Drugs: A Legal Market is not a Free Market

English: Flower of a Opium Poppy
Image via Wikipedia

A couple days ago, Otto Perez Molina, recently elected as President of Guatemala; announced that he was willing to decriminalize the commercialization of drugs. According to U.S. authorities, Guatemala has became the transshipment point for more than 75 percent of the cocaine smuggled into the United States since 2005.  Along with this, the Opium poppy cultivation is already done in large parts of the countryside making the production of Guatemalan heroin a greater and the newest worry for the United States. The country’s elites are already part of this business and the paranoia of crimes that used be a remembrance from Colombia‘s 1990s history seems to be repeating in these Central American countries.

What impresses me the most now is how this news has started spreading around my Facebook contacts (mostly libertarians and liberals). Both groups seem to be happy to hear this announcement by Guatemala’s President.  However, both groups applaud the news for different reasons.  The legalization/decriminalization of drugs will not be the panacea we all are hoping for.  Specially not if started by any of the Central American governments.  The reasons are many and I will begin by listing some of them to open the discussion,

  • Corruption, lax enforcement, and judicial impunity levels in Central America are among the highest of the world.
  • Drug lords and their new and powerful money have been mentioned by many analysts to be already part of the politic and economic elites of these countries.
  • The Central American countries in which this drugs are produced and transported are inhabited by a large majority of people living in the lowest leves of Human Development.
  • If legalized, the trade, production and commercialization of drugs (cocaine and heroine mainly) will be regulated by these governments.
  • Without any doubt, this regulations will enable and create legalized monopolies ruled with the partnership of previous drug lords and government officials.
  • It has not been advocated by any of the political leaders which road would take the legalization of drugs. This is important, because under current legalization procedures it is not the same to get the approval for a new medicine in the market as to get the approval for a new liquor, a new energizing drink or of a new edible product.

The history of the legalization (production, trade and commercialization) of items considered by many as drugs and for others as commodities has shown that for as long as a government elite hold the power to legalize it; it was in their power to take the first steps into the acquisition of a monopoly of its trade and production.

If legalized, the emergence of a coercive monopoly would be inevitable. As noted by Ayn Rand, the governments and their partners in these coercive monopolies “will be able of setting the initial prices and production policies independently of the market, with immunity from competition, from the law of supply and demand. An economy dominated by such monopolies would be rigid and stagnant.”

If we support the complete and absolute free trade of all commodities it is necessary that we do not grant to government an intrinsic right to regulate it.  No compromise should ever be done with a government that requires regulation in order to give us legalization.  Legalization should result in freedom and not in regulation.  The drug trade should be opened to businessmen and entrepreneurs in the freest way possible. The freest way is that of requiring the traders to inform their buyers about all the necessary information about the products they are offering.

We may be taking part in a historical moment in which the most important thing are principles.  Let us remember that one of the most valuable principles of trade is Freedom; and that one of the most valuable principles of government is to seek that i will Protect Individual Rights and not to regulate their lives.

Note: To understand more which are the principles that really matter in this discussion, I invite you to take a look to the video titled: The Drug War in Guatemala: A Conversation with Giancarlo Ibarguen.

Manuel Baldizón amenaza al periodismo independiente en Guatemala

Coat of arms of Guatemala. Extracted from the ...
Image via Wikipedia

El dia de hoy me enteré de una terrible noticia (link al artículo escrito por Sylvia Gereda) para Guatemala. La independencia de ElPeriódico, uno de los medios impresos más importantes de mi país ha sido capturada por la corrupción, el crimen organizado y las elites del narcotráfico vinculadas al candidato a Presidente de Guatemala por el Partido Líder el Sr. Manuel Baldizón.  Debido a esto, la Señora Sylvia Valenzuela de Gereda, Directora de este Diario, ha presentado su renuncia a la Dirección y anunció su salida defintiva como accionista del periódico.

Con su salida “Atlas se encogió de hombros” y muchos de nosotros junto con ella. Espero que la decisión de la Señora Sylvia Gereda sea comprendida e imitada por muchos guatemaltecos que diariamente deben de decidir si sacrifican sus valores y principios; o deciden luchar por sus propias armas sin nunca sacrificar los valores que con tanto amor protegen.

Esta es la carta que escribí para la Sra. Gereda y los encomio a reproducir sus muestras de apoyo de todas las formas que estén a su alcance (cartas al lector, publicaciones en medios, calco-manías en sus autos, y cuantas otras formas puedan crear).

Estimada Sra. Gereda,

Le deseo muchísimos éxitos en su carrera empresarial y la felicito por tomar una decisión tan importante basándose en principios morales.

Gracias por no claudicar y sacrificar el amor que siente por su familia, por Guatemala y por Sus valores. Porque, tal y como dijo el héroe de la novela “La rebelión de Atlas” en esta época de crisis moral,

“Todo lo que es apropiado para la vida de un ser racional
es lo bueno; todo lo que la destruye es lo malo.

La vida del hombre, como requiere su naturaleza, no es la
vida de un salvaje insensato, de un rufián saqueador o de
un místico gorrón, sino la vida de un ser pensante – no la
vida por medio de fuerza o fraude, sino la vida por medio
de logros – no la supervivencia a cualquier precio, pues
sólo hay un precio que paga por la supervivencia del
hombre: la razón.

La vida del hombre es el criterio de moralidad, pero tu
propia vida es tu objetivo. Si la existencia en la tierra es tu
objetivo, debes elegir tus acciones y valores de acuerdo
con el criterio de lo que es apropiado para el hombre –
con el fin de preservar, enriquecer y disfrutar el
irreemplazable valor que es tu vida.”

Con su partida de ElPeriódico toda Guatemala hizo como Atlas y se encogió de hombros. Pero tengo la certeza de que muchos otros héroes como usted seguirán luchando por construir un mejor mundo para los seres a los que tanto amamos.

Cuenta conmigo y con mi apoyo incondicional.

Éxitos,

Guillermo Pineda