unemployment could bring. 90 Ibid. 91 Mabry and Sharplin. 92 Ibid. 93 Mokyr, Vickers, and Ziebarth. 94 Ibid. 30

31 Past Actions Rapid Technological Change For rapid technological change, many countries have made significant investments into their domestic technologies and relevant infrastructures. The governmental and private sectors have both played in roles in this investment and development, although to varying degrees across OAS member countries. In Latin America, the government is the biggest investor in technology; the private sector has played a rather small role. Examples of governmental investment into technology include research subsidies, open trade for information and technology sharing, and direct government purchases of technology. While OAS member state governments have not invested much in the past, several Central American countries, including Guatemala, Costa Rica, and Panama, have recently taken steps to further this course of action. 95 Additionally, the OAS itself has created the Department of Economic and Social Development (DESD) for the purpose of furthering development across the Americas. 96 Within DESD, the Inter-American Competitiveness Network (RIAC) has been at the forefront of technology sharing and creating competition as a driver of further technological innovation and success. 97 These measures have been mildly successful so far. The greatest hindrance to further success is in the magnitude of investment. The historical lack of large scale investment into technology by OAS member state governments and the continued reluctance play a major role in the current issue. Whether by government, the private sector, NGOs, or collaborative efforts, investment will play a critical role in resolving rapid technological change. 95 Sergio Rosengaus, Closing Latin America s technology gap, World Economic Forum, accessed October 20, 2017, org/agenda/2014/03/closing-technology-gap-forum-latin-america-2014/. 96 Democracy for peace, security, and development, Organization of American States, last modified August 01, 2009, accessed October 20, 2017, 97 About Us, RiacNet, accessed October 20, 2017, 31

32 Technological Unemployment Technological unemployment in its current and potential forms is quite different than examples in the past. While past actions can provide some guidance, it is also important to look for new and creative solutions to the unique problem facing the Americas. Labor movements have previously attempted, usually unsuccessfully, to ban or disallow new technology to take over old jobs. The Luddites are once again a notable example of not only the attempt but the almost inevitable failure of such movements in the face of rapid and consistent technological improvement and the economy. Some effects have lasted, however, in the form of both legislation against technology, as well as other programs focusing on jobs and income. 32