http://www.globalpost.com/dispatch/t...rists?page=0,0

Peru's "narco-terrorists" bring economic boom

HUANTA, Peru — The Communist hammer-and-cycle adorns the black-and-green uniforms of the Shining Path guerrillas here, as well as the flags flying over their jungle encampments. But the main activity of the group is not ambushing military patrols and outposts, it is managing the area’s booming cocaine trade. Their real symbol ought to be the dollar sign.
The Shining Path appear to be practicing a new form of communism that has a capitalist flare, yet it the party maintains control. Much like their Maoists in China, but Shining Path being a non-state actor must rely on the illicit economy.

The government knows what’s going on, but is limited in what it can or is willing to do. Until a few months ago, the National Police were in charge of fighting the drug traffic. But after attacks by Senderistas grew more bold and destructive, they were replaced by the army. In the boldest attack yet, in April a Sendero band attacked a military garrison and killed 15 soldiers near here. Sendero uses homemade land mines, grenades, and modern automatic weapons bought with the revenue from their drug sales.

Carlos Bassombio, an analyst in Lima, said the biggest problem facing Peru is not the armed insurrection represented by the remnants of Sendero Luminoso, but the increasingly ubiquitous narcotics trafficking in the country and the endemic corruption it engenders. Low-paid policemen are easily corrupted, and farmer and their families are easily attracted to the kind of wages paid by traffickers.
I saw an interesting debate on Intelligence Squared two nights ago about the drug war in Mexico and whether or not the U.S. government was to blame for the war.

http://intelligencesquaredus.org/ind...icos-drug-war/

Both side had some very credible debaters (former Mexican politicians, academic experts, former director of the DEA, etc.), and the audience who determined the winner was largely undecided at the beginning of the debate, and at the end they largely sided with team that argued that the U.S. was to blame based on our war on drugs, which in short was based on the fact that we created an illicit market by making it a war versus a health problem. Several parallels to prohibition were drawn, when it was outlawed, it supported the raise of organized crime in the U.S.. This is always an emotional topic on SWJ, but the historical record speaks for itself. Our war on drugs is a major failure, and IMO has only increased the scale of the global black economy, which in turns fuels insurgencies and terrorist movements. We need the political courage to seriously challenge this so called war on drugs, and consider some radical paradigm shifts in our approach. Unfortunately we have a McCarthy like atmosphere in our government when it comes to the war on drugs, and it is political suicide to challenge the failed status quo. I personally wish we could kill everyone associated with pushing this poison to our kids, but we can't, and our approach is only further undermining our national security without putting a dent in the drug trade.

What's the danger to U.S. interests in Peru? The same as it is everywhere else, the large black economy enables the non-state actor to effectively challenge the State's control and further destabilize not only the region but the global order.

John Youle, an American who has lived in Peru for many years and publishes a popular newsletter on politics and the economy, believes Peru is not far from becoming another Mexico in terms of the violence emanating from the drug traffic. “You’re getting increasing violence," Youle said. "This could get quite a bit worse.”