Financial Crime World

Bolivia’s Drug Trafficking Epidemic: A Perfect Storm of Corruption and Inaction

La Paz, Bolivia - The porous borders, lack of money laundering controls, and corrupt government institutions in Bolivia have created a perfect storm that allows transnational organized crime (TOC) to thrive in the country. An exclusive investigation by Insight Crime has uncovered a web of corruption and inaction that enables drug traffickers to operate with impunity.

A Culture of Corruption and Informality

  • Over half of Bolivia’s economic activity takes place in the informal sector, which often involves illegal activities such as smuggling.
  • This culture of illegality makes it difficult for law enforcement to crack down on drug trafficking, as local communities have a vested interest in protecting the black economy.

Vulnerable Financial Sector

  • The banking system in Bolivia has almost no controls over money laundering.
  • A drug trafficker from Santa Cruz, known as “Pedro”, revealed that laundering money in Bolivia was often as simple as arriving at construction companies with suitcases full of cash.

Lack of Transparency and Politicization of State Institutions

  • Promotion within the police force is dependent on political affiliation rather than merit.
  • The government does not release statistics on organized crime, making it difficult to track the scale of the problem.

Restricted Media Coverage

  • Journalists face pressure from the government when reporting on organized crime.
  • The lack of investigative journalism means that the public is left in the dark about the true extent of the drug trafficking problem.

Government Efforts to Combat TOC

  • The Bolivian government is attempting to develop a strategy to tackle TOC, but its effectiveness remains unclear.
  • The European Union is providing support through crop substitution and police training programs, but a comprehensive and well-funded approach may be needed to address the scale of the problem.

Conclusion

Bolivia’s drug trafficking epidemic is a complex problem that requires a multifaceted solution. Until the government addresses the lack of money laundering controls, corruption, and informality, and until the media is free to report on organized crime without fear of retribution, it is unlikely that TOC will be brought under control.