Underground due to the wrong reasons. The greater

Underground
Economy of Columbia

Columbia
is a creating nation, however they came into the spotlight due to the wrong
reasons. The greater part of the news which made feature could be identified
with drugs and the wrongdoing business and how it influenced the Columbian
economy and also its neighbouring nations. In this research report my focus
would be to feature the realities which have influenced the economy of Columbia
and how imperative a part did the drug and crime business played in rescinding
the government. (Schneider, 2007)

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Underground
Economy by definition implies all activities happening outside the lawful
authorized market and assessment framework, which has gigantic monetary,
political and social ramifications. Indeed, even with the definition there many
questions which open up. The table below articulates what activities go under,
underground economy and what goes under the law.

 Monetary Transactions (Illegal activities): Trade with stolen
goods, drug dealing and manufacturing, gambling, smuggling, prostitution etc.

Tax
evasion and avoidance (Legal
activities): unreported income from self-employment, wages, assets and
salaries from unreported legal services and goods, employee discount and
services.

 

Non-Monetary
Transaction (Illegal
activities): Barter of drugs, stolen goods, producing or growing drugs for
own use, theft for own use.

Tax
evasion and avoidance (Legal
activities): Barter of goods, legal services and goods, all do it yourself
work and neighbour help.

These
illustrations tell us exactly how shadow economy works.

The
Drug and Crime Economy in Columbia

There
were many drug lords and barons who worked in Columbia amid the 1970s. The most
memorable being Pablo Escobar, who was for some time considered as the most
capable, unsafe and the most wanted person on the U.S insight. He was so
merciless and colossally capable that he could topple the running government
and run the nation. In the 1970s when Pablo began building up his cocaine
business, he himself would fly a few times from Columbia to Panama and The
United states to pirate Cocaine. After the business began to soar, he purchased
more than 15 major planes more than 6 helicopters to help smuggle the drugs
from Columbia to other neighbouring nations. In a couple of years, his connect
was with more than ¼ of the United States where drugs were easily accessible.
His influence and power enabled him to overthrow the then present and running
government and pay off the authorities to enable simple access of drugs to
everybody. At his pinnacle he had a yearly income of more than $21 Billion.

Establishing
the Drug Network

In
1982 Pablo Escobar was elected as an alternate member of the Chamber of
Representatives of Columbia. Soon after Escobar came into the limelight in the
political sector as well, he started getting recognition worldwide. As the
demand for better quality cocaine increased, Pablo began working with Roberto
Suraez, which helped him increase his production and spread it across other parts
of America and Europe.

Pablo
Escobar was the leader of the drug cartel which was named Medellin. During this
time when the drug smuggle was happening at a rapid and more worrying pace for
other countries, the Columbian government tried intervening into this matter,
bringing in paramilitary teams to counter the precarious cartels in Columbia.
Even the United States government started helping the Columbian government
fight these drug lords, and minimise the transportation of drugs to other
countries. (Networks, 2013)

 

The
Drug war in Columbia

During
the 1960s there were many low intensity wars going on between the Columbian
government, the paramilitary groups and the left-wing guerrilla, the
Revolutionary Armed Forces of Columbia (FARC) and the National Liberation Army
(ELN), fighting each other to influence their power in the Columbian territory.

Each
of these groups claim to be fighting the war for a different purpose. The
Columbian government was fighting to bring stability and social justice to the
people of the country, while the paramilitary was counter answering the threats
of the guerrilla army. Whatever the reason to fight may be, all of these groups
were responsible of nation and mass destruction in Columbia,

The
Medellin group was considered was considered more of a terrorist group than a
group that conducts organised crime. The difference between the both is groups
is that, a terrorist groups are more politically motivated                while organised crime groups aim
more to earn profit.

The
cartel group led by Pablo aimed to overthrow the already existing government
and come into power. Apart from the Medellin, there were many other drug
cartels which operated during the time which were equally if not more dangerous
than the Medellin, some of them were:

Cali cartel
(1977-1988): The Cali cartel was based in Southern Columbia. It was founded by
the Rodriguez brothers. They began as a ring of kidnappers who eventually moved
into smuggling of drug, originally starting from marijuana and eventually
spreading their business to cocaine. Studies say that it played a very crucial
role in man hunting Pablo Escobar, eventually killing him. Their estimated
annual income would round up to $ 7 Billion a year. 

Notre Del Valle Cartel: The
North valley cartel as it was so called, operated in the northern valleys of
Columbia. It rose to power during the second half of the 1990s after the
Medellin and the Cali cartel. They exported an estimated 1.2 million pounds of
cocaine from Columbia to Mexico which finally flew into the US during a year.
Notre Del Valle further used (Wilfried, 2003) violence as a mean
to expand their business.

After
a very miserable late 1900s the Columbian government with the help of the U.S
government was able to tackle and fight the cartels and slowly stop the
smuggling of drugs from Columbia. The ‘search bloc’ which famously man hunted
and gunned down Pablo Escobar on 2nd December, 1993. The Columbian
government hasn’t looked back since then, and have caught over 1300 major drug
lords who could have been potential successors to Pablo and many others.

Columbian
now is in the state of peace and development, where they are trying to curtail
all the illegal activities going on in the country and make Columbia a place
for people who can live peacefully. (woody, 2005)