471. Fiscal Policy in the Regulation of Adult-Use Cannabis in Colombia: Executive Summary
- Author:
- César Rodríguez-Garavito, Luis Felipe Cruz-Oliveira, and Isabel Pereira-Arana
- Publication Date:
- 07-2022
- Content Type:
- Special Report
- Institution:
- Dejusticia
- Abstract:
- In Colombia today, discussing a legal framework for marijuana is not a hypothetical matter – it’s a real political possibility. In fact, in the 2018-2022 legislative period, three bills were introduced that proposed regulating cannabis for adult use as well as coca-leaf derivatives. This regulatory boom is not exclusive to Colombia; to date, 19 states in the United States and two countries – Uruguay and Canada – have approved a legal framework for adult-use marijuana. This marks a significant change from the hardhanded laws that have shaped the war on drugs from the time of former U.S. President Richard Nixon to the present. In Colombia, cannabis is the most widely used substance that has been declared illicit. According to the National Survey of Psychoactive Substance Use (Encuesta Nacional de Consumo de Sustancias Psicoactivas), published in 2019 by the country’s Ministry of Justice and the National Administrative Department of Statistics (Departamento Administrativo Nacional de Estadística, DANE), more than 637,000 people used marijuana within the last year (2019, p. 66), which corresponds to 2.7% of the population between 12 and 65 years of age2 . Seventy-two percent (72%) of these people were between 18 and 34 years of age and lived in Bogotá, Cali, the coffee belt or Medellín (Ministerio de Justicia & DANE, 2019, p. 68). According to the National Planning Department (Departamento Nacional de Planeación, DNP), the geographical distribution of marijuana use tends to be concentrated in urban areas that are attractive for selling the cannabis produced in the Northern Cauca subregion (DNP, 2017, p. 105). Although that is not the only region with marijuana crops, the country is currently experiencing a boom in so-called “creepy” marijuana3 (as a result of the extent of this substance and dependence on the income from it), which is produced in the Northern Cauca municipalities of Caloto, Corinto, Miranda, Toribío and Santander de Quilichao. In this context, two sensitive factors arise in debating cannabis regulation in Colombia. One is that the areas that supply the illegal market have significant gaps in terms of socioeconomic well-being and continue to experience conflict dynamics partly associated with the substance’s prohibition. The other is that the regulation of marijuana, as the most widely consumed illicit substance in the country, must address the protection of public health and the health of those who use it. The majority of regulation proposals put little emphasis on the potential revenue coming from the market, or the allocation of those resources. If we agree that marijuana has played a central role in the origins of drug trafficking in Colombia, and that the regions where it is grown today lag significantly in socioeconomic terms, the transition to a legal market would be an opportunity to improve the peasant farmer and indigenous population’s living conditions, while also protecting public health by controlling the quality and potency of the cannabis that is bought and sold. All of these public policy actions require resources. While those who promote business interests in marijuana regulation insist on stressing the economic benefits for the overall economy, along with the amount of resources it would contribute to state coffers, they fail to mention specific measures that the State should delineate so the market can be based on rules that would finance the actions needed to address the regional problems that predate the regulations, or actually gave rise to the illegal trade. With the goal of illuminating this discussion, based on comparative experiences and on the Principles and Guidelines for Human Rights in Fiscal Policy, this document addresses three dimensions of the problem: (i) explaining, based on available evidence and conceptual debates, why regulation is necessary and what role the fiscal framework plays in this policy; and (ii) providing, based on comparative experiences, elements for designing the regulations’ fiscal frameworks. Finally, contemplating these two aspects, we present a proposal for cannabis fiscal principles.
- Topic:
- Regulation, Fiscal Policy, and Cannabis
- Political Geography:
- Canada, Colombia, South America, Uruguay, and United States of America