Abstract:

Purpose - Georgian drug policy in last dacades can be charachterized as a strong prohibitive policy. Application of restrictive sanctions are accompanied by imprisonment or monetary fines. Punishment policy is an economic incentive which aimes to reduce the level of drug use and the harm caused by it. In this paper, we examine how the drug market responds to restrictive policies. We analyze government supported incentives for 20 years and their impact on drug distribution. Our analysis shows that such a policy does not lead to the reduction in consumption. Baning certain types of drugs causes the demand to responds by switching to alternative substances. Thus in this article, we examine how the drug market responds to prohibitive policies and explain why there is no effect on the level of drug demand during observed period. Methodology - The article reviews the current situation on the Georgian drug market in light of the economic forces operating there. The work mainly uses review approach. It combines various research findings that have been done over the last 20 years. Changes in drug demand and supply are presented as economic models. Findings- Research findings show that drug circulation, like any other goods and services, is managed by the principles of economics and the market. In addition to the usual supply and demand that determines the price and quantity of drugs on the black market, it also responds instantly to incentives, including prohibitions and sanctions. Comparative analyses of the secondary data show decreased effectiveness of the Ministry of Internal Affairs while the incidence and prevalence of intravenous users are increasing. The decreased presure from the law enforcements may explain the increased demand on heroin and subotoxin, as well as on hallucinogens and new psychoactive substances in contemporary days. Conclusion- Drug policy in Georgia, which is based on prohibitive approach is ineffective. The volume of drugs available on the market is determined by the increasing demand in recent years. Steps to reduce supply are forcing suppliers and consumers to look for efficient and safe ways to meet their needs. Keywords: Illicit drugs, prohibition, drugpolicy, decriminalization, substances

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