South Africa and the AIDS Epidemic

“When you are willing to make sacrifices for a great

cause, you will never be alone.” Submitted by:
Latika Bhojwani(04)
Ranu Goyal (14)
Submitted to: Jaykishan Joshi(24)
Jaydev Maheta (34)
Prof. Suresh R Lalwani
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) ----------- $ 7.3 billion
 Glaxo (USA) ------------ $ 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

• 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