The economic recession and drug harm

In New Zealand as with across much of the world, there is considerable interest in the global economic downturn and its effects. At the same time, alcohol and drug issues have featured prominently in recent public and political discourse, in part due to parallel Law Commission Reviews that are underway - one looking at legislation related to alcohol, the other reviewing the 1975 Misuse of Drugs Act. Yet there has been surprisingly little attention given to how the economic downturn might impact on alcohol and drug use, specifically, or on health and social issues, more broadly.

This evidence review was undertaken in the context of a worsening global economic downturn amidst concerns that an economic slowdown might be associated with a change in the pattern of alcohol and drug use. Anecdotal reports from service providers suggest that economic recessions are accompanied by increased demand for drug and alcohol services as people struggle to cope with stress due to unemployment, financial problems and low morale. Concomitant fiscal pressures during difficult economic times also place additional pressures on treatment and prevention providers, forcing some to contemplate cutting back services. What may emerge during a recession, then, is a double-edged sword scenario whereby service providers confront the prospect of diminishing resources together with increased demand.

While not intending to undervalue the importance of listening to those working on the coal face in drug and alcohol services, it is essential that any serious attempt to examine the relationship between the economy and drug and alcohol use begins by reviewing the existing literature in this area. Any possible recommendations for policy must be grounded on robust evidence rather than guided by what might seem intuitive or on the basis of anecdotal reports. The review of evidence presented in this report forms the basis for the NZ Drug Foundation's policy on alcohol and drug use during an economic recession.