By Kevin Brookes and Édouard Hesse

Bringing new and innovative ideas to light and advancing liberal reforms is the core mission of the European Liberal Forum. We do not do this alone but in close cooperation with a network of member and partner organizations across Europe. The present English translation of an original report by the French liberal think-tank GenerationLibre is part of this broader effort. Through this collaboration, we hope that the report’s important messages will reach a wider audience, in Europe and beyond. What better topic to start our collaboration than cannabis, as plans for the liberalization of the drug unfold across the continent. In December 2021, Malta became the first EU Member State to legalize the cultivation and personal consumption of cannabis. The new German government is contemplating similar legalization, and other countries could follow suit. Legalizing is a difficult endeavor, as this report shows, but a necessary one since the detrimental consequences of criminalization have never been felt more clearly. Prohibition is a failure. It has not managed to stem the rise in cannabis consumption rates, either in Europe or worldwide; it has failed to protect users from the most acute forms of harm; and it has contributed to the growth of criminal networks. This can be seen in Europe, where entire swathes of our cities are under the control of organized crime, whose main revenues originate from the illegal cannabis business. Those who prohibition should in theory protect the most, youngsters who are most at risk of harm when using the drug, are the main victims, sometimes literally, from the current situation. Prohibition is also at odds with our liberal values. The state should inform and provide a helping hand to those who err but should not prosecute and imprison people who have freely decided to engage in risky practices. The law should refrain from expressing moral judgments and only prohibit behaviors that bring significant harm to others or society. From this perspective, there is only a weak basis for prohibiting cannabis, a substance far less problematic for public health than alcohol and tobacco  Fully legalising cannabis is the only way forward. But decriminalization is only a first step towards the inclusion of cannabis in the normal legal channels of the economy. It would not only constitute a significant reform of our police and criminal justice systems, but it would also enable public authorities to devise an effective public health policy, targeting youngsters especially. It would also allow an entirely new economic sector to flourish, creating hundreds of thousands of jobs across Europe and generating a considerable amount of revenue for the public purse. Based on a systematic and thorough review of past and current experiences in cannabis legalization, this report shows, perhaps unsurprisingly, that, as in many other areas, free market solutions are superior to state planning and state monopolies. Only a legal solution that is sufficiently cheap and competitive can replace the black market and bring the benefits expected from legalization. The state should regulate the product and ensure that those who participate in the cannabis business offer sufficient guarantees but it should not arbitrarily set prices or restrict distribution channels – to do so would run the risk of having legalized ‘for nothing’. Europe has all the cards in hand to be at the forefront of drug policy reform and show the rest of the world that another path is possible. Courage and method are all we now need  

Brussels:  European Liberal Forum EUPF , 2022. 53p.

By Guadalupe Correa-Cabrera, Charles Lewis and William Yaworsky

This article explains some of the mechanisms through which corruption by high-level Mexican politicians and other organized crime members is facilitated in the United States through money laundering operations. The analysis is based on information contained in court records related to key money laundering cases, as well as in news articles and reports from law enforcement agencies. These materials highlight the interrelationships among U.S. drug use, cartel activities in Mexico, human rights abuses, Mexican political corruption, and money laundering in the United States. This work demonstrates the pervasive use of legitimate businesses and fronts in the United States as a disguise for criminal activity. Finally, it provides recommendations for a reformation of policies and penalties directed toward U.S. institutions and persons that facilitate money laundering.

Journal of Illicit Economies and Development, 6(1): pp. 64–78. 2024

By Tobias Kammersgaard  , Kristian Relsted Fahnøe  , Nanna Kappel  , Katrine Schepelern Johansen , Esben Houborg 

Based on a survey (n = 249) and qualitative interviews (n = 38) with marginalized people who use drugs (PWUDs) in Copenhagen, Denmark, we investigate the experiences of this group with the police in a context where drug possession had been depenalized in and around drug consumption rooms (DCRs). Our findings point to positive experiences with the police, especially with the local community police in the depenalization zone, who refrained from drug law enforcement and practiced ’harm reduction policing.’ However, marginalized PWUDs also reported that they were still targeted for drug possession by other sections of the police despite the depenalization policy. Specifically, the drug squad of the police would continue to confiscate illicit drugs for investigatory purposes to counter organized drug crime, as well as continue to target user-dealers who were not formally included in the depenalization policy. The findings illustrate how marginalized PWUDs still found themselves in a precarious legal situation without any legal rights to possess the drugs that they were dependent on, even though possession of drugs had been depenalized in and around DCRs.

International Journal of Drug Policy 127 (2024) 104393 

By Barrett Wallace Montgomery, Arnie Aldridge, Dara Drawbridge, Ira Packer, Gina M Vincent, Rosa Rodriguez-Monguio

Individuals within the criminal justice system are at greater risk of substance use–related morbidity and mor tality and have substantial healthcare needs. In this quasi-experimental study, we assessed utilization patterns of Massachusetts Medicaid Program (MassHealth) services and associated expenditures among drug court probationers compared to a propensity score–matched sample of traditional court probationers. Risk of reoffending, employment status, age, and living arrangement data were used to calculate propensity scores and match probationers between the two court types, producing a final sample of 271 in each court (N=542). Utilization of services and associated expenditures were analyzed using a two-part model to address the skewed distribution of the data and to control for residual differences after matching from the perspective of the payer (i.e., MassHealth). The largest categories of MassHealth spending were prescription pharmaceuticals, hospital inpatient visits, and physician visits. In the unadjusted analysis, drug court probationers exhibited greater MassHealth services utilization and expenditures than traditional court probationers. However, drug courts enrolled more females, more people at higher risk of reoffending, and more people with opioid use disorders. After controlling for differences between the two court types, the difference in MassHealth services utilization and associated expenditures did not reach statistical significance. Drug court probationers were more likely to engage with healthcare services but did not incur significantly greater expenditures than traditional court probationers after controlling for differences between the samples.  

Drug and Alcohol Dependence Reports 12 (2024) 100258

By U.S. Department of Homeland Security

Deepfakes, an emergent type of threat falling under the greater and more pervasive umbrella of synthetic media, utilize a form of artificial intelligence/machine learning (AI/ML) to create believable, realistic videos, pictures, audio, and text of events that never happened. Many applications of synthetic media represent innocent forms of entertainment, but others carry risk. The threat of Deepfakes and synthetic media comes not from the technology used to create it, but from people’s natural inclination to believe what they see, and as a result, deepfakes and synthetic media do not need to be particularly advanced or believable in order to be effective in spreading mis/disinformation. Based on numerous interviews conducted with experts in the field, it is apparent that the severity and urgency of the current threat from synthetic media depends on the exposure, perspective, and position of who you ask. The spectrum of concerns ranged from “an urgent threat” to “don’t panic, just be prepared.” To help customers understand how a potential threat might arise, and what that threat might look like, we considered a number of scenarios specific to the arenas of commerce, society, and national security. The likelihood of any one of these scenarios occurring and succeeding will undoubtedly increase as the cost and other resources needed to produce usable deepfakes simultaneously decreases - just as synthetic media became easier to create as non-AI/ML techniques became more readily available. In line with the multifaceted nature of the problem, there is no one single or universal solution, though elements of technological innovation, education, and regulation must comprise part of any detection and mitigation measures. In order to have success there will have to be significant cooperation among stakeholders in the private and public sectors to overcome current obstacles such as “stovepiping” and to ultimately protect ourselves from these emerging threats while protecting civil liberties.

Washington, DC: DHS, 2021.  47p.

By Andres Ham Gonzalez, Juanita Ruiz

We estimate the effects of drug-related violence on individual labor market outcomes in a transit country. Transit countries do not have enough market power to determine the global supply or demand of drugs yet must deal with the consequences of drug trafficking activities. We implement a Bartik-type instrumental variables strategy which assumes that violence in Honduran municipalities located along drug transport routes changes when coca production in Colombia grows or contracts. Our results show that drug-related violence has negative effects on extensive and intensive margin labor market outcomes for transit country workers and has greater effects on women than men.

IZA Working Paper 17126, Bonn: Institute of Labor Economics - IZA, 2024. 

By Christopher S. Carpenter and Hai V. Nguyen

Bans on menthol cigarettes have been adopted throughout the European Union, proposed by the US Food and Drug Administration, and enacted by legislatures in Massachusetts and California. Yet there is very limited evidence on their effects using real-world policy variation. We study the intended and unintended effects of menthol cigarette bans in Canada, where seven provinces banned them prior to a nationwide ban in 2018. Difference-in-differences models using national survey data return no evidence that provincial menthol cigarette bans affected overall smoking rates for youths or adults. Although menthol cigarette smoking fell for both youths and adults, youths increased nonmenthol cigarette smoking, and adults shifted cigarette purchases to unregulated First Nations reserves. Our results demonstrate the importance of accounting for substitution and evasion responses in the design of stricter tobacco regulations

Cambridge, MA:  NATIONAL BUREAU OF ECONOMIC RESEARCH, 2020. 66p.