Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Colorado Law Raises Drug War Doubts, Costa Rica Leader Says

Don't Miss Out —
Follow us on:

Nov. 12 (Bloomberg) -- The legalization of recreational marijuana use in the states of Colorado and Washington last week will lead Latin America to increasingly question the merits of the war on drugs, said Costa Rican President Laura Chinchilla.

The first U.S. states to decriminalize will spur demand at a time when Central American nations and Mexico are paying a high price to halt shipments, Chinchilla said in an interview yesterday in Queretaro, Mexico, at the Mexico Business Summit. Voters in Washington and Colorado agreed in a ballot Nov. 6 to allow people to hold one ounce (28.4 grams) of marijuana.

“This is an inflection point that is going to demand something that some Central American countries have already been doing, which is to analyze in a deeper way different scenarios in the war on drugs,” Chinchilla said.

Calls among Latin American leaders for a legalization debate have been growing after drug trafficking fueled violence in the transit nations that sit between Peru, Bolivia and Colombia, the region’s biggest cocaine producers, and the U.S., the world’s top drug consumer. Costa Rica, whose beaches and rainforest have made the nation a tourist destination for decades, in 2010 was included on the U.S. State Department’s list of major drug transit nations for the first time.

‘Social Implications’

Chinchilla met today with Mexican President Felipe Calderon, Honduran President Porfirio Lobo and Belize Prime Minister Dean Barrow to discuss regional cooperation. They urged the Organization of American States to present as soon as possible conclusions from a study of current drug war policy that it was tasked with carrying out at April’s Summit of the Americas, including the impact of state and local legalization moves, Calderon told reporters today.

The leaders said it is “necessary to analyze in depth the social implications of public policy and general health issues that arise for our nations from the processes underway at the local and state level in some countries in our continent to allow the legal production, consumption and distribution of marijuana,” Calderon said.

Those changes are “a paradigm shift on the part of those institutions with respect to the current international regime,” he said.

The leaders called on the United Nations General Assembly to hold a special session by 2015 at the latest to discuss strategies to address the world drug problem, Calderon said.

President-elect Enrique Pena Nieto has said he favors a legalization debate in Mexico, where more than 57,000 people have died in drug-related violence since Calderon sent the army to take on the cartels after taking office in December 2006. Pena Nieto succeeds Calderon next month.

‘Dissonance’

The moves in the U.S. will “create a dissonance between some policies and others,” Chinchilla said. Some policies, “far from containing demand, will stimulate it, while others are trying to limit supply, at an extremely high cost.”

Costa Rica has decriminalized drug possession for small quantities, meaning people are not punished for holding drugs at levels deemed for personal use.

Chinchilla said she needs more information about the consequences of making drug sales legal to decide whether that would be a desirable policy. Such a step would only work if regulations were established to prevent an “explosion” in use, and for now Costa Rica will continue trying to stop the transit and sale of narcotics, she said.

Belize is studying marijuana decriminalization, and Guatemalan President Otto Perez Molina has urged regional leaders to consider it.

Bond Sale

Chinchilla said that Costa Rica’s economy “is showing health,” and she expects the sale of as much as $1 billion in bonds in “coming days” to be well received. The nation is making increasing efforts to attract foreign investment from Japan, China and South Korea, she said.

Costa Rica’s first overseas debt sale since 2004 will help fund a fiscal deficit forecast to reach 4.7 percent of gross domestic product by year end, according to a Nov. 9 statement by Finance Minister Edgar Ayales.

The Costa Rican colon was little changed today at 499.67 per U.S. dollar as of 4 p.m. in San Jose and has gained 2.4 percent this year, compared with a 5.5 percent appreciation in Mexico’s peso.

To contact the reporters on this story: Eric Martin in Queretaro at emartin21@bloomberg.net; Adam Williams in San Jose, Costa Rica at awilliams111@bloomberg.net.

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.