The five years since Canada legalized recreational cannabis have provided enough data for researchers to consider important questions such as how organized crime will be affected by legalization.
A recent study published in the journal Sociological Research examines how the transition to legal markets has reshaped criminal enterprises once deeply involved in the illegal cannabis trade.
Key findings on organized crime and cannabis
A study conducted by Simon Fraser University scientists Martin Bouchard, Naomi Zakimi, and Benoît Gomis of the University of Toronto found that the legal cannabis market currently dominates in Canada, accounting for 71% of household spending on cannabis. This shows that the number is more than that. However, almost 29% of the market still belongs to unauthorized sellers.
Some of the study’s most notable findings include:
Shrinking illegal market: Sales of legal cannabis have steadily increased since legalization, gradually cutting into the black market. Organized Crime Resilience: Criminal organizations are adapting by diverting legal cannabis to the unlicensed market or shifting their operations to illegal drugs. Consumer Challenges: High prices, inconsistent quality, and limited access to legal markets continue to drive some consumers to cheaper, unlicensed alternatives. Cross-border smuggling: Despite legalization, some unlicensed products are smuggled from Canada into markets overseas, particularly in the United States. Changing focus of crime: As the profitability of cannabis declines, many criminal organizations are focusing on more dangerous drugs like opioids.
Also read: Legal marijuana = less crime: FBI data shows surprising benefits of marijuana legalization
Methodology and indicators
To draw these conclusions, researchers conducted a comprehensive review of more than 5,000 sources, including academic articles, media reports, and government publications.
Key metrics used to assess the impact of cannabis legalization on organized crime include several metrics, including price comparisons between legal and illegal cannabis markets, the balance of supply and demand, and cash in circulation. Included.
Price monitoring is important because falling legal cannabis prices tend to drive consumers away from illegal sources. Demand estimates and legal supply of cannabis will also be analyzed to measure the extent to which the legal market is meeting consumption needs, thereby reducing reliance on the illicit market. Other indicators include tracking illegal cannabis seizures by law enforcement, examining criminal justice data for ties to organized crime, and analyzing cash circulation as an indicator of illicit market transactions.
These methods, along with interviews and internal documents, provide a more nuanced understanding of how organized crime responded to legalization.
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Recommendations for policy makers
One key finding is that the link between unlicensed and licensed cannabis is persistent and complex.
“Policies and law enforcement interventions aimed at combating the illicit cannabis trade in Canada may actually impact the production, sale and consumption of legal cannabis. They may need to learn from and compete with established consumer preferences in the illicit market.”
Therefore, a comprehensive approach is required.
“Regulators and politicians would do well to gauge their expectations. Illegal activities along the cannabis supply chain will continue, and eliminating them completely is an unrealistic goal,” researchers said. added.
Cover: Courtesy of the California Department of Cannabis Control.
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