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Being from the Netherlands, I can say that people smoking weed isn't a problem, just like drinking alcohol isn't a huge problem. The main cause of troubles surrounding drugs in the Netherlands is because of so called 'drugs runners'. They transport legally bought drugs to Belgium, France and Germany.
I cannot say that 'legalization' the way the Netherlands has implemented it, is the best way to do it, since cultivating is still illegal, just like smoking is. We just don't press charges for smoking weed. (but we do for cultivating)