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The compulsory licensing anomaly
IPN Opinion article
If compulsory licensing is retained as a response to perceptions about market failure, it is necessary also to recognise the costs of state failure. As of now, the Uruguay Round agreement permits too much discretion to governments on compulsory licensing, with 'public interest' a deliciously vague expression. As a second-best solution, this needs to be disciplined. The powers granted for public non-commercial use are too broad and there are no guidelines on compensation and royalty payments. While the TRIPS agreement lays down a framework, it is unrealistic to expect that everything should be laid down in such an agreement. However, too much discretion is also undesirable as it leads to arbitrariness. If there is one lesson that emerges from the development experience of developing countries, it is that the costs of arbitrary government decision-making can be devastating. The market is inherently superior. While this is a message that extends to all sectors, it is particularly true of the pharmaceutical sector. Hence a review of TRIPS is in order.
Qualifying for the World Cup
IPN Opinion article
With such institutional frameworks as the Latin American countries now have, many are afraid of competition; they lack self-esteem and would rather restrict competition to the regional arena. As far as institutional competition is concerned, Latin America, cannot compete at the world level. So the real question is: when will Latin America have an institutional framework that allows it to compete with the best? Until it reforms its institutions, Latin America will not move beyond the qualifying games.
A sceptic's view of the TRIPs and essential medicines debate
IPN Opinion article
If the WHO truly wanted greater differential pricing in developing countries it would support diminishing government intervention and the strengthening of intellectual property rights. That would create the kind of rule-based competition that truly drives companies to expand market share through price incentives. The WHO would better serve the health of the world's people by improving its own performance in the areas where it could make a difference, rather than trying to re-arrange global pharmaceutical markets.
Malaria and Patents
IPN Opinion article
The overwhelming evidence from around the globe supports the thesis that the protection of private property is central to improving economic performance. This protection must extend to intellectual property and patents on drugs. Attenuation of patents therefore goes further than simply making developing country disease an unattractive avenue for pharmaceutical research and development; it undermines economic growth and human health.
TRIPs and Healthcare: Rethinking the debate
IPN Opinion article
"Poor countries will not eradicate diseases by compulsory licensing certain pharmaceuticals. In fact the opposite is more likely because of the negative signal that such a decision would send to companies contemplating investment in knowledge-based industries. It would be a tragedy if long-term economic development and consequent improvements in the health of the poor were to be undermined by short-sighted policies aimed at placating narrow vested interests."
The Right to Good Ideas
IPN Opinion article
" Intellectual-property rights are not just for the rich world. Carefully constructed, they can help the poorest too."
Aids has no cure - remember?
IPN Opinion article
"It does seem paradoxical -- nay, tragic -- that the world may end up spending tens of billions of dollars annually to provide painful, only moderately successful treatment to prolong life, while not making millions of people healthy from curable diseases like malaria for only a few billion. In these days of emotional politics, perhaps the rich world will only spend money on diseases with which it has some familiarity..."
Europe's Cold Shoulder
IPN Opinion article
"If we were to listen to Europe's energy Cassandras and implement the Kyoto protocol, any reduction in greenhouse-gas emissions would simply be offset by an increase in poor countries' emissions. The cost in terms of reduced economic output will mean reduced consumption everywhere ó leading to global impoverishment, unemployment, and misery. However, European governments have already committed themselves to the foregone conclusion of perilous climate change and, consequently, the need for international action, i.e., the Kyoto Protocol. Backing down now would open these statesmen up to ridicule..."
Misguided Virtue: False Notions of Corporate Social Responsibility
IPN Opinion article
David Henderson examines the CSR doctrine, subjecting it to fundamental criticisms. He argues that, far from being harmless, the adoption of "corporate social responsibility" threatens prosperity in poor countries as well as wealthy ones. CSR is likely to reduce competition and economic freedom and to undermine the market economy.
[Downloadable PDF]