The so-called "drug abuse problem" in America is really a constellation of separate but related problems; since a variety of drugs are illicitly used, and drug abuse leads to many derivative problems, both within and outside the United States. This monograph begins by assessing the current state of the drug abuse problem in America, and analyzing specific policy issues in relation to the ongoing government efforts to reduce the supply and demand for drugs. After an overview and critique of current approaches to both supply reduction and demand reduction. The study recommends a series of policy initiatives. Demand reduction initiatives include: (1) developing knowledge for more and better prevention techniques; (2) educating people in key roles to deal with drug abuse; and (3) using the influence of the mass media. Supply reduction initiatives include conducting epidemiological studies in trans-shipment and supplier countries and increasing public awareness and prevention programs in these countries. (TE)