Opium Amounts to Half of Afghanistan’s GDP in 2007, Reports UNODC

Opium Amounts to Half of Afghanistan’s GDP in 2007, Reports UNODC
Source: United Nations Office on Drugs and Crime (UNODC)

In its final Afghan Opium Survey for 2007 issued today, the United Nations Office on Drugs and Crime (UNODC) shows that opium is now equivalent to more than half (53%) of the country’s licit GDP. Speaking at a conference in Brussels on the future of Afghanistan, hosted by Princeton University, the Executive Director of UNODC, Antonio Maria Costa, announced that the total export value of opiates produced in and trafficked from Afghanistan in 2007 is about $4 billion, a 29 per cent increase over 2006.

Approximately one quarter of this amount ($1 billion) is earned by opium farmers. District officials take a percentage through a tax on crops (known as “ushr”). Insurgents and warlords control the business of producing and distributing the drugs. The rest is made by drug traffickers.

While opium has a significant impact on the Afghan economy, massive profits are made abroad through its export as its value increases with every border crossing. The wholesale price of a gram of heroin is, on average, $2.50 in Afghanistan, $3.50 in Pakistan and Iran, $8 in Turkey, $12 in Albania, $18 in Slovenia or Slovakia, $22 in Germany, $30 in the United Kingdom, and $33 in Russia. Retail prices can be up to ten times as high as wholesale prices, also because of “cutting” that mixes the drug with other substances.

+ Full Report (PDF; 6.9 MB)

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