RISK MANAGEMENT
Recognizing political, economic and regulatory threats in countries of commercial interests.
Trafficking in Europe and North America Has Politically Destabilized Ecuador
The peace agreement between the Colombian government and the FARC led to an exodus of opposing groups to countries like Ecuador and Venezuela, where they sought to expand markets. For 50 years, cocaine financed the FARC, controlling local production and distribution.
After 2016, global cocaine shortages prompted Mexican cartels and Balkan networks to explore new routes. The 2023 UNODC Global Report noted increased consumption in Western and Central Europe, with price alignment indicating a globally harmonized drug market.
Following the FARC's dissolution, cocaine production fragmented among groups in Ecuador, Venezuela, and Mexico, exploiting weak anti-drug policies and state oversight. Rising demand intensified disputes between factions. Economic vulnerability among the population enabled low-cost recruitment, while limited public security investments allowed factions to gain political influence and establish lobbies protecting drug trade interests.
In Ecuador, extortion schemes mirrored Brazil, where factions charge "protection fees" from residents and municipal governments. In 2023, Ecuador's government arrested several traffickers, including Los Choneros leader Fernando "Fito" Villamar. Operation Metastasis exposed links between criminal factions, politicians, and state agents, creating a major public scandal.
During the 2023 presidential campaign, Fernando Villavicencio vowed to combat organized crime but was assassinated on January 9, 2024. Los Lobos claimed responsibility, issuing a threat:
"Whenever corrupt politicians fail to fulfill promises after receiving millions from us, they will be eliminated. You too, Jan Topic, keep your word. If you don’t, you will be next."
Although Brazil does not border Ecuador, its Amazon rainforest connects with Peru and Colombia, forming a key drug transit route. The Brazilian Army’s SISFRON system monitors these borders but has seen little investment in 15 years, raising sovereignty concerns.
Western and Central Europe and North America account for over 50% of global cocaine consumption. The lack of regulation in "first-world" markets directly destabilizes South American countries, particularly Ecuador, Colombia, and Venezuela.
Ecuador's public security crisis is not solely its government's fault. While state actions, such as large prisons serving as command centers for factions, play a role, they are not the root cause of the issue.
Trafficking in Europe and North America Has Politically Destabilized Ecuador
The peace agreement between the Colombian government and the FARC led to an exodus of opposing groups to countries like Ecuador and Venezuela, where they sought to expand markets. For 50 years, cocaine financed the FARC, controlling local production and distribution.
After 2016, global cocaine shortages prompted Mexican cartels and Balkan networks to explore new routes. The 2023 UNODC Global Report noted increased consumption in Western and Central Europe, with price alignment indicating a globally harmonized drug market.
Following the FARC's dissolution, cocaine production fragmented among groups in Ecuador, Venezuela, and Mexico, exploiting weak anti-drug policies and state oversight. Rising demand intensified disputes between factions. Economic vulnerability among the population enabled low-cost recruitment, while limited public security investments allowed factions to gain political influence and establish lobbies protecting drug trade interests.
In Ecuador, extortion schemes mirrored Brazil, where factions charge "protection fees" from residents and municipal governments. In 2023, Ecuador's government arrested several traffickers, including Los Choneros leader Fernando "Fito" Villamar. Operation Metastasis exposed links between criminal factions, politicians, and state agents, creating a major public scandal.
During the 2023 presidential campaign, Fernando Villavicencio vowed to combat organized crime but was assassinated on January 9, 2024. Los Lobos claimed responsibility, issuing a threat:
"Whenever corrupt politicians fail to fulfill promises after receiving millions from us, they will be eliminated. You too, Jan Topic, keep your word. If you don’t, you will be next."
Although Brazil does not border Ecuador, its Amazon rainforest connects with Peru and Colombia, forming a key drug transit route. The Brazilian Army’s SISFRON system monitors these borders but has seen little investment in 15 years, raising sovereignty concerns.
Western and Central Europe and North America account for over 50% of global cocaine consumption. The lack of regulation in "first-world" markets directly destabilizes South American countries, particularly Ecuador, Colombia, and Venezuela.
Ecuador's public security crisis is not solely its government's fault. While state actions, such as large prisons serving as command centers for factions, play a role, they are not the root cause of the issue.
ABOUT US
Albatroz Advisory was created with the purpose of enabling companies to navigate the international market in a strategic and safe manner. We understand that global expansion is not only an opportunity for growth, but also a challenge that requires preparation in the face of a constantly changing geopolitical scenario.
Through a combination of geopolitical analysis, risk management and personalized consulting, we help organizations anticipate threats, seize opportunities and make assertive decisions. Our risk mapping is designed to keep up with the constant transformations of the international scenario, offering strategic insights for safer and more effective planning.