The Push for Local Production, Costs and Benefits – A Case Study of Uganda's Quality Chemicals

Africa Fighting Malaria Policy Paper, September 2009

17 Pages Posted: 23 Oct 2013

See all articles by Taylor James

Taylor James

American Enterprise Institute (AEI); Columbia University - School of International & Public Affairs (SIPA)

Roger Bate

American Enterprise Institute (AEI)

Emily Putze

American Enterprise Institute (AEI)

Richard Tren

Africa Fighting Malaria (US)

Date Written: September 2, 2009

Abstract

Many Africans lack access to essential medicines. There are myriad reasons for this: poverty, lack of awareness about the need for treatment, confusion over which drugs to take, technical and logistical challenges in procurement and distribution combined with a general lack of local healthcare staff and infrastructure, among other cultural and political factors.

One additional problem is the relatively high price of drugs, which the international community has prioritized by encouraging competition from various generic producers often through compulsory licensing. The latest cost-reduction strategy is the push for local drug production. But, as shown by the start-up problems of Quality Chemicals Industries Limited in Uganda, many burdens and barriers to access continue to seriously hinder the success of such enterprises. Indirect government subsidies to exporters selling into African markets, and pressure by donors and lobbyists on innovator producers to offer developing countries subsidized prices, actually undermine the competitiveness and viability of these nascent firms. Furthermore, the focus on drug pricing and local production can actually undermine the overall aim to increase access to medicines.

Suggested Citation

James, Taylor and Bate, Roger and Putze, Emily and Tren, Richard, The Push for Local Production, Costs and Benefits – A Case Study of Uganda's Quality Chemicals (September 2, 2009). Africa Fighting Malaria Policy Paper, September 2009, Available at SSRN: https://ssrn.com/abstract=2342846 or http://dx.doi.org/10.2139/ssrn.2342846

Taylor James

American Enterprise Institute (AEI) ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States

Columbia University - School of International & Public Affairs (SIPA) ( email )

420 West 118th Street
New York, NY 10027
United States

Roger Bate (Contact Author)

American Enterprise Institute (AEI) ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States

Emily Putze

American Enterprise Institute (AEI) ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States

Richard Tren

Africa Fighting Malaria (US) ( email )

Washington, DC
United States

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