Summary of Economic Analysis Recent estimates (2015) show that between 128.1 million to 237.9 million people worldwide consumed marijuana [1]. Additionally, even though marijuana remains illegal in most countries, consumption prevalence has grown, moving from an upper estimate of 4.3% in 2008[2] to 4.9% in 2015 [1]. Furthermore, evolving attitudes towards marijuana have resulted in an increase in the number of countries that are implementing “alternate regulatory strategies� [2] regarding the production, sale, and possession of marijuana. As of January 1st, 2018, recreational marijuana use has been legalized in 9 states in the United States of America. In 2013, Uruguay formally legalized the production, sale, and consumption of marijuana for recreational purposes [3]. Other countries including Costa Rica, Peru (2013), Mexico (2016), Ecuador (2013) and some states in Australia have implemented various forms of liberalization of marijuana laws. The Caribbean Community (CARICOM) has also seen some movement in this regard, in 2015, Jamaica formalized the decriminalization of small amounts of marijuana (2 ounces or less). Moreover, many other countries within the trading blocs including Saint Vincent and the Grenadines are currently considering various alternative policy options for the legal treatment of marijuana. These developments have necessitated that CARICOM adopts a policy position on the issue, that will serve to guide Member States in their decision-making processes. An essential part of this initiative is an economic analysis of possible outcomes of adopting a more relaxed legislative approach to marijuana use, production, and distribution in the region. The objective of the study is to conduct an economic analysis of the possible outcomes of adopting a more relaxed legislative approach to marijuana use, production and distribution in CARICOM. The study examines three plausible models of liberalization of legislation governing marijuana in the region. This approach is necessary as the model of liberalization adopted can have a profound impact on price, demand, and supply of the product and on the economic and social outcomes of the applied measure. The models examined are: 1. Decriminalization of marijuana use only: In this model, the use/possession of large amounts, production, and sale of marijuana remain illegal. Possession of small amounts will no longer be considered a criminal offence and offenders will be fined, rather than face arrest/possible incarceration. 2. Full legalization of marijuana production, sale and use, with state control: Here, the government controls the marijuana industry i.e. cultivation, processing, and sale of marijuana. The retail price of marijuana is set by the state, which has strict control of all levels of the supply chain. 3. Full legalization of marijuana production, sale, and use within a competitive market framework: Under this model, the price and quantity are determined by the forces of demand and supply, under the free market system, with some regulations. Furthermore, whereas the impact of each of the proposed models may vary, it is expected that the proposed legislative changes will affect some common areas across each country. These include: 1. Fiscal measures 2. Law enforcement/Crime 3. Health Costs 4. Vehicle Accidents 5. Marijuana use
75