Comments on: WARNING: Black Market Cigarettes May Be Hazardous to Countries in Conflict

By: Conflict And Health Roundup — Conflict Health

Conflict And Health Roundup — Conflict Health — Thu, 25 Feb 2010 19:53:40 +0000

[...] has been a good week on Conflict Health, with our first guest post by Paul Kan. Even better, this the first week I have had a car in South Africa (a 2004 VW Citigolf, if you were [...]

By: Paul Kan

Paul Kan — Wed, 24 Feb 2010 16:13:51 +0000

That is an interesting point. Cigarette companies do not lose money when their products are smuggled. Rather, governments lose money (revenue) because smuggled cigarettes avoid taxation. Counterfeit cigarettes are another issue; they skirt taxation and company profit-taking. In this case, they resemble illicit narcotics, but not entirely. One wonders if cocaine, heroin, marijuana, meth and ecstasy were legal worldwide, but were taxed inconsistently, would the effects on countries in conflict be the same as they are for cigarettes. That’s food for thought. Thanks for your comment!

By: Eva

Eva — Wed, 24 Feb 2010 15:42:53 +0000

While the marginal gain, pound for pound, of heroin v. cigarettes, does not even compare, I wonder whether, it can be argued that cigarettes, the consumption of which is by and large licit, is more profitable as an enterprise than illicit drugs when you factor in the “war on drugs” initiatives of many countries, the destruction of crops, the cost in lives for smugglers, etc.
Thanks for bringing up this fascinating topic.

By: Paul Kan

Paul Kan — Wed, 24 Feb 2010 12:36:09 +0000

Excellent question! Illicit drugs are far more profitable, as a worldwide total. The groups that fall under the label of “Taliban” also smuggle cigarettes….into Afghanistan. Second-hand accounts reveal that Afghan customs officials routinely find cigarettes and boot-leg consumer goods–DVDs, electronics, apparel–when they search vehicles in transit to the country. These goods are often used to barter for quantities of opium paste or refined heroin. I hope that answers your question, and thanks for reading my post.

By: Jim Breck

Jim Breck — Wed, 24 Feb 2010 01:56:16 +0000

How does this compare in magnitude to illicite drugs such as the Taliban’s poppy/opium trade?