Immigrant groups dominate the trafficking throughout Western Europe and North America. While primarily from transshipment countries, immigrants from impoverished sub-Saharan African nations

Drug smuggling is probably the transnational crime generating the greatest revenues to participants, approximately $20 billion, mostly from cocaine and heroin. Migration and other economic factors, together with enforcement, affect all dimensions of the industry; which countries produce and transship; the means by which the drugs are moved; the organizational forms that survive in the market; and the revenues generated. A small number of poor countries produce the vast majority of cocaine (Bolivia, Colombia and Peru) and opium/heroin (Afghanistan, Myanmar). A slightly larger number of (slightly richer) countries serve as transshipment countries for delivery to wealthy consumer countries. Third world countries have low cost land and labor, a source of comparative advantage in the production of low technology agricultural items such as opium and coca. The particular countries involved all have long traditions of production of these particular crops and weak, corrupt central governments. Which countries play a role in transshipment is probably a function of geography, weak central government and smuggling tradition. Drugs move primarily in legitimate commerce and traffic. Dedicated vessels have at times played a major role in US-Colombian cocaine smuggling but the vast majority of heroin and a majority of cocaine now seem to travel either in commercial vehicles or with passengers coming in through Ports of Entry. A substantial fraction of total volume probably comes in large bundles (250 kilograms or above for cocaine; 25 kg or above for heroin). Many different types of enterprise function in transnational drug trafficking. Large organizations probably dominate the market, in terms of volume but there is no indication of power to exclude entrants or set prices. Immigrant groups dominate the trafficking throughout Western Europe and North America. While primarily from transshipment countries, immigrants from impoverished sub-Saharan African nations have become prominent in some countries. Value added per kilo shipped is extraordinarily high. A kilo purchased for $2,000 in Cali will sell for $15,000 in Miami. This may be a return for taking the risks involved; perhaps 40 percent of all cocaine shipped is seized along the way, couriers require high payments for assuming risks and corrupt officials in producer and transshipment countries add further taxes. There is little research on this topic and the barriers to research are formidable. The traffic leaves little trace in the legitimate economy. Investigative records and case files, along with participant interviews, could provide substantially improved understanding of how enforcement affects this sector of the drug trade.