|
|
download this report in Word 6.0/95 format | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Introduction
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
For years, HAI and other public health advocates have worked to strengthen and support the WHO and its advocacy of rational drug use policies. Recently, they have become concerned about ramifications of private sector funding on the mission and standing of WHO and other public institutions involved in health policy. HAI and others have drawn attention to the fact that corporations cannot be held accountable in the same way that governments can. Ultimately, companies are accountable to their shareholders. Growing dependence on private sector funds could lead to many problems one of which is the problem of sustainability. This seminar, co-organised by HAI Europe and BUKO Pharma-Kampagne, was held to evaluate the risks and benefits involved in public-private interactions and to find out why this trend towards partnership has developed and taken hold of the imagination of public agencies. In the opening presentation, Gill Walt traces the political and economic changes in the international landscape that have made the time so ripe for co-operation under the name of 'partnerships'. She explains that the private sector increasingly operates under a global spotlight and has been repeatedly criticised that its methods and outputs do little to meet public health needs. Working in 'partnership' with leading public health institutions at the international and national levels is certainly an effective way of countering that negative image. In addition to the World Bank and a number of UN agencies, the pharmaceutical industry is actively lobbying to have partnerships be accepted as the way forward. As a press release from one of its trade groups stated "public-private partnerships are increasingly seen as the only viable means to solve intractable social and health problems, such as poverty and disease eradication, new drug research, access to medicines and improving drug quality...." [note 2] While industry sees the advantages of working closely with WHO and other health 'partners', others suggest that such close association with industry could have negative effects for the health bodies involved and ultimately, the public interest. In her contribution, Judith Richter draws attention to 'partnerships' as part of a sophisticated corporate issues management plan that must be assessed in terms of context and power. The need to also analyse
industry's motivation is highlighted in Patti Rundall's presentation that
underscores the fact that the ultimate goals of corporations and public
health bodies and governments differ fundamentally. She calls on NGOs
and governments to make sure they understand the stakes involved if and
when they decide to enter into public-private dialogues or partnerships. |
The private sector's immense resources make it an irresistible yet potentially overpowering 'partner' for public health initiatives. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Public-private initiatives can redirect national or international health policies and priorities. They can defeat crucial local or national efforts already underway such as essential drug programmes, generic drug production or vaccination programmes. As Anita Hardon points out in her presentation, for the private sector, such public-private collaborations cannot be seen in strictly altruistic terms. Rather, they are often an investment in promoting conditions that favour branded products and newer, more expensive drugs. Her presentation on developments in the field of vaccines raises serious questions about whose agenda is being followed and at what cost. Some participants at the seminar pointed out that they were not against co-operation between public and private actors per se. In discussion, examples of successful, focused projects aiding access to medicines or addressing a local health problem were mentioned. However, most agreed that there are huge differences in the quality, sustainability and power relationships of the types of co-operation now all being labelled as 'partnerships.' That fact that HAI Europe and many of its network contacts see the value of specific joint actions does not mean that the most varied types of public-private ventures should all be labelled 'partnerships' or should be assumed to improve public health. While the commercial parties are quick to publicise the funding support given to public projects, they are often less forthcoming on other aspects of the initiative. For example, sometimes there is little explanation given about local stakeholder involvement in the development, implementation and evaluation of such projects. Often recipient governments, NGOs and communities have little say in how the initiatives are organised and they can be marginalised in the decision-making processes that affect them. Given the imbalance of power between providers and recipients, there is a need to examine if many of the projects have real, lasting benefits for the recipients. One organisation that has been trying to address that very concern is the GTZ, a close collaborator with the German Ministry of Economic Co-operation and Development. During the seminar, Kordula Schulz-Asche of GTZ outlined the steps it followed to determine the best chance of achieving success in a public-private venture aimed at reducing mother-to-child transmission of HIV/AIDS. It is clear from her description of the interplay of agendas, possibilities and constraints that mere political commitment to address a health emergency is not enough to make a sustainable impact on the problem. While public-private ventures grow in number, very few receive attention after their initial launch. Once the flurry of news articles announcing the initiative and lauding the company have stopped, few initiatives are actually assessed to determine their effects on local populations and public health achievements. This seminar's goal was to open the debate on public-private interactions and determine some of the key issues that need to be more thoroughly examined by NGOs, public officials and health organisations before such joint initiatives become an unstoppable and perhaps, ultimately harmful, trend. There are many questions that need to be asked, and more importantly, to be answered. Critical analysis of the long-term health consequences caused by such public-private ventures is necessary. NGOs have a role to play in ensuring that sustainable, responsible solutions are put forward that meet public health needs and not just corporate agendas. |
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Opening of the seminarSeminar chair, Charles Medawar, Social Audit, UK Opening the seminar, Medawar emphasised the complexities of the topic, many resulting from ambiguities and uncertainties of definitions. He said the day's discussion would be aimed at unravelling both the common threads and the differences in many kinds of arrangements that might be described as public-private 'partnerships'. The chair put forward some provocative questions to start the day. He asked the participants to debate whether or not such 'partnerships' are fair for all parties involved and actually in the best interest of public health. He also questioned who defines the needs to be addressed, and how. |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Using private money for public health: the growing trend towards partnershipGill Walt, Reader in Health Policy, Department of Public Health and Policy, London School of Hygiene and Tropical Medicine Walt's presentation outlined the history and development of public-private 'partnerships'. Her goal was to define clearly public-private partnerships, explain why there has been a shift towards this type of co-operation and to question if they are ultimately good for public health. The landscape of public health is changing before our eyes, and we, therefore, need to change our own mindsets. We have to accept that there is a change. The new millennium has brought the power of multinational corporations to the forefront. What is partnership? There are different kinds of 'partnerships' and it is important not to place them all within one group. The main categories include country-level co-operation between a public body and a private sector one and those occurring on a global level between, for example, United Nations organisations and commercial enterprises or their representatives. There are three main types of partnerships:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
The types of partnerships being pursued have changed over time. For example, in the 1970's there was a stand-off between the public and private sectors which resulted in a separation of their activities. The political climate of the time ruled out any possibilities of partnership and instead there was a feeling of hostility, antagonism and conflict between the two. In the 1980's the private sector began to expand and gain influence. Public sector institutions began holding discussions with commercial enterprises, though often in secret. Most recently, the 1990's have ushered in an era in which the private sector has grown dramatically. This has encouraged governments and international organisations to work much more closely with industry and civil society in an effort to achieve health goals. Why partnerships?
These developments have reduced
state sovereignty. Decreasing government control means that there is a
growing need to collaborate with the strong, corporate sector. |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
There has also been an ideological shift. Even those who are strongly pro-market accept that there are market failures that significantly affect public health although there is uncertainty about how to deal with such failures. There is disillusion with the UN. Concerns have been voiced regarding its effectiveness, inter-agency competition and bureaucracy. Moreover, there is disappointment with governments due to corruption, sluggish response time and the overwhelming desire to avoid risk. Changing markets, technologies and attitudes have heightened awareness of the interdependence of actors involved in public health. Production has become more costly and this has resulted in the empowerment of industry. Industry's current powerful stance has emboldened it to demand that it be a partner in discussions on public health. Today, this request is hard to deny. Why are partnerships viewed as such an interesting option for those involved? UN agencies and bilateral donors see them as an opportunity to achieve public health goals by harnessing private funds. The second stakeholder, industry, can achieve even more gains. First, it is a chance to increase its influence in the global arena. It can also bring about direct financial benefits. And lastly, it is an excellent way to carry out brand and image promotion. However, questions remain: Do partnerships bring about a win-win situation for all those involved? Can the private sector really have a health goal? Due to the fact that it is profit-oriented, such a goal is rarely central to its mission. Still, can public and private goals be reconciled? Differences remain in what they are trying to achieve. There is potential for a conflict of interest in these goals. Key concerns Representation/legitimacy: Those designated to benefit from such public-private partnerships rarely sit on these projects' Boards of Directors. They are also usually uninvolved in the planning or agenda setting. This raises real concerns about the representation of their needs and interests in any such partnership endeavour. This is in striking contrast to the representation available to countries through usual UN representation. Accountability: Who is actually accountable for the outcomes of such partnerships? Is it shareholders, board members, or donors? To whom are public-private partnerships accountable? Does accountability have to be shown to the Board or to the people the partnership is meant to help? We need much more information about how these partnerships are actually being carried out in countries. Inequity: Public-private
partnerships may also undermine equity within and between countries. Often
countries will not be selected for participation if, for example, they
are unstable or highly populated or considered 'difficult'. Instead, other
countries will receive attention. While this is understandable, it remains
unfair. |
Globalisation has caused a fundamental change in how institutional arrangements are made, how power is exercised and ultimately, how decisions are made. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Threats or opportunities? More evidence is needed on which situations can best be met through partnerships, and which need to be the responsibility of government or the public sector. Much also needs to be learned about governance issues at the global level and delivery at country and local level. |
How much of a voice does the World Health Organization have in setting priorities for world health with its budget of approximately US$1 billion, when the Global Alliance on Vaccines Initiative (GAVI) has US$1 billion just for vaccines and the Bill and Melinda Gates Foundation is spending well over US$6 billion on infectious diseases? |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
'Partnerships' between UN agencies and transnational companies: A critical perspectiveJudith Richter, consultant on the politics of health Richter reminded the audience about the importance of examining issues from a perspective of context and power. She said one has to look at today's public-private ventures in light of the political developments of the past thirty years. In her presentation, she highlighted the need to analyse so-called public-private partnerships also as part of a sophisticated corporate issues management plan aimed at advancing the political and economic agenda of transnational (TNC) corporations. An unquestioning rush on the part of many governments, UN agencies and some NGOs to join such 'partnerships' may ultimately damage public interests, she argues. 'Public-private partnerships'
(PPPs) are being promoted as the policy innovation of the turn
of the millennium. Much of the predominant PPP discourse depicts past
heated controversies over, for example, the establishment of a socially
just New International Economic Order and for international regulation
of transnational corporations as purely ideology-driven, polemic debates.
Today, we are being called upon to give up what is depicted as an unreasonably
distrustful attitude towards wealthy, powerful corporations. We are being
told that this distrustful attitude is depriving the world of valuable
benefits to be expected from closer, more trusting interaction with big
corporations, such as new drugs and vaccines for the poor or community
health programmes. This is a naïve representation of a complex issue.
There are significant gaps in the PPP discourse. Crucial questions, which
are not being asked, include the following: |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Not only corporate public relations professionals but also institutions such as the World Bank have advised corporate managers to engage in 'partnerships' with reputable institutions and individuals in order to 'build trust'. Trust, in turn, is advertised as the basis for improved corporate 'bottom-line performance' and 'risk management'. Close association with the UN and NGOs can, for example, enhance the reputation of corporations through 'image transfer', irrespective of their actual practices. A good image can be of advantage in a competitive market. It is also a political resource. Corporations want to be seen as 'good corporate citizens'. They know that this might well translate into enhanced political legitimacy and influence. It is no secret that companies want to have a greater role in shaping global policies. When then Nestlé CEO Helmut Maucher took the helm of the International Chamber of Commerce (ICC) in 1997, he said in a Financial Times editorial entitled "Ruling by Consent":
A year later, Maucher announced in the same newspaper:
Citizen groups have raised concern that UN agencies' lack of precautions with respect to their 'partnerships' with transnational corporations is being used by a number of corporations to 'bluewash' their image. Partnerships with the UN can be too easily used to cleanse tarnished TNC reputations through close association with the United Nation's blue flag and logo. (TRAC 2000) 2. Where does the corporate
money come from? Is there truly such a need for public display of gratitude if winners of global economic restructuring, such as Microsoft's Bill Gates who earns US$120 million a day (UNDP 1999), donate a few hundred million dollars? With his estimated total assets of US$63 billion (Forbes 2000), Bill Gates alone could finance the World Health Organization for thirty years. Unasked also remain the questions of what price is being paid for corporate funds and whether the necessary funds for public services could not be collected in other ways. 3. Why do the most varied
kinds of interactions with industry have to be called 'partnerships'? The subsuming of the most varied interactions between the public sector and the for-profit sector under the term 'partnership' has two major consequences: First, it obfuscates the nature of the relationship. For example, many of the current 'public-private partnerships' are nothing but corporate sponsorship in cash or in kind or negotiations for favourable drug prices; others are semi-private discussions between public institutions or high-level political figures and big corporations; others are publicly- subsidised research collaborations. (In business language some of the PPPs are actually called 'strategic sponsorship' or lobby activities). Also obfuscated is the fact
that the potential and pitfalls of various types of interactions between
the public and the commercial sector have often already been discussed
under various other, more precise terms (for example, there are extensive
discussions about the disadvantages of donation-driven policy-making). |
... much of the corporate drive towards closer interaction with UN agencies could as much be attributed to their 'enlightened self-interest', a strategic trading of part of their short-term profits in anticipation of increased long-term profits. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
The second problem is that the term 'partnership' is heavily value-laden. It gives the impression of equality and suggests that all sides are working for a joint goal. The positive connotation of public-private partnerships is no oversight. Indeed, two other value-laden terms are usually cited as main criteria for engaging in 'partnerships' with corporations and their business associations, namely 'trust' and 'mutual benefits'. Both the name and these criteria interfere with unprejudiced evaluations of whether or not these interactions are indeed beneficial for society. The measuring stick for engaging with corporations must remain the contribution of the venture to the promotion of public interests. It cannot be a question of trading some public interests against profit for the corporate participant. 4. What are the societal
risks of 'public-private partnerships'? Recommendations for action
It is time to see where 'public-private partnerships' have brought us. There should be a moratorium on them. A public assessment of past 'partnerships' should be conducted to assess if the poor have benefited from them, and if other alternatives could have provided better public health and policy outcomes, at less cost. This should include the examination of how states can withstand corporate pressure for undue tax cuts and public subsidies to the commercial sector. Finally, public debates about the legitimacy of corporations shaping the world's policies should be promoted at all levels. References: |
Business leaders have also used their close relationship with the UN to press for a distinction between 'reasonable' and 'confrontational' NGOs. They have questioned the public funding of those NGOs which business labels as confrontational. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
A Case for Partnership? The German Government/Boehringer Ingelheim initiative on HIV/AIDSby Kordula Schulz-Asche, team member of the Sector Project AIDS Control in Developing Countries, German Society for Technical Co-operation (GTZ) The German government is weighing the possibilities of public-private ventures on priority health issues such as HIV/AIDS. Kordula Schulz-Asche, a team member of the GTZ AIDS Sector Project, presented a study realised on behalf of the German government to define the prerequisites for donated supplies of the drug nevirapine to reduce mother-to-child transmission of HIV/AIDS, especially in Sub-Saharan Africa. In her overview, she described why the government decided to participate in this effort and the framework of the technical co-operation in the fight against HIV/AIDS in developing countries, including the importance of prevention strategies and partnerships. The HIV/AIDS epidemic is unique in its devastating impact on the social, economic and demographic underpinnings of development. We know that countries that have adopted forward-looking strategies to fight it are now reaping the rewards in the form of falling rates of incidence. (This has been found in AIDS prevention programmes supported by the German government in Western Uganda and Tanzania.) GTZ works on behalf of the German Ministry of Economic Co-operation and Development (BMZ) to spearhead efforts to combat HIV/AIDS. Since 1987, the Sector Project has aimed to enhance the capacity of national and local governments and the private sector to cope with the epidemic using a comprehensive approach to AIDS prevention. In its fifteen years of experience in this field, GTZ has gained important insights on what brings about effective responses to HIV/AIDS interventions. These include:
Today German technical co-operation follows both a national and international agenda and is actively involved in regional partnerships on HIV/AIDS with UNAIDS and other actors. On behalf of the Ministry, GTZ's interventions, mostly focusing on prevention efforts, occur at different levels:
German development policy
and public-private collaborations Public-private ventures
and drug donations: the answer? The German pharmaceutical firm, Boehringer Ingelheim, announced in June 2000 that it would donate supplies of nevirapine for five years to developing countries. To be eligible, countries must have a national AIDS policy (UNAIDS/WHO), high participation of pregnant women in maternal health care services and an existing HIV/AIDS prevention programme. The donation programme works through governments and is implemented in hospitals with counselling and qualified staff. The quantity of nevirapine to be shipped to each country would be in accordance with the estimated number of HIV-positive women. The company made it clear it would not be responsible for local distribution of the drug or training of health personnel. Against that backdrop, the German government asked GTZ to study in collaboration with Boehringer Ingelheim, the possibilities of prevention of mother-to-child transmission (PMTCT) programmes in the framework of German development policy. A number of scenarios were drawn up involving varying levels of intervention. The goals, necessary activities and costs were set out for each one. Ultimately, Kenya, Uganda and Tanzania were selected because of established bilateral co-operation. After discussions with the bilateral partners, the study proposes: In Kenya, 1,500 pregnant women in the GTZ-supported district of Migori and Kuri (Western Kenya) take part. Here the HIV prevalence is approximately 26%. The proposed intervention includes HIV counselling and testing, nevirapine and breastmilk substitutes distributed from two hospitals. The costs, without long-term therapy, are estimated at DM 1.2 million (US$550,000) in three years. In Uganda, 8,000 pregnant women living in the GTZ-supported Kabarole district in the western part of the country could be involved. This region has an HIV prevalence rate of around 20%. The possible interventions include: HIV counselling and testing, supplies of nevirapine and breastmilk substitutes, plus long-term antiretroviral therapy (if possible) through two hospitals and one health centre. The costs are approximately DM 2.5 million (US$1.2 million) in three years, without long-term therapy. In Tanzania, 8,000 pregnant
women could be involved in the GTZ-supported AIDS prevention programme
area in the Mbeya region. Here HIV prevalence is about 15%. The intervention
could comprise: HIV counselling and testing, supplies of nevirapine, treatment
of opportunistic infections and psycho-social support, carried out in
two hospitals and one health centre. The costs, excluding long-term therapy,
are estimated at DM 2.2 million (US$1 million) in three years. |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
The relationship of public and private funding in this case study shows that the drug donation alone cannot establish a partnership in the proper sense. Further engagement of the private partner would be necessary. In closing, one personal point of view: there is a risk that funds for effective prevention programmes will be more and more diverted towards therapy approaches. |
The relationship of public and private funding in this case study shows that the drug donation alone cannot establish a partnership in the proper sense. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Vaccination Policy and the Public-Private MixAnita Hardon, Medical Anthropology Unit, University of Amsterdam Global vaccine efforts led by UN agencies have slowly given way to more donor-appealing initiatives led by private foundations. This shift in public health policy is already affecting how money is being spent on vaccines. Greater involvement by the research-based industry and private charities has promoted new, more hi-tech medicines against more diseases. At the same time, up to 25% of children in many developing countries still receive no vaccinations. In her presentation, Anita Hardon, traces how donor-driven projects have started to weaken the role played by long-standing public bodies, national governments and local industry. She also raises concerns about how today's vaccine campaigns leave little room for voices from the South and consumers. Vaccination programmes are critically important for public health. They are also extremely appealing to donors. When one considers the reason why, the various aspects of vaccines make the answer clear: By supporting such initiatives one can change the world, eradicate a disease, make war against viruses and sign your name on the cure. In the past, donors supported vaccine programmes for a number of reasons, including:
Progress on immunisation
over time In the 1990's, three new vaccine
campaigns were introduced. Firstly, there was a move to eradicate polio
backed by huge private funding (US$400 million was donated). This private
money skewed regular public services as EPI's regularly scheduled national
immunisation days were interrupted by new polio vaccine drives. The second
campaign involved the introduction of user fees in the Vaccine Independent
Initiative sponsored by UNICEF. With this change in policy, UNICEF announced
its belief that some countries should start paying for their own vaccines.
The third campaign was the 'magic bullet' approach which promoted new
and improved vaccines financed by private foundations in the so-called
"Childhood Vaccination Initiative (CVI). The CVI was created in 1997 to
solve the sustainability problem faced by many vaccine initiatives. Global
industry and public monies worked together within its programme. The emphasis
was placed on development and products instead of health systems. A year
later, the CVI was damaged by donor tensions and concerns about the weakening
of the UN system. Commercial interests started to dominate CVI. The programme
itself received criticism for focusing on technical solutions. |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Industry is keen to develop new vaccines, although only an estimated 74% of the world's children are covered by current vaccine programmes [note 4]. The population already reached by vaccination programmes is a huge potential market for new vaccines and there is more profit in it than in trying to reach the remaining 30%-40% that currently receives no vaccines. (The 74% figure hides the fact that some countries still have only 40% coverage.) Pharmaceutical companies want to expand the number of vaccines included in the EPI. Currently, six generic antigens are used in it. Sixty percent of the vaccines are produced locally so an inexpensive generic alternative is available and used. Now companies and donors are looking for new magic bullets - new vaccines - that will prevent more diseases. Such an approach is much more attractive to donors than working to reach the children still not receiving the basic mix of vaccines. New vaccine campaigns
|
Today vaccination policies seem to have shifted towards public-private 'partnerships' and away from equity. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
These initiatives have overlapping goals. The Gates Foundation has donated hundreds of millions of dollars towards the first two funds for a five-year period. (Interestingly, this support will be facilitated by the NGO PATH, which coincidentally happens to be based in Seattle, near the headquarters of Gates' company, Microsoft.) Unlike earlier vaccine campaigns, these initiatives spend little time discussing sustainability. Instead there is a great deal of talk about the need to create new systems and new vaccines. Critics have raised concerns that these private initiatives reduce local capacity to produce vaccines. The fact that GAVI and the other programmes will work with newly developed vaccines generated by multinational firms could cause people to believe that locally produced vaccines have lower quality. It is also important to note that in initial disbursements of GAVI only 10% goes towards health systems support. Ninety percent goes towards new vaccines such as hepatitis B. This may change in the future, but it is indicative of the emphasis of support to vaccination programmes. GAVI is an interesting case study to analyse. One can see where its financial support comes from, but who runs its Board? At present, its Board comprises some of the most influential international actors involved in public health today. The current members include four renewable members [note 5]:
In addition, it has eleven rotating members which include various stakeholders:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Such a large initiative involves benefits and risks. GAVI's advantages include the increased resources brought to the vaccine issue and and its cost-effectiveness. Some of the initiative's negative consequences include the reinforcement of donor dependence, a skewing of health programmes, a large emphasis on creating markets, the weakening of UNICEF's independence, a lack of sustainability for traditional vaccines suppliers and technical transfer, greatly reduced transparency, and limited involvement by developing countries and consumers. One has to wonder what will happen to this initiative after its five years of funding has been used. There is a great need for more consumer voices to be heard on this issue. Vaccination policy has changed rapidly during the past few years and consumer input has been lacking. We must start asking critical questions about such public-private interactions to ascertain the long-term consequences for public health. In such a high-profile area as vaccines, participants including donors, governments, and industry have a clear vested interest. Consumer voices need to make sure that the public health interest is represented as well. |
One has to wonder what will happen to this initiative after its five years of funding has been used. | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
The Perils of Public-Private Partnerships: How do partnerships impact grassroots campaigns?Patti Rundall, Policy Director, Baby Milk Action UK and member of the International Baby Food Action Network (IBFAN) The contrast of resources between corporations and NGOs is huge, as are their ultimate goals. In her contribution summarised below, Rundall draws examples from the world of breast milk substitutes sales and breastfeeding advocacy to suggest why corporations enter public-private ventures and the repercussions such co-operation can have on other stakeholders and public health. The aim of Baby Milk Action
is to save infant lives and end the avoidable suffering caused by inappropriate
infant feeding by supporting the implementation of independent, transparent
and enforced controls on the marketing of baby food. In contrast, the
aim of Nestlé (a company which manufactures breast milk substitutes) is
to participate in industrial, commercial and financial enterprises in
Switzerland and abroad, particularly in the food and related industries.
When we talk about 'partnerships' we must first be very clear about the
objectives of companies. We cannot escape the fact that all corporations
have a fiduciary (legal) duty to maximise profit for their shareholders.
No matter what the rhetoric, and the often good intentions of individuals
working within corporations, there has to be a financial payoff-either
in the short or long-term. |
No
matter what the rhetoric, and the often good intentions of individuals working
within corporations, there has to be a financial payoff-either in the short
or long-term. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
The size of the corporations involved in sponsorship is a key issue. The question is: Where is the balance of power? WHO's annual spending is US$1.7 billion whereas Nestlé's annual spending on product promotion alone is estimated to be US$7 billion. This relationship is something to keep in mind when one talks about corporate generosity. A number of pharmaceutical companies also manufacture breast milk substitutes and products closely related to artificial feeding. Many are now promoting 'medicalised foods' and medicalised solutions to normal feeding occurrences-using health claims and other strategies. Since 1981, the International Baby Food Action Network (IBFAN) has worked to ensure that the International Code on the Marketing of Breast Milk Substitutes (and the eight subsequent WHA resolutions) are implemented, monitored and adhered to in every country in the world. IBFAN works to ensure that mothers and infants world-wide are effectively represented wherever decisions affecting infant feeding are made. IBFAN's campaigns, involving Code training courses, networking, work on maternity legislation, emergency relief, HIV and activities such as the Nestlé Boycott, have focused on long-lasting effective controls. Because we have refused to be sidetracked into working 'with' individual companies, for example, into helping them to improve their own voluntary codes, we have not lost sight of our long-term objectives. To date, more than 116 countries (including India, China, Brazil and Nigeria) have taken action to implement the International Code and over half the world's population now lives in countries where laws are in place which broadly incorporate its main tenets. The Code does not try to stop the availability or sale of breast milk substitutes, but it does seek to prohibit activities which persuade people to use them and to ensure that decisions about infant feeding are made on the basis of truly independent health advice. If water is not clean, a mother needs to know. When deciding whether or not to breastfeed, she also needs sound information about the natural immunity found in mother's milk and its role in preventing illness and death. IBFAN has encountered problems with TNC/NGO partnerships. These problems are rarely publicised or acknowledged because they involve wider concerns relating to the very poor who, all too often, have no say in the decisions taken on their behalf. For companies, the advantages of partnerships with prestigious NGOs are clear:
As one advertising executive stated "The benefits of cause-related marketing are long term...You are building a surplus account for the times when you have a crisis". [note 6] The real danger comes when we try to identify and recognise the factors that affect poverty and ways to combat it. When partnerships with TNCs are proposed there is a danger that the 'wrong people' (people whose main objective has nothing to do with health - indeed whose goals conflict with the objective of health for all) are invited to be involved in 'research' and 'analysis'. As a result, the wrong questions are asked, or given priority, and the wrong solutions are proposed. As an example, companies with a vested interest in the HIV and infant feeding market - the pharmaceutical and baby food companies - are pushing the UN to allow them to enter into 'partnerships' to help address the growing HIV/AIDS crisis. At the same time, the baby milk industry is promoting donations of formula and the use of artificial feeding as the 'simple' solution to the problem of HIV transmission. IBFAN is calling for much more caution and a clear perspective on the relative risks. While 1.7 million babies might have contracted HIV through breast milk in the last twenty years, almost certainly 30 million will have died from the replacement of breastfeeding by artificial feeding in the same time. |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Today the stakes are high. NGOs have to see many public-private ventures for what they are and analyse their consequences for health. NGO representatives also need to consider their own actions in such deals. The little details matter. When you sit at the table it implies that you agree with the process. NGOs don't need to refuse the situation but they also don't have to accept it on industry's terms. It is important to demand transparency whenever an NGO, government or institution enters dialogue with industry or co-operates with it. Without it, you can easily lose your integrity and control. |
NGOs don't need to refuse the situation but they also don't have to accept it on industry's terms. It is important to demand transparency whenever an NGO, government or institution enters dialogue with industry or co-operates with it. | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Hidden Price TagsAlain Guilloux, Médecins Sans Frontières (MSF) For the last few years, MSF has mounted a public campaign to increase access to essential drugs. As part of this effort, it explored various means used by the pharmaceutical industry to address this problem. During the seminar, Guilloux questioned if one of industry's favourite responses, drug donations, was actually the most effective way to improve access. Below, he highlights findings from the MSF report he authored on this issue called Hidden Price Tags. Pharmaceutical companies have no tax incentive to reduce the prices of their medicines. However, public opinion and health crises often call for industry action to help increase access. As a consequence, companies often decide to donate drugs in order to assist access and to help combat diseases. MSF has raised a number of concerns associated with this action including:
MSF believes public funds should be used as rationally as possible to address the access crisis that exists in many parts of the world. To determine the best ways to increase access, MSF undertook a study of various methods now being used to reduce drug prices. The study examined the US situation and considered five models:
The study's results suggest that in most cases the two most expensive models for the US taxpayer are drug donations and concessionary pricing. Differential pricing was found to be the least expensive option for the taxpayer. The purchase of generics was also inexpensive. On occasion, MSF has urged companies to donate drugs to help critically ill people quickly. However, the organisation realises that, on the longer-term, donations raise a number of problems. To begin, they only provide a short-term solution. It is not a sustainable model. While short-term action can temporarily relieve some access problems, it does not address long-term needs. Such donation programmes run into foreseeable long-term constraints, such as:
Drug donations also tend to
distort rational drug use and hamper the growth of the generics industry. |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
In conclusion, there is a need to:
|
MSF believes there is a crucial need to convince policy-makers to refocus policies towards more sustainable solutions. They need to be shown how some short-term interventions may not maximise public health goals. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
DiscussionA question of equity The link with trade Another said the real cost for Boehringer Ingelheim was certainly not US$4 a pill. Once the factory is set up and selling medicines in Western countries the marginal extra cost is relatively low, he suggested. He estimated that the company's cost is probably one-tenth or one-fifth of US$4. Considering that price, he said, the company is receiving a great deal of prestige and has a lot of power in controlling the programme. Drug donations Another participant emphasised that the real costs of donations must be considered. There is a distortion of costs to public health programmes. In South Africa, for example, so much time has been spent on setting up systems for assessment. (This was a condition made by a company before a partnership programme could start.) That is an immense cost. Participants suggested that governments need to make a policy about what they will accept. If a country accepts all donations, it no longer controls the policy on essential drugs and vaccines. The speaker from Médecins Sans Frontières was asked if the NGO had ever been approached by pharmaceutical companies about possible partnerships. He was asked if MSF had a policy on this. The speaker replied that MSF has knocked on industry's door in the past. While the organisation has accepted donations, about two years ago it began to question if this was the right choice. MSF is now aiming to improve access in other ways including the purchase of generics. He was then asked if speed is of the essence and if donations could be faster than other options, might MSF then ignore the long-term problem of continuously accepting donations. Guilloux said he saw the point but in MSF's view, long-term is about six months. He stated that MSF would not lose sight of its goal to explore other options since it does not consider donations sustainable. Partnerships as a marketing
and public relations tool |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
The question was raised: couldn't
UN agencies and governments devise criteria for involvement the way that
companies do? Governments need to prioritise. One has to discuss how health
systems could really be improved. How health workers could obtain higher
salaries was suggested as a good place to start. Perhaps governments should
stop all partnerships and negotiate with the private sector to obtain
funding to improve health systems. There is a need to think differently
and much more imaginatively. We shouldn't think just in terms of vertical
programmes that fragment the public health system. |
Public-private partnerships tend to divert the attention of governments and transform country health agendas. These partnerships give money to specific disease-oriented programmes. Officials are told they will get something for free, but actually it still involves huge costs. There is a need to shift the focus back to the health care system. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
A number of speakers suggested that the focus be placed on structures of health services delivery. The lack of access to HIV/AIDS medicines provides a good example. People living with HIV/AIDS have strongly proposed ways of increasing access. They demand help. At the same time, we know that prevention efforts are crucial. The challenge is to find ways to strengthen preventive measures and assist those who are living with the disease. We need to go beyond advanced antiretroviral (ARV) therapies and back to basic health services to help those who are severely ill. We should also remember to provide the basic drugs for opportunistic infections that accompany AIDS. to fight diseases with basic drugs. ARV therapies are very much in vogue, but unaffordable for the poor. Unfortunately, a pill will not end this crisis. Another participant suggested that the debate needed to move away from AIDS as a main reason for the distortion of health systems. She noted that structural adjustment programmes have also caused health systems to disintegrate. They spread neoliberal policy and its focus on privatisation and deregulation. That is also in the interest of global industry, she said. The impact on the UN and
WHO Political will is weakened
by industry, said a participant. We need to better regulate industry.
The World Bank now propagates a new development model in which they allegedly
want countries to decide independently about their development. In fact,
she stated, the World Bank proposes a tripartite decision-making process
in which governments, civil society and business are called to discuss
priorities and come to consensus. She voiced the opinion that we need
to change these discourses. We may need to say no to business involvement
in democratic decision-making as well as some of their donations. We must
stress that they are not partnerships, they are donations. We also need
publicly discussed guidelines to see if the donations suit public priorities. |
Others emphasised the need for accessible, affordable drugs now. Changing health systems will take time. What is supposed to happen until that change occurs? |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Some issued a call to get back to basics. We need to determine how the fragmentation started. Who is undermining the UN and why? Currently, there is no co-ordination between public-private initiatives. People don't want their tax money to go into such fragmentation. Research suggests more money is spent on co-ordination than on real needs. Governments are busy doing public relations just like companies. The governments are also panicking; they see people dying and need drugs to treat them. Public-private ventures get the drugs, but there is no public health service, so public-private partnerships are called in to repair health services. There is a need to identify basic problems and look at possible solutions. Industry is not the solution, some said. Another member of the audience stressed that it is easy to talk about the UN as an independent bureaucracy. However, in fact, it works with representatives of governments and responds to pressures put on it by them. Every international organisation or UN body fears cuts in US contributions. Membership contributions are important but how the agency uses the money is also crucial. The management is co-responsible for fragmentation, she suggested. Health systems are on the WHO agenda but they are not a 'sexy' item. They are often not a top priority for governments. We need to recognise that the statement 'polio has been eradicated' is a celebrated fact but 'repairing health systems' sounds less appealing to the public. We need to build a solid base of citizens' groups that will demand discussion on ways to improve health systems. Although it will be a slow process of change, it is our responsibility to demand that debate. The role of governments |
The WHO has shifted towards a model of public-private ventures. There is a crucial need for WHO to be strengthened so it can reclaim its role in global policy-making. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Direct and indirect impacts Collecting evidence about
partnerships Many agreed that there was a crucial need to evaluate the effects of public-private ventures. Some doubted if donors would be very interested to pay for this kind of research. Others suggested that a great deal of information is already there, but not so accessible. NGOs have to push for greater information access and disclosure. Some NGO research and awareness-raising is already taking place. For example, the UK-based NGO Baby Milk Action and five other organisations working with the International Baby Food Action Network (IBFAN) have received a grant from the EU Commission (DG Development) to gather information about the impact of factors related to the global economy upon infant health. This seminar has tackled these issues very broadly, said one participant, especially the changes in terminology. But some key aspects still need to be addressed. This includes the effect that public-private ventures have on research. The public is often unaware that research is sponsored or co-sponsored by the companies. Also, we need more information about how trials and ethics have been addressed in public-private interactions. It isn't enough to be transparent. We need science carried out in the public interest. More research and development
in the vaccination field is needed. There are push-pull alternatives in
the AIDS vaccination field. We need to use public resources as a push-pull
mechanism to guarantee a market for the industry. Pull has lots of appeal;
industry will pay for distribution to developing countries and will ensure
a market. The problem lies in promoting development. It is better to encourage
public institutions to develop vaccines and get generic industries to
produce them. |
Partnerships gain support because they are said to help individuals .... |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Industry's motivation This seminar has helped show how all of these aspects are connected, remarked some participants. The fact that big vaccine initiatives started in 2000 has to be considered. There are obvious links to litigation involving companies taking part in alliances and the coming trade regulations. Industry gains important advantages through partnerships including: direct access to policy makers; means to improve a company's image; genetically engineered vaccines that are high-tech and undermine more traditional vaccines; and faster drug approvals. The risks involved are not slight. They can reduce the political advocacy role formerly held by UN agencies. To avoid being instrumentalised by corporations it is also important to correctly characterise such joint ventures. Some thought the term 'corporate philanthropy' should not be used, instead, it should be called 'corporate sponsorship'. The importance of strategic public relations should not be underestimated. One must realise where the money from the partnership comes from and expose the strings that are attached. Public-private partnerships are win-win-win situations for companies, emphasised one member of the audience. They are inexpensive, they find favour and there is no democratic control. He said he has attended meetings at WHO with donor countries and developing countries. There have been big changes in how industry is viewed in such fora. First, all those invited met as interested parties involved in a WHO programme. This included business-interest NGOs (BINGOs) and public-interest NGOs (PINGOs). Now these meetings are attended by industry partners. Even the spatial arrangements at the meetings have changed. Industry has a seat at the main table and the few NGOs present are seated in the back of the room. For some reason, there are no specific terms of reference for industry participants any more. Now all parties are considered part of the 'Essential Drugs Family'. The role for NGOs There are different types of interactions with industry that may call for different responses, said an audience member. On some things one should just say no. On others, we should look at ways to go forward. There are differences between product pushing and more general funds. There is a difference between projects meant primarily to polish corporate image and those set up to change global health policy. In all, the need for transparency is paramount. There must be a clear differentiation between public health goals and product promotion. There needs to be a classification structure that helps differentiate between all of varied types of public-private interactions taking place. |
The current situation does not have to be accepted as the way things have to be. We
should look at ways to go forward. There are differences between product
pushing and more general funds. There is a difference between projects
meant primarily to polish corporate image and those set up to change global
health policy. In all, the need for transparency is paramount.
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Conclusion by the chairCharles Medawar, Social Audit, UK Today's seminar tackled a hugely complex issue. The atmosphere has been extraordinarily good. In today's world, it feels like public-private partnership is a new drug that we need. But innovation can be good, bad or indifferent and the same tends to be true of the public-private mix. Idealisation is risky and there is huge uncertainty regarding the costs and risks of public-private ventures. Newly developed drugs are
being heavily promoted even though we often don't know their long-term
effects. Critics trying to speak out about their risks are marginalised.
When a new drug is introduced we can see benefits and risks in small amounts.
Some drugs do good, many do little, some are total disasters. The same
is true for public-private partnerships. |
When a new drug is
introduced we can see benefits and risks in small amounts. Some drugs do
good, many do little, some are total disasters. The same is true for public-private
partnerships. |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
This issue should be a priority and we all need | |||||||||||||||||||||||||||||||||||||||||||||||||||