Global Ganja Report

From the "Tulip Mania" in 15th century Holland to the Bitcoin bubble of 2017, high hopes for a commodity's market performance can lead to unsustainable overvaluation inevitably followed by a painful correction. Many observers believe that cannabis fell prey to this phenomenon in 2018—but are hoping for growth in a more rational and realistic market in the coming year.

Nationwide cannabis shortages since Canada went legal last month are causing some provinces to rethink their distribution plans. Alberta has just announced that retail outlets will be barred from purchasing online but must place their orders manually to prevent the computerized system from being overwhelmed. Provincial authorities are struggling to break the logjam in the supply chain, and keep enough product in stock for those who purchase either online or from brick-and-mortar outlets.

Colombia is facing a strange contradiction—foreign capital is pouring in for the legalized cannabis sector, yet the new right-wing President Iván Duque is returning to the hardline "drug war" policies that the country has moved away from in recent years. This means not only a resumption of glyphosate spraying to wipe out illegal crops in the countryside, but an overturn of the former decriminalization policy. Street arrests for cannabis use and possession have soared since Duque issued his recrim decree.

Cannabis has become a global industry, but obviously it is still limited by legal restrictions—and the fact that these increasingly vary from country to country further complicates things. Where is commercial cannabis going and where is it coming from? And how is this likely to change as the international atmosphere further liberalizes?

While Canada's move to officially legalize cannabis has been hailed as courageous and historic by advocates around the world, some of the planet's most intolerant governments are reacting with dismay—even threatening to have their own citizens arrested if they indulge in legal marijuana on Canadian sovereign territory.

An international network of non-governmental organizations has submitted a "shadow report" to the United Nations, calling the war on drugs a "spectacular failure"—and calling on the world's governments to reconsider it. The report takes heart from the growing official tolerance of cannabis in several countries around the world, but warns of escalating and horrific repression in the name of drug enforcement in several others. Will the UN take heed when it revisits the question of drug policy in 2019?

Amid the seemingly endless hype about CBD, its once better-known sibling cannabinoid THC seems to increasingly languish in the shadows—both in terms of media attention and industry investment.

Canada's course to cannabis prohibition closely followed that in its southern neighbor. As in the United States, cannabis a century ago was widely available in tincture form as a medication before being banned in a campaign that blatantly harnessed racism and xenophobia. Yet now Canada is legalizing coast to coast, while the US federal government remains intransigent.

An early harbinger of Canada's enlightenment was the 1969 Le Dain Commission, which studied illegal drugs at the order of Ottawa, in response to then exploding use—especially of cannabis. The Le Dain Commission cut through the propaganda to recommend a common-sense policy—which Canada's government is actually now going beyond.