Learning from the Experience: The Inter-American Development Bank and Pharmaceuticals

By Antonio Giuffrida (09/01, SOC-123, En, Es)

Since Alma-Ata, medicines have been an essential component of the delivery of primary health care services. The 1975 World Health Assembly Report introduced the concept of essential drugs defined as ?those that satisfy the health care needs of the majority of the population and should therefore be available at all times in adequate amounts and in appropriate dosage forms? (WHO, 1975).

Pharmaceutical innovations and improvements in their availability and use have contributed significantly to the reduction of mortality and morbidity worldwide. Moreover, appropriate use of pharmaceuticals can reduce the hospital stay and the need of surgical procedures resulting in a more efficient use of health care budgets (Lichtemberg, 1998).

The Inter-American Development Bank (IDB) recognizes that pharmaceuticals play an important role in the health policy of its member countries. The Bank's operational policy for public health mentions three main concerns about the pharmaceutical sector: the first is for the quality of drugs, which must meet well-recognized standards. The second concern is assuring an adequate access to medicine. The third issue relates to the problem of maintaining prices at a level that makes drug production economically feasible, but also makes consumption affordable. The IDB has supported the governments of Latin America and the Caribbean in their efforts to improve their pharmaceutical systems.

Pharmaceutical components were included in many of the health projects financed by the Bank, but there is no systematic information regarding IDB activities in this sector. The objectives of this paper are twofold. First, it intends to present a brief description of the characteristics of the pharmaceutical sector in the region and discuss the rationale for Bank involvement. The second aim is to carry out a systematic review of IDB activities in this sector, analyzing the scale and scope of these activities during the last decade.

Section 2 describes the pharmaceutical sector in Latin America and the Caribbean and discusses the characteristics that make medicines different from standard commodities. Section 3 describes Bank activities in the pharmaceutical sector and its evolution through time and by regions. Section 4 provides a detailed analysis of Bank interventions in the various areas of the pharmaceutical sector. Section 5 concludes with a discussion of future challenges for IDB activities in this sector.

Last updated: 06/01/07