What if illegal drugs were legalized?

The prohibition of drugs by governments is continually debated. Those in favour of prohibition believe that it reduces drug use and trafficking, discourages crime, and therefore improves productivity and health outcomes. In contrast, critics claim that the effect of prohibition on trafficking and use is very small, while crime is increased and many problems, such as health issues and quality control, cannot be properly addressed. An Australian social change researcher calls prohibition “a cure that makes the disease worse” and “corrupts society” (Jiggens, 2005).

One important issue in the debate is, quite simply, money. Drug prohibition means enormous enforcement costs while the production and sale of drugs cannot be taxed. Of course, the money issue alone cannot predict an overall favourable outcome of drug legalization, but it must be relevant considering what could be achieved if a good part of the extra revenue was invested in health promotion and harm reduction. For example, there would be enough money for the development of more effective and far-reaching prevention campaigns, as well as harm reduction programs such as safe, supervised injection and “coming-down” rooms and required staff. These initiatives would undoubtedly reduce harm and violence in the community. In addition, more money could be spent on research, development and clinical trials of new substitution and other harm-minimizing drugs.

Miron (2008) estimates from 2006 data that with a regime legalizing drugs while taxing and regulating them similarly to alcohol and tobacco, the U.S. government could save more than US$44 billion in enforcement expenditure while generating additional tax revenue of more than US$32 billion, the bulk of which would come from cocaine and heroin. Of course, Australian numbers are substantially lower (AU$600-700 million for enforcement in 1998, Jiggens, 2005), but together with the added tax revenue, and hopefully a reduced burden on health care costs in the future, the prospect of drug legalization is a promising and appealing one.

It will be a long way and subject of approval from the UN, who are heavily influenced by the U.S. government, before the world will start moving towards drug legalization. However, it is encouraging to see that researchers everywhere start to voice their concerns (and the cold facts) about the widespread ineffectiveness and detrimental effects of drug prohibition.

References

Jiggens, J. (2005). The cost of drug prohibition in Australia. Paper presented to the Social Change in the 21^st Century Conference, Centre for Social Change Research, Queensland University of Technology.

Miron, J.A. (2008). The budgetary implications of drug prohibition. Harvard University, Department of Economics. Report funded by the U.S. Criminal Justice Policy Foundation.