By many indications, they’re losing.
But this isn’t “Breaking Bad” — meth isn’t just used by the poor and the downtrodden.
Meth no longer discriminates in Asia; it has become the dominant drug of choice across the region, irrespective of class, age or gender, according to Jeremy Douglas, who is in charge of United Nations Office on Drugs and Crime (UNODC) southeast Asia operations.
In a career spanning 16 years, Douglas said he’s never seen demand like this.
“No situation is exactly comparable, but this is off the charts,” he said.
Experts say the boom is due to a serendipitous combination of domestic and geopolitical issues that have aligned to the benefit of the region’s drug gangs.
The majority of meth production is happening deep inside the jungles of the Golden Triangle, a lawless area where the borders of Thailand, Laos, and Myanmar meet. Experts say it’s easy to conceal drug production there and move it on at short notice.
Drug runners, meanwhile, are exploiting new roads and infrastructure being built as part of an ambitious, trillion-dollar Chinese initiative to connect markets across the globe, using the flow of people and licit goods to mask drug trafficking.
And the profits, likely worth hundreds of millions of dollars, are being laundered via intricate international schemes, often using front companies in countries where lax oversight makes it easy to hide money.
“It’s a perfect storm in terms of the production of methamphetamine,” says John Coyne, a former head of strategic intelligence at the Australian Federal Police who now works on border security issues at the Australia Strategic Policy Institute.
“It’s pushing Southeast Asia into what could be in time a methamphetamine epidemic.”
Perhaps the most prominent is the United Wa State Army (UWSA) and its political wing, the United Wa State Party (UWSP).
The two have waged a years-long struggle for autonomy for the ethnic Wa population, people who share a common language as well as cultural and historic ties with their neighbors in China’s southern Yunnan province.
Shan State boasts a compelling combination of a good poppy-growing climate and a dearth of law enforcement. For years, the Golden Triangle was the source of the majority of the world’s illegal heroin and opium.
Authorities in the West have long accused the UWSA and UWSP of funding their armed struggle against the Myanmar central government with the profits from drug production. The UWSA is believed to boast around 30,000 fighters.
Official numbers appeared to lend credence to the claim that the UWSA is no longer producing heroin, at least at first glance. Golden Triangle heroin production and distribution has been on the decline, according to numbers from the United Nations.
“There’s a lot of evidence coming together from across the region pointing back to the same groups, pointing back to the same locations,” said Douglas with the UNODC.
The UWSA’s decision to get into the meth game, experts say, is partly a response to market forces, but it’s also motivated by profit and ease of production.
Methamphetamine is a synthetic drug. It’s made in a lab using chemicals and doesn’t require drug makers to cultivate organic crops, such as poppies, as is the case with heroin.
These labs can be covered by a tarp or moved on short notice. You can’t do that with a poppy field.
Beijing has big plans in Myanmar, where it has spent billions to connect China’s landlocked Yunnan province to port cities in South and Southeast Asia. Laos and Thailand have seen similar investments.
An unintended side affect of these infrastructure improvements is that they’ve made it easier for meth traffickers to transport product from deep inside Shan State to the rest of Southeast Asia, Coyne said.
“What you’ve got is a large, legitimate trade of people, goods, etc., flowing out of Myanmar and Laos in which you can hide your drugs,” said Coyne.
This year, authorities have conducted dozens of meth seizures in Thailand, China, Cambodia, Laos, Malaysia and Indonesia.
Shockingly, it only took five months for seizures in Malaysia and Myanmar to surpass the 2017 totals, according to Douglas.
While those busts could mean law enforcement is winning its fight against traffickers, it also shows the sheer quantity of meth being moved.
Coyne warns of another possibility — that meth producers have gone into overproduction, which drives down the per unit cost of making drugs, which in turn makes it easier for dealers to live with these massive busts.
“They can afford to lose larger quantities and still make profits,” he said.
All that money has to go somewhere, and law enforcement say drug dealers are using intricate financial networks to hide their ill-gotten gains.
The most prominent — at least publicly — is the case of the Zhao Wei, a gambling magnate accused by the US government of using his casino in Laos to help the UWSA launder proceeds from the sale of meth.
Casinos are used for laundering because they involve so much cash trading hands, but Zhao has the added benefit of operating inside what Douglas at the UNODC calls a “criminal mini-state.”
“It operates like his personal fiefdom,” Douglas said.
Zhao has reportedly negotiated a 99-year lease with the Lao government to operate what’s known as the Golden Triangle Special Economic Zone. The zone lies along the Mekong River that flows between Thailand, Myanmar and Laos. At its center sits the Kings Romans casino.
Zhao’s agreement with the Lao government allows his business to operate under its own set of unique laws, rules and regulations.
The only areas in which Zhao defers to the central government are on matters related to the military, the judiciary, and Lao foreign policy, Zhao told Chinese state media in 2011.
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