Using examples from South America, Mexico, Russia, and the United States, the author shows that the drug problem is not merely one of supply and demand, that the post-Cold War globalization process is not necessarily benign, that the democratization of formerly autocratic states does not guarantee a new era of democratic peace, and that organized crime is not confined to specific ethnic groups. The author explains that the theory of supply and demand ignores or downplays the fact that the drug trade depends on state cooperation and compliance to sustain multibillion-dollar levels of illicit global commerce. He proposes features of the globalization process that permit wealthy elites to operate outside accountable political processes and reveals how organized crime develops under political protection, becomes multiethnic, and forges transnational alliances. Further, the author argues that many national and international systems depend on cash from money laundering and that some governments are more involved in protecting than in combating criminal cartels. Recommendations are offered that emphasize the need to re-examine U.S. and international policies in the drug and culture wars. Information is appended on the medical consequences of drug use. References, notes, tables, and figures