1) years. Despite the increasing demand of1) years. Despite the increasing demand of

Geographical Location: Bolivia, Colombia, and Peru, 1998

Chronicle of the event: Coca, the raw material for cocaine, is grown in the countries
of Bolivia, Colombia and Peru. Regional efforts to eradicate cultivation of
this crop have been successful in those three years. Despite the increasing
demand of cocaine and coca, the governments successfully reduced the supply on
a large scale.

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Breakdown of the event: Nearly all of the coca cultivation in Colombia is
in remote regions outside authorities control and often under the influence of
guerrilla and paramilitary forces. This makes eradication and prohibition
operations difficult. Moreover, without the promise of security in the
countryside, the government cannot deliver adequate development programs to
provide legit income to growers who abandon coca cultivation. The growth of
Colombian drug cultivation has added substantial power to the guerrilla and
paramilitary groups, who protect and control various aspects of the drug
industry. Despite these challenges, the Colombian Police report that they
destroyed more than 60,000 hectares of illicit crops in 1998. The Colombian
authorities has formed a joint task force with people from all the military services
and the police to escalate operations in guerrilla-controlled regions. The CNP
also inducted an aircraft control system, which resulted in the seizure of 54
trafficker aircrafts in 1998.

4)      Consequences of the event: Coca cultivation in Peru decreased by 56 percent from
115,300 hectares in 1995 to 51,000 hectares in 1998. Cocaine production
declined from 460 MT to 240 MT over the same period in Peru while in Bolivia production
declined from 255 MT in 1994 to 150 MT in 1998.

Policy Remedy: Governments of these countries actually tried to
attain such a state of demand and supply. This success is associated to many
factors, including political will in both countries to counter the illegal drug
trade, the regional air injunction campaign that targeted drug-laden aircraft
flying between Peru and Colombia, diminished strength of insurgent forces in
Peru, and alternate crop programs. The fact that coca leaf prices dropped more
than 40 percent in Peru over the past three years suggests that the operation
is successful.

Comment: By increasing capabilities of judicial systems,
law-enforcement agencies, security forces and encouraging greater regional
cooperation, implementation of policies can curb illicit coca cultivation is possible.