Introduction The illegal drug trade in Colombia is the practice of production and distribution of narcotics nationally and internationally. In 2012, Colombia was the world's largest producer of cocaine (Neuman, 2012). Cocaine, marijuana, and heroin, along with other illegal drugs, have become an important part of Colombians' lifestyle and a major source of income for many people. Since the start of the War on Drugs in the late 20th century, European countries and the United States have provided billions of dollars, logistical and military aid to the Colombian government to combat the illegal drug trade (Lilley, 2006). Since 1999, Plan Colombia has been one of the largest movements towards Colombia's largest rebel group, the Revolutionary Armed Forces of Colombia (FARC). The move was implemented despite Colombia supplying 80% of cocaine to American citizens (Vellinga, 2000). The U.S. Drug Enforcement Administration estimates that Colombia's annual profits are between $5 billion and $7 billion from drugs smuggled into the United States. This article will examine the third largest city in Colombia; Santiago de Cali, in the department of Valle del Cauca, headquarters of the Cali Cartel, to see how the production of illegal drugs affects the economy and whether Colombia is profiting from these illegal activities. We will first focus on the general context of illegal drugs in Colombia and then examine how the Cali Cartel greatly affected the Colombian economy. Employment, money laundering and land ownership will play a major role in determining the current situation in Colombia and whether or not illegal drugs are beneficial to the economy of Cali and the Colombia. Finally, the newspaper will give my opinion on whether illegal drug trafficking benefits or hinders the Colombian economy. MethodologyThe information contained in this article comes from books located