Planet Money: How the War on Drugs Got Us... Blueberries

Release Date: April 4, 2025
Host: Erica Barris and Keith Romer
Guests: Robert Rogowski (Chief Economist, US International Trade Commission), Gustavo Guerrero Pareto (Peruvian Businessman)

Introduction: The Unexpected Fruition of a War on Drugs

Erica Barris opens the episode by juxtaposing the abundance of year-round blueberries in U.S. grocery stores with the historical context of the War on Drugs. She sets the stage for exploring how U.S. initiatives in Peru, aimed at curtailing cocaine production, inadvertently fostered a thriving blueberry industry.

“Why it seems like blueberries from Peru are everywhere in a way they just were not... the reason why is cocaine.”
— Erica Barris [00:33]

The Andean Strategy: Targeting the Supply Side

Keith Romer delves into the U.S. strategy during the 1970s and 80s to combat the burgeoning cocaine problem. The focus was on dismantling the supply chain by eradicating coca plants in Peru and neighboring countries.

“We gave them technology to identify where these crops were being grown. They would send troops in and then they would just go in and burn it up or destroy it.”
— Robert Rogowski [06:29]

Despite aggressive measures, the entrenched drug cartels and the economic reliance on coca cultivation made the eradication efforts challenging.

Aid for Trade: The Economic Incentive to Switch Crops

To counter the resilience of coca farmers, the U.S. introduced "Aid for Trade" initiatives. This approach combined military enforcement with economic incentives to encourage farmers to adopt alternative, legal crops.

“A good war policy is destroy the enemy, but create something that incentivizes that enemy to do something else that makes them an ally.”
— Robert Rogowski [07:37]

The strategy involved eliminating tariffs on products from Colombia, Bolivia, Ecuador, and Peru to stimulate legitimate trade and provide farmers with profitable alternatives to coca.

Transition to Asparagus: The First Fruit of the Policy

The initial success story was asparagus. USAID collaborated with Peruvian farmers to cultivate asparagus, leveraging their favorable growing conditions and the growing American market demand.

“Thousand of people began moving from the mountainous, green, coca growing part of Peru to work in the asparagus fields on the coast.”
— Erica Barris [14:25]

This shift revitalized local economies, reduced reliance on coca, and established Peru as a significant asparagus exporter. American companies like Del Monte transitioned their asparagus operations from the U.S. to Peru, capitalizing on lower costs and favorable growing conditions.

The Rise of Blueberries: An Unexpected Outcome

Years later, Jose Antonio Gomez Bassan returned to Peru with extensive experience from international fruit industries. Tasked with diversifying exports beyond asparagus, he identified blueberries as a viable candidate.

“I told them, mark my words, our country is going to be the largest blueberry producer and exporter in the world.”
— Gustavo Guerrero Pareto [22:09]

Despite initial skepticism from American blueberry brands, blind taste tests proved the superiority and consistency of the Peruvian Biloxi blueberry variety. This breakthrough secured contracts with major supermarkets like Costco, scaling up Peru's blueberry production exponentially.

“Suddenly, Peru is the world's biggest exporter of blueberries. And all this happened in the last 10 years.”
— Keith Romer [25:31]

Economic Transformation and Free Trade Impacts

The combined efforts of military enforcement, development aid, and economic incentives transformed Peru's agricultural landscape. From exporting $60 million worth of fruits and vegetables in 1990, Peru's exports surged to approximately $7 billion, encompassing a diverse range of products including mangoes, avocados, cocoa, and coffee.

“Peruvians now grow and export not just asparagus and blueberries, but also a lot of mangoes and avocados and cocoa and coffee.”
— Keith Romer [26:10]

However, this transformation also introduced stiff competition for American farmers and required substantial investment from U.S. taxpayers, costing hundreds of millions of dollars over decades.

Mixed Outcomes of the War on Drugs

Robert Rogowski provides a nuanced perspective on the War on Drugs' effectiveness. While the U.S. initiatives reduced the dominance of drug cartels in Peru, coca cultivation persists, particularly in new regions like the rainforest.

“We are asking you to get rid of your main foreign income operation and replace it with something else... [the] drug trade no longer dominates the economy the way it did.”
— Robert Rogowski [27:31]

The cessation of significant USAID funding under President Trump in early 2025 has led to a resurgence of coca farming alongside the thriving legitimate export industries, indicating an ongoing struggle to fully eradicate illegal drug production.

Unintended Consequences: Cocaine in the Trade Pipeline

The massive increase in legitimate trade also facilitated the smuggling of cocaine within shipping containers, embedding the illegal drug trade within the legitimate economy.

“Some cocaine riding shotgun... hidden in those big old steel containers.”
— Erica Barris [28:59]

This blurring of boundaries underscores the complexity of combating illegal economies embedded within legitimate trade frameworks.

Conclusion: A Mixed Legacy of Economic and Social Transformation

The War on Drugs' Aid for Trade initiative yielded significant economic growth and diversification for Peru, transforming it into a major exporter of blueberries and other agricultural products. However, the persistence of coca cultivation and the integration of illicit trade within legitimate exports reflect the challenges of completely dismantling entrenched illegal economies.

“So Peru is successfully exporting a whole lot of blueberries and still a whole lot of coca.”
— Keith Romer [28:50]

The episode concludes by highlighting the intertwined nature of economic policies and their far-reaching, sometimes unintended, consequences on global trade and local livelihoods.

Notable Quotes with Timestamps

• “Why it seems like blueberries from Peru are everywhere in a way they just were not... the reason why is cocaine.” — Erica Barris [00:33]
• “We gave them technology to identify where these crops were being grown. They would send troops in and then they would just go in and burn it up or destroy it.” — Robert Rogowski [06:29]
• “A good war policy is destroy the enemy, but create something that incentivizes that enemy to do something else that makes them an ally.” — Robert Rogowski [07:37]
• “I told them, mark my words, our country is going to be the largest blueberry producer and exporter in the world.” — Gustavo Guerrero Pareto [22:09]
• “Peruvians now grow and export not just asparagus and blueberries, but also a lot of mangoes and avocados and cocoa and coffee.” — Keith Romer [26:10]
• “We are asking you to get rid of your main foreign income operation and replace it with something else... [the] drug trade no longer dominates the economy the way it did.” — Robert Rogowski [27:31]
• “Some cocaine riding shotgun... hidden in those big old steel containers.” — Erica Barris [28:59]

Key Takeaways

• Strategic Shift: The U.S. War on Drugs in Peru combined military enforcement with economic incentives to eradicate coca cultivation, promoting alternative cash crops through Aid for Trade.
• Economic Diversification: Initiatives led to the rise of asparagus and later blueberries as major Peruvian exports, significantly boosting the country's economy.
• Unintended Effects: While reducing the dominance of drug cartels, coca farming persists, and legitimate trade routes have been exploited for smuggling cocaine.
• Policy Implications: The cessation of USAID funding poses challenges for sustaining economic alternatives to coca, highlighting the complexity of disentangling illegal economies from legitimate trade.

For more insights on trade and its multifaceted impacts, visit Planet Money's homepage.