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Big Pharma and the Global Response to HIV/AIDSBy: Russel Mockhiber and Robert Weissman One of the prerequisites of power is that the powerful can always
command a fresh start. Past crimes and misdemeanors, and even current
misdeeds, are not held against them. Consider the case of the pharmaceutical industry and the issue of
access to HIV/AIDS and other essential medicines. The rich countries are now, belatedly, gearing up to commit some
substantial monies to address HIV/AIDS in Africa and elsewhere in the
developing world. The brand-name pharmaceutical companies are jockeying
for a central role in determining how those monies are spent. And, unless
sufficient public opposition emerges, they are likely to secure it. There is now no serious dispute that the brand-name pharmaceutical
companies have worked overtime to deny poor countries access to lifesaving
medicines. The industry insistence in maintaining its lawsuit challenging South Africa's Medicines Act helped forge a broad, worldwide consensus -- from the New York Times to the European Parliament -- against the industry's role in interfering with poor countries' efforts to promote access to essential medicines. International condemnation forced the industry to back down in the suit, but the South Africa case was only one of many instances where the industry has played a pernicious role. Big Pharma's obsession has been to block the introduction of generic
competition -- which has the potential to bring drug prices down by 95
percent or more -- and it has employed misleading propaganda campaigns,
threats of litigation, promises of trade sanctions, and new trade
agreements to advance its aims. Against this backdrop comes a set of proposals for a global AIDS fund, or a global tropical disease fund. In late June, the United Nations will hold a special session on HIV/AIDS. Then the elite rich countries, grouped together in the G8, will meet in Genoa, Italy, in July. There is widespread expectation that the rich countries will agree to a
framework for a new fund, and make preliminary dollar commitments. UN
Secretary General Kofi Annan has requested contributions of $7 billion to
$10 billion per year. The United States is expected to announce a $200
million commitment shortly. How the fund will be governed and operated remains very unclear. This fund was intended to galvanize international donations, but
they have not materialized, and some thought the fund would never get off
the ground. However, Kofi Annan's proposal for a global fund sounded very
similar to the World Bank AIDS Trust Fund, leading some to think the World
Bank entity would be revamped and become the big global fund. That makes governance of the fund very important. The U.S. Treasury
Department is in charge of establishing the charter for the World Bank
AIDS Trust Fund. The Treasury Department's proposal envisions a governing
board made up of donors, with some participation by recipient countries.
"Donors" would include not just governments, but private parties
-- meaning not just private foundations, but private corporations I
including the drug companies. Under the Treasury Department proposal, for
$5 million contributions, the drug companies would be able to buy
themselves seats on the Trust Fund's governing board. This is a morally outrageous proposal. There are many parties to blame
for the horrible toll taken by the AIDS pandemic in poor countries (with
as many as one in three adults now HIV-positive in some African countries,
and virtually all of the HIV-positive people certain to die from AIDS
unless treatment costs are radically reduced), but the drug companies are
hugely culpable. That they would be permitted a key role in directing the
world's belated response to the crisis dishonors the memories of the
millions who have died preventable deaths from HIV/AIDS. Underlying the moral argument are very practical considerations. Big
Pharma participation on the governing body of new global fund would create
an irresolvable, structural conflict of interest. For example, a crucial decision for the new fund will be whether it
buys drugs at best world prices, from multiple sources, including
generics. The brand-name companies are intent on excluding generics, and
the brand-name companies certainly should not have a role in the fund's
decision-making on this issue. Suggestions that the brand-name companies could simply recuse
themselves from such issues offer no solution. The brand-name companies
should not be positioned to influence fellow board members. And lots of
decisions the board will make -- from matters relating to the mechanisms
to deliver drugs, drug registration rules, preferred drug regimens, and
much more -- will involve issues where drug company conflicts will be
pervasive, but may not be recognized. If Big Pharma wants to redeem itself and be "part of the
solution" to the AIDS pandemic, there is plenty it can do, starting
with issuing licenses for its HIV/AIDS drugs to the World Health
Organization, which could then contract with generic makers to provide
cheap drugs for distribution in poor countries. But putting the industry
in charge, or partially in charge, of the primary global response to
HIV/AIDS -- especially while the brand-name companies continue to place
enormous obstacles in the way of the generic competition that could make
AIDS drugs far more affordable and save millions of lives -- would be
unconscionable. Russell Mokhiber is editor of the Washington, D.C.-based Corporate
Crime Reporter. Robert Weissman is editor of the Washington, D.C.-based
Multinational Monitor, and co-director of Essential Action, a corporate
accountability group. They are co-authors of Corporate Predators: The Hunt
for MegaProfits and the Attack on Democracy (Monroe, Maine: Common Courage
Press, 1999). (c) Russell Mokhiber and Robert Weissman
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