Counterfeit medicines were left off this year’s World Health Assembly agenda in May, and some countries suggested that the World Health Organization (WHO) was overstepping its mandate into intellectual property enforcement rather than public health. ‘WHO will not do the work of WIPO [World Intellectual Property Organization] or the WTO [World Trade Organization]’, by becoming involved in IP, WHO’s director general, Margaret Chan, has said. Nevertheless counterfeit medicines were felt by others to be an isssue, and appear in the medium-term strategic plan, which outlines WHO’s expected activities for the years 2008–2013.
Health equity in economic and trade policies
On June 4, in Brussels, the European Union (EU) signed an interim economic partnership agreement with Botswana, Lesotho, Mozambique and Swaziland against the wishes of Angola, Namibia, and South Africa. This has made imminent an acrimonious break-up of Africa's oldest customs union, the Southern African Customs Union (SACU). Such an eventuality also raises doubts over the merger, scheduled for next year, of SACU and the Common Market of Eastern and Southern Africa (COMESA) into a single customs union under the Southern African Development Community (SADC). Signing any agreements that result in reductions in customs revenue could devastate the treasuries of the countries concerned. Lesotho earns about 60% of its state revenue through the SACU revenue-sharing arrangement, while Swaziland earns as much as 70%. Compensating for such loss through taxation could lead to a doubling of value-added tax rates and a tripling of corporate taxes.
Intellectual property (IP) issues were raised at the 124th Session of the World Health Organization’s (WHO) Executive Board in January in respect of the following technical and health matters: pandemic influenza preparedness (sharing of influenza viruses, access to vaccines and other benefits); the role and responsibility of WHO in health research; counterfeit medical products; and a global strategy and plan of action for the Intergovernmental Working Group on Public Health, Innovation and IP. A draft of the ‘WHO Strategy on Research for Health’ was presented.
India’s status as a top world supplier of generic medicines could be threatened by a free trade agreement its government is negotiating with the European Union (EU), according to this study. A draft of the proposed agreement put forward by EU officials recommends that it should incorporate a wide range of intellectual property issues. But at least two of the provisions in the draft could hamper access to affordable medicines for developing countries. One provision could require India to forbid the manufacture of generic versions of patented drugs for up to five years after the patents in question expire. Another provision would offer protection to test data submitted for the approval of branded medicines for a certain length of time (the precise duration has not yet been specified by EU officials). In effect, this would bar makers of generic drugs from using that data. The study notes that the EU recommendations go beyond the scope of the World Trade Organisation’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement.
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.
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.