TJP

Illicit Drugs: The Focus should be on Demand Reduction

Byron A. Ellis

December 27, 2007

According to the White House drug “Czar,” John Walters the wholesale price of cocaine has risen, indicating that enforcement and eradication efforts caused the shortage.

Fact checking by National Public radio (NPR), however, revealed that the shortages are neither national nor unprecedented.

The government uses the price of cocaine to measure progress on the war on drugs. Thus, they believe that they are succeeding when cocaine prices are high, which is indicative of supply restrictions.

Supply restrictions, however, are only temporary. The appropriate measure of the drug war success is on the demand side and not on the supply side. Since, as long as there is demand for cocaine, suppliers will fill the void. Additionally, as the price of cocaine increases, more suppliers with enter the market to capitalize on the perceived profit opportunities. So, why does the government continue to focus on the supply side?

Focusing on the supply side will only cause temporary reduction in cocaine consumption, since some consumers will not be able to afford the higher prices. However, many of the consumers priced out of the cocaine market will seek substitute illicit drugs.

In essence, the interdiction strategy must be coupled with a demand reduction strategy. In fact, if there is no demand for a given product or services, there will be no supply.

Reducing the demand for drugs through education and health services will, in the long, be more effective than attempting to disrupt the supply.

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