ECONOMY by VIVEK SINGH

2021-05-10 07:39:59 The above is news from the HINDU. Let us understand some important points.

1) Domestic Intellectual Property (IP) laws give protection only within the country. If Indian Govt. has given patent to a company in India for a particular drug then in India no other company can produce that drug but our domestic of course other countries can produce that drug because the "Patent Act 1970" is applicable only in India. So, to give protection to the patent/IPs all over the world so that no other country can produce that drug, the WTO member countries have signed TRIPS Agreement (Trade related intellectual property rights). But in exceptional circumstances various requirements under TRIPS can be waived if the member countries agree. Now US has supported our demand that waiver can be provided under TRIPS agreement for Covid-19 vaccines but it has not said anything about other medical equipments or technology to manufacture the medicines.

See, if the clause under the TRIPS is waived off and all the countries are allowed to produce covid-19 vaccines (with or without payment of some royalty) then also the countries will require the TECHNOLOGY to be TRANSFERRED to them. Waiving the TRIPS clauses regarding manufacturing of covid-19 vaccines does not AUTOMATICALLY transfers the technology. For that the COMPANIES may have to be forced by changing other domestic legal provisions but it can be too draconian and counterproductive.

2) Suppose India wants to give "Compulsory License" (read in detail from the book) to a domestic firm to manufacture covid-19 vaccines (in case the patent lies with some other foreign firm), then also the domestic firm should have the technology to manufacture that vaccine. And in that case too, the TRIPS asks for various restrictions like the drugs produced by the Indian domestic firm should be packaged differently i.e. colour, shape etc., it cannot export or in case it exports then only to the limited amount which the importing country can't manufacture and bla bla... which can be seen in the case of HIV/AIDS case also.

3) Even if WTO member countries have one vote each, most of the decisions happen through consensus i.e. they try to convince all the member countries so that everyone agrees on a particular decision. Only when consensus fails then in rare cases voting is done. Open / Comment

2021-05-10 07:17:31 Open / Comment

2021-05-09 18:27:31 Food for thought
We should solve the disease and not the symptoms. We should solve the dengue epidemics by controlling mosquitoes and not by building hospitals; we should solve accident related health problems by improving road safety and not by building hospitals. We should solve respiratory ailments by improving air quality and not by building hospitals.

In light of the present covid crisis which created a havoc all over the country and specially in metros and Delhi was the worst affected, I would like to say that if the Delhi air would have been cleaner and our lungs (and this is clear from from the fact that everyone was chasing oxygen cylinders) would have been stronger then the impact of covid would have been less on us. The solution to this present covid problem is not in building too many hospitals (of course we should have good number of hospitals as per our population) but rather the State should focus on providing good air. [If too many hospitals are built and if this kind of crisis comes once in a century then it may be a wastage of public money also. But that is another matter that even to reach a reasonable level of hospitals we will have to build much more hospitals ]

People here in India (and in Delhi) are very happy when they get freebies like free electricity, free water, free ride for women in delhi buses etc. etc... But they do not get good air. "Air" is a public good and the STATE must try to provide us clean air and it should spend money there because no private company will ever provide/spend on good quality air (of course they can provide air purifiers just for your homes). Air is a public good (non excludable and non rival) and STATE is duty bound to provide us clean air. But for that the citizens will also have to say to the politicians that we do not want freebies like electricity, water ... as that we can purchase.................but we must get good quality air. Just think over it that why Governments do not take enough efforts in providing good quality air but are very much willing to give free electricity, bus ride and other things...............because providing good quality air is quite challenging and requires a lot of strategy/planning/effort/time which the govt. may not have/posses and they know that elections will come in next five years. So, better give freebies with taxpayers money rather than think for the long term health of the public. So, if politicians are not thinking about us then we must have to think for ourselves and ask for clean air and reject the subsidies/freebies. Open / Comment

2021-05-08 17:20:25 Due to Covid pandemic, nothing relevant news for economy is coming, but if there is relevant news will definitely share. Till that time you all revise the 5th edition of the book and practise ECO 550 MCQs and do not waste time in newspapers. Open / Comment

2021-05-06 07:16:02 Industrial Development Bank of India (IDBI) was constituted under Industrial Development Bank of India Act, 1964 as a Development Financial Institution (DFI) and came into being on July 01, 1964.
It continued to serve as a DFI for 40 years till the year 2004 when it was transformed into a Bank.

Now, Govt. has approved strategic disinvestment of IDBI Bank. So, Govt. of India and LIC both will reduce their equity stake and management control will be given to a private entity.

Under Strategic Disinvestment, Govt. sells 50% or more of its equity stake and transfers management control to a strategic partner (generally a private company).

A promoter is one who has control over the affairs of the company. Open / Comment

2021-05-03 20:40:03 A very sad day in my life. One of my best friend and colleague Rushikesh sir is no more with us and it is very hard for me to accept this fact. He was so lively, a great human being and one of the best Geography teacher in UPSC field. In the last 2.5 years we worked together, workshop, classes, meetings, party......... it was all with him. He has left such a deep void that it will be hard to fill. I am speechless today, life is so cruel.

May god give strength to his parents, wife, brother and little son in this tough time.

Rushikesh sir.......................you will always be in our heart !!! Open / Comment

2021-05-02 17:21:58 Dear Students,

It is an advice to all of you that please take utmost care in this tough time and do not go outside until it is something urgent. This covid wave is really dangerous and please take care of yourself and near and dear ones. Just to inform that I am perfectly fine but not updating the news as these days only Covid related news is there and nothing relevant for economy. If something relevant comes will definitely upload.

Now it seems that the UPSC prelims will get postponed (its purely my personal view) so, accordingly adjust your strategy.

Those who have just started the preparation and targeting for next year, please go in full swing with whatever books/online courses you are having. For Economy you can refer the latest edition of my book which was released recently https://t.me/VivekSingh_Economy/2859

The online Economy Module (pre cum mains) course for 2022 will start probably in July. The details will be communicated to you at appropriate time on this channel. Physical classes in Delhi will be conducted once the Govt. allows but I do not see any chance in near future. Open / Comment

2021-04-29 08:49:26 Why the prices of Covid-19 vaccines are different for Central Govt, State Govt and Private players ??

It has been clarified by Mr. Adar Poonavala (CEO of Serum Institute) that they were selling to Central Govt. at less prices due to prior commitments/discussion and contracts till certain limited number of doses but now the price will be same for State and Central Govt. and for private sector the price will be higher. The drug supplier sell to Govt. under mass immunization programme for higher volume and may charge very less price while for private sector it can be higher.

He also clarified that "The initial prices were kept very low globally as it was based on advance funding given by the countries for at-risk vaccine manufacturing."

The prices can vary because of the following reasons: volume of procurement, time of procurement, payment cycle (in advance or after how many days), any initial funding/support etc. Open / Comment

2021-04-29 08:40:27 Government can regulate the prices of drugs/medicines as per the following three Acts:

1) Essential Commodities Act 1955: By using this Act, Govt. has issued the Drugs (Price Control) Order and capped the prices of around 800 drugs. National Pharmaceuticals Pricing Authority (NPPA) is responsible for fixing and revising the prices (as per formula) of pharmaceutical products and the enforcement of DPCO. NPPA is under ministry of chemicals and fertilizers

2) The Patent Act 1970:

(a) If a manufacturer himself approaches the government that he can produce the generic versions (through reverse engineering) at a very cheap price, but only after the negotiation between patent owner and manufacturer has failed for voluntary license. [Section 84 of Patent Act 1970]

b) In case of National emergency (pandemic like Covid-19) or extreme urgency, Govt. can give notification that it will give compulsory licenses to any manufacturer who wants to manufacture generic versions of the drug with such terms and conditions. [Section 92 of Patent Act 1970]

But in both the cases the manufacturer has to pay the royalty as decided by the Govt.

(c) As per Section 100 also Govt. can authorize anyone to produce the drugs and waive of the royalty.

3) The Epidemic Diseases Act, 1897: Under this act, the broad undefined powers can be used by State Governments to regulate the prices Open / Comment

2021-04-29 08:29:01 The above is news from Indian Express. Let us understand this holistically. First understand the terms:

1) A generic drug is a medication that has exactly the same active ingredient as the brand name drug and yields the same therapeutic effect. It is the same in dosing, safety, strength, quality, the way it works, the way it is taken, and the way it should be used. Generic drugs do not need to contain the same inactive ingredients as the brand name product, say colour or taste can be different.

However, a generic drug is generally marketed after the brand name drug's patent has expired, which may take up to 20 years. So, during the protection period of 20 years, the patent owner tries to recover its cost which it has spent on research and development and the drug is quite costly during this time as it is produced only by the patent owner under its brand name and others can’t manufacture and sell. After the protection period is over, any company can sell the generic versions of the drug and there is fierce competition which ultimately reduces the price of the drug.

But the (Indian Patent Act 1970) patent laws provide a remedy to the high price issue of branded drugs in the form of licenses to the generic manufacturers even during the protection period of 20 years. This remedy is available in the form of voluntary license (patent holder himself gives license to third party to manufacture the generic version and he decides the royalty/price etc.) and compulsory licensing of the drug.

2) (Chemical) Reverse Engineering: It is the analysis of a product where a lab breaks down a material or product to determine the identity and quantity of its components. This process enables scientists to take a medication and discover the contents of its core and coatings. This is the method necessary to create a generic version of a medication and requires various chemical processes to discover the exact contents of a formula.

3) Fixed Dose Combination (FDC) drugs are combinations of two or more active drugs in a single dosage form. Open / Comment