World
Institutional
links
Welcome back on
26 -29 August,
ONS 2008
Bridging
the energy gap
is ONS 2006 theme,
from 22-25 August,
in Stavanger, Norway
Petroleumworld
Business
Partners:
Centre for
Global Energy
Studies
  |
Pedro M. Burelli: Venezuela, Bolivia and
Burma flunk - again - US test on fight against drugs
This afternoon the White House has released the yearly memo to the Secretary of State on the fight against drugs (President's Determination On Major Drug-Producing and Drug Transit Countries, attached) . This year 3 countries have been singled out for sanctions: Bolivia, Burma and Venezuela and waivers have been issued for Venezuela and Bolivia to allow for continued support for pro democracy activities in Venezuela and economic development in Bolivia. Without such waivers all flow of US funds would have to cease to a de-certified nation.
While the practice of the top consuming nation in the world playing high priest on the matter of drugs is a bit offensive, it is clear that a country that spends hundreds of millions on international drug interdiction can take a step back and make an objective judgement on the efforts of others based on purely objective facts. In the case of Burma nobody questions the complicity of the Generals with the drug lords. In the case of Venezuela, the connection between the ruling elite and the narcos is bursting out for all to see.
Terming Venezuela a narco state is now appropriate and fully supported by fact. Dealing with this tragic development however will not be so easy for those within and those outside Venezuela. Over the years some of us have warned that the blatant concentration of power would result in extreme impunity. Government corruption, money laundering by private institutions and a very lax anti-drug effort were bound to lead to this most perfect of storms. Furthermore, some of the success of Plan Colombia is due, as warned also, to a "balloon effect", i.e. sweeping the problem across to the border to very permissive territory/country. Democrats in Venezuela, accused of much by many who have chosen to ignore the criminal nature of the Chavez regime, are left with the daunting challenge of defeating a drug kingpin via the ballot box. This would be a definite first!
Note: Once again, it would be useful for the US President to send a memo to the Attorney General of the US describing how it is that drugs flow so readily all over the US without complicity of law enforcement and others charged to actually stop the flow.
Attached the President's Determination memo and the attached justification for de-certification . See also the segment on Venezuela in the State Department statement that followed the release (in red highlight..of course).
Remarks Upon the Publication of the President's Determination On Major Drug-Producing and Drug-Transit Countries
David T Johnson, Assistant Secretary of State for International Narcotics and Law Enforcement Affairs
Remarks Upon the Publication of the President's Determination On Major Drug-Producing and Drug-Transit Countries
Washington, DC
September 16, 2008Good afternoon.
Yesterday, the President made his annual designation of the "Majors' List" of illegal drug-transit and drug-producing countries. As the Assistant Secretary of State for International Narcotics and Law Enforcement, it's my privilege to present the President's determination and to discuss our broader efforts to combat illicit drugs.
Under the Foreign Relations Authorization Act, the President is required to notify Congress of those countries he determines to be major illicit drug-producing countries or major drug-transit countries. But it is important to understand that a country's presence on the list does not reflect its counternarcotics efforts nor does it reflect its cooperation with the United States. The designation can reflect a combination of geographic, commercial, and economic factors that allow drugs to be produced or trafficked through a country despite its own best efforts.
But when a country does not live up to its obligations under international counternarcotics agreements and conventions, the Majors' List process signifies that by the President determining that the country has "failed demonstrably." Such a designation can lead to sanctions. However, the President may also provide a waiver when he determines there is a vital national interest in continuing U.S. assistance. Even without such a waiver, humanitarian assistance and counternarcotics assistance may continue.
This year the President has identified the following countries as major drug-transit or drug-producing countries: Afghanistan, the Bahamas, Bolivia, Brazil, Burma, Colombia, the Dominican Republic, Ecuador, Guatemala, Haiti, India, Jamaica, Laos, Mexico, Nigeria, Pakistan, Panama, Paraguay, Peru, and Venezuela.
Of these 20, the President has determined that three countries, Bolivia, Burma, and Venezuela, "failed demonstrably" during the last 12 months to make sufficient or meaningful efforts to adhere to the obligations they have undertaken under international counternarcotics agreements. In the cases of Bolivia and Venezuela, the President has given waivers to possible sanctions under U.S. law, so that the United States may continue to support various programs to benefit the Bolivian and Venezuelan people. In Venezuela, funds will continue to support civil society programs and small community development programs. In Bolivia, the waiver will permit continued support for agricultural development, exchange programs, small enterprise development, and police training programs among others.
Venezuela has been found to have "failed demonstrably" for the fourth consecutive year. The Venezuelan government's continuing inaction against a growing drug-trafficking problem within and through its borders is a matter of increasing concern to the United States. Despite Venezuelan assurances that seizures have increased, the amount of drugs bound for the United States and Europe continues to grow. Much of this drug traffic through Venezuela and bound for Europe is transiting Western Africa, and the corrupting influence of this illicit wave threatens governance and economic stability in this region. Corrupt officials and organized crime within Venezuela have exploited the situation and a weak judicial system has failed to effectively prosecute these criminals. Additionally, Venezuela has refused to renew its counternarcotics cooperation agreements with the United States, including refusing to sign letters of agreement to make funds available for cooperative programs to fight the trafficking of drugs from and through Venezuela to the United States.
Burma has also "failed demonstrably" again this year. Burma continues to be the largest source of methamphetamine pills in Asia. Additionally, poppy cultivation, which had been in dramatic decline has again turned upward. The military regime has made little apparent effort to curb production of the pills and little effort to stop poppy cultivation. Their efforts to reduce demand, interdict drug shipments, and combat corruption and money laundering continue to be lackluster.
This is the first year that the President has determined that Bolivia has "failed demonstrably." This was not a hasty decision. Bolivia does have a number of effective, U.S.-supported, coca eradication and cocaine interdiction programs.
However, Bolivia remains a major narcotics-producing country, and its official policies and actions have caused a significant deterioration in its cooperation with the United States. President Morales continues to support the expansion of "licit" coca leaf production, despite the fact that current legal cultivation far exceeds the demand for legal traditional consumption and exceeds the area permitted under Bolivian law. Much of the surplus coca leaf production is traded in unregulated "legal markets" and is diverted to cocaine production. The expansion of cultivation and lack of controls on coca leaf resulted in a 14% increase in the area of coca under cultivation, and an increase in potential cocaine production from 115 to 120 metric tons.
Recently, cocalero syndicates – endorsed by the Government of Bolivia – expelled United States Agency for International Development from the Chapare region where we ran a number of programs to promote the development of economic alternatives to coca cultivation. And last week DEA was similarly expelled from the Chapare. These actions form part of an apparent Government of Bolivia policy to restrict the scope of U.S. support for its counternarcotics efforts. These actions by the Government of Bolivia represent a retreat from its international obligations to control cocaine trafficking.
We have a number of programs in place which can make a positive contribution to the struggle against narcotics trafficking in Bolivia, but they will only be effective with the full support of the Bolivian Government. We believe it's now up to the Bolivian Government now to take concrete steps to fulfill its international obligations with respect to narcotics production and trafficking, and we stand ready to help.
Turning to other countries on the list, this year Afghanistan has made measurable progress in its efforts to eliminate opium poppy. Recent reports from the UN indicate that the number of poppy-free provinces in Afghanistan increased from 13 to 18 from last year. This increase has taken place primarily in those provinces where there is sufficient security, governance, and alternative development.
Nowhere in Afghanistan has progress been more dramatic than in Nangarhar. In 2007, that province ranked as the second-highest poppy-cultivating province in Afghanistan, but it's now poppy-free. This results from a counternarcotics strategy integrated into security operations, a balance of incentives and disincentives, and very strong leadership from the Governor of Nangarhar.
Yet much remains to be done. Enormous challenges remain in Afghanistan, and the Government of Afghanistan need to take aggressive action to meet these challenges, in cooperation with and with the support of the international community. Five provinces in the south continue to produce over 85 percent of Afghan opium poppy. Here, the insecure environment, insurgent activity and widespread corruption have allowed poppy cultivation to increase. Recently, the newly appointed governor in Helmand has taken steps to curb the growth of poppy. These programs are a step in the right direction, but they can be undermined by insurgent activity, organized crime, and corrupt officials. It will take strong political will and effective international programs to deal with these challenges.
Drug trafficking in Central America is a growing threat and a difficult challenge for the region due to its limited capacities to combat the narcotics trade and the criminals behind it. Drug-trafficking organizations are moving aggressively into the region from Mexico and from Colombia. The long Central American coastline provides traffickers easy access for illegal maritime drug routes. While there have been some noteworthy seizures, many more shipments remain undetected.
Regional support and institution building will be critical elements in our efforts to stem this flow. More vigorous anti-organized crime measures and extradition laws need to be enacted and enforced. In the next year we will be working closely with Central American governments to expand counternarcotics programs and law enforcement, and the rule of law assistance under the Merida Initiative.
Mexico has long been a close partner in our counternarcotics efforts. This partnership has been deepened and strengthened under the Calderon Administration. The Congressionally-approved, multi-year Mérida Initiative provides a quantum step up in our counternarcotics and law enforcement programs . The overall objectives of the Initiative are to break the power and impunity of criminal organizations; to strengthen border, air, and maritime controls; to improve the capacity of justice systems in the region; to curtail gang activity; and to reduce demand for drugs throughout the region.
We are also grateful for our close cooperation with the Government of Colombia in our counternarcotics fight. While challenges remain, Colombia continues to disrupt the drug trade with effective eradication and interdiction programs. Ecuador, whose Pacific coastline makes it a strategic partner in narcotics interdiction, has made progress in stopping drugs destined for the United States. Increased inspections and staffing at air, land, and sea ports, and an awareness of changing trafficking patterns, have helped to reduce the drug flow. We are working closely with Ecuador to provide equipment and training to modernize and improve Ecuador's own detection capabilities. Coca growing and processing and cocaine trafficking remains a problem in the Colombia – Ecuador border area. We urge the Governments of Ecuador and Colombia to engage constructively to eliminate coca cultivation and cocaine transit from the border region.
India is internationally licensed to produce licit opium poppy gum for legitimate pharmaceutical purposes, and it maintains a strict monitoring and distribution process. However, there is diversion from its licit opium production into the illicit market. India pursues tight controls over the industry and continues to refine measures to guard against the continuing challenge of diversion of the crop for illicit purposes. We remain concerned about illicit opium poppy gum production in areas where no illicit cultivation was previously thought to exist. We encourage the Government of India to continue its vigilance in these areas, destroying fields of the illicit crop, and bringing to justice those behind this activity.
As I have noted in the context of drug flows from and through Venezuela, the countries of West Africa have emerged as key transit points for Andean cocaine headed for Europe. As a result, the fragile governments of these countries are now threatened by criminal networks and drug-trafficking organizations. Although Guinea-Bissau has been the focus for narcotics trafficking, criminal operations are now moving southward into Guinea and are also becoming active in Sierra Leone. Because West African states lack the resources to counter these trans-national criminal organizations, international and bilateral donors are working to assist West African governments with their counternarcotic strategies.
Nigeria continues to make progress on counter-narcotics and has worked with the United States on money-laundering cases. The Nigerian Financial Intelligence Unit, which began operations in 2005, has successfully investigated and convicted several high profile defendants. Recent developments in Nigeria, however, raise questions as to whether the Economic and Financial Crimes Commission will remain an effective anti-corruption unit. We have made our concerns known to the Nigerian government and look forward to progress under the Commission's new leadership.
Illegal drugs and transnational crime pose a threat to every nation's political, economic, and social well-being. Governments around the world have come to realize that drug trafficking fuels public corruption and distorts economies and that traffickers and other groups, including terrorist organizations can work together in ways that destabilize governments and destroys societies. It is the self-interested responsibility of all nations to combat this blight. By implementing a strategy of eradication, interdiction, alternative development, criminal justice reform, anti-corruption, and demand reduction, we can confront these threats and promote stability and security around the world.
That concluded I am happy to take your questions.
Released on September 16, 2008
Pedro M. Burelli is a financial consultant, a former member of PDVSA board of director and ex head of JPMorgan Capital Corporation – Latin America. Petroleumworld does not necessarily share these views.
Editor's Note: All comments posted and published on Petroleumworld, do not reflect either for or against the opinion expressed in the comment as an endorsement of Petroleumworld. All comments expressed are private comments and do not necessary reflect the view of this website.
All comments are posted and published without liability to Petroleumworld. Fair use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.
We are making such material available in our efforts to advance understanding of issues of environmental and humanitarian significance. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107.
For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml.
All works published by Petroleumworld are in accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.
Petroleumworld has no affiliation whatsoever with the originator of this article nor is Petroleumworld endorsed or sponsored by the originator.
Petroleumworld encourages persons to reproduce, reprint, or broadcast Petroleumworld articles provided that any such reproduction identify the original source, http://www.petroleumworld.com or else and it is done within the fair use as provided for in section 107 of the US Copyright Law.
If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.Internet web links to http://www.petroleumworld.com are appreciatedPetroleumworld welcomes your feedback and comments: editor@petroleumworld.com.
By using this link, you agree to allow E&P to publish your comments on our letters page.
Petroleumworld News 09/17/08
Copyright© 2008 respective author or news agency. All rights reserved.
We welcome the use of Petroleumworld™ stories by anyone provided it mentions Petroleumworld.com as the source. Other stories you have to get authorization by its authors.Send this story to a friendYour feedback is important to us!
We invite all our readers to share with us
their views and comments about this article. Write to editor@petroleumworld.comAny question or suggestions, please write to:
editor@petroleumworld.com
Best Viewed with IE 5.01+
Windows NT 4.0, '95, '98 and ME +/ 800x600 pixels