Economic Consequences of Drug Abuse

Chapter I. Economic consequences of drug abuse 1. Drug abuse inicts immeasurable harm on public regions, although data limitations meant that this was health and safety around the world each year, and threat- not always possible. ens the peaceful development and smooth functioning of many societies. An understanding of the economic costs 3. A brief discussion of the costs of alternative policies of drug abuse is necessary to develop policies that reduce and the disproportionate economic impact of drug abuse such costs. Attempts to calculate the global monetary on specic populations, including women, children, burden of drug abuse, however, are mired in data limi- fami lies and the poor, are presented. e chapter con- tations in the many areas that must be taken into account cludes with a number of conclusions, recommendations to arrive at even a rough estimate of the total global cost and best practices, rooted in evidence, to lower the global of drug abuse. Analysis of the economic consequences of economic costs of drug abuse and improve the well-being drug abuse must account for expenditure associated with of society. policy choices and take into consideration any gains and externalities. Although accounting for the full, real dol- lar costs of drug abuse worldwide is challenging, analys- ing its consequences and understanding the domains it A. Impact on health aects helps us to gain a clearer picture of the ways in which drug abuse aects the world. 4. A person’s health is greatly aected by drug abuse. 2. e present discussion analyses the consequences of Economically, this manifests itself in prevention and drug abuse in ve primary domains—health, public treatment costs, health-care and hospital costs, increased safety, crime, productivity and governance—using the morbidity and mortality. available evidence. e eects of drug abuse on those domains depend upon a host of interconnections within and outside these elds, including other factors such as Costs of drug prevention and treatment those discussed in chapter I of the annual report of the Board for 2011, 7 e.g., social structures, cultural values 5. e phenomenon of drug abuse requires societies to and government policies. e present chapter focuses on dedicate resources to evidence-based prevention, educa- the drugs that are under international control and does tion and interventions, including treatment and rehabil- not delve into the consequences of abuse of specic itation. Although such activities can be resource-intensive, drugs (especially given the prevalence of polydrug studies have shown that for every $1 spent, good preven- abuse). It is also important to keep in mind that costs tion programmes can save Governments up to $10 in and consequences vary widely across geographic regions. subsequent costs. Costs are discussed in the context of the dierent 6. Heroin, cannabis and cocaine are the drugs most fre- quently reported by people entering treatment worldwide. 7 E/INCB/2011/1. It is estimated that only one in six problem drug users 1 INCB REPORT +,- worldwide, some 4.5 million people, receives the required B. Impact on public safety treatment, at a global cost of about $35 billion annually. ere is a wide variation from region to region. For 9. Beyond health costs, people under the inuence of example, in Africa only 1 in 18 problem drug users drugs pose major safety risks and costs to people around receives treatment. In Latin America, the Caribbean and them and the environment. For example, drug-aected Eastern and South-Eastern Europe, approximately 1 in 11 driving accidents have emerged as a major global threat problem drug users receives treatment, while in North in recent years. Additionally, a greater awareness of the America an estimated one in three problem drug users impacts on the environment of illicit drug cultivation, receives treatment interventions. If all dependent drug production and manufacture has emerged. users had received treatment in 2010, the cost of such treatment would have been an estimated $200 billion- $250 billion, or 0.3-0.4 per cent of the global gross domes- Drug-a:ected driving tic product (GDP). Research ndings clearly show that investment in treatment is cost-eective compared with 10. e abuse of drugs aects perception, attention, the cost of untreated and continuing abuse. Research con- cognition, coordination and reaction time, among other ducted in the United States of America reveals that every neurological functions, which aect safe driving. Cannabis $1 invested in treatment yields a return of between $4 is the most prevalent illicit drug detected in drivers in and $12 in reduced crime and health-care costs. Canada and the United States and Europe and Oceania. Research has found that habitual cannabis use is linked to a 9.5-fold greater risk of driving accidents, cocaine and benzodiazepines increase the risk 2-10 times, ampheta- Health care and hospitals mines or multiple drug use increase the risk 5-30 times, and alcohol in combination with drugs increases the risk 7. Visits to hospitals in connection with drug abuse are of getting seriously injured or killed while driving by a costly to society. Such visits occur as a result of overdoses, factor of 20-200. at increased risk also has conse- adverse reactions, psychotic episodes and symptoms of quences for passengers and others on the road, who may infectious diseases that can be transmitted through, inter become victims of drug-aected driving. alia, injecting drug use, such as hepatitis B and C, HIV/ AIDS, tuberculosis, and other illnesses related to drug use. Additionally, hospitals o!en need to treat victims of Impact on the environment drug-related crimes and accidents. 11. e illicit manufacture and disposal of drugs and pharmaceuticals cause signicant environmental contam- Morbidity and mortality ination, owing to the precursor chemicals required for manufacture, the manufacturing process itself and the 8. Globally, it is estimated that drug-related deaths active ingredient or substance. Disposal introduces those account for between 0.5 and 1.3 per cent of all-cause substances into the environment in sewage, from where mortality for people aged 15-64 years. It is estimated that they can enter sediment, surface and ground water and there are 211,000 drug-related deaths annually, with the tissues of vegetation and aquatic organisms. As a younger people facing a particularly high risk. In Europe, result, wildlife and humans can be chronically exposed the average age of death from drug use is in the mid-30s. to very low doses of drugs and the chemicals used in It is important to note that little information regarding their illicit manufacture. at results in costs to indivi- drug-related mortality is available for Asia and Africa. In duals and to Governments, as they are responsible for addition to drug-related mortality, estimates indicate that ensuring public health. of the 14 million injecting drug users worldwide, 1.6 million are living with HIV, 7.2 million are living with hep- 12. Illicit cultivation of both coca bush and opium atitis C, and 1.2 million are living with hepatitis B. A poppy has o!en resulted in the clearance of forests—in global scientic study estimated that the burden of dis- the case of illicit cultivation of coca bush, primarily in ease attributable to drug use was substantial, rising in Bolivia (Plurinational State of), Colombia and Peru. 2010 relative to 1990. Out of 43 risk factors, drug use was Some devastating eects of illicit cultivation of cannabis nineteenth in the ranking of the top global killers (alco- plant, coca bush and opium poppy on biodiversity are hol was third and tobacco was second). For people aged the loss, degradation and fragmentation of the forests, 15-49 years, drug use was the sixth most common reason and the loss of areas where food could be grown. In addi- for death. tion to the deforestation caused by illicit crop cultivation, CHAPTER I. ECONOMIC CONSEQUENCES OF DRUG ABUSE - chemicals used for the processing of illicit drugs can be indicated costs of $3 billion a year, and in the United States harmful to biodiversity, both in the immediate area and it is estimated that drug-related crime costs $61 billion downstream, as a result of chemical run-o. ere can annually. also be negative eects associated with the aerial spray- ing of crops. 19. All those costs are related to burdens placed on law enforcement agencies and the judiciary, in addition to the 13. Finally, the emergence of illicit drug cultivation and increased incarceration rates resulting from behaviour manufacture in residential areas brings with it concern related to drug use, which in the past few decades have about reduced quality of life for residents, neighbourhood grown substantially in many countries. decay and property damage resulting from child endan- germent, criminal activity and explosions. D. Impact on productivity C. Relationship with crime 20. A further cost of drug abuse that is o!en cited is 14. A generation of research has dened three major the loss in productivity that can occur when drug users links between drugs and crime. e rst drugs/crime are under the inuence of drugs or are experiencing the nexus relates to the violence that can be associated with consequences of their drug use (e.g., while in treatment, the use of drugs themselves: psychopharmacological crime. incarceration or hospital). Studies have put the costs of lost productivity borne by employers at tens of billions 15. Crime committed under the inuence of drugs is a of dollars. major problem worldwide. For example, in a study in Dominica, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines, as many as 55 per cent of Costs from labour non-participation convicted oenders reported that they were under the inuence of drugs at the time of the oence, with 21.

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