ADDRESSING the economics behind the illicit drug trade could be the most effective way to curb the growing drug crisis.
That was the central message from Trade and Customs Advisor at United Nations Conference on Trade and Development (UNCTAD), Tevita Tupou, who argued that understanding the financial incentives driving organised crime is critical to dismantling it.
“To understand the crime, we need to understand the economics that drives this crime,” Mr Tupou said.
He illustrated the scale of profit margins in the methamphetamine trade, noting that one kilogram of meth costs about $US7000 in Colombia but can fetch as much as $A280,000 on the Australian market.
“That’s nowhere in the world will you ever see that.
“The disparity is evidence of an extraordinarily lucrative and ‘perfect’ market structure for traffickers.”
Mr Tupou said such profit margins explained why organised criminal networks continued to expand despite increased law enforcement efforts.
“In 2021, when the whole world was in lockdown, Australia had 14 tonnes of drugs coming through.
“That’s what we’re up against.”
According to Mr Tupou, much of the global response remains constrained by reactive legislation. He noted that border management agencies operate under separate policies and frameworks, and that most law enforcement laws are designed to respond after crimes have occurred.
“By design, all legislation for law enforcement are reactive.
“You can’t fight organised crime with reactive legislation. If you can’t fight crime, fight the profit. Address the profit.
“They’re in it because there’s a lot of money to be made.”
He called for a “hybrid approach” to counter what he described as a form of hybrid warfare, arguing that enforcement strategies must evolve in sophistication to match criminal networks.
“The same level of thinking that brought us here cannot be the same level of thinking that will take us to address this problem.”
Mr Tupou warned that the social and economic harm caused by drug trafficking was significant and long-lasting, and urged coordinated, intelligence-led responses across agencies and sectors.
“This is the battle of this generation. We owe it to the next generation to do this well,” Mr Tupou said.
