Peru and the Coca Trade

Peru is the largest source of the coca plant in the world.  The leaves of this plant are used for a variety of legitimate purposes -- however their use in the illegal production of cocaine is perhaps the most well known.

Approximately two thirds of the world's cocaine is derived from Peruvian coca plants.  Peruvians grow the plant, and the leaves are shipped to processing facilities in Columbia and Bolivia for processing and transhipment to countries around the world.  Peru's role in the coca trade is primarily as a producer of the the leaves.

The growing of coca is an ancient art, and can be traced back to the time of the Inca.  Coca leaves were used extensively by the Inca for medicinal purposes - as a numbing agent for surgeries, teeth extraction and bone setting, and a means of staying awake while travelling long distances.  In addition, the Inca used coca to dull hunger pains in times of food shortage, and to increase aggression prior to battle.  It was also used for  managing altitude sickness, a use seen extensively today in Peru.

Incan religious rituals also utilized coca leaves as well to create a feeling of joy and well being.

Coca growing has had a devastating effect on the environment in Peru.  Maximizing yield trumps sustainable agricultural practices, and as a result, slash and burn farming is the norm.  Furthermore, Peruvian farmers "preprocess" the leaves prior to shipment to Bolivia and Columbia.  Toxic chemicals, such as acetone, sulfuric acid, and ammonia (among others) are used to treat the leaves after picking, and the left over chemicals are dumped in Peruvian rivers and streams.

Among the challenges faced by the Peruvian government in addressing the coca trade in Peru is that it employs many rural Andean residents who would have no other source of income without it.  The government cannot support these citizens who are out of work.  As a result,  the Peruvian government is working with the US government to provide financial assistance to grow other crops that are more profitable, such as maize, cacao, and coffee.  Farmers are being given land to grow these crops, and there is no risk premium for growing illegal crops.

Coca Shop in Cusco, Peru - side street off main city square

Today, if you go to the Peruvian Andes, you will see evidence of coca culture all around you.  Coca leaves are chewed by native peoples for the same reasons that the Inca did so hundreds of years ago.  Coca tea is available to arriving guests at hotels in high altitude cities such as Cusco and in Lake Titicaca to calm the effects of altitude sickness.  Coca bars are also seen in he major cities, such as the ancient Incan capital, Cuzco,.  The photo above was taken by the author at a coca bar on a Cusco side street.  Processed cocaine is illegal in Peru today.  However, it is legal to grow small amounts of coca plants for personal consumption.