"Drug abuse" is defined in this paper as illicit production, trafficking, and consumption. The concept of "development" used is that of "a process of enlarging people's choices by strengthening their capabilities and maximizing their use of those capabilities." The first section considers how illicit drugs exacerbate some of the more serious global problems facing the world today. The financial and employment effects generated by the illicit drug trade mask negative side-effects on the economic, social, and environmental fronts. It can be shown that the short-term gains are far outweighed by the social and economic ills ushered in by illicit drugs. Those considered in this paper are lower productivity, the spread of AIDS, and environmental decay. Also considered are situations of conflict, in which countries are particularly vulnerable to the negative influence of illicit drugs. The next section of the paper addresses the implications of economic reform in the developing world. The discussion concludes that the welcome process of economic reform in the developing world will leave many economies vulnerable to an increase in drug-related activity; this vulnerability is fed by profound financial and economic needs and can be explained by the premise that drugs can introduce lots of money to an economy. The concluding section considers foundations for an integrated response. It argues that the drug problem cannot be adequately addressed when viewed from an exclusively legal or health perspective. The debate must expand to include still other areas of social, economic, and political analysis. The need for a division of labor between development agencies and drug control bodies is clear. There is, however, untapped potential for a greater operational interplay between drug control and development bodies. One promising area is education. 46 references