Drugs, economics and policy

Abstract

There is no necessary link between drug consumption, addiction and social disintegration. Empirical evidence suggests that a considerable share of the population has consumed illegal drugs during some period of their lives. A substantial proportion of drug users have a job and home. Many 'mature out' of drug consumption in their thirties. Most drug users are normal consumers responding systematically to relative prices. After the failure of a repressive drugs policy, Switzerland allows cities to pursue a 'third way' between repression and liberalization. The state allows carefully screened heavy addicts to inject heroin at a nominal price, while at the same time raising the cost to potential entrants. The 'experiment' has produced encouraging results. The health of heroin users has improved and crime has been reduced. A homogenized drugs policy in the European Union would probably disallow such promising programmes.