Mexico has decriminalized possession of drugs for personal use[1]. The most noted country to do so is Portugal. But this alone does not address the drug trade.

Touché in regards to the commend on moonshine. But it is well document that The Netherlands, who have a long standing liberal view on prostitution, are a leading destination of human traffic[2].

[1] http://en.wikipedia.org/wiki/Drug_liberalization [2] http://en.wikipedia.org/wiki/Prostitution_in_the_Netherlands...

[2]'s only example is a case where women were brought to the Netherlands then sent to neighbouring countries for prostitution. If this is the norm, then it's not unreasonable to think the liberal laws are merely a low-risk funnel for traffickers rather than increasing demand for sex workers.