What is a drug cartel?

Drug cartels are extremely well-organized, well-financed, efficient, and ruthless. Since the 1980s, they have dominated the international narcotics trade. The U.S. war on drugs began under the administration of Pres. Richard Nixon. Following his victory in the 1968 presidential election, Nixon declared that drug abuse was “public enemy number one.”

How did drug cartels start?

Efforts to stop the flow of illegal drugs into the United States —which was the primary destination for most narcotics—became increasingly focused on curtailing foreign production of marijuana and heroin. It was during the 1970s, however, that a growing U.S. demand for cocaine led to the creation of the earliest drug cartels.

What is a cartel & how does it work?

A cartel is an organization formed by producers to limit competition and increase prices by creating artificial shortages through low production quotas, stockpiling, and marketing quotas. Cartels can be vertical or horizontal but are inherently unstable due to the temptation to defect and falling prices for all members.