Health equity in economic and trade policies

Most of the estimated 5.2 million people worldwide on antiretroviral (ARV) treatment are taking generic versions manufactured primarily in India, but tighter global intellectual property rights and trade rules could shut down this trade. While the patents on many older, first-line ARVs have expired, leaving generic manufacturers free to produce them, newer, less toxic and more effective drugs are patented and priced out of reach of less developed nations. The main way generics manufacturers can produce newer drugs is to obtain a ‘voluntary licence’ from the patent holder. This usually sets quality requirements and defines the markets in which the licensee can sell the product. For example, pharmaceutical giant Gilead has allowed the South African firm, Aspen Pharmacare, to manufacture and distribute branded and generic versions of tenofovir, one of the newer first-line ARV drugs. However, civil society activists say voluntary licences skew the balance of power too far in favour of patent-holders and present a way to control generic competition by creating dependency on the innovator companies, according to this article. The United States and the European Union have been accused of pressuring developing countries by using trade threats to coerce these countries into adopting intellectual property laws that will increase the cost of medicines. By jeopardising generics, especially those from India, this article argues that they are effectively putting millions of lives at risk.

This study’s objective was to assess the effect of food taxes and subsidies on diet, body weight and health through a systematic review of the literature. Researchers searched the English-language published and grey literature for empirical and modelling studies on the effects of monetary subsidies or taxes levied on specific food products on consumption habits, body weight and chronic conditions. Twenty-four studies met the inclusion criteria. The study found that, in general, taxes and subsidies influenced consumption in the desired direction, with larger taxes being associated with more significant changes in consumption, body weight and disease incidence. However, studies that focused on a single target food or nutrient may have overestimated the impact of taxes by failing to take into account shifts in consumption to other foods. The quality of the evidence was generally low. The study concludes that food taxes and subsidies have the potential to contribute to healthy consumption patterns at the population level. However, the empirical evaluation of existing taxes should become a research priority, along with research into the effectiveness and differential impact of food taxes in developing countries.

The Economic Development in Africa Report 2010 examines recent trends in the economic relationships of Africa with other developing countries and the new forms of partnership that are animating those relationships. It discusses the variety of institutional arrangements that are guiding and encouraging these new economic relationships, provides up-to-date information on African trade with other developing countries outside Africa, describes official financial flows and foreign direct investment into Africa from those countries and assesses important policy issues that arise from the new relationships in each of these areas. The report argues that South–South cooperation opens new opportunities for Africa, and the main challenge facing African countries is how to harness these new relationships more effectively to further their long-term development goals. It also stresses the need to broaden the country and sectoral focus of cooperation with the South to ensure that the gains are better distributed across countries. It argues that South–South cooperation should be seen as a complement rather than a substitute for relations with traditional partners, and that the latter can make South–South cooperation work for Africa by strengthening support for triangular co-operation as well as through better dialogue with developing country partners.

The African, Caribbean and Pacific (ACP) Council and the ACP-EU (European Union) Council of Ministers met from 17-22 June to sign the revised ACP-EU Partnership Agreement. Aimed at eradicating poverty and supporting sustainable development and the gradual integration of the ACP states into the world economy, the agreement was finalised in 2000 and is reviewed every five years. The 2010 amendments seek to improve EU policy coherence for development, the promotion of domestic resource mobilisation, an d the role of non-state actors in cooperation. Cooperation and political dialogue is also enhanced to address the Millennium Development Goals, climate change, food security, state fragility, HIV and AIDs, organised crime and aid for trade. The revision further contains enhanced regional integration provisions and makes the African Union a partner to the agreement. The parties also adopted joint statements on the Millennium Development Goals and on climate change which should strengthen their position in the upcoming international negotiations on these issues. The ACP Council adopted unilateral declarations asking the EU to revisit its position on contentious issues in the Economic Partnership Agreement negotiations and on trade arrangements in bananas, sugar and cotton.