I was just pointed to this article in Time Magazine about decriminalization in Portugal:
in 2001 [Portugal] became the first European country to officially abolish all criminal penalties for personal possession of drugs, including marijuana, cocaine, heroin and methamphetamine.
At the recommendation of a national commission charged with addressing Portugal's drug problem, jail time was replaced with the offer of therapy. ... Under Portugal's new regime, people found guilty of possessing small amounts of drugs are sent to a panel consisting of a psychologist, social worker and legal adviser for appropriate treatment (which may be refused without criminal punishment), instead of jail.
http://www.time.com/time/health/article/0,8599,1893946,00.htmlAn almost humane system.
But the manufacture and sale of narcotics is still illegal in these jurisdictions. In terms of harm minimization, these strategies still miss out on a key area in which harm could be reduced. Consistency and predictability of product.