Some of the money from Peru's extensive coca production and conversion into cocaine paste has been used to finance SL, which was, in its day, the most vicious terrorist movement in the world. SL has caused the death of 28,000 people in Peru. However, in 1992, the founder and leader, Abimael Guzman, was captured. The Peruvian experience illustrates the relationship between drug trafficking corruption, terrorism, counterinsurgency, and crime. However, an effective intelligence operation transformed the conflict from one the government was in serious danger of losing to one it became almost certain to win. Rewards, incentives, and confidence in future protection and security were crucial in encouraging both surrendered terrorists and people in the towns and villages to take the risk of giving information. The Peruvian experience also underscored the need for a joint civil-police-military direction for this kind of effort at the national, provincial, and district level. However, the ultimate solution to the drug problem rests in reducing demand. Footnotes