On the 2025 International Day Against Drug Abuse and Illicit Trafficking, marked on June 26, the World Health Organization (WHO) has issued a stark warning: drug abuse is not just a public health crisis, but also a major economic drain on global productivity and development.
The cost of drug use, estimated at up to 2% of GDP in some countries, is being felt across healthcare systems, workplaces, and criminal justice institutions.
According to WHO, the hidden toll of drug abuse on the world economy includes increased healthcare spending, reduced labour productivity, crime-related expenditures, and the long-term economic exclusion of affected populations. With 292 million people globally using drugs in 2022 and 64 million suffering from drug use disorders, the scale of the problem is immense and growing.
A Trillion-Dollar Problem
The economic burden of drug-related issues, which includes lost productivity, law enforcement costs, and long-term healthcare needs, reaches into the trillions globally. Countries with lower investment in health-based interventions tend to suffer more prolonged financial impacts, as punitive approaches have shown limited effectiveness in curbing addiction or improving public health outcomes.
Despite clear evidence showing that every $1 invested in treatment yields $4 to $12 in economic returns, access remains shockingly low. In 2022, only 1 in 11 people with drug use disorders globally received any form of treatment. This treatment gap not only leads to higher mortality and morbidity rates but also increases the fiscal load on already stretched public services.
From Crime Control to Cost Control
Experts argue that the traditional law enforcement response, criminalizing drug users rather than treating them, contributes to economic inefficiency. The WHO is now urging governments and financial policymakers to pivot from punitive strategies to public health-driven solutions, which have proven both cost-effective and sustainable.
The WHO’s newly launched Regional Flagship Initiative on Accelerating Public Health Action on Substance Use calls for decisive investment in life skills education, workplace-based interventions, and harm reduction programmes. These preventive and rehabilitative models, if integrated into Universal Health Coverage (UHC), can unlock long-term economic gains through healthier, more productive societies.
Private Sector and Workforce Implications
The ripple effect of drug abuse extends to businesses and labour markets. Absenteeism, reduced employee productivity, rising insurance claims, and workplace safety issues are just a few of the corporate-level consequences. As such, the private sector has a vested interest in supporting evidence-based prevention and recovery programmes.
Companies are being encouraged to work with governments and NGOs to incorporate employee wellness strategies, offer counselling support, and raise awareness of substance use disorders as treatable conditions, not criminal acts.
Call to Action
The WHO’s message on June 26 is unambiguous: drug use is costing the world not only lives, but also long-term economic growth. Without sustained public health investments and greater global coordination, the world risks losing both its workforce and its fiscal stability to a preventable crisis.
By redirecting resources from punishment to prevention, and by embedding mental health and substance use treatments into health financing frameworks, nations can shift from managing crises to building resilience.
“With the right investments in sustainable, evidence-based solutions, we can significantly reduce the social and economic costs of drug use disorders and build a more stable society,” WHO said in its statement.
As nations grapple with economic recovery, climate shocks, and growing inequality, addressing drug abuse through the lens of economic prudence and public health could unlock both fiscal savings and human potential.
