The growing and processing of drugs usually takes place in developing nations or nations in transition. For developing nations, drug production may form the basis of the country's economy. Drug growing and processing usually employs a large percentage of the population and may be a major source of income. The money from growing and processing drugs boosts local economies, even though most of the profits do not directly benefit the growers and production workers.

The economic impact of coca production is significant. In 1999 Colombia produced 520 metric tons of coca worth an estimated $494 million. Peru produced 305 metric tons of coca worth an estimated $134 million. Bolivia produced 70 metric tons of coca worth an estimated $63 million.

The huge economic impact of drug production on source countries makes elimination of this production a major problem. In poor nations, people usually consider the money-making opportunities worth the risks. Many times, the risks are lessened through corrupt governments that make profits from the illicit drug production. Some countries simply lack the resources or manpower to combat illicit drug growing and production.