Local pharmaceutical production in developing countries: How economic protectionism undermines access to quality medicines

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Publication date: 
Wednesday, February 27, 2008
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A study challenging the notion that the governments of poor countries have a comparative advantage in producing medicines.

Donors are urging African governments to support local pharmaceutical production, in order to reduce costs and boost local scientific capacity. This new paper asks whether this is a sensible use of public funds. In many cases it may save money to follow the basic laws of economics and import drugs from countries that specialise in drug production. Using public monies to prop up local pharma companies, moreover, can encourage corruption and undermine the supply of safe, effective drugs.

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