Drug trafficking in Colombia began with the marijuana trade in the 1970’s, which in turn led to the formation of drug cartels by the 1980’s. These drug cartel members made massive amounts of profit, some earing $2 to 4$ billion USD a year. Because drug trafficking is illicit activity, states are unable to tax, leading to lower state revenue. This creates fragmentation within economies, because public goods that citizens need do not always have the ability to become funded. This often leads to corruption within the government. If those working within the government and law enforcement agencies are not obtaining high enough salaries, they will bribe cartel members for a payment. In some cases, we see drug lords putting back into the economy and helping the poor. Pablo Esacobar, for example, was able to hold a political position, and provide housing for the poor, construct sport stadiums, and provide for those in need. Illicit economies are very hard to measure because of the lack of data documented and unreliable information. The Colombian economy shows off-center patterns of economic distribution.
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