Cross-Sectional Analysis of the Countries and Corresponding TRIPS Flexibilities for Pharmaceuticals

Stamenović, Milorad and Jelisavac Trošić, Sanja (2023) Cross-Sectional Analysis of the Countries and Corresponding TRIPS Flexibilities for Pharmaceuticals. In: 94th International Scientific Conference on Economic and Social Development - "The Dark Side of Management and Governance: power, ideology, tensions, and destructive traits" (XI. OFEL), Dubrovnik, Croatia, 31 March-1 April, 2023. Varaždin Development and Entrepreneurship Agency; University North, Koprivnica; CIRU – Governance Research and Development Centre; University of Dubrovnik, Varaždin, Koprivnica, Zagreb, Dubrovnik, pp. 325-334.

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Abstract

The TRIPS Agreement enabled countries to use flexibilities to make exceptions to patent rights. The governments can make limited exceptions to patent rights, provided certain conditions are met. The paper examines the use of TRIPS flexibilities to facilitate access to medicines. The right to health and access to medicines for all is imperative. However, the developing nations with the greatest pharmaceutical need also have the least access to them. This paper is intended to draw valuable lessons from the cases of states that have applied for TRIPS flexibility for pharmaceutical patents by analyzing them according to the region, type of flexibility, type of disease, GDP per capita, health expenditure, and government effectiveness. Among the 82 countries covered by the analysis, it was noted that the highest number of applications came from the region of Africa, while the most widely used flexibility was Article 31. Analysis per medical indication shows that HIV/AIDS has the highest number of applications, followed by cancer, while most requests were made under Article 31, followed by Part 7. The explanation is that the diversification of approach to flexibilities is independent of the country's wealth. Our study provides evidence of a correlation between the mean values of Government Effectiveness indicators for countries requesting flexibilities through Part 7 and compulsory licensing. However, a significant difference in GDP per capita values was noted for countries that have applied for Part 7 flexibility. We explained this by type of disease and costs of treatment in applications. The findings suggest that more WTO member states should be encouraged to request flexibilities through TRIPS Agreement and that cross-sectional factors must be considered in further research to define how countries can best use the flexibilities.

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