Thats total crap. The governments do not need drugs to employ its citizens. The country has a problem that needs to be fixed, not ignored.
The amount of money wasted on narcotics economically would do more harm to a civil society then good. Imagine the costs of housing drug addicts and such in state prisons while people like those that got stuck in New Orleans suffer without shelter. The governments would rather there be no drugs then to have them fund these imaginary projects you speak of.