Getting rich, naturally: Latin America's herbal drugs are touted as wonder cures--with virtually zero oversight. (Trade Talk).

Over the years, I've seen many herbal home remedies, such as Echinacea, Ginkgo Biloba and St. John's Wort. Lately, I've noticed jungle cures long popular in Latin America, bearing exotic names like Cat's Claw and Dragon's Blood, turning up alongside those natural staples.

In Peru, Cat's Claw, or Uncaria tomentosa, is a popular folk medicine related to cinnamon bark. Rain forest Indians traditionally used it to treat upset stomachs and fevers, although its current proponents claim it effectively treats AIDS, HIM cancer, arthritis, bursitis, rheumatism and asthma. Dragon's Blood comes from the tree Croton lechleri. Its resin has been used for centuries by indigenous tribes of Mexico and South America; it is now touted as a wonder drug that accelerates healing and wards off infections.

And then there is Andean root maca or Lepidium meyenil. This so-called Peruvian Viagra is said to increase sex drive, sperm count and energy. Its exports to the United States and Europe are currently around US$3 million, with sales expected to increase dramatically on the popularity of the real Viagra, the male potency drug sildenafil citrate sold by Pfizer.

There's a lot of snake oil going around. An investigation by the U.S. General Accounting Office concluded that federal agencies aren't using their substantial authority to keep products known to pose health risks off the market. Jose Luis Silva, president of the Peruvian Institute of Medicinal Plants, wants his government to draft laws to safeguard the image and quality of local brands.

To be sure, there are many Latin American herbal remedies that have spawned legitimate medications. Quinine and curare--both come from tree bark--are used to treat malaria and as an anesthesia during surgery, respectively.

Herbal companies make wild claims about miraculous cures yet show no data supporting their safety and effectiveness. It's no wonder. Like get-rich-quick real estate schemes and flaky Internet stock tips, there's a lot of money to be made selling medicinal plants. It's the age-old story of fear and greed.

First, the fear: Buyers of herbal medicines are typically concerned about aging, an inadequate diet, weight loss, an improved sex life and energy gains. That's just about everyone I know. One-third of American adults have used alternative treatments, reports the U.S. National Institutes of Health. There are 1,400 herbal drugs sold in the European Union. The global medicinal plants market is estimated to be $7 billion a year.

Now, the greed: Some Latin American users of Mexico's Omnilife products claim they have been cured of cancer and other major illnesses. Whether they have or not, Omnilife has made company founder Jorge Vergara a billionaire. The former pork salesman to street taco venders commands an army of 1.2 million salespeople who hawk products with names such as Power Maker, Optimus and Ego, racking up annual sales of $600 million.

Vergara also sells over the Internet, joining 100,000 other Web sites that offer health products, by U.S. government estimates. "The Internet is a convenient medium for those who prey on the sick and vulnerable," said U.S. Federal Trade Commission Chairman Timothy J. Muris at a press conference on the subject.

Therein lies the problem. Millions of desperate people suffering from horrendous diseases are turning to herbal remedies to prolong their lives. But they're getting used, not cured-and governments in the U.S. and Latin America are ignoring that obvious fact.

Latin America's flora is among the most diverse in the world. With the right technology, the region's governments could convert that biodiversity bounty into safe and effective products and reap an economic windfall. But that will happen through partnerships with pharmaceutical companies, not renegade get-rich-quick operations.

The current situation exploits sick people. Latin America, the United States and Europe should hold herbal remedies to the same scientific standards of effectiveness as traditional drugs. However gullible--or desperate--consumers might be, they deserve better.