Neo-liberalism has deeply affected Latin American politics in the 20th century. Free market system has improved the democracy in Latin America, as no democracy has ever existed in nations that did not have basic con-tours of capitalism – private ownership and competition as the main mechanism of economic coordination (Weyland, 2004). However, even if free market economy is one of the core principals of neo-liberalism, because of huge inequality, elitism, corruption and political tension it is sometimes necessary for the state to intervene – to engage in redistribution of wealth and to interfere with the development, which requires a lot of political power. US President Richard Nixon has declared a “war on drugs” in 1971 and announced drug trafficking a national security threat. There was an immediate impact on Latin American politics and on human security in the region. This essay analyzed the extent of “war on drugs” policies impacts upon the case studies of Colombia, Mexico and Bolivia. Human security is understood in terms of economic, political, environmental, personal, community, health and food security. Each country was analyzed separately so that similarities and differences can be identified and understood. Neo-liberal framework was applied, and focus is shifted towards economic and environmental policies, along with human rights.