Economics, Winning Bolivias Drug War :: essays research papers

Economics is Winning Bolivias Drug War A 1998 article from the stabbing(a) York clock reported that Bolivia was winning its fight against drugs as a result of two factors that influence the market for coca plant plant, which isused to make cocaine. First, Bolivian soldiers raided a number of coca plantations anddestroyed the work ons. Second, Colombians began growing more than of their own coca and, as aresult, now buy less from Bolivia than in the past. I am proposing that the basic principlesof supply and demand are what helped to crystalize the drug problem. The followingparagraphs leave support my argument. Figure 1 shows the supply and demand sprains before and after the changesoccurred in Bolivia. As you can see, after the coca plantations were raided, the supply ofcocaine was cut short, thus shifting the supply curve to the left. Also, because Colombiansbegan growing their own coca, demand decreased for the cocaine from Bolivia, shiftingthe demand curve to the left a lso. To sum up, supply decreased from S to S1, because ofthe raids, and demand decreased from D to D1 because Colombians began to grow theirown coca and didnt need to rely as much on Bolivia. The diagram clearly shows that thequantity sold at P* decreased from Q* to Q** due to these two changes. fit to the article in the New York Times, the Bolivian government hopesthese changes in the coca market will motivate coca growers to switch to a substitute cropsuch as pineapple. This is a possibility if the price of coca falls. If the price of coca falls,supply will also decrease because it wont be as profitable to upraise coca as it was before.The falling price would then trigger farmers to switch to another crop such as pineapple. The Bolivian government, hoping to perish the cocaine problem, indirectlyturned to economics for a solution. That solution is a simple tale of cutting supply in a commission that leads to a decrease in demand. That decrease came because Colombians couldntget the supply they wanted at the price they wanted to pay so they grew their own andhelped eliminate coca growth deep down Bolivia. They can further solve the problem byperhaps raising the price paid for other crops so farmers will switch from growing coca togrowing something else for a bigger profit. Although farms in other South American countries grow acres and acres of cocaplants, the raw material from which cocaine is made, today, capital of South Carolina is the leadingEconomics, Winning Bolivias Drug War essays research papersEconomics is Winning Bolivias Drug War A 1998 article from the New York Times reported that Bolivia was winning itswar against drugs as a result of two factors that influence the market for coca, which isused to make cocaine. First, Bolivian soldiers raided a number of coca plantations anddestroyed the crops. Second, Colombians began growing more of their own coca and, as aresult, now buy less from Bolivia than in the past. I am proposing that the basi c principlesof supply and demand are what helped to solve the drug problem. The followingparagraphs will support my argument. Figure 1 shows the supply and demand curves before and after the changesoccurred in Bolivia. As you can see, after the coca plantations were raided, the supply ofcocaine was cut short, thus shifting the supply curve to the left. Also, because Colombiansbegan growing their own coca, demand decreased for the cocaine from Bolivia, shiftingthe demand curve to the left also. To sum up, supply decreased from S to S1, because ofthe raids, and demand decreased from D to D1 because Colombians began to grow theirown coca and didnt need to rely as much on Bolivia. The diagram clearly shows that thequantity sold at P* decreased from Q* to Q** due to these two changes. According to the article in the New York Times, the Bolivian government hopesthese changes in the coca market will motivate coca growers to switch to a substitute cropsuch as pineapple. This is a possibilit y if the price of coca falls. If the price of coca falls,supply will also decrease because it wont be as profitable to farm coca as it was before.The falling price would then trigger farmers to switch to another crop such as pineapple. The Bolivian government, hoping to eliminate the cocaine problem, indirectlyturned to economics for a solution. That solution is a simple tale of cutting supply in away that leads to a decrease in demand. That decrease came because Colombians couldntget the supply they wanted at the price they wanted to pay so they grew their own andhelped eliminate coca growth within Bolivia. They can further solve the problem byperhaps raising the price paid for other crops so farmers will switch from growing coca togrowing something else for a bigger profit. Although farms in other South American countries grow acres and acres of cocaplants, the raw material from which cocaine is made, today, Columbia is the leading