Columbia experiences fall in demand for cocaine leaving it high and dry

economictimes.indiatimes.com:

Columbia has a unique problem. The Latin American country is in a catch 22-situation. The Government had signed an important agreement with a major rebel group to attain peace and prosperity but now faces another issue pertaining to increasing levels poverty which may have been caused by this agreement.

Columbia’s cocaine production was at an all-time high but now this supply remains unsold resulting in large scale poverty of the farmers who were cultivating this drug. There has been a dramatic downturn in the drug market which has added to the reduced sales of this drug resulting in economic hardships for the people.

Peace agreement:

The Colombian Government and the Revolutionary Armed Forces of Colombia also called the FARC have signed a peace agreement. This ended decades long conflict between the government and a key rebel group which was responsible for much of the export of drugs from Colombia.

Effects of this peace agreement:

This peace agreement has led to the fall in demand for cocaine from Columbia. The group had earlier used cocaine to fund its wars. After this agreement, smaller criminal syndicates have taken over and are demanding the production of cocaine. However, they have hired farmers in the areas close to the border as it will facilitate the easier export of the drug. This has left the farmer in the hinterlands in distress as the demand for their produce as reduced.

Demand for cocaine:

Globally, the demand for this drug has only increased and continues to experience an upward growth