Sometimes, the multinationals lose.
In mid-September, the United States government announced that it will
stop bullying South Africa to abandon efforts to make essential
medicines available to its population.
Chalk up a win for public health�thousands of lives may be saved as
a result of the new U.S. policy�and a loss for the pharmaceutical
industry. The industry had relied on the U.S. Trade Representative to
act as its proxy in pressuring South Africa to abandon policies that the
drug companies believe to be contrary to their interests.
As is almost always the case, this defeat of corporate interests is
primarily attributable to one thing: citizen pressure.
In this instance, the reversal of U.S. policy came as a direct result
of a courageous and strategically savvy campaign conducted by AIDS
activists.
They forced the issue onto the national political scene and into the
national media in June, when they interrupted Al Gore�s announcement
that he was running for president.
Chanting "Gore�s Greed Kills" and "AIDS drugs for
Africa," the protesters dogged Gore at various other public events
for a three-month period.
Two million people die annually from AIDS-related causes, the
overwhelming majority in the Third World, and the number is
skyrocketing. Drug treatments that enable many people with AIDS in
industrialized countries to survive are priced out of reach of all but a
tiny number of HIV-positive people in the Third World. When South Africa
and other Third World countries have sought to take measures to reduce
the price of AIDS and other essential medicines, the U.S. government has
threatened trade and other sanctions to block them.
Apparently none of this was newsworthy for the major U.S. media.
But the media did find that disruptions of Gore�s speeches merited
coverage, and so the vice president�s staff quickly moved to make the
protests stop.
The protesters targeted Gore because he has co-chaired (along with
current South African President Thabo Mbeki) the U.S.-South Africa
binational commission, the vehicle through which the U.S. government
applied its pressure on South Africa. They also picked Gore because they
recognized that he was vulnerable to negative publicity.
The result of the activist campaign was an announcement by the U.S.
Trade Representative and the South African government that the U.S.
government would cease pressuring South Africa on the issues of
compulsory licensing and parallel imports. Compulsory licensing enables
a government to authorize generic production of a product while it is
still on patent, with royalties paid to the patent holder. Parallel
imports involves imports of drugs retailed in one country for resale in
another, so that the parallel importing country can benefit from lower
prices elsewhere in the world.
Through its Medicines Act, South Africa has sought to make use of
these two tools. With as many as one in six South African adults HIV
positive, AIDS drugs are a top candidate for compulsory licensing and
parallel imports.
Since compulsory licensing can drop the price of drugs by 75 percent
or more, if South Africa is able to proceed with its plans (it still
must resolve a domestic lawsuit challenging the law which was filed by
dozens of multinational pharmaceutical companies), many people are
likely to gain access to life-saving medicines who would otherwise go
without.
There apparently was no written agreement between the United States
and South Africa, or if there was the two governments are refusing to
release it, but it appears to represent a total U.S. capitulation. South
Africa appears to have made no concessions, promising only to adhere to
its obligations under the World Trade Organization (which permits
compulsory licensing and parallel imports)�a commitment it had already
made repeatedly.
As important as it is, this access-to-medicines victory is only
partial, even leaving aside broader questions about maintaining adequate
health care systems in developing countries, say, or finding a cure for
AIDS.
The U.S. agreement applies only to South Africa. It still remains for
the U.S. government to declare that other nations can employ compulsory
licensing and parallel imports without fear of repercussion.
And there remains the matter of whether the U.S. government will
license the patent rights it holds on essential medicines to the World
Health Organization, which could then disseminate low-priced versions of
the medicines worldwide.
But for now, activists are entitled to take a couple days and savor a
tremendous victory over the powerful pharmaceutical industry.
(Russell Mokhiber, editor of the Corporate Crime Reporter, and
Robert Weissman, editor of the Multinational Monitor and co-director of
corporate accountability group Essential Action, are co-authors of
"Corporate Predators: The Hunt for MegaProfits and the Attack on
Democracy." (c) Russell Mokhiber and Robert Weissman)