Negative Impacts on the Economy - JSS2 Social studies Lesson Note

The illegal drug trade can undermine economic stability through corruption, money laundering, and diversion of resources away from legitimate economic activities.

• Loss of Productivity: Drug trafficking contributes to a decrease in workforce productivity as individuals involved in drug abuse may face health issues, absenteeism, and reduced job performance. This, in turn, affects overall economic output.
• Increased Healthcare Costs: Substance abuse resulting from drug trafficking puts a strain on healthcare systems, leading to higher medical expenses. Governments and businesses may bear the burden of treating addiction-related health problems.
• Crime and Law Enforcement Costs: The illegal drug trade often fuels other criminal activities, including violence and property crimes. The associated law enforcement costs, such as investigations, arrests, and incarceration, impose a financial burden on the economy.
• Impact on Tourism: Countries known for high drug trafficking activities may suffer in terms of tourism. The perception of insecurity and violence associated with drug-related crime can discourage potential visitors, affecting the tourism industry and related businesses.