The Asian Development Bank Institute (ADBI) is urging developing countries to liberalize the trade of medicines in order to achieve Sustainable Development Goal (SDG) 3 on health.
In a working paper, the Tokyo-based ADBI said tariffs and nontariff measures (NTMs) can increase the prices of medicines and medical equipment, which are crucial in the achievement of SDG 3.
SDG 3 aims to ensure healthy lives and promote well-being for all at all ages. This goal aims to reduce global maternal mortality and end preventable deaths of newborns and under-5 children, as well as the epidemics of AIDS and other communicable diseases.
“Although trade has a relatively low profile in the SDGs and their companion targets, it is by no means absent from the package of measures available to policy-makers to promote the SDGs. Trade economists need to do more to show that trade can benefit sustainable development through nonincome channels,” the paper stated.
The study found that tariffs and NTMs have increased prices and decreased the availability of health-related products.
These include medicines or pharmaceuticals, vaccines and medical equipment, which are key ingredients in ensuring that countries globally keep their citizens healthy.
Further, the paper stated that the liberalization of trade will also improve handling of health products that could boost usage.
Such is the case of insulin, the medicine for diabetes. The study found that some pharmaceutical companies charge higher for the product in countries that have higher per capita incomes.
Apart from liberalizing trade, the study urged governments to leverage the competition between manufacturers and their purchasing power to bring down insulin prices.
“Building up health systems that lower out-of-pocket payments is another option to make insulin more affordable to patients,” the paper stated.
The study also stressed the importance of facilitating the movement of generic drugs to poorer developing countries is important.
This, ADBI said, should be supported by both the public and private sectors through delivery infrastructure and professional services.
“We, therefore, need to stress the importance of complementary policies, such as infrastructure and human-resources development, as an adjunct to a liberal trade policy in relation to health products,” ADBI said.
The SDGs or Global Goals is a set of 17 socioeconomic goals that 193 United Nation member-countries, like the Philippines, committed to meet by 2030.
The goals are composed of around 169 targets and over 300 global indicators. The SDGs were adopted in September 2015.
The Global Goals aim to end poverty and hunger, promote universal health, education for all and lifelong learning, achieve gender equality, sustainable water management, ensure sustainable energy for all, decent work for all, resilient infrastructure, and reduce income inequality between and among countries.
The goals also include create sustainable cities, ensure sustainable consumption and production, take action against climate change, conserve and sustainably use oceans and marine resources, reduce biodiversity loss, achieve peaceful and inclusive societies, and revitalize global partnership for development.