Paraguay’s Growing Role in South America’s Drug Trafficking Chain
A Key Link in the Region’s Illicit Trade
Paraguay’s position as South America’s main marijuana producer has made it a crucial player in the region’s drug trafficking chain. However, with the emergence of new criminal players and economies, Paraguay’s importance in this illicit trade is growing.
Cocaine Laboratories Discovered
Over two years, InSight Crime conducted an investigation into organized crime in Paraguay, visiting 11 departments on the border with Brazil and Argentina. The investigation reveals that authorities have discovered several laboratories equipped to produce cocaine and its derivatives in areas where marijuana trafficking was once the dominant economy.
- Less restrictive chemical procurement: Compared to larger producer countries like Bolivia, Paraguay has fewer restrictions on procuring chemicals needed for cocaine production.
- Shift from marijuana to cocaine: Criminal groups are now branching out into cocaine production and other illicit activities.
Human Trafficking on the Rise
In the southern department of Itapúa, a hub for marijuana trafficking, heightened tourism has brought with it human trafficking. Minors are being forced into unpaid labor or exploited for sex.
- Exploitation in the tourism industry: The growth of tourism in Paraguay is creating new opportunities for human traffickers to exploit vulnerable individuals.
- Impact on local communities: Human trafficking is not only a moral issue but also has severe consequences for local communities, including increased crime and decreased quality of life.
Brazilian Gangs Establish Foothold
The notorious Brazilian gangs the First Capital Command (PCC) and Red Command (CV) have made aggressive attempts to establish a foothold on the Paraguay-Brazil border. In the city of Pedro Juan Caballero, Amambay department, the PCC’s incursions into the cocaine and marijuana trade have upset the criminal balance and fueled confrontation between increasingly fragmented groups.
- PCC’s recruitment efforts: The PCC has also sought to strengthen itself within Paraguay’s prisons, taking advantage of severe overcrowding to recruit new members.
- Increased violence and homicide rates: This has led to a surge in violence and a significant increase in homicide rates in the department.
Democratization of Contraband
Paraguay’s booming contraband economy is becoming ever-more accessible to small-time criminal actors and lower-level politicians. The elites’ crumbling monopoly has left the contraband trade working like a regular market economy, responding to shifts in supply and demand.
- Impact on politics: This has made it an important mechanism for financing political campaigns, degrading the electoral process.
- Increased competition: The democratization of contraband has led to increased competition among criminal groups, making it more challenging for authorities to address the issue.
International Crime Groups Involved
The arrival of international crime groups on Paraguay’s border with Brazil has also impacted the contraband trade. Local groups in Pedro Juan Caballero now sell a decent portion of their counterfeit goods to foreign buyers.
- Global connections: The involvement of international crime groups highlights the complex nature of organized crime and its global reach.
- Challenges for authorities: This makes it more challenging for authorities to address the issue, as they must consider international cooperation and coordination.
Drug Money and Politics
The relationship between politics and organized crime has also evolved. A growing number of officials are taking an interest in the drug trade, with some even conspiring with criminal groups to protect their interests.
- Corruption and manipulation: This typifies a wider pattern: the increasing importance of drug money in political campaigning.
- Undermining democracy: The involvement of organized crime in politics undermines democratic institutions and processes, creating a challenging environment for authorities to operate.