The Southern and Eastern African Trade, Information and Negotiations Institute (SEATINI) has issued a statement in response to the Common Market for Eastern and Southern Africa (COMESA) meetings and the 13th Summit of Heads of State and Government held from 28 May to 8 June 2009. It recommends that a moratorium be put in place on economic partnership agreements (EPA) negotiations until east and southern African (ESA) countries have instituted adequate institutional mechanisms to deal with trade liberalisation. ESA countries should instead focus on developing their regional markets. In light of the current global recession, they must reverse most of the commitments they have agreed under the International Monetary Fund/World Bank structural adjustment policies, the World Trade Organisation and the so-called interim EPAs to allow them to implement favourable home-grown policies that are in tandem with their development priorities.
Health equity in economic and trade policies
This report provides impact assessments for the current round of world trade talks and the new wave of bilateral European Union trade deals. It shows how past trade liberalisations caused huge job losses in both Africa and Latin America, which continue to stifle hopes for sustainable development. Nevertheless, some politicians are still calling for the swift conclusion of the Doha round of negotiations at the World Trade Organization, although millions of jobs are at risk. The paper considers that free trade is no answer to the current economic crisis and rather undermines the possibility of decent work and of achieving sustainable development. It calls on states to retain the policy space and tools of control in order to govern markets, manage international trade and provide decent work for all. A new economic model should be made to prioritise the economic, social, political and health rights of people over the profits of transnational capital.
This paper details the extent of what it sees as a burgeoning ‘debt crisis’. With traditional sources of finance drying up, export markets collapsing and a range of other economic impacts, the threat of a renewed debt crisis is very real. Out of the 43 most vulnerable countries, 38 needed at least some debt cancellation to meet their people’s basic needs. Governments with large debt burdens, which are usually denominated in foreign currencies such as the dollar, may struggle to meet the repayment requirements and even default on their debts. Private capital flows to developing countries could fall to around US$165 billion in 2009. The paper recommends canceling more debts, responsible finance and a debt tribunal. Current debt relief initiatives are inflexible, entirely creditor-controlled and wholly inadequate to meet the challenge of the continuing debt crisis.
Applause broke out at the conclusion of the annual World Health Assembly as agreement was reached at the end of a five-year process to devise a plan for boosting research and development on and access to drugs needed by developing countries. Now with the full assembly’s approval, the focus turns to five-year implementation and as-yet unclear ways to pay for it. ‘This is a critical resolution, and we have come a long way to the place we are today,’ committee meeting Chair Stephen McKernan said. The approved global strategy and plan of action on public health, innovation and intellectual property aims by 2015 to train over 500,000 research and development workers, improve research infrastructure, national capacity and technology transfer, and lead to numerous other outcomes such as creating 10 public access compound libraries and 35 new health products (vaccines, diagnostics and medicines).
As poor countries face a possible swine flu pandemic with only enough Tamiflu to treat a tiny fraction of their populations, some experts are calling for a simple but contentious solution: massive production of generics. Indian pharmaceuticals giant Cipla said it would charge about $12 per course of a generic Tamiflu. One course of Roche Tamiflu can sell for up to $100. That has led critics to question why the World Health Organization (WHO) hasn't ordered up batches of generic Tamiflu or encouraged poor countries to do so Some suspect WHO is reluctant to anger drug companies, which supply the agency with stockpiles of drugs, by encouraging the use of generics. Despite WTO rules, Western pharmaceuticals have long fought to keep generics out of the market in all circumstances. There needs to be a better system in place so that WHO does not have to rely on the goodwill and charity of drugmakers to get medicines for poor countries.
The United Nations is the only existing legitimate forum through which the financial crisis can be resolved. The Stiglitz Commission provides a good basis on which new models can be built. In the current financial context, any decrease in aid will push more people into poverty, in particular in the most vulnerable least-developed countries. The cutbacks of aid by some EU member states are already signs that this is happening. It is imperative, therefore, that the fundamental reform of the international financial system must take place in reference to the needs of developing countries. The world’s richest Nations agreed a financial stimulus package amounting worth 832 billion Euros (1.1 trillion US dollars) yet barely one quarter will be given to developing countries. And the money destined for developing countries will be channelled through the IMF, whose loan conditionalities have been central in spreading misery around the developing world. Recent changes in IMFs policies have not resolved this problem.
The Indian government's efforts to bring in affordable patented medicines for chronic and lifestyle ailments, may hit a roadblock with multinational companies trying to stall the move. The mechanism would have increased affordability of drugs like Tarceva, Herceptin, Pegasys and Januvia used for treatment of chronic ailments, which at present are exorbitantly priced. Government put forth a model to multinational pharmaceutical companies, which has not met with much enthusiasm from the industry. It asked them to ensure that patented drugs introduced in the country are priced cheapest here than anywhere in the world. Significantly, the recommendations say that patented block-buster drugs that have no substitute in the market and offer substantial therapeutic benefit should be offered at prices 40% to 70% cheaper than the maximum retail price through the public health system.
After their workshop, participants made a number of recommendations. They wanted governments to meet their obligations in the Abuja Declaration to spend at least 15% of its budget on the health sector, in addition to any donor aid the country may receive for the same purpose. A process should be initiated to review and amend all patent legislation, especially to ensure maximum use of TRIPS flexibilities that promote access to medicines. The implications of ratifying the 30 August 2003 decision on licenses for exports to countries with insufficient manufacturing capacity need to be considered. An improvement is required in the monitoring, transparency and participation of all interested stakeholders in the negotiation of free trade agreements and economic partnership agreements to ensure no eroding of flexibilities and no further enforcement processes to patents.
The World Trade Organization’s 2009 Global Monitoring Report notes that the deepening global recession, rising unemployment, and volatile commodity prices in 2008 and 2009 are seriously affecting progress toward poverty reduction. The recent food crisis has thrown millions into extreme poverty. Deteriorating growth prospects in developing countries will further slow the pace of poverty reduction. Recovery prospects depend on effective policies that restore confidence in the financial system and counter falling global demand. While the responsibility for restoring global growth lies largely with rich countries, emerging and developing countries have a key role to play in improving the growth outlook, maintaining macroeconomic stability, and strengthening the international financial system. Financing the health sector may be negatively impacted by the recession.
Is there a link between the financial crisis dominating the front pages of newspapers and the health stories on the inside? The Commission on Social Determinants of Health certainly believed so. Its starting point was that the economic and social features of society are closely linked to the distribution of health within and between countries. The social determinants of health are the conditions of daily life and its structural drivers will be influenced by the financial crisis. As social determinants are affected by the financial crunch, so will health outcomes be affected as well.