It should be noted that GNP and GDP traditionally do not count black market
has caused a bit of a stir when it started to include its illicit drug trade
in its figures. As the world's leading supplier of coca
, and major opium and heroin supplier to the United States, it does factor into their economic wealth. However, black market goods are not subject to taxes and other tariffs, and therefore do not affect the economy the same way as legal goods.
To futher explore this topic, what happens in a country that has a significant service economy? Part of the economic effect of the sex industry in Southeast Asia is reflected in their tourism figures, but the actual services are not.
In countries where only pollution-causing and natural resource-depleting industries can count towards wealth, it seems like another disadvantage. The economic statuses of Third World Countries are at the mercy of First World Nations' moral compasses.
Of course, it can always be argued that black market goods and services actually lower the standard of living in a country. In Columbia, only a few hold the wealth, and they terrorise and kill others who oppose them. Prostitution, although subject to debate, is usually considered detrimental to a community. Still, the question remains; is the standard of living adversely affected because of their inherent immoral nature, or because they are illegal?