The laws allowing the sale of cannabis and hashish in public places are discussed from the perspective of international law and criminal justice policy. Based on a principle of expediency, Dutch authorities preferred to see a visible and controllable drug-trafficking business rather than an invisible black market. There is a wide range of policy throughout the country, but even the more tolerant urban areas do not allow advertising or the sale of hard drugs. An examination of the drug trade in the inner city of Amsterdam reveals that price, variety of types of cannabis, quantity competition, location, and the style and atmosphere of different premises contribute to the success of individual coffee shops where drugs are available. Socioeconomic considerations play a large role in explaining the preponderance of coffeeshops in certain neighborhoods. Even in places where demand for coffeeshops is high, resident opposition can sometimes forestall their opening. The Dutch experiment demonstrates that a democratic country can deal with its drug problem without prohibition and in a more cost-effective and less harmful manner. However, it should be noted that legalization of cannabis does not lead to the disappearance of other illicit drugs. 11 references.