These efforts are being bolstered by Peru s decision to shoot down cocaine flights, and the arrest of key Colombian drug lords. The smaller Colombian drug traffickers are therefore producing more of their own coca, rather than importing it from Bolivia. The previous Bolivian policy involved paying coca farmers to eradicate their crops. However, coca production decreased little because farmers replaced their former fields with others deeper in the jungle. There still remain concerns.
Drug interdiction is limited due to inadequate patrols and police corruption.
Violence sometimes greets the security forces who are charged with destroying coca plants. Some producers and police have been killed. Also, legal crops are harder to grow successfully and demand is more variable. The new policy is attempting to affect the supply of coca. For each of the components of the policy cited below, draw a price-quantity diagram of the supply of coca, and illustrate the intended effects.