Portugal did a very intelligent thing some years ago, and decriminalized small amounts of drug use, pointing people in the direction of rehabilitation rather than prison. The result? A well documented fall in drug usage.
"Judging by every metric, decriminalization in Portugal has been a resounding success," says Glenn Greenwald, an attorney, author and fluent Portuguese speaker, who conducted the research. "It has enabled the Portuguese government to manage and control the drug problem far better than virtually every other Western country does." Read more: http://www.time.com/time/health/article/0,8599,1893946,00.html#ixzz1ekOZ5WZx
Of course, here in the US, drugs are simply making too much money (and particularly when it comes to the banks laundering the drug money) for decriminalization to ever have a chance here.