Alarming profit in illicit drugs in SEA, gangs change borders: Inshik Sim, UNODC

Inshik Sim, Regional Synthetic Drug Analyst, United Nations Office on Drugs and Crime (UNODC), South East Asia (SEA) is the person who led developing and writing of the most elaborate report on illicit drug trafficking in South East Asia. In an exclusive interview with Devdiscourse, Sim expressed concerns on increasing involvement of highly educated and professionally trained individuals in the synthetic drug market. “Due to high drug prices in countries like Australia, Japan, the Republic of Korea and New Zealand, organized crime groups operating in Southeast Asia have been increasingly targeting them for trafficking illicit drugs,” said Sim. Read the Full Interview.

United Nations Office on Drugs and Crime (UNODC) in a report on July 19, 2019, revealed that the profits generated by organised crime gangs from illicit drugs in South East Asia (SEA) have reached dangerous levels. Expressing serious concerns on increasing ratio of synthetic drugs in the illicit drug market the report highlighted - Synthetic drugs have rapidly become the most profitable illicit business in South East Asia as organized crime groups have innovated their business model and engineered an expansion of the methamphetamine market, which is now valued at up to USD$ 61.4 billion annually while the heroin market has contracted up to USD$ 10.3 billion per year. In an exclusive interview with Siddheshwar Shukla, Associate Editor, Devdiscourse, Insik Sim, the Regional Synthetic Drug Analyst, UNODC, Southeast Asia who lead the writing of the report shares his findings and recommendations. Edited Excerpts:

 

Siddheshwar Shukla: How do you look at the increasing ratio of synthetic drugs in the illicit drug market of South East Asia (SEA)?

Inshik Sim: There are a few reasons for that. First, I would like to point out that Asia is a global centre for chemicals, some of which are required to manufacture methamphetamine. Despite regulatory mechanisms in place, organized crime groups are certainly still able to source these chemicals to manufacture large amounts of methamphetamine, and this is exactly what’s happening.

In addition, there has been a displacement of organized crime groups to the Golden Triangle, and particularly northern Myanmar, where uninterrupted flows of methamphetamine are being seen. They have been able to engineer an expansion of the methamphetamine market in Southeast Asia and neighbouring regions by supplying unprecedented amounts of the drug.

In addition, synthetic drugs can provide much greater illicit proceeds for organized crime groups, as the production of synthetic drugs do not require a large number of opium poppy growers like heroin. This means wealth can be concentrated on a smaller number of people.

Basically, Southeast Asia has a conducive environment for organized crime to manufacture methamphetamine.

Shukla: Isn’t it an indication of the increasing involvement of trained professionals in the illicit drug market of SEA?  

Sim: Certainly, there are organized crime groups behind in the expansion of synthetic drug markets in SEA. They have engineered an intensification of their synthetic drug production, which increases the availability of the drugs in the markets.

Shukla: Which are the top supplier and top consumer countries for illicit drugs in South East Asia?

Sim: It is not appropriate to name ‘country’ as a top supplier or a consumer. Northern Shan State and surrounding areas in Myanmar have been exploited by organized crime groups for drug production. Other countries in the region, such as Indonesia, Malaysia, the Philippines and Viet Nam, have also been dismantling illicit drug manufacturing sites.

Due to the absence of drug use data across a large majority of countries in the region, it is difficult to pick one country. Basically, the region does not have good data on drug use. However, available indicators, such as seizures and the number of drug users informal contact with law enforcement authorities, show that synthetic drug use, in particular, methamphetamine, is increasing amongst countries in the region.

Shukla: How this market of illicit drugs, synthetic drugs and counterfeit medicines in SEA is affecting the other regions?

Sim: I will focus on illicit drugs. Two major illicit drugs produced in SEA are heroin and methamphetamine, and both of them have been supplied to markets in East Asia and Oceania, such as Australia and New Zealand, as well as Bangladesh.

Due to high drug prices in countries like Australia, Japan, the Republic of Korea and New Zealand, organized crime groups operating in Southeast Asia have been increasingly targeting them for trafficking illicit drugs. Based on our estimate, about one-third of illicit proceeds generated by organized crime groups for meth trafficking are made from the four countries mentioned above.

Shukla: As per the report, the combined market of synthetic drugs and heroin in this region is USD$ 71.7 billion per year. Besides, highly profitable business for organised criminals this is also an indication of high consumption of illicit drugs. What are the reasons behind the increasing consumption of drugs?

Sim: Simply drug policies in the region have not been effective. Supply reduction efforts among countries in SEA have been mostly related to drug users, not organized crime groups who have been able to produce large amounts of drugs by exploiting the conducive environment in SEA.

Shukla: What measures would you like to suggest to minimise drug consumption at the consumer end?

Sim: A balanced approach is key. Countries need to develop drug policies that highlight both ‘supply reduction’ and ‘demand reduction’. Unfortunately, the SEA has been prioritising ‘supply reduction’ over ‘demand reduction’. Countries would benefit from developing a multifaceted approach encompassing drug use prevention, evidence-based treatment services for drug users and reintegration efforts. In a nutshell, there should a systematic approach for ‘demand reduction’. 

Shukla: Has UNODC developed any specific communication model to address drug menace?  

Sim: There was a UN General Assembly Special Session on drugs in 2016 where member states discussed to develop global guidelines to effectively address illicit drug problems. The outcome document is available in the public domain.    

Shukla: The production of counterfeit medicines seems impossible without the involvement of trained professionals. What reasons, according to you, are behind pushing such highly educated people into such inhumane practices?

Sim: The main driver for their involvement in producing falsified medicines is financial gain. This has been described in detail on page 170 of the report.  

Shukla: What measures will you suggest to increase security/ policing in the border areas? 

Sim: It is not possible to physically seal borders, but countries can certainly improve cooperation across borders. Joint operation and intelligence sharing among countries are good examples of that effort. In addition, countries should be more strategic and able to anticipate the repercussions of their responses in neighbouring countries. For instance, last year Thailand alone seized more than half of methamphetamine seizures in E/SE Asia, highlighting the large flows of meth running along the Myanmar-Thailand border, as well as Thailand’s successful efforts to seize these drugs.  This has resulted in a shift. Drug traffickers are moving growing amounts of drugs across the Lao border, where enforcement hasn’t been as strong, and where meth flows can continue on to other countries in the region.

Shukla: Is drug consumption increasing globally or this is the problem of SEA countries?

Sim: In 2017, an estimated 271 million people, or 5.5 per cent of the global population aged 15–64, had used drugs in the previous year. While that figure is similar to the 2016 estimate, a longer-term view reveals that the number of people who use drugs is now 30 per cent higher than it was in 2009, when 210 million had used drugs in the previous year. Based on this information, we can say that drug use has been increasing in other parts of the world. However, compared to any other region in the world, Southeast Asia has been the most significantly impacted by the rapid expansion of methamphetamine market, and the region together with neighbouring East Asia and Oceania have become the world largest methamphetamine market.