Smuggling is one of the problems that is affecting almost every country but in some countries it is creating havoc because of its linkage to the drugs trade, money laundering, illegal weapons trade apart from being the source of contraband goods.

Of course these activities undermine the social fabric of society and have devastating consequences on national economies.

Bill Guerin in his article: “The bitter truth of Indonesia’s sugar smuggling” in the Asian Times provides some revealing information on the effects of smuggling on the Indonesian economy.

“Discovery of a mere 65,000 tons of contraband sugar has not only exposed the bitter truth, the myriad problems in Indonesia’s ailing sugar industry, but highlighted just how rampant smuggling, like corruption, is undermining the country’s entire economy.”

“In a nation that was once the world’s second-largest sugar producer, but is now the world’s second biggest importer after Russia, it is not only farmers who depend on the sweetener for profit. Smugglers, plantation firms and customs officials, among others, all have something to gain from the industry.“

“Indonesian’s eat their way through around 3.3 million tons of sugar every year. But local sugar production is only around 1.8 million tons, and the country has been a net importer of sugar since the 1960s. Importing the commodity to make up for the massive shortfall has proved to be no solution, as the wide gap between domestic and international prices has encouraged widespread smuggling of Thai sugar into the country.”

“The local market is now flooded with cheap sugar, leaving domestic sugar producers unable to compete, angry and bitter. Sixty percent of the country’s 350,000 hectares of sugarcane are on the main island of Java, where farmers have already burned sugarcane fields to protest existing policies, or lack of them.”

The above is a classic example of what smuggling could do to a nation’s economy and specific industries.

As regards the drug smuggling the battle has been largely a futile one despite the huge resources being expended in countering this menace.

Despite over $7 billion spent annually towards arresting and prosecuting nearly 800,000 people across the country for marijuana offenses in 2005 (FBI Uniform Crime Reports), the federally-funded Monitoring the Future Survey reports about 85% of high school seniors find marijuana “easy to obtain.” That figure has remained virtually unchanged since 1975, never dropping below 82.7% in three decades of national surveys.

Guyana which has a large and porous border is finding it increasingly difficult to curb cross border smuggling connected to our neighbours of Venezuela, Suriname, and Brazil. And our limited financial and human resources are adding to the dilemma. However, it was encouraging to hear recently from the Commissioner-General of the Guyana Revenue Authority (GRA) that the agency has managed to reduce smuggling to a “controllable level” and has recouped millions in revenue from interceptions and raids made.

“Despite the many challenges that presented themselves, such as some Media operatives who continue to write and report negatively about the organization, we are expected to perform much better in revenue collection in the coming year, since we have seen an increase in compliance by most categories of taxpayers as the organisation is engaged in activities to inform, educate and assist taxpayers to understand their responsibilities and obligations, with respect to the various Tax Acts,” the GRA said.

The collection of revenue is of paramount importance without which it would almost be impossible to provide adequate social services for people which is a key objective of caring governments.

It is hoped, therefore, in the New Year that the GRA will maintain its aggressive stance on smuggling and all forms of illegal activity that is depriving the national treasury of vitally needed funds.