ARTICLES
AIDS: Economic Development Not Cheap Drugs
By Thompson Ayodele
The magnitude of human catastrophe of AIDS is worrisome. The statistics worldwide are staggering and mind-boggling: 42 million have been infected and over 25 million have died of AIDS.
This is emergency period for most African countries: million are dying of AIDS. To combat this deadly scourge ravaging many communities in Africa AIDS activists and several governments are canvassing for more cheaper and affordable drugs. Slight consideration is given to purchasing power of the people even if the drugs are sold 90 % less than the actual price. If lacks of cheap drugs are hindering the fight against AIDS, then the percentage of Indians with access to essential drugs and anti-retroviral therapies ought to have reached appreciable level because India has over 22,000 producers of generic drugs and no system of drug patenting.
Poverty has been identified as one of the root causes of AIDS and its spread in Africa and in developing world. It could be effectively tackled if poverty is reduced. But poverty reduction goes beyond carrying placards asking drug companies to reduce the price of their drugs. Several communities in Africa have no power supply and lack access to clean drinking water. In rural areas, roads are inadequate or non-existent. Many residents suffer from malnutrition. In many cultures in Africa, women cannot question their partners about extramarital affairs, refuse sexual contact or suggest safer sexual practices. Many cultural beliefs often reflect ignorance and denial about AIDS. But the reality is that million are dying of AIDS and poverty is playing a dominant role. One tends to reason that AIDS activists are unaware of this or simply ignore them.
In tackling AIDS in Africa, cheap drugs are not the answer. According to a study reported in the South African Medical Journal, prices of generic drugs were found to be 82 % less than the benchmark US prices. At that lower price, the drugs are too expensive for the majority of people who need them.
In spite of the low prices for the generic drugs, in some countries, particularly Nigeria and Zimbabwe, the cheapest generic drugs are not available to those in need because those in charge sell them than the actual price. In the same scenario, health delivery system is in deplorable situation. There are too few qualified medical personnel. This ultimately hinders injections and tablets administering. Those taking the drugs must be monitored. In any eventuality of resistance and side effects, combination of drugs must be altered, experienced medical staff are needed.
Price reductions are laudable and beneficial. However, little difference is made when hordes of people do not have access and cannot even pay for the cheapest drugs. As it was the case with malaria which began to wane in Europe when people got richer and could afford better food, medicines and housing, African countries need that economic development to effectively combat AIDS.
While economic development is pivotal in the fight against AIDS, increased in aid is totally out of place. What is needed is increased in trade and non-discriminatory trading policies between the rich nations and the developing countries.
If the EU, the US and other rich nations want to tackle poverty in the developing world, including Africa, all trade barriers (tariff and non-tariff) including agricultural subsidies must be removed. In real development terms, the effects are substantial. Elimination of tariff and other non-tariff barriers could result in gains for developing countries: $182 billion in the services sector, $162 in manufacturer and $32 billion in agriculture.
Availing themselves of these, AIDS activists will have to retrace their steps, change their tactics and focus more on economic development for the poor countries. If economic growth and development is accelerated in Africa, majority of people wallowing in abject poverty will cross the poverty line. This will enable them to have access to life-saving drugs, escape early death and escape other deadly diseases. Cheap drugs will not.
Thompson Ayodele (thompson-at-ippanigeria.org -- replace -at- with @) is the Co-ordinator of the Institute of Public Policy Analysis in Lagos, Nigeria.