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Posts tagged drug crime
Does Entry Remedy Collusion? Evidence from the Generic Prescription Drug Cartel

By Amanda Starc and Thomas G. Wollmann

Entry represents a fundamental threat to cartels engaged in price fixing. We study the extent and effect of this behavior in the largest price fixing case in US history, which involves generic drugmakers. To do so, we link information on the cartel’s internal operations to regulatory filings and market data. We find that collusion induces significant entry, which in turn reduces prices. However, regulatory approvals delay most entrants by 2-4 years. We then estimate a structural model to assess counterfactual policies. We find that reducing regulatory delays by just 1-2 years equates to consumer compensating variation of $597 million-$1.52 billion.

Chicago: Becker Friedman Institute, University of Chicago, 2022. 54p.

Reducing the harm from illegal drugs

By The National Audit Office (NAO) (UK)

The distribution, sale and consumption of illegal drugs causes significant harm to individuals, families and communities. In 2021, almost 3,000 people in England died because of drug misuse and thousands more suffered complex health problems. The government also estimated that around three million people in England and Wales take illegal drugs at a cost to society of approximately £20 billion a year. The drugs trade generates significant levels of violence and is believed to be responsible for around half of all murders in England and Wales.

Tackling the problems caused by illegal drugs is complex. It involves disrupting the organised gangs which supply and distribute drugs, and providing effective treatment and recovery services to help people with addictions. The government announced a £900 million increase in funding for 2022-23 to 2024-25 and committed to long-term targets to reduce drug use and drug-related crime and deaths. The government established the cross-government Joint Combating Drugs Unit (JCDU) to co-ordinate and oversee the development and implementation of the strategy.

t is almost two years since the government introduced its latest drugs strategy and less than 18 months remain in the current funding period to March 2025. This report examines whether the government is well positioned to achieve the strategy’s 10-year ambitions. It covers:

the development of the 2021 drugs strategy, its objectives and funding

progress in implementing the strategy

the approach to achieving the strategy’s long-term outcomes

It is too early to conclude whether the 2021 strategy will reduce the harm from illegal drugs. It will take time for new funding and interventions to address a complex set of issues, and many of the indicators used to measure progress lag behind activity. This report therefore assesses whether departments are making the planned progress in implementing the strategy, and whether the JCDU has an effective approach to understanding the impact it is having and managing the risks to achieving the strategy’s aims. It does not examine the effectiveness of interventions at the local level.

Conclusions

In 2021 the government estimated that the harm caused by illegal drugs costs society £20 billion each year. Its 2021 drugs strategy, led by the cross-government Joint Combating Drugs Unit, has provided new impetus to efforts to address these harms, and committed £900 million to 2024-25.

The strategy has established new partnerships across central and local government, and local authorities are taking steps to rebuild the workforce that was lost over the past decade. But these measures alone will not address all of the barriers to achieving a long-term reduction in drug use, deaths and related crime. The issues are complex and will require a sustained long-term response.

To inform government’s response, the JCDU and relevant departments need to develop a deeper understanding of the impacts of government spending, working closely with local service providers to understand and help address the practical challenges they face. The JCDU and departments need to be realistic about what is achievable in the first three years and assess how to adapt their approach to achieve the strategy’s 10-year outcomes.

In doing so, the JCDU should seek to provide confidence to local government: that this is a long-term commitment. It must also urgently develop a plan to reduce the demand for illegal drugs. The current lack of emphasis on preventing illegal drug use means that departments risk only addressing the consequences, rather than the causes, of harm. The government will only achieve value for money if it builds on the initial momentum of the new strategy and develops a longer-term, funded plan that delivers a joined-up, holistic response.

London: The National Audit Office (NAO), 2023. 56p.

Drugs, Sex and Crime -- Empirical Contributions

Edited by Danilo Antonio Baltieri

This book covers some recent researches on the interface between drug misuse and crime and demonstrates that some types of violent crimes are more intimately related to alcohol and / or drug consumption. It is written for researchers, health and law professionals engaged in the evaluation, management and treatment of different types of offenders. It is organized by a number of phenomena that are known (or supposed) to link drugs and crime. This book shows that the application of punishment under the guise of deterrence, despite its ineffectiveness, is frequently preferred to a more adequate management for some types of offenders. This book provides ten manuscripts that describe different aspects of the relationship between drugs and crimes, always focusing on Brazilian reality. It shows that a partnership between specialized mental health professionals, lawyers and policy makers is urgent with respect to this subject in Brazil and other countries.

Bentham Books, 2009. 100p.

'High rollers': A study of criminal profits along Australia’s heroin and methamphetamine supply chains

By John Coyne and Teagan Westendorf

THis report helps develop an understanding of the quantum of profits being made and where in the value chain they occur. Australians spent approximately A$5.8 billion on methamphetamine and A$470 million on heroin in FY 2019.

Approximately A$1,216,806,017 was paid to international wholesalers overseas for the amphetamine and heroin that was smuggled into Australia in that year. The profit that remained in Australia’s economy was about A$5,012,150,000. Those funds are undermining Australia’s public health and distorting our economy daily, and ultimately funding drug cartels and traffickers in Southeast Asia.

One key takeaway from the figures presented in this report is that the Australian drug trade is large and growing. Despite the best efforts of law enforcement agencies, methamphetamine and heroin use has been increasing by up to 17% year on year. Falling prices in Southeast Asia are likely to keep pushing that number up, while drug prices and purity in Australia remain relatively stable.

Canberra: Australian Strategic Policy Institute, 2021. 40p.