Balloon effect
Encyclopedia
The balloon effect is an often cited criticism
Arguments for and against drug prohibition
Arguments about the prohibition of drugs, and over drug policy reform, are subjects of considerable controversy. The following is a presentation of major drug policy arguments, including those for drug law enforcement on one side of the debate, and arguments for drug law reform on the other.-...

 of United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 drug policy
War on Drugs
The War on Drugs is a campaign of prohibition and foreign military aid and military intervention being undertaken by the United States government, with the assistance of participating countries, intended to both define and reduce the illegal drug trade...

. This effect draws an analogy between efforts to eradicate the production of illegal drugs in South American countries and what happens to the air inside of a latex balloon when it is squeezed. The air is moved, but does not disappear. This displacement is also known as the "balloon effect"; pressure applied in one area pushes the air into another area of less resistance (Mora).

This effect happened:
  • with fumigation of marijuana in Mexico
    Mexico
    The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...

    , in which the drugs migrated to Colombia
    Colombia
    Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...

    .
  • with marijuana in the Sierra Nevada de Santa Marta
    Sierra Nevada de Santa Marta
    The Sierra Nevada de Santa Marta is an isolated mountain range apart from the Andes chain that runs through Colombia. Reaching an altitude of 5,700 metres above sea level just 42 km from the Caribbean coast, the Sierra Nevada is the world's highest coastal range...

    , which migrated to Cauca
    Cauca Department
    Cauca is a Department of Colombia. Located in the south-western part of the country, facing the Pacific Ocean to the west, the Valle del Cauca Department to the north, Tolima Department to the northeast, Huila Department to the east and the Nariño Department to the south, covering a total area of...

    .
  • In the late 1990s coca
    Coca
    Coca, Erythroxylum coca, is a plant in the family Erythroxylaceae, native to western South America. The plant plays a significant role in many traditional Andean cultures...

     was largely eradicated in Peru
    Peru
    Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....

     and Bolivia
    Bolivia
    Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...

    , only to be replaced by new crops in Colombia.
  • Recently, with the intense spraying in the Colombian department (state) of Putumayo, coca has been planted in other departments including Arauca
    Arauca
    Arauca can refer to the following Colombian locations:*The Arauca Department, in the northeastern part of the country*The city and municipality of Arauca, Arauca, capital of the Arauca Department*The Arauca River, a river shared by Colombia and Venezuela...

    , Cauca
    Cauca Department
    Cauca is a Department of Colombia. Located in the south-western part of the country, facing the Pacific Ocean to the west, the Valle del Cauca Department to the north, Tolima Department to the northeast, Huila Department to the east and the Nariño Department to the south, covering a total area of...

    , Caquetá
    Caquetá
    Caquetá may refer to:* Caquetá River, a river in Colombia* Caquetá Territory, a former territory of Colombia* Caquetá Department, a department of Colombia...

    , Guaviare
    Guaviare
    Guaviare may refer to:* Guaviare Department of Colombia* Guaviare River...

    , Huila
    Huila
    Huila may refer to:* Huila Department, in Colombia* Atlético Huila a first division Association football team in Colombia.* Huíla Province, in Angola* Nevado del Huila, volcano in Colombia...

    , Meta
    Meta
    Meta- , is a prefix used in English to indicate a concept which is an abstraction from another concept, used to complete or add to the latter....

    , Nariño, and Santander
    Santander Department
    Santander is a department of Colombia. Santander inherited the name of one of the nine original states of the United States of Colombia. It is located in the central northern part of the country, east of the Magdalena River, bordered to the south and southeast by Boyacá, to the northeast by Norte...

    .


A United Nations Development Programme Colombia described the balloon effect this way:
"The economic mechanism underlying the global effect is quite simple: the success of eradication in one area temporarily reduces the supply, and that translates into a price rise. Then, given that the supply function is fairly elastic, higher prices stimulate people to plant crops in other places." The costs to start planting are quite low "given that the majority of property rights on land planted with illicit crops are ill defined."


Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

 and the Southern Cone
Southern Cone
Southern Cone is a geographic region composed of the southernmost areas of South America, south of the Tropic of Capricorn. Although geographically this includes part of Southern and Southeast of Brazil, in terms of political geography the Southern cone has traditionally comprised Argentina,...

 (Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...

, Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...

, Paraguay
Paraguay
Paraguay , officially the Republic of Paraguay , is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Paraguay lies on both banks of the Paraguay River, which runs through the center of the...

, Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...

) neglected their respective drug trafficking issues and due to the concentration on the Andean region, these were neglected by the U.S. as well. These nations ignored the problem primarily due to its slow introduction and penetration into their society, the insistence from the US that the sources of the drugs
DRUGS
Destroy Rebuild Until God Shows are an American post-hardcore band formed in 2010. They released their debut self-titled album on February 22, 2011.- Formation :...

 was the only problem and because the governments at the time were more concerned with foreign debt, inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...

, economic growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...

, civil-military relations
Civil-military relations
Civil–military relations describes the relationship between civil society as a whole and the military organization or organizations established to protect it. More narrowly, it describes the relationship between the civil authority of a given society and its military authority...

 and political survival (Mora). The United States of America continued to increase their anti-drug operations in the Andean region resulting in displacement (Friesendorf).  This means that the U.S. tactics forced the drug traffickers to search for safer areas with less government pressure to eliminate the flow of narcotics.  The drug traffickers took advantage of the neglected Southern Cone and began shifting their routes, locations for cocaine
Cocaine
Cocaine is a crystalline tropane alkaloid that is obtained from the leaves of the coca plant. The name comes from "coca" in addition to the alkaloid suffix -ine, forming cocaine. It is a stimulant of the central nervous system, an appetite suppressant, and a topical anesthetic...

 laboratories and money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...

 centres. These shifts have also created growing drug consumption issues among the Southern Cone countries. While the role of the Southern Cone had been that of a transhipment point for cocaine produced in the Andean region, further evidence appeared to indicate that in fact since 1984 the region had been used extensively by Colombian and Bolivian drug traffickers (Friesendorf) . Cocaine labs were found in Northern and Western Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

 and in Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...

 (Mora). It was also found that Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...

 and Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...

 had become major financial centres for money laundering after the invasion of Panama (Mora). Uruguay was particularly attractive as it has one of the most open banking systems in the Western hemisphere
Western Hemisphere
The Western Hemisphere or western hemisphere is mainly used as a geographical term for the half of the Earth that lies west of the Prime Meridian and east of the Antimeridian , the other half being called the Eastern Hemisphere.In this sense, the western hemisphere consists of the western portions...

 and the government has always put great emphasis on having tight bank secrecy
Bank secrecy
Bank secrecy is a legal principle in some jurisdictions under which banks are not allowed to provide to authorities personal and account information about their customers unless certain conditions apply...

 laws (Friesendorf).

Other Contexts in Which This Term can be Applied

  • This also describes the offsetting behavior in health care
    Health care
    Health care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...

     when costs shift from hospital care to home care.
  • A software development
    Software development
    Software development is the development of a software product...

    colloquialism, it is often used to describe the effect of fixing a bug or problem in one area of the system, where the fix itself then causes another problem to occur; fixing this subsequent issue then results in further problems, ad infinitum.
  • This term is also used in business to describe situations were changes made in one area of a business lead to unforeseen and adverse effects in other parts of a business.
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