DRUG POLICY – PARTIM COLMAN
EXPLAINING THE BASICS: ILLICIT DRUG MARKETS
INTRODUCTION ON ILLICIT DRUG MARKETS
• The EU illicit drug market = the largest criminal market in the EU
o >1/3 EU organized crime: production, traffic and smuggle of illicit drugs
o Large profits involved f.e. EU retail drug market is estimated to be worth at least 24
billion euro/year.
• Link between illicit drug economy and legal economy:
o 44% of profits re-invested in the legal economy of Europe by money laundering
(EMCDDA, 2016)
o Infiltration of organized crime into political, socio-economic and financial power:
undermining
• Differences in organisational structures (2 structures):
o Various organisations from social supply to organized crime
o When looking at the criminal structure of groups involved in large-scale drug
production, we notice several organisational structures, amongst others:
Pyramid Flexible partnership
• Hierarchical structure and highly • Flexible network structures
disciplined • Decentralized, fragmented and
• Clear leadership situational
• Clear distribution of tasks • Individuals are organized in small
• Stability groups
• Informal and loosely organized
associations of entrepreneurs
Drug markets are adaptive and resilient
• They learn from legal businesses (organization, innovation, etc.) + risk adaptation
o Many want to get a piece of the pie
o Responding to opportunities
o Role of globalization (transport and technology)
o YET: illicit drug markets are not bound by regulation/lack of resources
4 LEVELS OF THE DRUG SUPPLY MARKET
• Supply chain = trajectory of each product, from production to retail
o Four levels:
Middle Retail
Production Wholesale
Level Level
o E.g.: Production cocaine in Colombia → export to Europe (100 kg) → cutting and
distribution to various dealers (in packs of 5 kg) → distribution in user quantities and
sale to users (1g – 5g)
, Production
Distinction between upper level,
middle level and lower level
➔ Sometimes hard to make
a distinction
Wholesale
Middle level
Retail
Consumer
PRODUCTION
• Opium: Asia (Afghanistan, Myanmar), Latin America (Mexico, Colombia & Guatemala)
• Cocaine: Latin America (Colombia, Peru, Bolivia...).
• Synthetic drugs: Europe
o Amphetamine/XTC: Belgium, Netherlands, Germany, Bulgaria...
o Methamphetamine (used in Europe): Czech Republic, Netherlands...
• Cannabis: 135 countries report cannabis production → global phenomenon
o Largest cannabis resin producers (2010-2015): intra-regional and inter-regional traffic:
Morocco, Afghanistan, Lebanon, India & Pakistan
o Largest herbal cannabis producers (2010-2015)- intra-regional traffic= within the same
area
WHOLESALE
• By air, sea, road...
• Less clear overview
• Modus Operandi changes based on timing, place and in response to situational and legal factors
• Legal obstacles to the fight against criminal networks = problems with jurisdictions
o Producers and distributors stay in different countries
o Confiscations and arrests take place in transit countries
➔ Need for coordinated, integrated and transnational responses!
,MIDDLE LEVEL
• Broad phenomenon
o Little research → limited knowledge
o No clear and global accepted definition!
o “Strategic link between wholesale and retail”
o Transaction volume (e.g. Cocaine → 1- 5 kg)
• Organisation structure
o Roles may be swapped, people come and go
o Typology based on structure (f.e. family business) or tasks (repacking, distributing)
o The role of family ties and ethnicity remains important
RETAIL LEVEL
• Relatively good overview of individuals involved
• Retail level characterized by high variability
o The market does not follow predictable structures
• Dealers
o Make little profit, some dealers deal to finance their own drug use
o Most dealers work independently or in separate groups (of 2 or 3 people) without
hierarchy
• Cannabis retail market is estimated to be the largest, followed by the heroin retail market and
the cocaine retail market
Product prices rise the closer it
gets to the consumer!
Who makes the highest profits?
, EXPLAINING THE BASICS: NEW PSYCHOACTIVE SUBSTANCES (NPS)
WHAT?
• Variants of basic structures of illegal
substances
o NPS will change one or a couple
of elements in a basic structure of a drug -> new substance isn’t the drug anymore
because the structure’s changed, but it does mimic the effect of the drug…
• Stimulants and hallucinogenic NPS variants
• But also synthetic opioids: e.g. U-47700, fentanyl, acrylic fentanyl, ocfentanil, carfentanil
• Avoiding legislation
o A list of substances under control i.e “cocaine”
o Producers modify a chemical group i.e. “mimicking cocaine but the chemical structure
has changed so the substance could be called “cocaine” anymore ➔ substance stays
legal
o For any new substance (not included in the list) legislations must be updated = time ➔
legislation lags behind reality
o E.g. in Belgium: end of 1990’s: 2 C-B (sold as XTC-like substance) ➔ legal prohibition in
RD 1998
• Large number of NPS: produced in commercial labs (e.g. Asia) ➔ often cheaper than illicit drugs
• High profitability
o E.g. synthetic cannabinoids: +/- the same concentration of THC (10-15%) but profit
margin is far higher!
• Sold via specialized shops, street-level dealers and online drug markets (Clearnet drug markets
and cryptomarkets *)
• Some NPS pose a particular public health concern due to their high potency, easy accessibility
through online drug markets, and possible distribution into the regular street drug supply where
they might be mixed with or substituted for other illicit drugs (f.e. adulterated heroin with
fentanyl)
X 100 X 50
EXPLAINING THE BASICS: ILLICIT DRUG MARKETS
INTRODUCTION ON ILLICIT DRUG MARKETS
• The EU illicit drug market = the largest criminal market in the EU
o >1/3 EU organized crime: production, traffic and smuggle of illicit drugs
o Large profits involved f.e. EU retail drug market is estimated to be worth at least 24
billion euro/year.
• Link between illicit drug economy and legal economy:
o 44% of profits re-invested in the legal economy of Europe by money laundering
(EMCDDA, 2016)
o Infiltration of organized crime into political, socio-economic and financial power:
undermining
• Differences in organisational structures (2 structures):
o Various organisations from social supply to organized crime
o When looking at the criminal structure of groups involved in large-scale drug
production, we notice several organisational structures, amongst others:
Pyramid Flexible partnership
• Hierarchical structure and highly • Flexible network structures
disciplined • Decentralized, fragmented and
• Clear leadership situational
• Clear distribution of tasks • Individuals are organized in small
• Stability groups
• Informal and loosely organized
associations of entrepreneurs
Drug markets are adaptive and resilient
• They learn from legal businesses (organization, innovation, etc.) + risk adaptation
o Many want to get a piece of the pie
o Responding to opportunities
o Role of globalization (transport and technology)
o YET: illicit drug markets are not bound by regulation/lack of resources
4 LEVELS OF THE DRUG SUPPLY MARKET
• Supply chain = trajectory of each product, from production to retail
o Four levels:
Middle Retail
Production Wholesale
Level Level
o E.g.: Production cocaine in Colombia → export to Europe (100 kg) → cutting and
distribution to various dealers (in packs of 5 kg) → distribution in user quantities and
sale to users (1g – 5g)
, Production
Distinction between upper level,
middle level and lower level
➔ Sometimes hard to make
a distinction
Wholesale
Middle level
Retail
Consumer
PRODUCTION
• Opium: Asia (Afghanistan, Myanmar), Latin America (Mexico, Colombia & Guatemala)
• Cocaine: Latin America (Colombia, Peru, Bolivia...).
• Synthetic drugs: Europe
o Amphetamine/XTC: Belgium, Netherlands, Germany, Bulgaria...
o Methamphetamine (used in Europe): Czech Republic, Netherlands...
• Cannabis: 135 countries report cannabis production → global phenomenon
o Largest cannabis resin producers (2010-2015): intra-regional and inter-regional traffic:
Morocco, Afghanistan, Lebanon, India & Pakistan
o Largest herbal cannabis producers (2010-2015)- intra-regional traffic= within the same
area
WHOLESALE
• By air, sea, road...
• Less clear overview
• Modus Operandi changes based on timing, place and in response to situational and legal factors
• Legal obstacles to the fight against criminal networks = problems with jurisdictions
o Producers and distributors stay in different countries
o Confiscations and arrests take place in transit countries
➔ Need for coordinated, integrated and transnational responses!
,MIDDLE LEVEL
• Broad phenomenon
o Little research → limited knowledge
o No clear and global accepted definition!
o “Strategic link between wholesale and retail”
o Transaction volume (e.g. Cocaine → 1- 5 kg)
• Organisation structure
o Roles may be swapped, people come and go
o Typology based on structure (f.e. family business) or tasks (repacking, distributing)
o The role of family ties and ethnicity remains important
RETAIL LEVEL
• Relatively good overview of individuals involved
• Retail level characterized by high variability
o The market does not follow predictable structures
• Dealers
o Make little profit, some dealers deal to finance their own drug use
o Most dealers work independently or in separate groups (of 2 or 3 people) without
hierarchy
• Cannabis retail market is estimated to be the largest, followed by the heroin retail market and
the cocaine retail market
Product prices rise the closer it
gets to the consumer!
Who makes the highest profits?
, EXPLAINING THE BASICS: NEW PSYCHOACTIVE SUBSTANCES (NPS)
WHAT?
• Variants of basic structures of illegal
substances
o NPS will change one or a couple
of elements in a basic structure of a drug -> new substance isn’t the drug anymore
because the structure’s changed, but it does mimic the effect of the drug…
• Stimulants and hallucinogenic NPS variants
• But also synthetic opioids: e.g. U-47700, fentanyl, acrylic fentanyl, ocfentanil, carfentanil
• Avoiding legislation
o A list of substances under control i.e “cocaine”
o Producers modify a chemical group i.e. “mimicking cocaine but the chemical structure
has changed so the substance could be called “cocaine” anymore ➔ substance stays
legal
o For any new substance (not included in the list) legislations must be updated = time ➔
legislation lags behind reality
o E.g. in Belgium: end of 1990’s: 2 C-B (sold as XTC-like substance) ➔ legal prohibition in
RD 1998
• Large number of NPS: produced in commercial labs (e.g. Asia) ➔ often cheaper than illicit drugs
• High profitability
o E.g. synthetic cannabinoids: +/- the same concentration of THC (10-15%) but profit
margin is far higher!
• Sold via specialized shops, street-level dealers and online drug markets (Clearnet drug markets
and cryptomarkets *)
• Some NPS pose a particular public health concern due to their high potency, easy accessibility
through online drug markets, and possible distribution into the regular street drug supply where
they might be mixed with or substituted for other illicit drugs (f.e. adulterated heroin with
fentanyl)
X 100 X 50
