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Champagne Breakfast
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#181
Report 12 years ago
#181
Well how do you find out whether pricing at cost will bring them into the budget of most Africans?
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Apagg
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#182
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#182
In Sub-Saharan Africa, where the number of extremely poor almost doubled from 164 million in 1981 to 313 million in 2001, the average income of those living under $1 a day also fell, from 64 to 60 cents. Source

I would say this level of income will be insufficient to buy retroviral treatment drugs at cost, because "cost" includes the years of research that have gone into the drug. Even discounting this, an income of 60 cents a day wouldn't even buy a bottle of paracetamol, one of the most generic drugs in the world, llet alone treatment for AIDS/HIV

Furthermore:

n Uganda, cheap anti-retrovirals cost about a tenth of the price of those in the US.
But there, 5% percent of people are infected.
Paying for anti-retroviral medication for all Uganda's 150,000 Aids sufferers would cripple the national health budget.

Even international funding may not be enough to ensure a sustainable policy to give patients anti-retroviral drugs. Source

The scale of the problem makes things worse.
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Nuheen
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#183
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#183
You cant force a multinational company to produce more, quite the contrary. If they move out of the country unemployment will result.

Another idea to reduce the price by subsidising the drug has problems. Firstly, the amount of subsidy has to be huge. Many are very poor and can not afford even what seems like very cheap to us. The government can never provide that much subsidy which can make the price fall to, say to 10 pence. Besides the amount of subsidy has to be the same throughout the continent or smuggling will result. This is quite a disincentive for the government.

Africans have huge families, with few earning members. They cant buy medicine for one to delay his or her death and force others to suffer from malnutrition or death from lack of food. So the socially desirable price is very low.
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ÁňûβİŚ
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#184
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#184
i think more than AIDS, its the regimes that's affecting the productivity of Africans. Imagine running from one camp to another for life, as it is happening in Darfur, Ethiopia and elsewhere. Their incomes are so less, that they cant even buy the subsidized rice. And the aid given by EU has faced som hassles early this year. countries like nigeria (where the prob of AIDS exists as in any other african country) have so much oil, that their PCI can shoot up and beat India's or China's any given day, provided they are utilized. The payments are directed to the Swiss accounts of the dictator rather.

Also, another common problem is the looting by guerillas and soldiers, and they rape the locals before leaving. Its true, watch BBC continuosly for proof. Imagine a 13 yr old gal being raped, and there's a limit to the extension of her life (most of the cops have AIDS, no need to mention). AIDS has no medicine as of now, and the life savings drugs are costly. To supply them free (thats the only possible way they can afford them) means changing Pfizer Inc. to Pfizer Charitable Trust. The problem in Africa cannot be solved by just distributing free medicines. What they need most is some urgent regime changes.
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Nuheen
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#185
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#185
I agree. Law and order situation must improve in such countries.
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Nuheen
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#186
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#186
I was wondering, what do you think are the likely economic effects of USA attacking Iran (if they do)?
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Apagg
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#187
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#187
Rising oil prices - even more so than currently. Increased fear of terrorism leading to increased volatility on the stock market. Probable economic downturn for the less stable economies.
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Jan
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#188
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#188
most of you seem to forget one of the most important problems associated with generic drugs, even if their production was to be paid for by governments so that pharmaceutical companies wouldn't be making a loss..

arbitrage..how would you prevent people from getting drugs for free in uganda, flying to the US or europe and selling them with huge profits? there's two pre-requisites for price discrimination - the drug market does have its required (geographical) segmentation, but it does not fulfil the other requisite - a tool to discourage discount buyers from becoming resellers and thus competitors.
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Nuheen
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#189
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#189
(Original post by Honza)
most of you seem to forget one of the most important problems associated with generic drugs, even if their production was to be paid for by governments so that pharmaceutical companies wouldn't be making a loss..

arbitrage..how would you prevent people from getting drugs for free in uganda, flying to the US or europe and selling them with huge profits? there's two pre-requisites for price discrimination - the drug market does have its required (geographical) segmentation, but it does not fulfil the other requisite - a tool to discourage discount buyers from becoming resellers and thus competitors.
I referred to it a bit on the other post

(Original post by Nuheen)
Besides the amount of subsidy has to be the same throughout the continent or smuggling will result
Smuggling to a developed country isnt easy. One has to overcome two custom offices and must carry enough medicine so that it covers his transport cost which is quite a lot. One would want to earn more than that since there is also a risk of imprisonment. Smuggling that much of a medicine is difficult. He wont get the market price as well since he cant sell it in the open market. Such drugs I believe will require prescriptions.
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Nuheen
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#190
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#190
Members, do any one of you have economics past papers or markschemes? If you do, please try to scan and upload them here. You can use www.uploading.com. Dont use rapid share.
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Champagne Breakfast
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#191
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#191
(Original post by Honza)
most of you seem to forget one of the most important problems associated with generic drugs, even if their production was to be paid for by governments so that pharmaceutical companies wouldn't be making a loss..

arbitrage..how would you prevent people from getting drugs for free in uganda, flying to the US or europe and selling them with huge profits? there's two pre-requisites for price discrimination - the drug market does have its required (geographical) segmentation, but it does not fulfil the other requisite - a tool to discourage discount buyers from becoming resellers and thus competitors.
I addressed this issue earlier on. The only solution I can think of is to clamp down tight on customs and bring in huge disincentives.
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Champagne Breakfast
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#192
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#192
(Original post by ÁňûβİŚ)
i think more than AIDS, its the regimes that's affecting the productivity of Africans. Imagine running from one camp to another for life, as it is happening in Darfur, Ethiopia and elsewhere. Their incomes are so less, that they cant even buy the subsidized rice. And the aid given by EU has faced som hassles early this year. countries like nigeria (where the prob of AIDS exists as in any other african country) have so much oil, that their PCI can shoot up and beat India's or China's any given day, provided they are utilized. The payments are directed to the Swiss accounts of the dictator rather.

Also, another common problem is the looting by guerillas and soldiers, and they rape the locals before leaving. Its true, watch BBC continuosly for proof. Imagine a 13 yr old gal being raped, and there's a limit to the extension of her life (most of the cops have AIDS, no need to mention). AIDS has no medicine as of now, and the life savings drugs are costly. To supply them free (thats the only possible way they can afford them) means changing Pfizer Inc. to Pfizer Charitable Trust. The problem in Africa cannot be solved by just distributing free medicines. What they need most is some urgent regime changes.
I addressed this as well. Firstly, the cost of production of drugs is in fact minimal once the initial costs of research etc. have been paid off. Reproducing a model is cheap, and even if some Africans still couldn't afford it, it would still open up the market in Africa and benefit at least some (rather than the situation now where there is basically no market in Africa, and thus no scope for companies to be making profits).

As for regime changes, the only solution I can see is to invade Africa like we did Iraq and Afghanistan. I'm sure the leadership could come up with some sort of excuse.
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Champagne Breakfast
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#193
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#193
(Original post by Nuheen)
I agree. Law and order situation must improve in such countries.
How do you propose we go about this?
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Nuheen
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#194
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#194
I guess the United Nations could take a more active role. If they established an international police force spread throughout the world it might benefit. I am assuming that the governments in such countries are either unwilling or unable to improve the law and order situation (maybe because it is against their interest). However such a police force may not be accepted by the government of such countries. If so, there is no alternative I m afraid. The government must do something. The UN can put pressure on them by threatening with an embargo for instance.
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Jan
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#195
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#195
I addressed this issue earlier on. The only solution I can think of is to clamp down tight on customs and bring in huge disincentives.
not realistic.

I guess the United Nations could take a more active role...The UN can put pressure on them by threatening with an embargo for instance.
even more naive, UN is a complete joke.
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Nuheen
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#196
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#196
That is the main problem. But there isn't any alternative.
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Champagne Breakfast
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#197
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#197
(Original post by Nuheen)
That is the main problem. But there isn't any alternative.
Yes there is, we should invade!
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Champagne Breakfast
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#198
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#198
(Original post by Honza)
not realistic.
Take a flight to Australia and you'll learn that anything's possible.
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Nuheen
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#199
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#199
(Original post by The Ace is Back)
Yes there is, we should invade!
African countries don't have oil!!!


So I was looking for an alternative that will work.
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Jan
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#200
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#200
wait till they die of AIDS/famine and then re-colonize africa, finally bringing some order over there.

[we don't have to do anything - the pope, the greatest mass murderer ever, who beats easily the likes of hitler, will take care of it]
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