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2.01.2007

Paralell Importation of Drugs: Administering Social Justice

Friedman will probably agree to the government's importation of cheap medicines when the local drug industry has made prices unreasonably very high for the consumers.
"A report released by the Senate trade and health committees showed, for example, that mefenamic acid under the brand name Ponstan costs P20.98 in Philippines but only P2.80 in India and P1.46 in Pakistan. Immodium (loperamide hydrochloric acid) costs P10.70 in the Philippines but only P3.27 in India and P1.94 in Pakistan."

Let the market dictate. However, in the event of market failures, which happens quite often in small economies, I wouldn't object to measures such as the importation of cheap medicines in order to correct the inefficiencies of the market.

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