The Implications of the Illegal Economy
The size of the illegal economy in Colombia is enormous. For drug trafficking, Daniel Mejía, a professor at the Universidad de los Andes, estimated that revenues from cocaine sales represented US$15.3 billion in 2023, approximately 4.2% of the Gross Domestic Product (GDP) and higher than oil exports (US$12.435 billion). An economic activity of this magnitude has many implications for the national economy.
TL;DR
- Drug trafficking generated an estimated US$15.3 billion in 2023, accounting for 4.2% of Colombia's GDP.
- Illegal coca cultivation shows high productivity, with a 53% increase in potential cocaine production despite a 10% rise in planted area.
- Illegal coca cultivation exported five times more than coffee in 2023.
- Illegal mining generates an estimated US$8.5 billion, representing 1.7% of the GDP.
- 80% to 90% of municipalities involved in coca cultivation had the presence of at least one illegal armed group in 2023.
- Economic growth from illegal activities does not lead to institutional or fiscal strengthening and remains outside formal state channels.
- Illegal economies contribute to public order problems, affecting long-term economic and social development.