Local Production of Pharmaceuticals: Industrial Policy and Access to Medicines

This document from the World Bank discusses the complexities and implications of local pharmaceutical production in developing countries. The paper highlights the tension between industrial policy, which may prioritize local production for economic reasons, and health policy, which focuses on ensuring access to essential medicines.

Local production of pharmaceuticals can be seen as a means to stimulate industrial growth, create jobs, and achieve self-sufficiency in drug supply. However, the economic viability of such production is questioned, especially when considering the global trade dynamics and the international pharmaceutical industry's economics. The document emphasizes that while local production might seem a solution to improve access to medicines, it may not always be the most cost-effective or quality-assured method.

The paper also touches upon the challenges posed by global trade rules, especially the WTO's TRIPS agreement, which can impact the supply of generic medicines from major producers. With the impending requirement for product patent protection in major generic medicine-producing countries like India and China, the question arises whether smaller countries might need to establish their local pharmaceutical industries.