Other Drug War: How Market Economics Shapes Global Public Policy

Market failures and distortions, while characteristics of the health sector generally, are more pronounced in the pharmaceutical sector. These failure and distortions exaggerate the imbalance in social justice in terms of access to essential drugs. There is little market incentive for R&D focused on the health problems of the most disenfranchised. The lack of access to accurate product information results in consumers being overly-reliant on industry advertising and/or price as an indication of quality to inform product choices. The cost of obtaining patent rights and the market muscle of patents in an era of globalization (along with capital investment issues) can reinforce barriers to market entry. These factors mean that suppliers have tremendous influence over both supply and demand, and supply is primarily based on demand from the most lucrative markets, not the most needy. The presentation considers market-driven pharmaceutical sector dynamics, and their impact on social equity and justice in terms of access. The presentation concludes by suggesting global public policy initiatives that could work to improve equitable access to essential drugs - from global public sector investment to global regulation and enforcement.