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Egypt’s Position in Technology and Information Led GlobalizationWhat really matters ishow qualified thenationalpharmaceuticalindustry is to dealwith globalization andrestricted technologytransfer.those of the new and adjusted national lawswith all that they imply for encouraging thedevelopment of the technology of nationalpharmaceutical industry. The Egyptian caseis a good example. What really matters ishow qualified the national pharmaceuticalindustry is to deal with globalization andrestricted technology transfer.Today in 2001, Egypt has had six years ofthe grace period, and is left with only four.So, what has been done, and what will bedone in the remainder period? And what areinventors and the makers of technologylikely to do?Transfer of Foreign Technology tothe Egyptian PharmaceuticalIndustryThere are few studies available on technologytransfer to the Egyptian pharmaceuticalindustry. However, one might argue thatpublic enterprises often produce medicineswhose patents have become invalid. Theseenterprises are also used to producinggeneric medicines similar to those marketedunder well-known trademarks, with the leastamount of production generated throughknow-how or patents. A precise evaluationof the results of using expired patents hasnot yet been undertaken. On the other hand,the extensive use of patents and trademarksby the domestic private sector, especially byjoint and foreign enterprises, has resulted inalmost total dependence on licenses frombig foreign pharmaceutical corporations.A recent study pointed to what the UnitedNations Conference for Trade and Development(UNCTAD) calls “restrictive tradepractices” by technology transferring firms,which insist, in general, on the inclusion ofrestrictive texts in agreements concludedwith technology recipients. The study investigatedthe negative elements of licenses intwo particular areas: agreements for finalpharmaceutical formulation production; andthose for producing materials from pharmaceuticalchemicals. Among the most importantcommon negative traits of foreign firmsproviding technology, are the following:1. They are not committed to substitute newor upgraded technologies for obsoleteones.2. They do not provide Egyptian firms withupgraded technical assistance on a regularbasis.3. They stipulate the employment of someof their own personnel.4. Foreign parties frequently stipulate thetransfer of pharmaceutical technologythrough ‘whole package’ or ‘turnkey’approaches.This does not give sufficientopportunity to local firms to acquirethe relevant technological knowledge andskill.5. The use of technologies that are inappropriate,and sometimes harmful, for thenatural environment in Egypt.6. Foreign parties impose restrictions on thekinds of formulations that can be locallyproduced, or exported to foreign markets,including Arab and African markets.This is more the case with branches offoreign firms.7. They impose restrictions, even if indirect,on technology receiving firmsundertaking local R&D activities.How to Deal with theGlobalization of RestrictedTechnology in the PharmaceuticalSector?The answer will be approached through aninvestigation of two main ideasAdmit the Globalization Challenge. Sinceglobalization offers opportunities but at thesame time implies threats to all sectors inthe national economy, one should accept thechallenge by designing a comprehensivestrategy that deals with globalization underthe supervision of the national administration.For instance, a pharmaceutical strategyshould be derived from a general healthstrategy that consists of the following:1. Disease Prevention Policy. Especiallyfor diseases that have recently becomewidespread such as kidney, liver, andheart diseases. This in addition toprimary care for the largest populationpossible.92 -Egypt Human Development Report 2000/2001