Russian authorities have an ambitious plan to halve alcohol consumption by 2020 to stave off a “national disaster.” They can take comfort, however, in knowing that reducing harmful drinking is also on the global agenda.
This year, the World Health Assembly will vote on a global strategy to reduce harmful drinking. Policy options range from higher taxes to tighter marketing regulations. The challenge will be finding the right balance. Experience shows that reasonable regulation provides context for good alcohol policy, while excessive regulation can lead to unintended negative consequences.
Pricing provides a good example of a measure that should come with a warning. If the price of something goes up, you might expect demand to go down. But experience shows that when it comes to alcohol, the issue is far from straightforward.
The market for alcohol is highly complex. Drinkers drink in bars, restaurants and at home and buy different kinds of drinks — beer, wine and spirits. They can move up and down the quality and price range — from fine champagne to cheap wine, from good cognac to cheap moonshine.
What happens if the price of alcohol goes up? Research shows that when drinks cost more, young people tend to drink less expensive beverages and shift venues, including “pre-drinking” before a night out. Similarly, problem drinkers, who are least affected by price, tend to change drinking locations — from pubs to home. Those already buying beverages at the low end of the market may turn to illegally manufactured alcoholic beverages or even “surrogate alcohol” — for example, household products with high alcohol content.
Thus, price is largely an irrelevant factor. The point is that problem alcohol consumption is part of a complex social and cultural landscape. Different aspects of the problem call for different solutions. It appears that President Dmitry Medvedev and the government recognize this complexity. Hopefully, they will follow through on their promises and take the serious steps necessary to address the country’s alcohol problem.
Any campaign against alcohol abuse should focus on drinking in moderation. Regardless of the price of alcohol, if people drink responsibly then drinking is no longer a problem, and there is no national disaster to avert.
Marcus Grant is president of the Washington-based International Center for Alcohol Policies, which recently released the book “Working Together to Reduce Harmful Drinking.”