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Corruption and Medicine Quality in Latin America: A Pilot Study

Author

Listed:
  • Bate Roger
  • Mathur Aparna

    (American Enterprise Institute, 1789 Massachusetts Ave NW,Washington, DC 20036, United States of America)

Abstract

Fake and substandard medicines are a significant problem in developing nations, and a growing problem in developed ones too. There have been assessments of basic medicine quality from many countries and regions across the world but almost none in Central and South America. Over the past decade, as part of our research, we have collected over ten thousand samples of medicines from 22 cities in emerging markets, but the only one from the Latin region was Sao Paolo in Brazil. We have now rectified this gap, at least for one critical medicine, the broad spectrum antibiotic ciprofloxacin. Using original, self-collected data from ten countries in Latin America, we test whether the 687 Ciprofloxacin treatments pass the Global Pharma Health Fund e.V. Minilab® protocol to identify substandard or counterfeit medicines. In terms of quality, 93 percent of drugs were good quality. Within the drugs that failed the quality test, the majority were substandard rather than fake. About 26 % of the poor quality drugs were fake, with zero active pharmaceutical ingredient (API), while the rest were substandard, with less than 80 % API. In line with results from our earlier studies, we find that products that were locally registered, as well as those with SRA or WHO pre-qualification, were more likely to pass the test. A new finding in this paper is that corruption is a key predictor of poor quality drugs. Less corrupt countries had higher levels of passing drugs.

Suggested Citation

  • Bate Roger & Mathur Aparna, 2018. "Corruption and Medicine Quality in Latin America: A Pilot Study," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(2), pages 1-12, April.
  • Handle: RePEc:bpj:bejeap:v:18:y:2018:i:2:p:12:n:3
    DOI: 10.1515/bejeap-2017-0076
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    References listed on IDEAS

    as
    1. Maureen Lewis, 2006. "Governance and Corruption in Public Health Care Systems," Working Papers 78, Center for Global Development.
    2. Roger Bate & Ginger Zhe Jin & Aparna Mathur, 2012. "Counterfeit or Substandard? Assessing Price and Non-Price Signals of Drug Quality," NBER Working Papers 18073, National Bureau of Economic Research, Inc.
    3. Jennifer Hunt, 2007. "Bribery In Health Care In Peru And Uganda," Departmental Working Papers 2007-02, McGill University, Department of Economics.
    4. Mr. Erwin H Tiongson & Mr. Hamid R Davoodi & Mr. Sanjeev Gupta, 2000. "Corruption and the Provision of Health Care and Education Services," IMF Working Papers 2000/116, International Monetary Fund.
    5. Omar Azfar & Tugrul Gurgur, 2008. "Does corruption affect health outcomes in the Philippines?," Economics of Governance, Springer, vol. 9(3), pages 197-244, July.
    6. Roger Bate & Ginger Zhe Jin & Aparna Mathur, 2015. "Falsified or Substandard? Assessing Price and Non‐price Signals of Drug Quality," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(4), pages 687-711, October.
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    Cited by:

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