There are problems posed by partial liberation of any market (e.g., freeing interest rates while keeping government deposit guarantees got us the Savings and Loan crisis). There are similar problems with partial liberation of markets for narcotics, as well. The liberalization of the laws against dope in the Netherlands has led to plenty of tourists trooping in from France, Germany, Belgium, the U.K., and other countries, which means that they bring and concentrate in a small country some of the features of drug culture that the locals don’t especially appreciate. Worse, the fact that supply has not been liberalized means that the same networks of criminal syndicates caused by prohibition are empowered and attracted to the Netherlands. In this BBC report (“Dutch cannabis policy challenged“) from Maastricht, however, we see a sensible proposal from the Mayor, who’s not happy with the current policy.
Mayor Leers has told the Dutch parliament that the licensing system that allows coffee shops to sell 5g of cannabis to each customer should be extended, to allow them to grow their own plants.
“They should have a permit to grow their own cannabis so that they can cut their ties with the criminals,” the mayor says. “That way we can control things. At the moment our system is so hypocritical.”
Sometimes, liberalization may lead to a virtuous circle of freeing markets. Let’s hope that this is one of those cases.
It looks like the circle could have moved in the other direction, too. Mayor Leers could have argued that, since partial deregulation had led to more involvement of smugglers and organized crime in his city, they should move back to full prohibition. Good that he acknowledged that prohibition is a failure and that the answer is freer market.
Tom,
I’m not sure that Dutch drug policy isn’t reaping an extra benefit from being one of the only countries with liberalization. Since there is so much “narco-tourism,” sensible people who happen to have a taste for hashish or weed come to the Netherlands where they alos spend not insignificant sums in other parts of the local economy. If all of Europe had a liberal policy on marijuana (and prostitution), the Netherlands would lose its competitive edge–and much of the tourist revenue that goes with it.
Best,
Connected
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