The obvious one is that it reduces the cost of training and recruiting new members. Coca farms in Colombia and Bolivia, through the chain to the US border and the large recreational drug market in the United States. One of the cradles of any drug organization is prison. Wainwright's book offers a lot of interesting facts and figures in relation to the world of drug cartels. As Cartels control the supply, there is little room for competition to come in and undercut prices. This book focuses more on regulatory reform options.
Tackling the demand side of the drug economy instead of the supply side for example. Ironically, the tough on crime stance often leads to tighter structural formations and greater loyalty to drug cartels and gangs. Prisoners receive protection and pay in return for working for cartels, and joining one can act as a buffer to the harsher realities of prison. An added bonus is that police are often pulled out of your own territory to assist. High pay, vacations and other incentives are used to ensure members are well remunerated for their work. Threats of violence or ISIS style videos of murders or violence deters those who act against the cartel, such as bloggers and politicians, as they are seen as a threat against profits. Collusion can also reduce the pressure governments put on drug gangs. The obvious one is that it reduces the cost of training and recruiting new members. He starts in farms both illegal in Colombia and legal in Bolivia that grow Coca. This is partially accurate. However, the regulatory bend this book took was much different from what was advertised on the cover. The subtitle "How to Run a Drug Cartel" is not an apt choice, however. This book can be recommended to those interested in the ongoing drug war, and those looking for an innovative read on business theory, albeit with a heavy dose of journalistic messaging. It examines the business of drug cartels closely, and provides an entertaining account of the mysterious world of criminal cartels. Send in some goons to start some violence. Coca farms in Colombia and Bolivia, through the chain to the US border and the large recreational drug market in the United States. I was expecting more of a book on business stratagems that a cartel uses, or its relations to established business practices. A high exit cost in the form, often, of violence is used to dissuade members from leaving. Most governments have been focusing on supply to combat drug trafficking. Suffice to say, this is an interesting read. This book focuses more on regulatory reform options. Drug cartels achieve similar mark ups to large corporations like WalMart - they put all the price fluctuations on the shoulders of the suppliers, and as retailers charge a fairly fixed rate through the massive mark up price. This has very little actual effect on the price of the drug, and just like cockroach's, squash one farm and another will take its place. Want a police clampdown in a rivals territory? Prices have shot up to astronomical levels in recent years, which only squeezes addicts harder while bringing in larger profits for the more ruthless cartels who cannot be squeezed out through legislative measures.
Video about narconomics:
Tom Wainwright, "Narconomics: How to Run a Drug Cartel"
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