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Abstract
This article examines the socioeconomic effects of the illegal drug industry on economic and social development in Colombia. It shows that illegal drugs have fostered violence and have had a negative effect on economic development. This article also shows that the Plan Colombia anti‐drug policy has been an ineffective strategy in terms of decreasing drug production, generating economic development and reducing violence. Since this study includes both a statistical analysis of the effects that violence and illegal drugs have on the economic growth of Colombia, along with an evaluation of the Plan Colombia policy programme, it fills the gap between existing empirical studies of the Colombian illegal drug industry and specific analyses of Plan Colombia.
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