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The make or buy debate

Considering the limitations of domestic production in Tanzania

Bibliographic Data

ID19534647
AuthorsKinsley Rose Wilson (University of Toronto), Jillian Clare Köhler (0000-0003-1290-9484, University of Toronto, corresponding author), Natalia Ovtcharenko (University of Toronto)
Year2012
Volume8
Issue1
Pages20-20
Publication date2012-10-01
Open AccessYes
TypeARTICLE
VenueGlobalization and Health (JOURNAL)
Journal identifiersISSN: 1744-8603 • E-ISSN: 1744-8603
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1186/1744-8603-8-20
PMID22747578
PMCIDPMC3413540
OpenAlexW2154862654
LanguageEN
Citations received5
References cited5

BACKGROUND: In order to ensure their population's regular access to essential medicines, many least developed countries and developing countries are faced with the policy question of whether to import or manufacture drugs locally, in particular for life-saving antiretroviral medicines for HIV/AIDS patients. In order for domestic manufacturing to be viable and cost-effective, the local industry must be able to compete with international suppliers of medicines by producing sufficiently low cost ARVs. METHODS: This paper considers the 'make-or-buy' dilemma by using Tanzania as a case study. Key informant interviews, event-driven observation, and purposive sampling of documents were used to evaluate the case study. The case study focused on Tanzania's imitation technology transfer agreement to locally manufacture a first-line ARV (3TC + d4T + NVP), reverse engineering the ARV. RESULTS: Tanzania is limited by weak political support for the use of TRIPS flexibilities, limited production capacity for ARVs and limited competitiveness in both domestic and regional markets. The Ministry of Health and Social Welfare encourages the use of flexibilities while others push for increased IP protection. Insufficient production capacity and lack of access to donor-financed tenders make it difficult to obtain economies of scale and provide competitive prices. CONCLUSIONS: Within the "make-or-buy" context, it was determined that there are significant limitations in domestic manufacturing for developing countries. The case study highlights the difficulty of governments to make use of economies of scale and produce low-cost medicines, attract technology transfer, and utilize the flexibilities of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The results demonstrate the importance of evaluating barriers to the use of TRIPS flexibilities and long-term planning across sectors in future technology transfer and manufacturing initiatives

Development economics · Economic growth · Economics · Health care · Health services research · Microeconomics · Political science · Public economics · Public health · Quality of Life Research · Social policy · Socioeconomics · Tanzania · Global trade, sustainability, and social impact · Intellectual Property and Patents · Law · Medicine · Pharmaceutical Economics and Policy

  • Essential medicines for universal health coverage

    Open Access•Veronika J Wirtz, Hans V Hogerzeil et al.•The Lancet•2017

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    Open Access•Greg Martins, GREG MARTIN et al.•Globalization and Health•2016

  • Health-industry linkages for local health

    Open Access•Maureen Mackintosh, Julius Mugwagwa et al.•Health Policy and Planning•2018

  • Can voluntary pooled procurement reduce the price of antiretroviral drugs? a case study of Efavirenz

    Open Access•Sung Wook Kim, Sungwook Kim et al.•Health Policy and Planning•2017

  • Re-Thinking Pharmaceutical Production in Africa; Insights from the Analysis of the Local Manufacturing Dynamics in Mozambique and Zimbabwe

    Open Access•Giuliano Russo, Geoffrey Banda•Studies in Comparative…•2015

  • The Global Competitiveness Report 2001-2002

    Richard N Cooper, Michael E Porter•Foreign Affairs•2002

Citations per year0.45
Citation span2015 - 2018 (4)
Highly citedNo

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