Illicit Economies, Environmental Degradation, and Governance

This chapter analyses the complex connection between illicit economies, environmental degradation, and governance fragility, arguing that drug cultivation and trafficking are powerful yet understudied drivers of socio-ecological transformation. Drawing on interdisciplinary perspectives from green criminology, political ecology, and environmental security, the analysis reveals how illicit supply chains fuel deforestation, biodiversity loss, and land-use change particularly in Latin America and South/Southeast Asia through activities such as coca cultivation, covert infrastructure construction, illegal mining, and narco-cattle ranching. These ecological impacts are combined by governance breakdowns, including corruption, institutional capture, and resource-based conflicts, which enable criminal networks to operate with impunity while undermining environmental protection and sustainable development. The chapter further argues that environmental harms associated with illicit economies are inseparable from broader security challenges, including territorial fragmentation, community displacement, and escalating violence. By integrating environmental, human, and ecological security frameworks, the chapter advances a holistic understanding of how illicit economies reshape landscapes and institutions simultaneously. It concludes with policy recommendations that shift from punitive anti-narcotics approaches toward comprehensive sustainable development strategies centred on ecological restoration, strengthened governance, and international cooperation. These insights contribute to a growing body of research calling for the integration of environmental security into global responses to illicit economies.