CORRUPTION

Treating Health and Pharmaceutical Corruption
The global market for pharmaceutical-related crime is continuing to grow with no indications of
slowing down. The Pharmaceutical Security Institute (PSI) reported 3,002 incidents of pharmaceutical
crime during 2015. This represented “an all-time annual high.” It also reported that from 2011 to 2015,
incidents have increased by as much as fifty-one percent. 6 These trends will remain vibrant unless
relevant political and administrative institutions at the national and international levels are prepared or
compelled to cooperate in full and that the issue is addressed as one that is not limited to the health
sector but has reach across sectors, such as customs and the judiciary.
The global market for pharmaceutical-related crime is
continuing to grow with no indications of slowing down. The
Pharmaceutical Security Institute (PSI) reported 3,002 incidents
of pharmaceutical crime during 2015.
The manufacturing of falsified medicines continues to grow as a profitable business for a number
of reasons. It is due in part to a perpetually high demand to supply ratio of medicines. When the
demand for medicines exceeds its supply, this favors entry of counterfeit medicines into the supply
chain, especially when production costs are low. Also, when the prices for medicines are exceedingly
high, or in countries where the normal supply chain does not reach certain communities, such as
rural areas, it fosters a growing market for counterfeit drugs. The lack, or absence, of laws and
regulations which hinder SSFFC drug production and insufficient legal sanctions for those who make
bad medicines acts as an incentive for individuals to produce SSFFC drugs at the expense of patients
worldwide.
International Affairs Forum
While regulations may exist in many countries, whether these regulations are in fact enforced
depends greatly on the human and financial resources available for enforcement. 7 Too often,
regulatory agencies in developing and least developing countries are poorly staffed and resourced
so that even regulatory control is lax. Further complicating regulatory and enforcement efforts are
unregulated transactions occurring in the drug supply and distribution chain, including illegally selling
medicines on the Internet and in the informal economy, which increases the probability of SSFFC
medicines leaking into the pharmaceutical system. 7 Furthermore, the expansion of trade, with mega
trade agreements such as the Trans-Pacific Partnership and accompanying deregulation and impact
on access may also present more opportunities for the introduction of fake drugs into the medicines
distribution system. Technology has also worked to the benefit of counterfeiters by allowing for the
nearly identical reproduction in physical appearance of the drug and packaging being counterfeited. 8
Entrepreneurship is clearly not limited to those who work within the boundaries of the law.
Hence, the transnational trade of SSFFC medicines is a prototypical example of the dangers posed
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