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5: Enhancing Our Economy
Pages 35-39

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From page 35...
... This amount represented 10-30 percent of public-sector recurrent costs in developing countries, second only to expenditures on health personnel. In industrial countries, by comparison, drugs and vaccines represent 5-20 percent of health care spending.
From page 36...
... Moreover, it is likely that the rising costs of R&D will require these companies to pursue growth in emerging markets as aggressively as possible (Ballance et al., 1992~. Yet significant political and regulatory constraints currently deter the industrial countries from developing products that might primarily benefit developing countries.
From page 37...
... There is a vital caveat, however. It will be essential to institute effective safeguards against medically detrimental or unethical commercial activities in developing countries for example, dumping of pharmaceuticals of questionable safety or effectiveness; emphasizing short-term financial gains that, in the longer term, weaken target countries and local communities; or exporting medical interventions that are economically or culturally inappropriate for the intended recipients.
From page 38...
... The ability to pursue multitiered pricing strengthens the competitiveness of national industries, provides adequate prices and thus revenues for product innovation, and allows manufacturers to sell higher volumes at a lower per-unit cost. There is clearly a need for new incentives to enable industry to develop and market drugs needed in developing countries.
From page 39...
... . Where markets for drugs relevant to diseases prevalent in developing countriessuch as malaria, TB, and AIDS-cannot provide sufficient returns to justify development of drugs arid vaccines, the possibilities for extending patent life In special circumstances should also be considered.

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