In today's world, drugs and narcotics are more common than ever. According to Ettang, cannabis is legal in many countries to some extent, and drug use is up in countries like South Africa (Ettang, 2017). Legal and illegal drugs are easier to get now with modern technology and this new aspect of world economies has had a massive effect on international business and trade. Narcotics affect international business through the trade and business of legal narcotics in the world healthcare system, the effects of illegal drugs on the world’s economy, and different countries' policies towards narcotics.
Narcotics and their policies are discussed at drug control conventions, where different control policies towards certain drugs are discussed. During these conventions, the World Health Organization gives lists of essential drugs that are needed for medicine throughout the world. This list includes controlled and heavily monitored drugs like morphine, methadone, buprenorphine, diazepam, and phenobarbital. These drugs are considered essential for medicine but are also heavily used illegally by drug addicts throughout the world, which creates a difficult situation for the World Health Organization (Burke-Shyne, Csete, and Wilson, et. al, 2017). They need to administer these drugs throughout the world's hospitals, but doing so will also allow for these drugs and narcotics to be circulated into the hands of addicts through prescription or dealings. Because of this, the drug control conventions help smooth out what the policy should be towards certain narcotics.
However, even with the conferences, medicinal drugs like opioids have continued to plague society for decades. The opioid crisis is nothing new and is one of the biggest representations of the fine line the World Health Organization has to tread between too much and too little control for medicinal drugs. Opioids get into many countries in various ways. For countries like the United States, the Mexican drug cartel is one of the biggest suppliers of these illegal drugs, and according to Realuyo, opioids have cost an estimated 720,000 Americans their lives in 2017 alone (Realuyo, 2019). That is a higher death rate than H.I.V at its peak, gun deaths, or car crashes. The opioid crisis heavily affects legal and illegal businesses throughout the world. Illegally, the opioid business is extremely profitable, which is why the crisis has continued to be a pressing issue in the world. Whereas legally, opioids are essential for hospitals throughout the globe, so again, the World Health Organization has to toe the line with their control policies towards drugs like opioids. The World Health Organization has to give certain control policies towards drugs like opioids that can greatly affect illegal and legal international business, which leads to them having to find a fine line between too strict and too loose.
Illegal drugs have a great amount of influence on countries’ economies. For example, Cooper writes that the United States, by cracking down on drug offenders, has spent an increase of $260 billion to sustain the criminal justice system by 2015 compared to before they had harsher policies (Cooper, 2018). However, even with the United States wanting to crack down on drugs, economically, illegal narcotics have a huge role in their economy. The black market circulates loads of money throughout the U.S, and many people make a living off of that, and due to the money they make from dealing, they contribute to the economy by buying and selling various products and goods. Gangs like the Mexican cartels also have a big role in the world economy. Various gangs have power in the illegal narcotics business, and they ship loads of illegal drugs across borders all throughout the world. Without these types of businesses, world economies would most likely take a small hit due to the circulation of money not being as fluid and continuous as it is with these types of businesses.
Another reason why world economies are so heavily affected by illegal narcotics is the fact that the countries put so much time and money into stopping the business. The illegal drug business will never be able to be fully put down, but countries are rightfully spending a lot of time and money trying to slow the business down to protect their own citizens. Doing this helps circulate even more money throughout the world, and countries often team up for operations that help their economies and businesses become more connected. International business is affected by illegal narcotics through the circulation of money through the illegal narcotics business, which helps fuel countries’ economies.
The legalization of certain narcotics like Marijuana has been a hot topic, especially in the United States. Recently, many states like Colorado and Washington have legalized recreational and medicinal Marijuana. This has led to more tax revenue for these states, which is a plus, and advocates argue it helps people stay away from harder substances on the black market that they would have been exposed to if they were buying Marijuana off the streets. However, critics of legalization argue that Marijuana is a gateway to many other substances, so legalizing Marijuana will only make the United States' drug problem worse. Whether someone believes Marijuana is a gateway drug or not, it has led to more business and jobs due to a new form of business being created. After legalization, all states that have legalized marijuana saw an increase in usage. This also means that more people are buying into and economically supporting a new business within the US, helping the economy grow through tax revenue (Dills, Goffard, Miron, and Partin, 2021). This trend can also be seen in other countries, such as the Netherlands. The Netherlands was one of the first countries to legalize marijuana, and its economy has benefited from this immensely. According to Statista, in 2025, they are expected to generate $277.16 million in tax revenue from cannabis (Statista, 2025). Overall, the tax revenue related to recreational marijuana is helping world economies, and some countries are missing out on a lot of money due to their own drug policies.
In conclusion, narcotics affect international business through different countries’ policies towards narcotics and how that affects their economies, the business of illegal narcotics throughout the world, and the line the World Health Organization has to tread in regards to their control policies on certain narcotics. Narcotics have and always will be part of society. Recently, it has become more acceptable to use certain narcotics like marijuana, which has greatly impacted world trade and business. However, when will society find a spot where they feel comfortable when it comes to narcotics? Will the policies get looser or stricter, or will people find a happy medium? Nevertheless, narcotics will still have a massive impact on the world’s business and economy, no matter what kind of policy or restriction is put on them.
References
BURKE-SHYNE, N., CSETE, J., WILSON, D., FOX, E., WOLFE, D., & RASANATHAN, J. J. K. (2017). How Drug Control Policy and Practice Undermine Access to Controlled Medicines. Health and Human Rights, 19(1), 237–252. http://www.jstor.org/stable/90007930
Cooper, J. (2018). The United States, Mexico, and the War on Drugs in the Trump Administration. Willamette Journal of International Law and Dispute Resolution, 25(2), 234–301. https://www.jstor.org/stable/26787265
Dills, A., Goffard, S., Miron, J., & Partin, E. (2021). The Effect of State Marijuana Legalizations: 2021 Update. Cato Institute. http://www.jstor.org/stable/resrep30177
Ettang, D. O. (2017). ‘Desperados, Druggies and Delinquents’: Devising a Community-based Security Regime to Combat Drug Related Crime. Africa Development / Afrique et Développement, 42(3), 157–176. http://www.jstor.org/stable/90018139
Realuyo, C. B. (2019). The New Opium War: A National Emergency. PRISM, 8(1), 132–142. https://www.jstor.org/stable/26597315
Statista (2025) Cannabis - Netherlands. (2025). Statista. Retrieved April 5, 2025, from https://www.statista.com/outlook/hmo/cannabis/netherlands
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