Can NGOs regulate medicines markets? Social enterprise in wholesaling, and access to essential medicines

<p>Abstract</p> <p>Background</p> <p>Citizens of high income countries rely on highly regulated medicines markets. However low income countries' impoverished populations generally struggle for access to essential medicines through out-of-pocket purchase on poorly r...

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Main Authors: Chaudhuri Sudip, Mackintosh Maureen, Mujinja Phares GM
Format: Article
Language:English
Published: BMC 2011-02-01
Series:Globalization and Health
Online Access:http://www.globalizationandhealth.com/content/7/1/4
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author Chaudhuri Sudip
Mackintosh Maureen
Mujinja Phares GM
author_facet Chaudhuri Sudip
Mackintosh Maureen
Mujinja Phares GM
author_sort Chaudhuri Sudip
collection DOAJ
description <p>Abstract</p> <p>Background</p> <p>Citizens of high income countries rely on highly regulated medicines markets. However low income countries' impoverished populations generally struggle for access to essential medicines through out-of-pocket purchase on poorly regulated markets; results include ill health, drug resistance and further impoverishment. While the role of health facilities owned by non-governmental organisations (NGOs) in low income countries is well documented, national and international wholesaling of essential medicines by NGOs is largely unstudied. This article describes and assesses the activity of NGOs and social enterprise in essential medicines wholesaling.</p> <p>Methods</p> <p>The article is based on a set of interviews conducted in 2006-8 with trading NGOs and social enterprises operating in Europe, India and Tanzania. The analysis applies socio-legal and economic perspectives on social enterprise and market regulation.</p> <p>Results</p> <p>Trading NGOs can resist the perverse incentives inherent in medicines wholesaling and improve access to essential medicines; they can also, in definable circumstances, exercise a broader regulatory influence over their markets by influencing the behaviour of competitors. We explore reasons for success and failure of social enterprise in essential medicines wholesaling, including commercial manufacturers' market response; social enterprise traders' own market strategies; and patterns of market advantage, market segmentation and subsidy generated by donors.</p> <p>Conclusions</p> <p>We conclude that, in the absence of effective governmental activity and regulation, social enterprise wholesaling can improve access to good quality essential medicines. This role should be valued and where appropriate supported in international health policy design. NGO regulatory impact can complement but should not replace state action.</p>
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spelling doaj.art-5f0b0e2d66f94e68871f27d58bfb0f4e2022-12-22T02:48:15ZengBMCGlobalization and Health1744-86032011-02-0171410.1186/1744-8603-7-4Can NGOs regulate medicines markets? Social enterprise in wholesaling, and access to essential medicinesChaudhuri SudipMackintosh MaureenMujinja Phares GM<p>Abstract</p> <p>Background</p> <p>Citizens of high income countries rely on highly regulated medicines markets. However low income countries' impoverished populations generally struggle for access to essential medicines through out-of-pocket purchase on poorly regulated markets; results include ill health, drug resistance and further impoverishment. While the role of health facilities owned by non-governmental organisations (NGOs) in low income countries is well documented, national and international wholesaling of essential medicines by NGOs is largely unstudied. This article describes and assesses the activity of NGOs and social enterprise in essential medicines wholesaling.</p> <p>Methods</p> <p>The article is based on a set of interviews conducted in 2006-8 with trading NGOs and social enterprises operating in Europe, India and Tanzania. The analysis applies socio-legal and economic perspectives on social enterprise and market regulation.</p> <p>Results</p> <p>Trading NGOs can resist the perverse incentives inherent in medicines wholesaling and improve access to essential medicines; they can also, in definable circumstances, exercise a broader regulatory influence over their markets by influencing the behaviour of competitors. We explore reasons for success and failure of social enterprise in essential medicines wholesaling, including commercial manufacturers' market response; social enterprise traders' own market strategies; and patterns of market advantage, market segmentation and subsidy generated by donors.</p> <p>Conclusions</p> <p>We conclude that, in the absence of effective governmental activity and regulation, social enterprise wholesaling can improve access to good quality essential medicines. This role should be valued and where appropriate supported in international health policy design. NGO regulatory impact can complement but should not replace state action.</p>http://www.globalizationandhealth.com/content/7/1/4
spellingShingle Chaudhuri Sudip
Mackintosh Maureen
Mujinja Phares GM
Can NGOs regulate medicines markets? Social enterprise in wholesaling, and access to essential medicines
Globalization and Health
title Can NGOs regulate medicines markets? Social enterprise in wholesaling, and access to essential medicines
title_full Can NGOs regulate medicines markets? Social enterprise in wholesaling, and access to essential medicines
title_fullStr Can NGOs regulate medicines markets? Social enterprise in wholesaling, and access to essential medicines
title_full_unstemmed Can NGOs regulate medicines markets? Social enterprise in wholesaling, and access to essential medicines
title_short Can NGOs regulate medicines markets? Social enterprise in wholesaling, and access to essential medicines
title_sort can ngos regulate medicines markets social enterprise in wholesaling and access to essential medicines
url http://www.globalizationandhealth.com/content/7/1/4
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