South Africa And The Aids Epidemic

South Africa and the AIDS Epidemic

“When you are willing to make sacrifices for a great Submitted by: cause, you will never be alone.”

Submitted to:

Prof. Suresh R Lalwani

Latika Bhojwani(04) Ranu Goyal (14) Jaykishan Joshi(24) Jaydev Maheta (34) Hiren Ranpara (44) Priyanka Thakker (54)

Introduction • South Africa has always been in International News but only for the wrong reasons: • Apartheid • Economic crisis • Poverty

Acquired Immuno Deficiency Syndrome Ratio in 2002 1:9 Life expectancy below 50 years (A nation’s health is its wealth)

Conditions in South Africa • Unemployment ---------- 26 % • Inflation in 1991 ----------- 15.3% • Per capita income ------- $3000 (86th in world) AIDS EPIDEMIC

World Wide AIDS & HIV Stats

“PREVENTION IS BETTER THAN CURE” The slogan has to be revised in the fight against AIDS “Prevention is equal to cure” STAKEHOLDERS involved :  Society  Government  Awareness by NGOs  PHARMACEUTICAL INDUSTRY

Society • Great stigma attached with AIDS • In December 1998 on International AIDS day an AIDS activist declared she was HIV +ive • The affected people were and are treated as if they are a burden to the society and they should no longer exist in the society • They were expelled from even their own family

Government • Slow in addressing the problem • Gov. was did not provide free distribution of AZT • And the Gov. played the opposite role: • Budget for AIDS $17 million in 1999 and unspent $6.2 million • Supported the scientists

Pharmaceutical Industry • Major players:  Pfizer (USA)  Glaxo (USA)

----------- $ 7.3 billion ------------ $ 7.8 billion

 SmithKline (UK) ------------ $ 4.4 billion Pricing policies:  Drugs were price insensitive R & D:  Average time – 10 to 15 years  Average Cost -- $ 800 million

• Social responsibility --- classical view {STOCK HOLDER} • Commitment to deliver performance • Focus on diseases prevalent in major markets • Price discrimination • Selling costs • Lobbying {Power & Politics} • Estimated that the industry spent $167 million during 2000 elections in USA

WTO and Intellectual Property Rights • Copyrights for literary & artistic works • Trademarks • Patents • WTO’s Agreement on TRIPS:  Gov. could deny patent protection when: Patent holder abused the rights granted by the patent Medical emergency

BRAZIL and its commitment for AIDS • In 1996 Brazil passed a law for patent protection • Encouraged domestic players to produce unlicensed copies of drugs • With this move the costs were cut by 80% for double therapy and 35% for triple therapy • Brazilian President Fernando Cardoso applauded for his escalation of commitment even when he was under pressure to reduce the commitment • Gov. negotiations for lower prices for patented drugs • Merck & Government

Pharmaceutical Industry’s position • Intellectual property rights ---- sine qua non • Compulsory licensing in developing countries

Issues related to Drug Pricing in Developing Nations • 1997, South African passed law to permit compulsory licensing of essential drugs • Bristol-Myers Squibb & Merck responded • US placed South Africa on the “301 watch list” • Criticism against US policy • < Private welfare instead of Public welfare > • < Trade Terrorism >

Reactions for the Social Cause • AIDS activists & NGOs {Doctors Without Borders, Act-Up, Health Action international} • September 1999, step backward • December 1999, President Clinton adopted “ flexible ” • Summers 2000, Bristol-Myers, Merck & Glaxo made offers • Public reaction • Pfizer agreed for pilot project but feared the evil consequences • The capitalists should set aside funds for humanitarian cause

Global Fund • India & China in the race to face the same results as Africa • In 2001, UN General Secretary, Kofi Annan, proposed a Global Fund to combat AIDS • In 2002, lawsuit dropped against South African Gov. • In May 2001, President Bush announced $200 million in seed money for the fund • Opposition from orthodox countries • By July 2002, $2 billion pledged by the developed countries

Relation with MANAGEMENT • Management theories are the pathway to resolve any problem in a STEP WISE manner • It may be applied from a Small Scale Enterprise to Nation • The Stakeholders need to actively participate to combat this Global Terrorism of AIDS which is the worst war on any nation from a disguised enemy • Society • Government • NGOs • Pharmaceutical Industries

Society • Cultural Transmission • Social Responsiveness • Situational leadership • The Calm Waters Metaphor – CHANGE Process • Awareness more important about the misbelieves regarding the disease

Government • The initial steps of MANAGEMENT • Planning • Organizing • Leading • Control

• Types of control: • Feed forward the most vital • Concurrent control • Feed back

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Strategic Tie-ups

Pharmaceutical Industry • Social responsibility ---- Stakeholder Approach

• Greening of Management --- Stage 2

• Social Entrepreneurship --- “Social Responsiveness to Responsibility”

• Balanced Scorecard --- Financial Health, Customer Satisfaction, Assets of firm & Growth

• Ethical Organization

NGOs • Role of awareness : Society, Government & Pharma Industry • Self Motivated • Indirect Control on stakeholders

UNITY AGAINST AIDS

Thank You