March 03, 2007
Prophylactic Protectionism

From the Financial Times:

The World Bank and the UK’s Department for International Development have refused to finance the Indian government’s purchase of condoms to fight HIV/Aids because of an alleged lack of transparency in procurement procedures, the Financial Times has learnt.

The government now obtains condoms from local manufacturers such as the state-owned Hindustan Latex, which supplies hundreds of millions of contraceptives required under National Aids Control Program-III, a five-year plan starting next month.

HIV prevention organisations are angry about the high cost of government-procured condoms, saying that scarce funds are being wasted in India, which has the world’s biggest HIV caseload, according to UNAIDS, with an estimated 5.7m carriers last year.

“Domestic preference is playing a role here that it wouldn’t in other countries, leading to a situation where India is paying 30-40 per cent more than the world average,” said a senior international civil servant running an HIV programme in India. “It is very frustrating but the government says it’s non-negotiable.”

K. Sujatha Rao, director-general of the National Aids Control Organisation, which runs the NACP-III, said she knew donors wanted international bidders involved in the procurement process but quality was a critical issue. “Korean condoms are very cheap but they are quite suspect and are bound to be disastrous. I want good-quality condoms,” she said.

South Korea's birthrate is about 1.15 child per woman. While there are many other ways to prevent pregnancy, a 1.15 birthrate doesn't suggest Korean condoms are of such a "suspect" quality that they lead to "disastrous" results.

Posted by E. Frank Stephenson at 11:49 AM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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