Public-Private Roles in the Pharmaceutical Sector - Implications for Equitable Access and Rational Drug Use - Health Economics and Drugs Series, No. 005: 7. Pharmaceutical production and public-private roles: 7.3 Summary points

Public-Private Roles in the Pharmaceutical Sector - Implications for Equitable Access and Rational Drug Use - Health Economics and Drugs Series, No. 005
(1997; 115 pages) [French] [Spanish]

Table of Contents

	Authors
	Acknowledgements
	Abbreviations and Acronyms
	Executive summary
	1. Public and private roles in the pharmaceutical sector
		1.1 Some definitions of public-private roles
		1.2 Questions on public-private roles
		1.3 The context of change
		1.4 Principles for assessing public-private roles
	2. Pharmaceutical markets: structure and performance
		2.1 Drug financing and distribution systems
		2.2 The pharmaceutical market: structures and actors
		2.3 Pharmaceutical market failure
	3. Essential state responsibilities
		3.1 Policy-making
		3.2 Drug regulation
		3.3 Professional standards
		3.4 Access to essential drugs
		3.5 Rational drug use
	4. The public-private mix in drug markets: a global picture¹
		4.1 Production
		4.2 National expenditure
		4.3 Drug distribution systems
		4.4 Household expenditures and sources of drugs
		4.5 Summary points
	5. Market mechanisms in public drug supply
		5.1 Organization of the supply system
		5.2 Desirability of using market mechanisms
		5.3 Summary points
	6. Promoting public health needs through the private sector
		6.1 Public health concerns
		6.2 Availability (geographical access)
		6.3 Making drug prices affordable
		6.4 Affordable financing for drugs
		6.5 Rational drug use
		6.6 Drug quality, safety and efficacy
		6.7 Summary points
	7. Pharmaceutical production and public-private roles
		7.1 Arguments for and against public sector pharmaceutical production
		7.2 The government's role in strengthening local production capacity
		7.3 Summary points
	8. Capacity-building and the process of change
		8.1 The nature of capacity and capacity constraints
		8.2 Approaches to enhancing capacity
		8.3 The process of change
		8.4 Summary points
	9. Managing public-private roles
		9.1 Developing a strategy
		9.2 Monitoring and evaluation
		9.3 Unanswered questions
		9.4 Conclusions
	References
	Glossary
	Back Cover

7.3 Summary points

• There is limited argument or empirical evidence that government need be directly involved in the production of pharmaceuticals.

• Countries with state-owned pharmaceutical manufacturing firms often face difficult questions about how to ensure the efficiency of these firms. In noncompetitive markets, privatization (divestment) may not be the best strategy. Governments need to explore a range of different options such as stimulating competing manufacturers and contracting-out management functions.

• Governments can play a key role in encouraging the development of manufacturing capacity in the local private sector. The most effective way of doing this is probably to encourage the development of a stable economic and political environment, an efficient regulatory environment, and favourable tax and duty structures.