Endnotes.

• Author: Kogan, Lawrence A.
• Position: Part 2

(219) According to Ugandan journalist Andrew Mwenda, "The primary problem for Africa is one of governance. The poor in Africa do not have basic social services because they are ruled by repressive, corrupt and incompetent governments. These governments spend millions of dollars annually on their corrupt and ineffective militaries, on ostentatious consumption by the political class, and on obese, profligate and highly incompetent bureaucracies. The institutions are very corrupt and incompetent that they stifle both domestic entrepreneurial initiative and frustrate foreign direct investment. These actions are not sustainable in the long term, of course, as these governments eat away the very economic foundation of their political survival. Foreign aid is the subsidy governments in Africa employ to avoid facing the consequences of their own folly. Without aid, many governments in Africa would stare regime collapse in the eye. Some would be stupid, retain the old ways and collapse. But many would be forced to reform their monetary and fiscal policies, to be frugal and prudent, to put in place public policies and political institutions that favor rapid economic growth and capital accumulation. They would have to listen more to their own people and foreign investors in policy making and policy orientation. In short, they would be forced to establish good, effective, accountable and democratic governments. Good and accountable government is not a product of altruism but enlightened self-interest. Sachs, Bono, Geldof, Tony Blair--and all the many good but naive people of the West--need to learn that simple, commonsense logic" (emphasis added). See Richard Tren, "Freedom and Sedition", an Interview With Andrew Mwenda, Political Editor of The Monitor, Uganda, TCSDally.com (5/23/06), at: (http://www.tcsdaily.com/article.aspx?id=052306C).

(220) "Improved health has contributed significantly to economic welfare. Per capita GNP rose rapidly in developing countries in the decades following 1960, and economic research suggests that health improvements led to perhaps l0 percent to 15 percent of that GNP growth" (emphasis in original), gee Dean T. Jamison, "Investing in Health" Chap. 1, Disease Control Priorities in Developing Countries 2d Ed., The International Bank for Reconstruction and Development / The World Bank, (2006), at p. 4, at: (http://files.dcp2.org/pdf/DCP/DCPFM.pdf); (http://files.dcp2.org/pdf/DCP/DCP01.pdf.).

(221) "A key conclusion ... of the United Nations Millennium Project ... is that innovation for 'medicines and other products' must be situated within a wider picture of efforts across sectors to improve health and development. Another is that 'other products' should include those for improved diagnosis and prevention--including existing well proven but low technology interventions that can be brought to bear on complex public health challenges" (emphasis added). Ibid., at p. 21.

(222) "Some of the most important impediments to the effective management of the growing body of developing country knowledge ... are the limited institutional resources in the form of skilled staff that can deal with intellectual property issues ... But the main point that needs to be emphasized here is the need to build the required institutional framework (e.g., patent office, administrative and court procedures) and the requisite skill set." Ibid., at p. 171. "... A factor in technology transfer in the area of production is the relative lack of experience and skill of developing country enterprises to conclude adequate legal arrangements to acquire the necessary technology. Other issues include the limited capacity of domestic firms to operate further up the value chain, and a lack of capacity to adapt acquired technology to local needs?' Ibid., at p. 172. "One approach to facilitating technology transfer--provided that technology owners are willing to part with it--is to enhance the capacity of developing countries to receive and use these complex technologies ... The TRIPS Agreement provides that developed countries shall provide incentives to their enterprises and institutions to promote and encourage the transfer of technology to least developed countries (Article 66.2). This provision was reemphasized in the Doha Declaration" (emphasis added). Ibid., at p. 173. "... Developed countries and pharmaceutical companies (including generic producers) should take measures to promote the transfer of technology and local production of pharmaceuticals in developing countries, wherever this makes economic sense and--promotes the availability, accessibility, affordability, and security of supply of needed products" (emphasis added). Ibid., at p. 174.

(223) At least one recent (2006) study has concluded that, developing country citizens have been denied access to essential medicines because of the abject poverty and poor environmental conditions existing within their borders, misdirection of government health budgets, inefficient bureaucratic administration of public services, weak physical and institutional health infrastructures, lack of good governance, high tax and tariff rates imposed on imported biotechnology and pharmaceutical products, strict regulatory restrictions on medicines approved in other countries, lack of available and affordable private health insurance, etc. See "Civil Society Report on Intellectual Property, Innovation and Health", International Policy Network (March 2006), at: (http://www.policynetwork.net/uploaded/pdf/Civil_Society_text_web.pdf). "This report is a response from a global coalition of concerned civil society groups to the World Health Organization's Commission on Intellectual Property Rights, Innovation and Public Health (CIPIH)." Ibid., at p. 5. See also, "Andy Webb-Vidal, "Chavez Opts For Oil-Fueled World Tour While Progress Slows on Social Issues in Venezuela", Financial Times (5/1//06), at p. 3. "Challengers point to the socialist president's failures in housing and poverty ahead of December's elections ... Some of the president's supporters are protesting that, after seven years in power, the government has little to show in terms of its pledges to create jobs, provide homes for the poor and tackle crime ... The Chavez administration's record on social and economic progress is brittle. Housing provision has been a disaster ... Mr. Chavez, a self-described '21st-century socialist, is not admitting any failures, however." Ibid.

(224) "Brazil imposes an import tariff of 11.7%, a VAT of 18%, and a state government tax of 6% on imported pharmaceuticals ... And because the impact of hidden costs is compounded, each hidden cost has a 'carry-on' effect." See Libby Levison and Richard Long, "The Hidden Costs of Essential Medicines", Essential Drugs Monitor, Medicine Prices Special Supplement, Issue No. 33, (2003), at pp. 20-21, at: (http://mednet2.who.int/edmonitor/33/EDM33_20-21_Hidden_e.pdf). In other words, taxes and fees are imposed repeatedly at each wholesale and retail level of the distribution chain taxes and fees at one level are determined based on the prior level's price, which already includes previously imposed taxes and fees. This had been corroborated by the U.S. Department of Commerce Foreign Commercial Service. "Taxes applied on medicines in Brazil are among of the highest in the world. The Government collects over US$1 billion in taxes from the pharmaceutical sector. The cascading tax method applied on manufactured goods in Brazil affects several industries, and is one of the most important topics that private industry has raised with the Government. The process aimed at reducing these taxes on pharmaceutical production is slow and bureaucratic." See Jefferson Oliveira. "Overview of Brazilian Pharmaceutical Sector", International Market Research Report, U.S. & Foreign Commercial Service and Department of State (2003), at: (http://strategis.ic.gc.ca/epic/internet/inimr-ri.nsf/en/gr106591e.html).

(225) See Normal Gall, "Democracy 4: Brazil Needs a New Strategy Lula and Mephistopheles", Braudel Papers, Fernand Braudel Institute of World Economics, supra, at pp. 12-14; Jonathan Wheatley, "New Corruption Charges Target Brazil Deputies", Financial Times (5/11/06) at p. 3. "The year-old corruption scandal surrounding the government of Luiz Inacio Lula da Silva, Brazil's president, has taken a fresh turn with accusations that a third of the lower house of Congress received bribes to made amendments to the country's national budget." See also Jonathan Wheatley, "Lula Accused of Knowing About Bribery", Financial Times (5/8/06), at p. 4; Cristovam Buarque, "Brazil Agrees It Needs More Education But Nobody Wants to Foot the Bill", supra; See also Jonathan Wheatley, "Senators Push For Corruption Inquiry Into Lula's Associates", Financial Times (4/21/06), at p. 8; Jonathan Wheatley, "Common Killing or Political Crime? Brazil's Corruption Probe is Reignited", The Financial Express (4/20/06), at: (http://www.financialexpress-bd.com/index3.asp? cnd=4/20/2006[section]ion_id=16&newsid=21158&spcl=ves); Raymond Collitt, "Voters Should Decide Lula's Fate: Brazil Candidate", Reuters (4/19/06), at: (http://today.reuters.com/news/articlenews.aspx?type=winterOlympics &storyid=2006-04-19T223017Z_01_ N06399833_RTRUKOC_0_US-BRAZIL-POLITICS.xml); Raymond Collitt. "Brazil Corruption Scandal Dogs Lula, Not Congress" Reuteis (4/5/06), at: (http://www.boston.com/news/world/latinamerica/articles/2006/04/06/b razil_corruption_scandal_dogs_lula_not_congress); Jonathan Wheatley, "Brazil Markets Steady But Scandal Will Not Go Away", Financial Times (3/31/06), at p. 4; Steve Kingstone, "Call For Brazil Corruption Action", BBC News (3/29/06), at: (http://www.turkishweekly.net/news.php?id-28959); Jonathan Wheatley, "How a Murder Case is Reviving Brazil's Furore Over Corruption", Comment and Analysis, Financial Times (3/28/06), at p. 15; Jonathan Wheatley, "Brazil Poll Contenders Yet to Show Their Hands"...