Monday, February 15, 2010

Is the Black Market Evolving?

Interesting topic over at Global Guerillas entitled Open Source Networks and Heroin.  One time sugar cane farmers from Xalisco, Mexico have become heroin dealers.  However, instead of a top down, violent organization like the cartels, these seller operate on a loose network dynamic and build their individual businesses by competing on quality, price and customer service.

They even deliver.

It's ironic that as the socialist control freaks in Washington prepare to march across the ruins of our civilization, the feudal structure that has dominated the drug trade for decades may be giving way to a market that rewards entrepreneurial spirit more than a willingness to use violence.

Link to LA Time article.


  1. The problem always runs into the fact that you can't go to small claims court if you get screwed-so the risk of violence is constantly present in any black market.

  2. That's why I was kind of surprised. Maybe even in the black market a good reputation has value. Or maybe the cost of violence is so high in a their marketplace that it is not a sustainable strategy. If customers have options for supply then going to "war" will mean someone else moves in and takes the profits.


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