I described Amsterdam to my Mom as "A bastion of hedonism".  Sure, it has beautiful canals, nice people, amazing sights, about a billion bicycles and a ton of charm, but what is truly impressive about Amsterdam and what differentiates it on a worldwide scale is the liberal policies of the Dutch government concerning drugs and prostitution.

For instance, we stayed in a guesthouse in the Red Light District and within two blocks of our guesthouse, anyone with the money can legally buy "soft drugs" like marijuana, mushrooms and hashish in small quantities and sexual services from a host of licensed prostitutes who display their wares in large windows under red lights.  I suppose you could also see some music and complete the hedonists triumverate of sex, drugs and rock-n-roll.

The view from our place:

Coming from George W.'s America, this all seems quite surreal. Surely these things must be causing all sorts of social ills. As it turns out, the Dutch policy is quite calculated and appears to be surprisingly healthy for the country compared to other EU countries. 

From wikipedia:

Most policymakers in the Netherlands believe that if a problem has proved to be unsolvable, it is better to try controlling it instead of continuing to enforce laws with mixed results.This means that the sale of sex and drugs are regulated and taxed, ensuring as much safety as possible and that the government can benefit from the revenue.  Further, it means that the government can exert control when it is needed. But, what about drug abuse?  Doesn't the availability increase the instances of abuse?  

Apparently not.  Through studies completed across the EU since 2000, The Netherlands ranks 7th in the use of marijuana - after Cyprus Spain, the UK, France, Germany and Italy.  The prevalance is similar for other types of drugs.

For the visitor to Amsterdam, these elements of the city can be surprising and intimidating - we talked to some people who would not step foot into the Red Light District. However, I think it is more surprising that the city doesn't have the overall feel of a "bad neighborhood" with a high frequency of drugs, sex shops and prostitutes.  There is a ragged and depressing element to the Red Light District, but I don't think it is much different than any other city - it is just that tourists are exposed and invited to participate in activities that would otherwise be managed in dark alleys and controlled by criminals instead of government agencies.

The Dutch policy seems based on the idea that people are going to do what they are going to do, regardless of the government or the potential for punishment.  And if this is true, their only tools are regulation, taxation and tolerance.  It makes sense to me and the Dutch folks we talked to about it.