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Global differential price



According to IMS Health, poor countries are projected to account for less than a quarter of drug sales in 2002. Of all the $ 100 spent on pharmaceuticals worldwide, 42 is the US, 25 Europe, 11 is Japan, 7.5 is Latin America, the Caribbean, 5 is China and Southeast Asia, 2 is Eastern Europe,


It's tough. :



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In April 2002, the World Health Organization (WHO), the World Trade Organization (WTO), the Ministry of Foreign Affairs of Norway, the Global Health Council based in the United States, but "surprising prices and funding of essential medicines in poor countries" is not surprising. The conclusion is:

".. Broad, especially in poor countries, different pricing may play an important role in securing affordable access to existing medicines."

The 80 experts who attended the workshop adjusted these two, apparently contradictory, desires by introducing different priced medicines in low-income countries and rich countries It can be achieved bilaterally through holders and manufacturers, global suppliers and countries, or through market mechanisms.

According to IMS Health, poor countries are projected to account for less than a quarter of drug sales in 2002. Of all the $ 100 spent on pharmaceuticals worldwide, 42 is the US, 25 Europe, 11 is Japan, 7.5 is Latin America, the Caribbean, 5 is China and Southeast Asia, 2 is Eastern Europe,

Vaccines, contraceptives and condoms are already subject to cross-border differential pricing. Recently, pharmaceutical companies were forced to introduce court decisions, or contracts with multi-tier pricing authorities below. Brazilians and South Africans, for example, pay a fraction of the price paid in the west for their anti-retroviral aids drugs.

Still, the price of a typical treatment is not affordable. Foreign donors, private foundations-such as Bill and Melissa * Gates Foundation etc-and international organizations had to step in to cover the shortage.

Experts have recognized the risk that cheaply sold brands of drugs in poor countries will be consumed in densely populated countries. First, developed countries may use price controls based on the prices of poor countries. Other participants, including dominant NGOs such as Oxfam and Medecins Sans Frontieres, are rooted in the reform of the TRIPS Agreement and the production of common substitutes for branded drugs.

Also, when importing medicines, you can import medicines from countries that are sold at lower prices.

Recognizing the presence of this Damocles sword, the European Union and the Transnational Pharmaceutical Lobby have emerged in the last month in favor of "global tier prices".

In its 2001 Human Development Report (HDR), the United Nations Development Program (UNDP) calls for the introduction of differential rich vs. poor country prices for "mandatory high-tech products" as well Health Gap Association , Comment on the report:

"With differential pricing issues, the report is effective global, while its note market encourages different prices in different countries of products such as pharmaceuticals, the main cost to current system sellers is usually normal In research, not high-tech products that are being produced, such tiered prices are the same product but just the tenth or hundredth

However, drug companies and producers of other technologies are afraid that knowledge about such discounts may lead to lower price demand in rich countries as well, and they (with many AIDS drugs Similarly, there was a tendency to set global prices out of reach for the citizens of poor countries.

"Part of the fight to establish differential pricing must be earned through consumer education. Rich country citizens are less likely to bring medicines and other important technology products to people in developing countries. You must understand that it is not fair to pay. "The lead author of the report.

Public Declaration issued in Havana, Cuba, San Jose, Costa Rica in the late 1990s, benefiting from free online scholarships for developing countries. WHO and Open Society Institute have access to research initiatives have started. Thus, for Peter Suber, the publisher's "Free Online Studies" magazine:

Under the program, the world's six largest publishers of biomedical journals have agreed to three tiered prices. In countries with the lowest levels (gnp less than $ 1k per person), online subscriptions are free. In the case of countries (GNP per person between 1k and 3k), online subscriptions will be discounted at the amount determined in this month: First-rate payment full priced countries.

With this application you can access all the content on your device. Subscriptions are not given to individuals but to universities and research institutes. However, they are the same in the range of subscriptions received by agencies that pay the full price. "

Of the 500 bottom tier eligible agencies, more than 200 have already signed up. We have joined additional publishers and offer these three to five years of programs and medical journals, although the degree of dependence is not very high. Mid-tier prices will be declared by next month. The beard is probably extended to cover other scientific fields.

Authors from developing countries also benefit from the spread of free online scholarships coupled with differential pricing. "Best of Science", for example, free, peer-reviewed, online paid by the author of an online science journal. It charges the authors from the following developing countries:

However, differential pricing is seldom limited to academic journals. Already, the voices of developing countries are seeking tiered prices for Western textbooks sold in emerging economies. Quoted in the free online scholarship newsletter, Taipei-era Wright-Ming is the most commonly developed by illegal copying to sell textbooks to third world students at world prices first developed In the country, there is a "textbook price crisis". "

That said to two African Special Rapporteurs in a report last year submitted to the UN Human Rights Subcommittee titled "Globalization and the Impact on Human Rights' Full Enjoyment":

".. Emphasis on R & D investment has conveniently omitted the mention of the fact that part of the funding for this research comes from public sources Finally, Difference) Focusing on price differences between countries omits to consider the fact that there are many people in the developed country who can not afford the same medicine It is an inaccessible or unfriendly health care system (Cost or lack of appropriate social welfare mechanisms), or race, gender, sexual orientation, etc. "

Differential pricing is often confused with dynamic pricing.

Moai * Technologies and Accenture's Christopher * Blue Saw Bob Grescens define dynamic pricing, in their dissertation "Business to Business.. Price is free to move according to supply and demand conditions. Buying and selling goods and services in a market. "

This is usually done by asking for auctions or quotes or bids. Dynamic pricing is most often used for clearing and electronic procurement of surplus stocks.

Nor differential pricing is completely identical to non-linear pricing. In the real world, prices are hardly fixed. Some prices depend on the use of "pay per view" in the cable TV industry and "per print" in the scholarly online reference. Other prices combine fixed factors (eg, subscription fees) and variable factors (eg, payments per broadband usage). Volume discounts for two prices, selling, cross selling, all three examples of non-linear pricing. However, within the same market-non-linear pricing is about charging different prices to different consumers.

Hull * Varian of the Information Management and Systems School of the University of California at Berkeley, AC Pigou's Sperm 1920 Tome, "The Economics of Welfare" Price Discrimination "treatment also summarized:

"First-time price discrimination means that producers sell different units of output for different prices, and these prices may vary from person to person This is sometimes a perfect price It is known as a case of discrimination.

The second degree price discrimination means that the producers are selling different units of output for different prices, but all buy the same amount of good therefore the price is to the quantity of goods purchased It depends but does not depend on who buys it. A common example of this type of pricing is volume discounts.

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