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AS AIDS EPIDEMIC GROWS

South Africa resists U.S. drug firms' greed

By Key Martin and Johnnie Stevens

Cape Town, South Africa

"The AIDS epidemic and the struggle against it is a major government priority," says Tony Yengeny, the African National Congress Parliamentary Whip. "We are very disturbed by the fact that pharmaceutical companies from the United States are not sympathetic to the plight of millions of our people who are dying of AIDS."

After months of protests by AIDS activists in the United States and Africa, the Pharmaceutical Manufacturers Association has "temporarily" suspended its legal action against South Africa. It had been challenging a law passed by the new South African government that would make medicines--particularly HIV treatments--more accessible to the poor communities that are still the overwhelming majority of the population.

Apartheid-era laws were highly favorable to the pharmaceutical companies. The government enticed them to ignore the boycott and divestment campaigns, and medicine costs are high.

The PMA announcement came just days before the new South African President Thabo Mbeki was due to arrive in the United States for his first speech at the United Nations. And it also came just before the major Africa AIDS conference in deeply stricken Zambia, where the pharmaceutical executives were to be met with great anger.

The legal action in the South African Constitutional Court by the PMA had blocked implementation of the new law since its passage nearly two years ago. Many people have since died whose lives might have been prolonged by these medicines.

Heads of these 40 pharmaceutical companies have said they expect "changes" in the law. And they have implied that there are currently discussions to do just that.

But the South African ANC government rebutted that claim. A Sept. 13 government statement said: "There are no negotiations with the PMA with respect to any litigation the PMA has brought against the government. The only acceptable solution is the total withdrawal of litigation with regard to medicines legislation."

These companies seek to maintain "designer drug" prices for medicines that need to be distributed on a mass scale.

An estimated 32 million people are infected with HIV in Africa. Some countries have seen their population's life expectancies plummet in recent years because of the high rate of AIDS-related deaths.

The price for a monthly dosage of the current medicines is more than an employed South African worker with a regular job earns in a month.

Only about one worker in 30 can find steady employment. Most workers--particularly young people, who have the highest rate of HIV infection--are in the "informal" work force.

It is estimated that 3.5 million to 5 million people--out of a population of 40 million--are HIV-positive. Those numbers are rising to over 30 percent among youths and other sectors of the population.

`Profits before people'

The government is still forced to pay the unconscionable apartheid-era debt of $30 billion. As a result, it has few funds with which to provide sky-high-priced medicines to the poor.

"They are putting profits before people. And we think that is wrong," Yengeni continued.

"This AIDS epidemic may be with us now, but it is going to have an impact not only on South Africans but eventually on the world as a whole. The pharmaceutical companies in the United States should cooperate in insuring that this disease is destroyed, sooner rather than later--or else the whole African continent will be wiped out and they will have to shoulder the bulk of that responsibility.

"So I think that it is in the interests not only of Africans and South Africans, but also of other people in the world--particularly the most powerful country in the world, the United States--to do something practical in putting down the scourge."

The old apartheid government built few medical services and no preventive medicine facilities in the townships that are home to most of the urban African population.

The sprawling Chris Hani Baragwanath Hospital--the biggest in the Southern Hemisphere with 3,000 beds--provides services to Soweto. But the 4 million people in the township have little else to fall back on except traditional healers, frequently without access to modern medicines.

In the countryside, hundreds of Cuban doctors have begun to assist in bringing medical services to the rural poor. Another 500 South Africans left this month to study medicine in Cuba.

However, many South African doctors have departed for London and Saudi Arabia for better-paying jobs, leaving a vacuum in South Africa. This was one of the issues in the recent one-day strike by a half-million government workers, many of whom live below poverty levels.

Private hospitals serving the well-to-do segments of the population charge prices that most just cannot afford.

In response to the crisis, the Parliament passed a law directing the minister of health to pursue "parallel imports" and "compulsory licensing" of medicines to service poor communities.

Parallel imports enable the country to import from third countries, such as Brazil or Canada, if it can get prices cheaper than the original manufacturer's.

Under compulsory licensing, the minister of health orders the domestic production of generic medicines with compensation for patent or intellectual property rights.

Its authors viewed the law as complying with World Trade Organization protections for corporate patent claims. However the drug corporations blocked it in court.

U.S. trade representatives threatened retaliation against South African trade--and even blocked some items from South Africa's Most Favored Nation status, resulting in much higher tariffs.

The issue of affordability is a world issue as the AIDS epidemic also sweeps into South Asia and Latin America.

"The struggle in South Africa is not over. We need a revitalization of the free South Africa struggle to rid ourselves of economic deprivation, to rid ourselves of diseases, and to make ourselves independent of colonial powers who continue to have economic domination over us," said Dr. Sam Gulabe.

Gulabe was known to a generation of anti-apartheid activists by the nom d'guerre David Ndaba when he was the ANC representative at the United Nations. Gulabe is currently a lieutenant colonel at One Military Hospital, charged with the medical care of the president and former president.

"We have to rely on importing medicines," he said. "On the one side there is the pharmaceutical industry, who feel they have to protect their intellectual property rights. On the other side, African countries have difficulties facing such a devastating disease and these drugs that are being produced by the pharmaceuticals are unaffordable.

"Even in the United States there are many people whose medical insurance has run out.

"When we came up with the legislation," he explained, "we began to feel that the U.S. government was challenging the law made by our government in our own Parliament that was giving the means and the power to import the generic drugs from overseas--without violating the WTO regulations--so they can be affordable to South African society.

"The U.S. government was telling the South African government that they cannot pass such a law," Gulabe continued. "It is a legitimate, democratic Parliament, elected by the people. They sit down, they make the legislation, then somebody comes from Washington and says, `No, the legislation is wrong.'

"Can you imagine what would happen if a South African government goes to Washington and tells the U.S. congressmen that the legislation they are making is wrong and we are going to punish you?" he asked.

"That really made people angry. South Africa is the last country to violate international law because we strongly believe in it. The international community supported our struggle to end apartheid.

Gulabe concluded, "We will always abide by international law, but we will not accept for the U.S. government to tell us what type of legislation we can make and what we cannot make."

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