[Ip-health] The Lancet--University of Oslo Commission on Global Governance for Health: The political origins of health inequity: prospects for change

Thiru Balasubramaniam thiru at keionline.org
Tue Feb 11 23:13:34 PST 2014


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The political origins of health inequity: prospects for change
Prof Ole Petter
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Email Address] <rektor at uio.no>, Jashodhara
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, Chantal Blouin<http://www.thelancet.com/search/results?fieldName=Authors&searchTerm=Chantal+Blouin>
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, Bience P Gawanas<http://www.thelancet.com/search/results?fieldName=Authors&searchTerm=Bience%20P+Gawanas>
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PharmD l<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#aff12>
, Prof John Gyapong<http://www.thelancet.com/search/results?fieldName=Authors&searchTerm=John+Gyapong>
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<SNIP>

Knowledge, health, and intellectual property
High costs of new drugs
In March, 2013, the Intellectual Property Appellate Board of India upheld
the country's first compulsory licence on a drug, sorafenib, used in the
treatment of liver and kidney cancer, which had been issued 1 year earlier.
Sorafenib is patented by the German pharmaceutical firm Bayer, which had
priced a monthly treatment at about US$5000 in India. Governments can issue
compulsory licences to authorise the use of lower-cost generic versions of
patented drugs, a safeguard that can protect the public against potential
abuse of monopolies granted through the patent system. Even countries that
traditionally embrace strong intellectual property rights at times use the
threat of a compulsory licence, as the USA did in 2001 for drugs against
anthrax. India's compulsory licence authorised the firm Natco to produce a
generic version of the drug and to pay Bayer a royalty of 6--7% of the
generic price. Natco's version of the drug cost about $160 for a monthly
treatment, roughly 3% of Bayer's
price.101<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib101>
The sorafenib case is not only a story of one drug and one country's patent
law, but also a flashpoint in a long-running global political contest over
how certain types of health-related knowledge are produced, and who
benefits. Because knowledge has had such a central role in improving health
over the past century, global rules related to knowledge can profoundly
affect health. A global community of scientists and scholars produces a
huge volume of research on health policies, systems, and practices, as well
as biomedical research that can be channelled into the development of
technologies to combat disease and other causes of poor health. Total
global public and private investment in health research was estimated at
US$240 billion in 2010, including health systems research and health
technology research and
development.102<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib102>
However,
although knowledge can in principle be made available to all as a global
public good, in practice its benefits are often restricted through secrecy
or intellectual property rights.
Effect of globalised intellectual property rules on health equity
One of the main sets of global rules that govern health-related knowledge
production and access is the WTO Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS). A central policy objective of
protecting intellectual property is to incentivise the creation and
disclosure of information and knowledge. Copyrights, which generally last
50 years after the death of the author, are intended to secure for authors
(or their estates) the benefits of their labour. Patents, which generally
last 20 years from the application filing date, are intended to provide
inventors with a time-limited monopoly during which they can recoup their
research investment, and thereby provide an incentive for private
investment in research.
TRIPS requires countries to ensure a harmonised minimum level of
intellectual property protection, based on the standards in industrialised
countries, including: minimum 20-year patents in all areas of technology,
including drugs; restrictions on the policy space for states to exclude
specific technologies from patentability; and limits on permissible public
interest safeguards in patent laws, such as compulsory licences.
Before TRIPS, many countries--including those in western Europe--had made
special exceptions for food, drugs, agricultural technologies, and
education in their national patent and copyright laws. But the introduction
of patents on drugs, in many countries for the first time, enabled monopoly
pricing for these products, raising concerns about affordability,
particularly for poor populations. Although the right to health includes
access to essential
drugs,103<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib103>
the
adverse effect of patent monopolies on prices and availability of drugs has
made it difficult for many countries to comply with their obligations to
respect, protect, and fulfil the right to
health.104<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib104>
Additionally,
patents alone do not drive sufficient investment to counter diseases that
predominantly affect poor people, because they do not offer a sufficiently
profitable market; as a result, some diseases--or rather, some
populations--are
neglected.105<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib105>
This
problem was characterised by the Global Forum for Health Research in the
1990s as the 10/90
gap,106<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib106>
on
the basis of estimates that only 10% of research funding was spent on the
major health needs of 90% of the world's population.
Copyrights can also raise the costs of accessing scientific publications.
Library costs worldwide for scientific journals and monographs increased
between 1986 and 2001, with libraries paying 210% more for 5% fewer
periodicals.107<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib107>
In
2012, even one of the world's wealthiest academic institutions, Harvard
University (Cambridge, MA, USA), announced that it could no longer afford
to keep up with the spiralling cost of academic journal subscriptions,
calling the situation "fiscally unsustainable and academically restrictive".
108<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib108>
Restrictions
on access to knowledge can widen existing knowledge disparities, and
restrict the access to information that is central to improvement of health.
Political determinants of health and market power
TRIPS shows clearly how economic power can shape global rule making, with
far-reaching consequences for health. The negotiation of TRIPS in the 1980s
and 1990s was driven by the lobbies of a handful of intellectual
property-intensive industries in the USA, Europe, and Japan (mainly in
pharmaceuticals, information technology, and entertainment). These lobbies
persuaded their home governments to push for the inclusion of a binding
multilateral treaty on intellectual property within the Uruguay Round of
global trade talks. Developing countries were opposed to the inclusion of
intellectual property in the package of trade agreements, because owners of
intellectual property were predominantly based in rich countries.
Globalisation of patent rules would create a net transfer of resources from
poor countries to rich countries in the form of royalties, while
simultaneously restricting access to the knowledge and technologies that
could improve health and spur economic development. Nevertheless, a
combination of carrots (concessions on agriculture and textiles) and sticks
(bilateral trade pressure from the USA) led to the treaty being signed in
1994.109<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib109>
Although concerns about the health effects of TRIPS have been widely voiced
by civil society and many developing
countries,110<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib110>the
agreement has become increasingly important with the continuing growth of
the knowledge economy. TRIPS is nearly impossible to amend because WTO
rules require all members to agree on any changes--an unlikely outcome since
the more advanced industrialised countries benefit handsomely from these
rules. Thus, TRIPS shows how major power disparities shaped the initial
rules of the game, and continue to perpetuate such disparity.
Emergence of access norms
Civil society organisations and governments mobilised in response to
concerns about TRIPS and public health. The past decade has seen widespread
normative change in approaches to patents on drugs, largely driven by
responses to the HIV pandemic, particularly patents on antiretroviral drugs.
39<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib39>
As
a result, more than 90% of HIV drugs (by volume) now used in low-income and
middle-income countries are
generics.111<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib111>
The
normative shift first became evident in the 2001 WTO Doha Declaration on
TRIPS and Public Health, in which all WTO member governments agreed that
TRIPS "does not and should not prevent members from taking measures to
protect public health".112<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib112>
Governments have started to use more aggressively a range of policy
approaches to counteract high drug prices, including TRIPS flexibilities
such as compulsory licensing. New collaborative approaches have also been
launched, such as the Medicines Patent Pool, which negotiates public
health-oriented voluntary licences with patent-holding firms to authorise
competitive generic production of HIV-related drugs for use in developing
countries.
This access norm has extended to other diseases, such as tuberculosis,
malaria, and the neglected tropical diseases, as shown by large donor
initiatives (such as the Global Fund to Fight AIDS, Tuberculosis and
Malaria and UNITAID), pharmaceutical-company donation programmes and price
discounts for low-income countries, and a well developed watchdog community
of civil society organisations, scholars, and analysts. Research into
neglected diseases has also increased sharply in the past decade, growing
from almost no projects in 2000 to more than two dozen public-private
product-development partnerships and about US$3 billion in investment by
2011.113<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib113>
Finally, recent years have seen increasing support for open access to
scientific publications as new models of publishing have emerged.
Open-access journals, first launched in the 1990s, publish peer-reviewed
scholarly work online. About 5000 journals of this type are currently
published, including professionally managed journals such as those run by
the Public Library of Science and BioMed Central. Growing support for
open-access publishing was reinforced by a groundbreaking 2007 law in the
USA that requires grantees of the US National Institutes of Health, the
world's single largest funder of biomedical
research,114<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib114>
to
make articles that result from research that the Institutes have funded
available with open access within 12 months of
publication.115<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib115>
Grantees
can do so by publishing in an open-access journal or by making their
article available in an online open-access repository. In 2012, the major
research funders of the UK Government adopted a similar policy for publicly
funded research, signalling growing momentum for open access to research
publications.116<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib116>
Open-access
publishing has proved to be a viable model not only for journals, but also
for chapters, academic theses, and entire books.
Despite some positive achievements, high prices of new drugs are still the
norm (especially in emerging markets), the use of TRIPS flexibilities
remains exceptional,117<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib117>
and
policy space to ensure access to health-related knowledge and to protect
health within the trade and intellectual property regimes is under threat.
Despite the Doha Declaration, many developing countries have been coming
under pressure from intellectual property-exporting countries to enact or
implement even tougher or more restrictive conditions in their patent laws
than are required (so-called TRIPS-plus provisions) in bilateral or
regional trade negotiations. Although they touch on many questions of
public concern, trade negotiations are almost always conducted behind
closed doors with almost no opportunity for public review of draft
agreements. In principle sovereign states could reject TRIPS-plus
provisions in trade negotiations, but in practice they can choose to
compromise on public health concerns to secure other objectives, such as
improved access to export markets. Furthermore, despite substantially
increased investment in research into neglected diseases, the present
global research system remains fragmented, inefficient, costly, and
inadequately financed.118<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib118>
Global governance for health: key challenges identified
A serious disparity in economic power and access to expertise exists
between the industries and high-income countries that would benefit from
the construction of a stringent intellectual property regime, and the
lower-income countries that would pay higher rents while having their
access to knowledge restricted. Such power disparities are reinforced by
the institutional rules of the WTO, which create a nearly insurmountable
barrier to the amendment of TRIPS. The policy space to address health
inequity in trade policy making is narrow, and the absence of transparency
and public input into the negotiation of trade agreements that contain
intellectual property provisions represent a serious democratic deficit.
Finally, there is a dearth of appropriate institutions to ensure that
sufficient research activities are directed at the greatest health needs.
Investment treaties constraining tobacco control measures
Tobacco use is estimated to have killed 100 million people in the 20th
century, and will cause the premature death of one billion more in the 21st
century unless consumption is
reduced.122<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib122>
Worldwide,
consumption of tobacco products is increasing. Although smoking rates are
falling in some high-income and upper-middle-income countries in response
to a suite of tobacco control policies, this downward trend has prompted
the global tobacco industry to seek new customers by shifting marketing
efforts to low-income and middle-income countries, where nearly 80% of the
world's one billion smokers now
live.122<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib122>
WHO
has defined tobacco use as a marker of social inequity, because the health
consequences of smoking are disproportionately borne by the most
disadvantaged groups in
society.123<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib123>
Governments have negotiated global rules to better govern tobacco use,
encapsulated in the 2005 WHO Framework Convention on Tobacco Control (FCTC).
124<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib124>
In
recent years, they have started to implement this treaty by adopting
tobacco taxes, bans or restrictions on advertising, health warnings on
packaging, product regulations, and clean-air policies. Such policies have,
however, faced national and international legal challenges as violations of
countries' obligations under bilateral, regional, and multilateral trade
and investment agreements.
After signing the FCTC in 2003, Uruguay started to introduce a range of
tobacco control measures. In 2010, however, the tobacco company Philip
Morris sued the government over a new regulation that required graphic
warning labels on cigarette
packs,125<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib125>which
are believed to be more effective than small, text-only health
warnings.126<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib126>
Rather
than bringing the case in Uruguayan national courts, Philip Morris went to
the International Centre for the Settlement of Investment Disputes (ICSID),
an international tribunal at the World Bank in Washington, DC, USA,
established to adjudicate conflicts between private firms and states that
have signed investment treaties. A parent company of Philip Morris in
Switzerland used the Switzerland--Uruguay bilateral investment treaty to
bring the case. Bilateral investment treaties usually include
investor--state dispute-settlement provisions that allow foreign firms to
legally challenge national regulations that reduce their return on the
investment.
The Uruguayan case is not isolated. The number of legal disputes brought by
companies against states for violation of investment treaties has risen
sharply in the past two decades. Many cases related to health and
environmental legislation have been brought under bilateral investment
treaties and the investment chapters of trade treaties such as the North
American Free Trade Agreement
(NAFTA).127<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib127>
Philip
Morris also launched a legal challenge to Australia's regulation requiring
plain packaging of cigarettes under a bilateral investment treaty between
Hong Kong and Australia. The company also brought a case against Canada in
2001 under NAFTA, responding to a government proposal to prohibit the terms
"light" and "mild" on cigarette packs.
Tobacco is not the only health-related issue to be raised in investor--state
dispute-settlement proceedings. In 2012, the pharmaceutical company Eli
Lilly challenged Canada's patent standards through an investor--state
dispute after the government invalidated its patent on a
drug.128<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib128>
The
company argued that patents should be regarded as protected investments and
has sued the government for US$500 million in
compensation.129<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib129>
<SNIP>

Strengthened and transformed mechanisms for global solidarity and shared
responsibility based in financing models beyond traditional development
assistance are highly relevant and need priority attention. Examples
include health research that meets the needs of poor people and mechanisms
for global social protection transfers.
Proposals have been tabled by many actors, including the WHO Consultative
Expert Working Group on Research and
Development,118<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib118>
to
ensure sufficient investment in health-related research and development in
areas for which market incentives are
insufficient.266<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib266>
One
of the options is a treaty under which countries would commit to finance
research and development in accordance with their ability to pay, while the
research would be oriented towards the most important global public health
needs. This proposal would have the effect of mandatory financial
transfers--albeit indirect--from wealthy countries to poorer countries (which
would benefit most from the research). If a binding treaty is not
politically feasible, an alternative model could be the non-binding
assessed contribution scheme used for the replenishments of the
International Development Association (the arm of the World Bank that
provides grants and soft loans to low-income countries), contributions to
which are roughly proportional to a country's share of the global economy.
Universal health coverage is about "solidarity between the healthy and the
sick and between population groups in all income
classes".267<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib267>
Just
as social health insurance schemes and risk pooling for medical expenditure
are central to universal health coverage, social protection is key to the
whole social dimension of sustainable development. Good reasons might exist
for applying these principles beyond state borders. Global social
protection would entail appropriate distribution of national and
international responsibilities, with mechanisms to collect and redistribute
transfers that are both duty-based and rights-based. Whether a single
global social health protection
fund92<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#bib92>
would
be better than the present patchwork of thousands of bilateral and
multilateral global social protection transfers remains a controversial
issue, but these are important questions that need to be further explored
and debated.
Conclusion
The overarching message of the Commission on Global Governance for Health
is that grave health inequity is morally unacceptable, and ensuring that
transnational activity does not hinder people from attaining their full
health potential is a global political responsibility. The deep causes of
health inequity are not of a technical character, devoid of conflicting
interests and power asymmetries, but tied to fairness and justice rather
than biological variance. Health equity should be a cross-sectoral
political concern, since the health sector cannot address these challenges
alone. A particular responsibility rests with national governments. We urge
policy makers across all sectors, as well as international organisations
and civil society, to recognise how global political determinants affect
health inequities, and to launch a global public debate about how they can
be addressed. Health is a precondition, outcome, and indicator of a
sustainable society, and should be adopted as a universal value and a
shared social and political objective for all.
*Acknowledgments*
The work of the Commission was made possible by unrestricted grants from
the Norwegian Agency for Development Cooperation (NORAD), the Norwegian
Ministry of Foreign Affairs, the Norwegian Ministry of Education and
Research, the Board of the University of Oslo (Oslo, Norway), and by
financial and in-kind support from the Institute of Health and Society and
the Centre for Development and the Environment (both at the University of
Oslo), and the Harvard Global Health Institute (Harvard University,
Cambridge, MA, USA). The funding bodies had no influence on the direction,
progress, writing, or publication of the report. Finances were administered
in accordance with Norwegian law, and with full public disclosure. In
addition to constructive advice and input, Jeanette H Magnus provided the
administrative base and infrastructure for the Commission at the Institute
for Health and Society at the University of Oslo. We are grateful to Harald
Siem, who played an important part in establishing the Commission and led
the Commission's Secretariat through the project's first phase, until
summer, 2012. Valuable research assistance was provided by Emmanuella
Asabor, Lotte Danielsen, Unni Gopinathan, Just Haffeld, Sverre O Lie, Diego
Solares, Larissa Stendie, Elina Suzuki, Rosemary Wyber, and Alyssa
Yamamoto. We also thank Maren O Kloster for her technical assistance, and
Svein Hullstein for his administrative support. We are very thankful for
Ron Labonté's insightful and constructive comments about, and input to, the
draft report at various stages. We offer a special thanks to the People's
Health Movement, which contributed with six background papers via an
editorial group consisting of Bridget Lloyd, David Sanders, Amit Sengupta,
and Hani Serag. The authors of these backgrond papers were Susana Barria,
Alexis Benos, Anne-Emanuelle Birn, Chiara Bodini, Eugene Cairncross, Sharon
Friel, Sophia Kisting, Elias Kondilis, David Legge, Mariette Liefferink,
Baijayanta Mukhopadhyay, Lexi Bambas Nolen, Jagjit Plahe, Farah M Shroff,
Angelo Stefanini, Anne-Marie Thow, Pol De Vos, David van Wyk, and Aed
Yaghi. Three additional highly useful background papers were developed by
David Woodward; Bjørn Skogmo and Sigrun Møgedal; and the Oslo Church City
Mission (led by Per Kristian Hilden, with coauthors Christina Marie Brux
Mburu, Arnhild Taksdal, Frode Eick, Kari Gran, Hanne Haagenrud, Olav
Lægdene, Linnea Näsholm, Anna Olofsson). We also thank Bruce Ross-Larson
for his excellent editorial advice; John-Arne Røttingen, who had an
important role in the initiation of the project; and Tim Cadman for
fruitful discussions. Our special thanks are extended to the Youth
Commission on Global Governance for Health, chaired by Unni Gopinathan, for
continuous feedback on the Commission's work, and to the Rockefeller
Foundation for hosting the Commission at its centre in Bellagio, Italy. We
are also very grateful to Jashodhara Dasgupta and Gertrude I Mongella for
hosting Commission meetings in New Delhi, India, and Arusha, Tanzania,
which involved invaluable contributions from local civil society actors and
national authorities.
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of Community and Public Health, Birzeit University, West Bank, occupied
Palestinian territory
m<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#back-aff13>
University
of Ghana, Accra, Ghana
n<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#back-aff14>
Department
of Epidemiology and Public Health, University College London, London, UK
o<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#back-aff15>
Advocacy
for Women in Africa, Dar es Salaam, Tanzania
p<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#back-aff16>
Mandela
Institute for Development Studies, Johannesburg, South Africa
q<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#back-aff17>
Global
Health Unit, Norwegian Knowledge Centre for the Health Services, Oslo,
Norway
r<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#back-aff18>
Discovery
Holdings, Johannesburg, South Africa
s<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#back-aff19>
Department
of Public Health, Institute of Tropical Medicine, Antwerp, Belgium
t<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#back-aff20>
Harvard
Global Health Institute, Harvard University, Cambridge, MA, USA
[image: Corresponding Author
Information]<http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(13)62407-1/fulltext#back-cor1>
Correspondence
to: Prof Ole Petter Ottersen, PO Box 1072, Blindern, 0316 Oslo, Norway



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