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What is the effect of political violence on the production of coca in the Central Andes? Does U.S. military aid reduce the amount of drugs that originate from this region? What other factors help explain the production of coca? Are the effects of U.S. military aid the same across the Andean nations? This paper tests the effects of political violence and U.S. military aid in the drug producing nations of Colombia, Bolivia and Peru. Our results are consistent with existing literature that emphasizes the obstacles that governments face as they attempt to suppress markets for prohibited goods. Our comparative analysis sheds new light on the limitations of the current U.S. policy, particularly in Colombia, where political violence has strengthened the global drug trade. [ABSTRACT FROM AUTHOR]