Economic Cost of Drug Abuse

Drug abuse inflicts harm on public health and safety globally each year. It threatens development and smooth functioning of societies.

Heroin, cannabis and cocaine are the drugs most frequently reported by people entering treatment worldwide. It is estimated only 1 in 6 problem drug users worldwide, some 4.5 million people, receives the required treatment. There is a wide variation from region to region. In Africa, only 1 in 18 drug users receives treatment. In Latin America, Caribbean, Eastern and South-eastern Europe about 1 in 11 get treatment. In North America, it is 1 in 3. Cost of treatment is estimated at USD200-USD250 billion or 0.3-0.4% of global GDP. Research in the U.S. suggests over USD1 investment in treatment yields a return of USD4 and USD12 in reduced crime and healthcare costs.

Globally, it is estimated drug-related deaths account for between 0.5-1.3% of all causes of death for people aged 15-64. Beyond death, there are at least 14 million drug injecting users worldwide. Productivity lost by labour non-participation is USD120 billion (or more) in the U.S. while it is 0.3-0.4% of GDP in Australia and Canada.

Drug abuse and poverty are often linked in multiple ways. Drug abuse may arise from stress with poverty, social strain and other difficult events. In addition, there is often less access to support systems. In an inverse direction is where drug abuse depletes users’ income leading to more crime and other social disorders. Legalising drugs would not ensure underground markets would cease. The “medical” cannabis program in Colorado, U.S. has led to more car accidents with usage further increased.

What are proven measures to reduce overall cost of drug abuse?

(i)         Drug prevention is cost-effective;

(ii)        Early intervention for new users;

(iii)       Drug treatment for addicts;

(iv)       Family and community support for addicts;

(v)        A more efficient justice system to deter drug abuse and alternatives to imprisonment;

(vi)       Social programs; and

(vii)      policies/initiatives against drug trafficking in all development programmes.

What about in Malaysia? It was estimated that registered drug users was about 0.5 million in 2015 with a relapse rate of over 50%. Peer influence and curiosity are top contributing factors, according to Dr Tam Cai Lian of Monash University, Malaysia. This is somewhat dissimilar to other parts of the world. But stress-related substance abuse is increasing. Treatment programmes cost about RM300 million annually and increasing! Of the drug addicts, over 80% are Malays with the highest numbers in PAS-led states like Kelantan and Terengganu.

References:

1. Economic Consequences of Drug Abuse, https://www.incb.org

2. Contributory Factors: Drug Abuse in Malaysia, https://www.incb.org

This Photo by Unknown Author is licensed under CC BY-NC-ND