Testimony considers the extensiveness of drug-related corruption, the role of drugs in the economies of developing Latin American Countries, and the use of drug-generated revenues to support political parties, Governments, and revolutionary movements. Data on interdiction efforts in the Bahamas are provided. An ex-drug smuggler, later involved in a Florida sting operation, describes drug use in the Bahamas, the strategies used to bring drugs into the United States, the involvement of officials and businessmen in drug trafficking, and factors limiting the effectiveness of interdiction efforts. The formerly drug-addicted son of a Bahamian influence peddler discusses the corrupting effects of the drug trade both on the Bahamian people and the economy. A Federal prisoner provides information on drug trafficking in Costa Rica, the strategies used and revenues generated, and possible Contra involvement. A representative from the Overseas Private Investment Corporation (OPIC) discusses OPIC's mission, audit procedures, and loan underwriting policies with respect to a defaulted loan made to a Costa Rican rancher involved in the Contra aid network. The relationship between this loan and possible pressure from other U.S. Government agencies and a proposal that OPIC insure an Iraqi pipeline project also are considered. Supplemental materials are appended.