Supply-side versus demand-side approaches to drug policy effectiveness

¶ … Drug Policy

Research and the making of drug policy: Past, present, and future

There is often a divide between anti-drug policy approaches that emphasize the demand side of drugs and the supply side. Supply-side policies focus on law enforcement and incarcerating dealers; demand-side policies emphasize treating users. Longitudinal research is required to determine what balance between the two policies is demanded. Current research and anecdotal evidence has demonstrated that supply-driven reduction efforts alone are not effective. "A landmark study of cocaine markets by the RAND Corporation for the U.S. Army and the Drug Czar's office found that, dollar for dollar, providing treatment to cocaine users is 10 times more effective at reducing drug abuse than drug interdiction schemes and 23 times more effective than trying to eradicate coca at its source. To achieve a one percent reduction in U.S. cocaine consumption, the United States could spend an additional $34 million on drug treatment programs, or 20 times more, $783 million, on efforts to eradicate the supply at the source" (Drug policy institute, 2002). However, how to structure an effective demand-side, treatment-based effort remains an open question. Should there be more funding for in-patient or out-patient rehabilitation, and for patients that cannot afford private treatment facilities? Further research into the efficacy of different programs, for different types of drug users, is required to make every dollar that is spent on drug reduction efforts effective.

Another question occasionally posed, particularly with current debates over the allowance of marijuana for medical use is if wholesale drug legalization is a feasible solution. Even if this became politically palatable, research indicates that while legalization would reduce drug-related crime, it would also increase the supply of drugs, at least temporarily, by driving the price down and reducing the social and personal opportunity costs of obtaining drugs. Crime and drug-related violence creates a barrier to accessing drugs. "By restricting the amount of drugs hitting the streets, government policy decreases the supply and creates a temporary shortage. This does reduce the quantity of illicit drugs bought and sold but, as in any other market, the shortage drives up the equilibrium price" and opportunity cost (Stonebraker 2010). Understanding the average price of illicit drugs and the rates of drug-related crime enables government policy-makers to understand the opportunity cost of drugs for both the user and the community.