Abstract for: Coca Farming Dynamics: The Colombian Case
During the last 20 years, Colombia has had a reputation for being one of the largest producers of coca in the world. However, even when the Colombian cartels ruled the market and were the most innovative and aggressive suppliers, they were not always the largest producers. This work describes the rise and fall of the Colombia coca farming industry, understanding the dynamic of the illegal markets, and the role of the law enforcement. Using a system dynamics approach, and the elements of the economic theory of the criminal firm, our work finds that one of the main causes of the coca farming rise might be attributable to a counterintuitive policy against the dominant cartelsí monopoly. As well as the legal markets, in the illegal ones, an increase in competence means an increase in production resulting in decreased prices.