Abstract
In 2014, approximately 0.4% of the global adult population used illicit opiates (e.g. opium, heroin). Ninety five percent of these drugs were supplied by three global supply chains: the Afghanistan...
Highlights
The United Nations Office on Drugs and Crime (2016a) reported that globally 1 in 20 adults used drugs in 2014 (i.e. 247 million people); 1 in 167 adults ABOUT THE AUTHORJohn Miltenburg is a professor of Operations Management in the School of Business at McMaster University in Hamilton, Ontario, Canada
Ninety five percent of these drugs were supplied by three global production networks chains: the Afghanistan network, the Golden Triangle network, and the Mexico-Columbia network
Capturing value: The price of illicit opiates In the 1970s and 1980s, the purity of the heroin exported from Afghanistan was high, about 60%; but the purity of the heroin sold by North American retailers was low, between 10 and 20%
Summary
The United Nations Office on Drugs and Crime (2016a) reported that globally 1 in 20 adults (i.e. people between the ages of 15 and 64) used drugs in 2014 (i.e. 247 million people); 1 in 167 adults. Ninety five percent of these drugs were supplied by three global production networks chains: the Afghanistan network, the Golden Triangle network, and the Mexico-Columbia network. The supply from these networks was insufficient to satisfy the demand. Activities needed to create product value in a global opiate production network include: suitable land and climate for opium poppy cultivation, low cost labor, chemical supplies, opium and heroin processing laboratories, transportation, distribution,. Some of these organizations try to vertically integrate to extend their governance and increase their ownership over activities in the network
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