CartelsHenry Fulford

What is a Cartelcar·telnoun

1. An association of manufacturers or suppliers with the purpose of maintaining prices at a high

level and restricting competition.

2. A coalition or cooperative arrangement between political parties intended to promote a mutual

interest.

Two typesDrug Cartels are criminal organizations developed with the primary purpose of promoting and controlling drug trafficking operations. They range from loosely managed agreements among various drug traffickers to formalized commercial enterprises.Business Cartels are a collection of businesses or countries that act together and agree to influence prices for certain goods and services. They do this by controlling production and supply. In the United States, cartels are illegal but they still thrive in many other countries

Examples A well known business cartel is OPEC (The Organization of Petroleum‐Exporting Countries). This cartel was established in 1960 by the the founding members of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Over several decades the countries of Qatar, Indonesia, Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon and Angola joined OPEC, the latest being Angola in 2007.

ExamplesAn example of a drug cartel is the Sinaloa Cartel or CDS which split from the Guadalajara Cartel in 1989. This cartel is the most powerful drug cartel in the world according to the USIC. The CDS is based mainly in Culiacán, Sinaloa. They mainly distribute and smuggle Cocaine Opium and Marijuana from Mexico and Colombia.

Other drug cartels: Los Zetas, the Gulf Cartel, the Juárez Cartel

Global Influence of CartelsDrug cartels have massive influence over poorer countries such as Mexico or Colombia. This is done through corruption, violence and kidnappings. There have been several major assassinations of Municipal presidents (same thing as a mayor) in Mexico along with massacres and a pipeline explosion. Incidents like these create political pressure and fear in the political runnings of these poorer countries. The drugs themselves cause an increase of crime and poverty in whatever country they’re in.

Pictures of Influence

Pictures of Influence

Global Influence of CartelsBusiness cartels influence the economies of countries by keeping prices high. For countries in the cartel this is a good thing but for the countries not in the cartel this means higher prices for imports.

Problems with cartelsMembers in cartels are often tempted to betray the other members and raise their production or supply and increase their personal revenue which can cause the collapse of the cartel. This makes cartels relatively unstable.

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