Improving Access to Medicines in Developing Countries : Application of New Institutional Economics to the Analysis of Manufacturing and Distribution Issues
This paper examines alternative frameworks for empirical analysis of supply side activities, namely, the manufacture and distribution of medicine, through the application of New Institutional Economics (NIE) concepts. Attention is focused particula...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2005/03/5734207/improving-access-medicines-developing-countries-application-new-institutional-economics-analysis-manufacturing-distribution-issues http://hdl.handle.net/10986/13668 |
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okr-10986-136682021-04-23T14:03:09Z Improving Access to Medicines in Developing Countries : Application of New Institutional Economics to the Analysis of Manufacturing and Distribution Issues Attridge, C. James Preker, Alexander S. BILATERAL TRADE BOUNDED RATIONALITY CAPITAL INVESTMENT COMPETITIVE MARKETS COST ANALYSIS DECISION MAKING DEVELOPED COUNTRIES ECONOMIES OF SCALE ECONOMIES OF SCOPE ECONOMISTS EMPIRICAL ANALYSIS EXTERNALITIES EXTERNALITY FREE TRADE GENERAL PRACTICE GNP HEALTH CARE HEALTH OUTCOMES HEALTH POLICY HEALTH SERVICES HIGH SECURITY HIV/AIDS HOSPITALS HUMAN DEVELOPMENT INCOME INDUSTRIAL ECONOMICS INNOVATION INSTITUTIONAL ECONOMICS INTERNATIONAL TRADE LABOR COSTS LATIN AMERICAN MACROECONOMIC CONTEXT MACROECONOMICS MALARIA MARKET COMPETITION MARKETING MEDICINES MICROECONOMICS NUTRITION OPPORTUNISTIC BEHAVIOR PARTNERSHIP PATENTS/INTELLECTUAL PATIENTS POLICY MAKERS POLITICIANS PRIVATE SECTOR PROCUREMENT PRODUCERS PROGNOSIS PROPERTY RIGHTS PUBLIC SECTOR PURCHASING POWER QUALITY STANDARDS RENT SEEKING RENT SEEKING BEHAVIOR SUPPLIERS TARIFF BARRIERS TRANSACTION COSTS new institutional economics This paper examines alternative frameworks for empirical analysis of supply side activities, namely, the manufacture and distribution of medicine, through the application of New Institutional Economics (NIE) concepts. Attention is focused particularly upon the potential utility of ideas from agency theory, transaction cost analysis and contemporary ideas from strategy theory. The major purpose of this paper is to use these theoretical frameworks to provide insight for policy makers, when faced with specific situations, whether in an international agency, or a private company, or in defining a national strategy. The analysis attempts to show the importance of distinctions between ideas of 'make' or 'buy', between 'national self sufficiency' and 'international purchasing' strategies, the limitations of contractual agreements under market governance and the crucial linkages between strategy formulation, strategy implementation and the necessary capabilities to achieve successful performance in practice. The current international situation on the investment, location and capacity of pharmaceutical manufacturing is reviewed and likely future scenarios suggested. Correspondingly current patterns of trade in medicines and their likely development within the context of the WTO and bilateral trade agreements are discussed. Against this background the promise and the pitfalls for new forms of public-private partnerships, which may offer attractive alternatives to conventional structures are evaluated. The implications of alternative future strategic options for national governments in setting the balance between health and industrial policies are examined and in particular the extent to which a national manufacturing capability should be developed or sustained. Similarly the scope for improving low cost distribution systems for medicines, based upon a mix of public and private sector channels, is assessed. We conclude with suggestions for further development of a transaction-based framework. 2013-05-30T13:58:51Z 2013-05-30T13:58:51Z 2005-03 http://documents.worldbank.org/curated/en/2005/03/5734207/improving-access-medicines-developing-countries-application-new-institutional-economics-analysis-manufacturing-distribution-issues http://hdl.handle.net/10986/13668 English en_US Health, Nutrition and Population (HNP) discussion paper; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
BILATERAL TRADE BOUNDED RATIONALITY CAPITAL INVESTMENT COMPETITIVE MARKETS COST ANALYSIS DECISION MAKING DEVELOPED COUNTRIES ECONOMIES OF SCALE ECONOMIES OF SCOPE ECONOMISTS EMPIRICAL ANALYSIS EXTERNALITIES EXTERNALITY FREE TRADE GENERAL PRACTICE GNP HEALTH CARE HEALTH OUTCOMES HEALTH POLICY HEALTH SERVICES HIGH SECURITY HIV/AIDS HOSPITALS HUMAN DEVELOPMENT INCOME INDUSTRIAL ECONOMICS INNOVATION INSTITUTIONAL ECONOMICS INTERNATIONAL TRADE LABOR COSTS LATIN AMERICAN MACROECONOMIC CONTEXT MACROECONOMICS MALARIA MARKET COMPETITION MARKETING MEDICINES MICROECONOMICS NUTRITION OPPORTUNISTIC BEHAVIOR PARTNERSHIP PATENTS/INTELLECTUAL PATIENTS POLICY MAKERS POLITICIANS PRIVATE SECTOR PROCUREMENT PRODUCERS PROGNOSIS PROPERTY RIGHTS PUBLIC SECTOR PURCHASING POWER QUALITY STANDARDS RENT SEEKING RENT SEEKING BEHAVIOR SUPPLIERS TARIFF BARRIERS TRANSACTION COSTS new institutional economics |
| spellingShingle |
BILATERAL TRADE BOUNDED RATIONALITY CAPITAL INVESTMENT COMPETITIVE MARKETS COST ANALYSIS DECISION MAKING DEVELOPED COUNTRIES ECONOMIES OF SCALE ECONOMIES OF SCOPE ECONOMISTS EMPIRICAL ANALYSIS EXTERNALITIES EXTERNALITY FREE TRADE GENERAL PRACTICE GNP HEALTH CARE HEALTH OUTCOMES HEALTH POLICY HEALTH SERVICES HIGH SECURITY HIV/AIDS HOSPITALS HUMAN DEVELOPMENT INCOME INDUSTRIAL ECONOMICS INNOVATION INSTITUTIONAL ECONOMICS INTERNATIONAL TRADE LABOR COSTS LATIN AMERICAN MACROECONOMIC CONTEXT MACROECONOMICS MALARIA MARKET COMPETITION MARKETING MEDICINES MICROECONOMICS NUTRITION OPPORTUNISTIC BEHAVIOR PARTNERSHIP PATENTS/INTELLECTUAL PATIENTS POLICY MAKERS POLITICIANS PRIVATE SECTOR PROCUREMENT PRODUCERS PROGNOSIS PROPERTY RIGHTS PUBLIC SECTOR PURCHASING POWER QUALITY STANDARDS RENT SEEKING RENT SEEKING BEHAVIOR SUPPLIERS TARIFF BARRIERS TRANSACTION COSTS new institutional economics Attridge, C. James Preker, Alexander S. Improving Access to Medicines in Developing Countries : Application of New Institutional Economics to the Analysis of Manufacturing and Distribution Issues |
| relation |
Health, Nutrition and Population (HNP)
discussion paper; |
| description |
This paper examines alternative
frameworks for empirical analysis of supply side activities,
namely, the manufacture and distribution of medicine,
through the application of New Institutional Economics (NIE)
concepts. Attention is focused particularly upon the
potential utility of ideas from agency theory, transaction
cost analysis and contemporary ideas from strategy theory.
The major purpose of this paper is to use these theoretical
frameworks to provide insight for policy makers, when faced
with specific situations, whether in an international
agency, or a private company, or in defining a national
strategy. The analysis attempts to show the importance of
distinctions between ideas of 'make' or
'buy', between 'national self
sufficiency' and 'international purchasing'
strategies, the limitations of contractual agreements under
market governance and the crucial linkages between strategy
formulation, strategy implementation and the necessary
capabilities to achieve successful performance in practice.
The current international situation on the investment,
location and capacity of pharmaceutical manufacturing is
reviewed and likely future scenarios suggested.
Correspondingly current patterns of trade in medicines and
their likely development within the context of the WTO and
bilateral trade agreements are discussed. Against this
background the promise and the pitfalls for new forms of
public-private partnerships, which may offer attractive
alternatives to conventional structures are evaluated. The
implications of alternative future strategic options for
national governments in setting the balance between health
and industrial policies are examined and in particular the
extent to which a national manufacturing capability should
be developed or sustained. Similarly the scope for improving
low cost distribution systems for medicines, based upon a
mix of public and private sector channels, is assessed. We
conclude with suggestions for further development of a
transaction-based framework. |
| format |
Publications & Research :: Working Paper |
| author |
Attridge, C. James Preker, Alexander S. |
| author_facet |
Attridge, C. James Preker, Alexander S. |
| author_sort |
Attridge, C. James |
| title |
Improving Access to Medicines in Developing Countries : Application of New Institutional Economics to the Analysis of Manufacturing and Distribution Issues |
| title_short |
Improving Access to Medicines in Developing Countries : Application of New Institutional Economics to the Analysis of Manufacturing and Distribution Issues |
| title_full |
Improving Access to Medicines in Developing Countries : Application of New Institutional Economics to the Analysis of Manufacturing and Distribution Issues |
| title_fullStr |
Improving Access to Medicines in Developing Countries : Application of New Institutional Economics to the Analysis of Manufacturing and Distribution Issues |
| title_full_unstemmed |
Improving Access to Medicines in Developing Countries : Application of New Institutional Economics to the Analysis of Manufacturing and Distribution Issues |
| title_sort |
improving access to medicines in developing countries : application of new institutional economics to the analysis of manufacturing and distribution issues |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2005/03/5734207/improving-access-medicines-developing-countries-application-new-institutional-economics-analysis-manufacturing-distribution-issues http://hdl.handle.net/10986/13668 |
| _version_ |
1764423991969185792 |