The connection of local economies with global markets often results in the local development of new skills, wealth, and infrastructure. However, in the absence of effective governance black globalization can develop. The integration of some parts of West Africa, such as Guinea-Bissau, into global trade networks has lead to the accumulation of skills in smuggling and smuggling institutions that have enriched few while impoverishing many. For example see the UNDOC report Cocaine Trafficking in West Africa: The threat to stability and development (pdf).
Stephen Ellis, the Desmond Tutu professor in the Faculty of Social Sciences at the Free University of Amsterdam, writes earlier this year in African Affairs (doi:10.1093/afraf/adp017) about the development of West Africa’s International Drug Trade
A major change in the global cocaine trade is taking place. South American cocaine traders are reacting against the saturation of the North American market, the growing importance of Mexican drug gangs, and effective interdiction along the Caribbean smuggling routes. These factors have induced them to make a strategic shift towards the European market, making use of West Africa’s conducive political environment and the existence of well-developed West African smuggling networks. Some leading Latin American cocaine traders are even physically relocating to West Africa and moving a considerable part of their business operations to a more congenial location, just as any multinational company might do in the world of legal business. Most recently, since a coup in Guinea in December 2008, there have been reports of Latin American cocaine traders moving in significant numbers to Conakry, where some relatives of the late President Lansana Conte have an established interest in the cocaine trade. Some observers believe that the next step for Latin American cocaine traders might be to commence large-scale production in West Africa. Some African law-enforcement officers are deeply concerned by the likely effects of the drug trade and drug money on their own societies, and indeed there is evidence that drug money is funding political campaigns and affecting political relations in several West African countries. Diplomats and other international officials worry that some West African countries could develop along similar lines to Mexico, where drug gangs have a symbiotic relationship with political parties and with the state and drug-related violence results in thousands of deaths every year.
Research by the present author shows that Lebanese smugglers were using West Africa as a transit point to transport heroin to the USA as early as 1952. A decade later, Nigerian and Ghanaian smugglers in particular began exporting African-grown marijuana to Europe on a scale large enough to attract sustained official attention. By the early 1980s, some had graduated to the global cocaine and heroin business. Since then, successful Nigerian and Ghanaian drug traders have established themselves in most parts of the world, including other West African countries, where they work with local partners in Benin, Côte d’Ivoire and elsewhere. Very large shipments of cocaine from South America to West Africa have been recorded for the last ten years. In short, West Africa’s role in the international drug trade has historical roots going back for over half a century and has been a matter of significant concern to law-enforcement officers worldwide for decades rather than years. Latin American traders who see some benefit in moving part of their operations to West Africa can find local partners with well-established networks who provide them with safe houses, banking, storage space, and a host of other facilities in return for a suitable financial arrangement or for payment in kind.
Not only is West Africa conveniently situated for trade between South America and Europe, but above all it has a political and social environment that is generally suitable for the drug trade. Smuggling is widely tolerated, law enforcement is fitful and inefficient, and politicians are easily bribed or are even involved in the drug trade themselves. Many officials throughout the region are deeply concerned by the effects of the drug trade, but are often confronted by people and networks more powerful than they, with other priorities. The recent emergence of a sophisticated financial infrastructure in Ghana and Nigeria is a further reason for the enhanced importance of West Africa in global drug trafficking. All of the above draws attention to a point made by Jean-François Bayart and others more than ten years ago, namely that expertise in smuggling, the weakness of law-enforcement agencies, and the official tolerance of, or even participation in, certain types of crime, constitute a form of social and political capital that accumulates over time.
The UNODC has pointed out that the relocation of a substantial part of the Latin American cocaine business to West Africa, including even some senior management functions, is not best understood as a consequence simply of comparative advantage in pricing. A more important reason for this development, which has been taking place for over a decade, is the exceptionally favourable political context offered by ineffective policing, governments that have a reputation for venality, and the relative lack of international attention given to West Africa. A pliable sovereign state is the ideal cover for a drug trafficker. The Colombian economist Francisco Thoumi states that ‘[p]rofitable illegal economic activity requires not only profitability, but also weak social and state controls on individual behavior, that is, a society where government laws are easily evaded and social norms tolerate such evasion’. In short, ‘[i]llegality generates competitive advantages in the countries or regions that have the weakest rule of law’. Drug production is not primarily to be explained by prices, but by reference to ‘institutions, governability and social values’. This is consistent with the ‘new’ international trade theory, which emphasizes the role of technical knowledge, public infrastructure, and the qualities of institutions in encouraging trade, supporting the view that ‘institutional and structural weaknesses and cultural aspects determine the competitive advantage in illegal goods and services’.
It is not hard to see why powerful people may nonetheless tolerate the drug trade in West Africa. For countries as poor as Guinea-Bissau or Guinea-Conakry, it makes a huge, though unofficial, contribution to national income. The UNODC, however, warns that crime hinders development, which it defines as ‘the process of building societies that work’. Crime is said to destroy social capital, and therefore to be anti-development. In purely technical terms, the emergence of the drug trade in West Africa over a period of fifty years or more is an astonishing feat. West African traders, with Nigerians in the forefront, have created for themselves an important role in a business characterized by competition that is cut-throat – literally – and by high profits. They have penetrated drug markets in every continent. Their success, and their growing ability to cooperate with organized crime groups elsewhere in the world, is inextricably linked not only to globalization and new patterns of international migration, but also to specific experiences of rapid economic liberalization in the late twentieth century. Nigerians especially were playing a significant role in the illegal drug trade in the 1970s, before the era of structural adjustment. Subsequently, the manner in which new financial and economic policies were implemented in West Africa in the 1980s contributed greatly to the formation of what has been called ‘a shadow state’, in which rulers draw authority ‘from their abilities to control markets and their material rewards’. Dismantling large parts of the bureaucratic apparatus inherited from colonial times, and the formal economic activity that went with it, rulers became intent on identifying new shadow state networks, sometimes drawing in foreign investors. West Africa’s ‘shadow states’ are thus relatively new, but they draw heavily on older traditions. These include not only the existence since pre-colonial times of initiation societies that are sites of power, but also the colonial practice of indirect rule, which sometimes resulted in local authorities operating unofficial networks of governance rooted in local social realities, hidden from the view of European officials whose attention was focused on the official apparatus of government.
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When Africa starts to produce cocaine the price of Coke in Europe will plummet. Global prices of Coke will decrease also.