Perspectives on local manufacture of contraceptives in developing countries

The report draws on a large body of existing technical and economic information but is based primarily on dozens of interviews with people involved in and knowledgeable about local manufacturing of contraceptives. Section 2 reviews the global demand and supply for contraceptives, including current types of manufacturing arrangements. This review can help donors identify the types of people and organizations that might be affected by and, in turn, might affect a local manufacturing venture. Section 3 outlines some of the factors involved in decisions about local manufacturing, including profitability, general market factors, and market distortions such as trade policies, the presence in the market of donated commodities, and corruption. Section 4 outlines how donors influence the market for locally manufactured products through procurement of contraceptive commodities, funding of local production facilities, and other programs and policies. Section 5 identifies some trends for the future of local manufacturing and their implications for donor involvement. According to the report, decisions about the feasibility and advisability of local manufacturing must be made on the basis of the factors specific to the particular project and location. Donors and manufacturers should assess not only the economic and technical feasibility of potential projects but also the social and political factors that may affect the success of the venture. These include the interests, motivations, actions, and interactions of the parties involved, which may include multinational and local pharmaceutical firms, donors, government officials, and consumers. Appendix 2 comprises a list of questions that donors should consider when making decisions about local manufacturing. Includes references. (Author abstract, modified)