E-drug: Word Bank position on Globalization, Growth, and Poverty
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[I thought the below message, which appeared in the ip-health
forum (thanks!) is probably of interest to many E-druggers. HH]
Developing nations may be getting an important new ally in their
battle against restrictive patent laws. A draft document written by
David Dollar, a senior economist at the World Bank, lists TRIPS,
along with labor and environmental standards, as forms of
protectionism being promoted by wealthy nations, which could
impede expanded trade. This document is being debated by the
Bank's board, and if approved, will be an official statement of
World Bank policy. The below document is a draft of a release that
we (the Center for Economic and Policy Research) sent out about
this draft.
Dean Baker
Center for Economic and Policy Research
e-mail: dean.baker@worldnet.att.net
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For Immediate Release
World Bank Breaks With the United States, WTO on TRIPS
In a sharp departure from its previous practice, the World Bank
appears to be opposing the United States government on one of its
top trade priorities. A draft document by David Dollar, a senior
economist at the World Bank, calls for separating rules governing
intellectual property rights, such as the TRIPS agreement, from the
WTO.
This move runs directly counter to efforts by recent administrations,
including the Bush Administration, to apply more stringent patent
and copyright rules to developing nations. The United States has
pushed for these protections not only in TRIPS but in other pacts,
such as NAFTA and many bilateral agreements. If the World Bank
adopts this draft as an official document, it will be the first time
that it has directly opposed the United States government on a
fundamental issue of international commercial policy.
TRIPS has encountered widespread opposition throughout the
developing world. By imposing U.S.-style patent and copyright
protections it will raise the price of many products by several
hundred percent above the competitive market price. This contrasts
with other forms of protectionism, such as tariffs or quotas, which
rarely raise the price of goods by more than 20 or 30 percent.
The impact of TRIPS on developing nations has drawn considerable
attention in the case of AIDS drugs, where the application of patent
protection will make many life-saving drugs unaffordable to people
in developing nations. With other products, such as software, seeds
for agricultural products, and recorded music and movies, TRIPS
will lead to the transfer of tens of billions of dollars in royalties and
licensing fees from developing countries to the high-income
countries, and cause enormous economic distortions. Given this
fact, opposing TRIPS would be consistent with the World Bank's
stated goal of eradicating world poverty.
This new position for the World Bank appears in a draft document
titled: "Globalization, Growth, and Poverty: Facts, Fears, and An
Agenda for Action." According Bank documents, the paper was to
be discussed by Executive Directors at a meeting on August 23,
2001. At one point the paper notes that "If the rich countries insist
on institutional harmonization in areas such as intellectual property
rights and standards for health, labor, and the environment, then
prospects for greater trade between north and south will be greatly
diminished (page 8)."
If the World Bank adopts this position -- that efforts to extend
patent and copyright protection to developing nations are an
obstacle to expanded trade -- in its final report, then it will place
itself squarely at odds with the Bush Administration's agenda in this
area. This will be the first time that the World Bank has opposed a
U.S. Administration on a major priority of its economic agenda.
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