Thursday 17 September 2009

Differentiated pricing of pharmaceuticals

I had the pleasure of listening to Jacques Gorlin make a presentation earlier this week. He pointed out that the issue of healthcare its often said that developing countries should receive medicines at a lower prince something quite easy to agree with at first - well until you start looking at what countries actually define themselves as developing countries.

I would have thought that there is some kind of standards used to define what countries that are developed, developing and the least developed countries. Now usually the WTO classification is used as a reference point but when going to the WTO website I learn that there is no real definition of “developed” and “developing” countries. Instead: “Members announce for themselves whether they are “developed” or “developing” countries. However, other members can challenge the decision of a member to make use of provisions available to developing countries.”

Well as Im a bit sceptic to governments I would assume that as many countries as possible try to define themselves as developing countries. And yes: 2/3rd out of the 150 WTO members classifies themselves as developing. Now there is another category – the least developed countries. That list is more strictly composed but maybe to narrow.

I would say we need help the poorest in for example India and Brazil without the rest, the middle class and upwards, of their population free riding on behalf of for example the citizens in some of the poorer EU member states. So how do we get a clearer definition of who ought to benefit from for example differentiated prices? Maybe the Ministries of Health, the EU Commissions DG Sanco etc needs to ask for help by the Trade Ministers etc.

But for differentiated prices to become a reality rich countries like for example Saudi Arabia first has to be willing to stop aiming at getting a price as low as some of the countries they actually give foreign aid to...

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