Introduction Illegal drug trafficking in Colombia is the practice of producing and distributing narcotics domestically and around the world. In 2012, Colombia was the world's leading producer of cocaine (Neuman, 2012). Cocaine, marijuana and heroin along with other illegal drugs have become an important part of the lifestyle of Colombians and an important 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 movement was implemented as Colombia supplies 80% of the cocaine to American citizens (Vellinga, 2000). The U.S. Drug Enforcement Administration has estimated that Colombia's annual profit ranges between $5 billion and $7 billion from drugs smuggled into the United States. This article will take an inside look at Colombia's third largest city; Santiago de Cali in the Valle del Cauca department, home of the Cali Cartel, to see how the production of illegal drugs affects the economy and whether Colombia benefits from illegal activities. We will first focus on the general context of illegal drugs in Colombia, then we will narrow the focus to see how the Cali Cartel has significantly influenced 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 Colombia as a whole. Finally the newspaper will express my opinion on whether the illegal drug trade is benefiting or harming Colombia's economy. MethodologyThe information for this article was taken from the identified books