This study set out to produce quantitative estimates of the Indian role in generic global anti-retroviral (ARV) supply to help understand potential impacts of such measures on HIV and AIDS treatment in developing countries. It utilised transactional data containing 17,646 donor-funded purchases of ARV tablets made by 115 low- and middle-income countries from 2003 to 2008 to measure market share, purchase trends and prices of Indian-produced generic ARVs compared with those of non-Indian generic and brand ARVs. The study found that Indian generic manufacturers dominate the ARV market, accounting for more than 80% of annual purchase volumes. From 2003 to 2008, the number of Indian generic manufactures supplying ARVs increased from four to 10 while the number of Indian-manufactured generic products increased from 14 to 53. Indian-produced generic ARVs used in first-line regimens were consistently and considerably less expensive than non-Indian generic and innovator ARVs. The study warns that future scale up using newly recommended ARVs will likely be hampered until Indian generic producers can provide the dramatic price reductions and improved formulations observed in the past. Rather than agreeing to inappropriate intellectual property obligations through free trade agreements, India and its trade partners - plus international organisations, donors, civil society and pharmaceutical manufacturers - should ensure that there is sufficient policy space for Indian pharmaceutical manufacturers to continue their central role in supplying developing countries with low-priced, quality-assured generic medicines.
Health equity in economic and trade policies
At the African Regional Intellectual Property Organization (ARIPO) diplomatic conference on 9-10 August in Swakopmund, Namibia, the protocol on the Protection of Traditional Knowledge and Expressions of Folklore was signed by African nine states. ARIPO currently has 17 member states. Nine states signed the protocol and the remaining eight states will have to accede to the protocol. Some states have already initiated the process for the ratification and accession, according to a spokesperson for ARIPO, Emmanuel Sackey. The protocol will enter into force after six contracting states have ratified or acceded to it, Sackey said. The organisation is expected to take initiatives on traditional knowledge and link its initiatives with those undertaken by the World Intellectual Property Organization (WIPO) through its active involvement in the WIPO activities in this field. The protocol is meant to ‘protect creations derived from the exploitation of traditional knowledge in ARIPO member states against misappropriation and illicit use through bio-piracy,’ according to ARIPO. The protocol should also prevent the ‘grant of patents in respect of inventions based on pirated traditional knowledge (…) and to promote wider commercial use and recognition of that knowledge by the holders, while ensuring that collective custodianship and ownership are not undermined by the introduction of new regimes of private intellectual property rights.’ The United Nations has warned against the application of western legal and economic principles to collectively owned knowledge in traditional communities.
According to this paper from the World Bank, an Economic Partnership Agreement (EPA) is unlikely to offer much in terms of improved access to European Union services markets, especially for temporary movement of unskilled workers, a key issue for African countries. The main impacts of a services EPA for African countries would come from locking in openness to trade, providing precedents for regulation in key sectors, cooperation on competition policy and support for regional integration. According to the Bank, many of these goals could be pursued through a more cooperative approach with interested African countries, without necessarily negotiating and signing a broad EPA agreement.
The African, Caribbean and Pacific (ACP) countries face a massive challenge in tackling hunger and under-nutrition, but many critics have argued that the commitments required of ACP countries under Economic Partnership Agreements (EPAs) will make this more difficult. This article investigates the threat to food security posed by these agreements. While some observers blame trade liberalisation for these problems, the article identifies the lack of investment to improve productivity and address supply-side constraints as the major limiting factor. It argues that the debate around the issue of EPAs and food security distracts from the more important question of what domestic initiatives ACP countries need to take to ensure that agriculture can play its role as an engine of economic growth and poverty reduction. Government should invest in agriculture rather than rely on trade restrictions for food security. The potential of EPAs to improve food security can only be realised by a focus on greater agricultural investment and improved institutions. Resources can be made available from the EU budget, the EU’s European Development Fund and bilateral external funders, but the prerequisite is that these requirements are prioritised by ACP countries.
This report by the United Nations assesses global progress towards meeting Millennium Development Goal (MDG) 8: Develop a global partnership for development. According to the report, only five member countries of the Development Assistance Committee have met their pledge, made in 2005, to pay 0.7% of their gross national as official development assistance, representing a major shortfall in funding. Market access (trade) has not improved, for developing countries, with no reductions in tariffs and no agreements having yet been reached at the Doha negotiations. The debt situation of many developing and transition economy countries deteriorated during the financial and economic crisis owing to the slowing down of the global economy and the fall in trade, remittances and commodity prices. In terms of access to affordable essential medicines, the report urges countries without significant pharmaceutical manufacturing capacity to take advantage of flexibilities in the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) to import affordably priced essential medicines or, if they have the capacity, to produce generic pharmaceuticals and promote foreign investment to acquire new technologies for producing the medicines. With regard to new technologies, disparities between developed and developing countries remain. Large regional disparities in the use and uptake of information and communication services also persist. For instance, access to the Internet at broadband speeds remains very low in developing countries and is practically negligible in less-developed countries.
This article explains how trade preference programmes can be made more effective for poorer countries. It is based on five principles put forward by the Center for Global Development (CGD) to make trade preferences more effective for less-developed countries: expand coverage to all exports from all least developed countries; relax restrictive rules of origin; make trade preference programmes permanent and predictable; promote co-operation between countries giving and receiving preferences; and encourage advanced developing countries to implement trade preference programmes that adopt the other four principles. It argues that extending full duty-free, quota-free market access to all least developed countries would have far more power if it is a project of the G-20, not just the G-8, and Brazil, China, India and Turkey are already showing the way. The author urges the G-20 to show its leadership on global development issues and to realise the Millennium Development Goal of using trade as a tool for development.
This collection of essays assesses how the world is doing in meeting the Millennium Development Goals (MDGs). The lead essay, 'Regaining Momentum,' notes that, while several of the MDGs are within reach, the global economic crisis has set back progress toward a number of the targets, especially those related to health. Developing countries will need the support of advanced economies in to get back on track. In other essays, economist Jagdish Bhagwati calls into question the premise of the MDGs and economists Arvind Panagariya and Rodney Ramcharan debate on how important it is to fight inequality.
This report, written for Oxfam, examines the impact of the global financial crisis on the budgets of low-income countries, especially their spending to reach the Millennium Development Goals (MDGs). It points out that the current global economic crisis has created a huge budget revenue hole of US$65 billion, of which aid has filled only one-third. As a result, after some fiscal stimulus to combat the crisis in 2009, most low-income countries (LICs) – including those with International Monetary Fund (IMF) programmes – are cutting MDG spending, especially on education and social protection. They have also had to borrow expensive domestic loans, and increase anti-poor sales taxes. The report argues that almost all LICs could absorb much more aid without negative economic consequences (whereas they have much less space to borrow or to raise taxes). It urges the international community to make strong new aid commitments at the Millennium Summit in September 2010, funded by financial transaction taxes or other innovative financing. The IMF should encourage LICs to spend more on MDG goals and on combating climate change and to report regularly on such spending, and LIC governments should increase spending on social protection and education, and bolster efforts to fight tax avoidance.
Act-Up Paris made this speech via the European Commission's (EC) satellite to the International AIDS Conference, held from 18 – 23 July in Vienna, Austria. It denounces the EC’s actions, such as its decision to take a trade-based and not a health-based approach to access to medicines, and accuses the body of duplicity in its Free Trade Agreement negotiations with India, its negotiations regarding the proposed All Censorship Trade Agreement (ACTA), which aims to govern global intellectual property rights, and seizures of allegedly counterfeit generics being transported from India to South America and Africa. Act-Up Paris asserts that the EC is working to make medicines more expensive, while at the same time freezing its contributions to the Global Fund. It urges the EC to respect the Doha Declaration and to embark on a global rights-based approach to dealing with HIV and AIDS.
Are counterfeit products first and foremost a threat to human health and safety or is provoking anxiety just a clever way for wealthy nations to create sympathy for increased protection of their intellectual property rights? This article indicates that coverage of this issue in the world’s news media varies greatly. Some argue that attempts to fight fake drugs are as much a risk to access to the real medicines as the fakes themselves. Legitimate, low-cost generics – often the only medicines the poor can afford – can get caught in the crossfire of anticounterfeiting enforcement measures. In addition, they say, there is need to combat not only medicines that violate trademarks (as counterfeit is often defined) but also medicines of general low quality (harder to spot and often, some say, a greater problem). The article examines a variety of news items that have recently appeared in the international media. Sources in American media have focused on organised crime in drug counterfeiting without considering the problems of access to medicines in developing countries. On the other hand, India’s newspapers are concerned with the impact of new legislation on the production of generics and the United Kingdom’s BBC has acknowledged the problems of access to medicine.