1 Region Overview
The Golden Triangle is the name of the lawless, porous tri-border area where Myanmar, Laos, and Thailand converge. It has a long history of notoriety as a hub of transnational crime and illicit activities, including drug trafficking, human trafficking, money laundering, wildlife trafficking, and now cyber crime. Criminal organizations capably adapted to political and economic shifts in the region, becoming deeply entrenched. The capabilities and policies of the states involved in the area are limited, creating an environment where illicit activities flourish. Areas with like features, such as the Amazon tri border, present similar issues. This showcases that porous ungovernable border areas deserve special attention in the governance of transnational crime.
Geographically, the area extends around the confluence of the Mekong and Ruak rivers. The uneven and forested terrain complicates enforcement efforts. Furthermore, thanks to its strategic location, it can serve as a corridor between Southeast Asia and global markets for national players, such as China.
2 Historical Context: Opium as a Core Activity
The region of the Golden Triangle has long been associated with drug trafficking and opium and heroin production. The term “Golden Triangle” was coined to describe the alarming levels of profitable opium cultivation. U.S. Assistant Secretary of State Marshall Green is widely considered to be responsible for this nomenclature, which originated in 1971.
2.1 The Origins of Opium Cultivation
The cultivation of opium poppies is historically typical of indigenous groups, which employ them for medicinal and ritual purposes. Nonetheless, colonial powers redirected this trend to favour international markets, increasing production throughout the 19th century. The pivotal moment was the 20th century, especially its second half when heroin demand surged following WWII and during the Vietnam War. It was in this period that the Golden Triangle’s economy shifted from opium trading to an industry producing heroin on a large scale.
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2.2 The 20th Century Surge
Annual rates of opium production reached between 300 to 600 tons in the 1950s. This is if we only consider Myanmar’s part of the Golden Triangle. Explanations for this surge include the involvement of the Kuomintang (KMT) forces, troops of the Republic of China Army. Those forces, retreating in the region, directed farmers to improve opium cultivation, even taxing their produce.
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2.3 The 2000s – Decline and Resurgence
2003 reports from the United Nations Information Service pointed out a decline in opium cultivation in the Golden Triangle. Myanmar and Laos areas saw a decline of 24% and 15% in cultivation since the previous year, with around 2,000 hectares less being dedicated to opium poppy compared to 2002. This evidence brought forward optimism, granting credit for the eradication efforts pursued and the development programs enacted in the area. Nonetheless, this timeframe coincided with an uptick in synthetic drug production, curbing the optimism.
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More recent developments point out a strong resurgence in opium production and criminal activity in the Golden Triangle. The United Nations Office on Drugs and Crime (UNODC) in 2022 reported a 33% increase in cultivation area in Myanmar. This is associated with a potential 88% rise in production compared to previous years. The increase has continued regularly for three consecutive years, starting in 2021. It is argued that recent factors, including Myanmar’s 2021 military coup, economic troubles deriving from sanctions, and the COVID-19 pandemic led to a return to opium cultivation. Seemingly, the growth has leveled in 2024, but Myanmar continues to be so unstable that a return to a rise would not be unexpected.
The Golden Triangle is a crucial spot for illicit activities. Throughout history, drug trafficking around opium poppies has been its core activity. Nonetheless, the interplay of political instability in the region, economic challenges, and crime networks established for the opium and heroin trade have facilitated the rise of other illicit activities.
3 Other Illicit Activities in the Golden Triangle
As evident from the information presented above, opium production was continuously the cornerstone of illicit activities in the Golden Triangle. Nonetheless, there is a variety of criminal activities that developed and spread in the area.
3.1 Synthetic Drugs
The production of synthetic drugs in the Golden Triangle, especially methamphetamine, is another relevant criminal activity. First highlighted by the UNODC in the 1990s, it recently saw a huge surge and is particularly prevalent in Myanmar’s Shan State. The drugs are, reportedly, trafficked across Southeast Asia and beyond. The UNODC claims the region is a massive drug trafficking corridor. Synthetic drugs from the area reach and affect the Asia-Pacific region down to Japan and New Zealand.
3.2 Human Trafficking
The U.S. Government Accountability Office (GAO) reports that transnational organized crime takes advantage of weak governance and instability for both sex and labour trafficking. The offers of employment lure vulnerable populations, which end up in conditions of exploitation and semi-slavery. Stories of human trafficking in the Golden Triangle area are renowned and confirm the GAO’s theory. One publicized example was that of Malaysian citizen Rachel Yoong, who was lured into the area in 2022 with a fake job offer and was sequestered.
3.3 Natural Resources Trafficking
The Golden Triangle region is also a relevant spot for wildlife and wildlife product trafficking. It serves as a transit point towards the Chinese market and other parts of Asia. The Financial Action Task Force (FATF) 2020 report on Money Laundering and the Illegal Wildlife Trade highlights how transnational criminal organizations often engage in multiple illicit activities in key regions, maximizing profits. Furthermore, Myanmar’s Shan state is a hotspot for timber smuggling, most of which is first directed towards China and India, and later to the international markets once made untraceable.
3.4 Money Laundering
Criminal organizations use sophisticated laundering schemes in the Golden Triangle. A key example is the Kings Romans Casino in the Laos’ Golden Triangle Special Economic Zone (SEZ). What happens in the casino seems to be an open display of money laundering. The casino and surrounding area were built by Chinese crime boss Zhao Wei. He was sanctioned in 2018 by the U.S. Department of Treasury for his involvement in illicit activities. The existence of the Chinese Underground Banking System also facilitates this type of activities.
3.5 Cybercrime
Most recently, crackdowns revealed cybercrime operations in the region. Various online scams generate illicit revenue for organized crime. The individuals conducting such scams are most often human trafficking victims, showing once again the interconnectedness of transnational criminal activities. Coordinated efforts by Thailand, China, and Myanmar have recently tried to address the issue in the Golden Triangle and surrounding areas.
4 Key Actors
To best capture the complexity of the Golden Triangle, it is crucial to understand the actors involved in the area, both state-affiliated ones and criminal entities.
4.1 Criminal Organizations
4.1.1 Zhao Wei
The key transnational criminal organization rooted in the Golden Triangle is related to Chinese casino mogul Zhao Wei. It is involved in a variety of crimes including drug, human, and wildlife trafficking alongside bribery and money laundering. Its focal area is the Laotian SEZ, where the Kings Roman Casino and surrounding area serve as a criminal and laundering hub. Despite efforts to limit its influence and sanctions from international actors, including the U.S. (and potential incoming ones from the EU), the organization is so well entrenched that its activities have held up under scrutiny.
4.1.2 Shan State and UWSA
On the Myanmar side, specifically in Shan State, criminality is linked to insurgents and militias. According to Thai authorities, those armed groups coordinate with crime networks and set up “super labs”. The United Wa State Army of Myanmar (UWSA) is a key actor for such activities.
Synthetic drugs are produced in increasingly high amounts, specifically methamphetamine and crystal meth. Evidence of this increase can be found in Thai authorities’ 2024 drug seizures (+172% for meth tablets; +39% for crystal meth), and drug prices dropping to around an eighth of what they were ten years ago, an economic indicator of high availability and solid demand.
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4.2 State Actors: Complicity?
The involvement of state actors in the Golden Triangle is complex. Sometimes, local and state authorities turn a blind eye and favour illicit activities, while others try to maintain a grip on law enforcement.
4.2.1 Laos
The significant autonomy of the Laotian SEZ, despite its evident exploitation by criminal organizations, raises concerns about governmental oversight. The establishment of the area to begin with, and the continuation of the operation despite international pressure and inquiries, showcases a certain degree of complicity, or at least of ineffective governance.
4.2.2 Myanmar
Myanmar’s chaotic political landscape is meaningful to the Golden Triangle scenario. The instability limits coordinated efforts to address criminal activity. The continuous civil unrest, and the 2021 coup, caused power vacuums. Armed groups exploit them to their advantage, and manage illicit activities without much interference.
4.3.3 Thailand
The Thai government maintains the strongest grip on its Golden Triangle area. Nonetheless, spillover affects its region as well, with official corruption facilitating illicit activities on the Thai side of the border. Despite attempts to address the situation, achieving significant results will likely require greater cross-border collaboration and countercorruption initiatives.
5 Conclusion
With a long history behind it, the Golden Triangle continues as a regional hub for transnational organized crime. Weak governance, corruption, and instability favour illicit economies in the area. Although opium and heroin production and smuggling were long the main illicit activity, synthetic drugs, human trafficking, and money laundering are rising significantly. The role played by Zhao Wei, much discussed by international governments and the press, shows how SEZs are exploited for criminal purposes. Attempts to dismantle those networks are failing. We therefore conclude the Golden Triangle is highly likely to remain a crucial hotspot in global drug production and trade, and a haven for transnational criminal organizations, for years to come.
