War on Drugs
The American fought war on drugs has a deep impact on the affected Latin American countries. The effects rebound to the world economy and other third world countries. The shortage of suitable world market products, attractions and alternatives is why former colonies of Latin America completely downgraded their national ambitions to the export of agricultural products and random existing raw materials and shifted to drug production. After the colonial era, the former colonial countries, such as Spain or Portugal subdued those countries with their free trade and capital movements in order to build up the needed agricultural production and raw materials for the world market. Because of this, more and more countries in the Andean and Amazon regions suffer depletion of their lands by producing different kinds of ores and agricultural products such as bananas, coffee, cocoa and caoutchouc.
Since the economy sometimes totally relies on the price of one of the produced goods, drug production is on a steep rise as drugs become the main exported goods. Peru, Colombia and Bolivia, in particular, have created a supply for the rising demand of the western nations. Nearly all of the South American countries are involved in producing, processing, transit trading or money laundering. Drug business has changed the structure of whole regions when hundreds of thousands of farmers who were relying on more lucrative market prices for coca plants. The war against drug production and trafficking is the number one priority of Latin American policy in the current Bush Administration thus continuing George W. Bushs' father's war on drugs.
The economic situation of these countries worsens steadily because of the decreasing inflow of foreign currencies due to falling prices of raw materials and agricultural products, declining imports, and an increasing national debt. The outcome is an increasing poverty level fostering national bankruptcy. The reason Latin American countries were never able to develop to a stonger economy level is their subordinate role as a raw material suppliers in world politics and economics. If profits are made, they mostly flow into the pocket of foreign investors. Another significant reason for their dependence on US politics is the fact that these Latin American cou...