SPEECH/06/323
José Manuel Barroso
President of the European Commission Getting down to business: the role of the private sector in the fight against HIV/AIDS
Global Business Coalition on HIV/AIDS Award Ceremony London, 22 May 2006
Ladies and gentlemen,
Let me start by thanking the Global Business Coalition on HIV/AIDS for inviting me to speak to you tonight, and for your leadership in spearheading the private sector’s contribution to the fight against HIV/AIDS.
Let me start with a question about the fight against AIDS: is the glass half full or half empty?
In the developing world, for the first time, there is a decline in the number of new infections in 11 countries. And yet several eastern Europe countries are now registering the fastest increase in new infections in the world.
The number of patients treated with lifesaving antiretroviral therapies in the developing world has increased by 800 per cent in the last three years. And yet still only one in six Africans who need this therapy are receiving it.
Let us say the glass is half full. Let us welcome the role of the Global Fund to fight AIDS, TB and malaria; launched in Brussels five years ago, it has already become the major financing instrument to confront these epidemics at the global level.
The EU and its Member States are the biggest contributors to this fund. I want this to remain the case. Over the next 12 months or so, as it holds the Vice-Chairmanship of the Fund, the European Commission will intensify efforts to make it an even more successful partner at country level.
The fund’s success means its financial needs are increasing. But public donors cannot meet these needs alone. Additional financing will have to come mainly from new sources, including private donations. That’s why increased support from you, the private sector, is essential.
In this context, I am pleased to see American Express receive recognition tonight for its innovative RED campaign. Finances raised by companies through this campaign go directly into the Global Fund. I encourage other businesses to follow this lead.
And if I may make a brief detour here: the EU’s delivery on its commitments to the Global Fund, fits into the wider European commitment to the developing world – in particular Africa. That commitment is essential to the identity of a new generation of Europeans, just as co-operation rather than conflict in Europe was to a previous generation.
At the G8 Summit in Gleneagles last year, I and other leaders pledged action for Africa on a range of issues, from peace and stability to the promotion of good and responsive governance; from investing in people to promoting growth; from financing for development to partnership and mutual accountability.
Have we made progress?
Let us take aid: the EU and its Member States agreed last year to double their aid by 2010, with half of that going to Africa. 80% of the €50 billion extra aid agreed last year in the G8 will come from Europe.
Let us take trade: the EU is the most open market in the world to products from the poorest countries. In fact we import more goods from Africa than all the rest of the G8 – plus Australia and New Zealand – combined!
Let us take debt: since its inception, the Commission’s contribution to initiative for the Highly Indebted Poor Countries has been more than €1.6 billion. The Commission even went beyond the terms of the initiative by cancelling all special debts of the least developed countries.
But we can, we must do more. We must deliver on the promises we made. Let me highlight one area: trade. I worry about the body language surrounding the present Doha round. Some say it is wiser for the developing world to wait for something better in the future. I cannot agree.
We must seize the moment now. A global trade round offers the prospect of a fair, rules based multilateral system, which takes into account the many different interests amongst the WTO’s 149 members. I would like to hear the voice of the private sector, of the many companies here tonight, in support of action from all the key players. Working together, we can ensure a successful, development friendly trade round.
But to return to the fight against HIV/AIDS: no-one can do this alone. The EE can and is playing its part.
For example, in 2000 the European Commission called on private investors in Africa to join the fight by providing care and treatment for employees and their families. The business benefits of this, as well as the human benefits, are clear. Unilever is one of the companies that have led the way, and I am pleased to see they are getting recognition for this tonight.
In 2003 the European Commission adopted legislation to provide for a tiered pricing system for key medicines. This enabled the pharmaceutical industry to sell such medicines at normal prices on OECD markets, while offering the same product at prices near to production cost in developing countries.
The effect of this, and greater competition, has been dramatic. In 1999, a full course of antiviral treatment for a worker living with HIV cost $10,000/year. In 2006, it costs $200/year. Thanks to price decreases, 1.3 million patients are being treated in low and middle income countries today, compared to about 400,000 only three years ago.
But immunity can develop to yesterday’s drugs, so it is vital to ensure that today’s and tomorrow’s drugs also remain affordable. I therefore call on all major pharmaceutical manufacturers, and exporters of essential medicines, to apply tiered pricing as a general rule - including on the newest medicines like second generation anti-retroviral treatments.
The private sector can also develop a partnership with public authorities in other areas.
Too many Europeans are getting HIV, and too few are aware of this. That is why the European Commission has asked industry to co-operate in a public awareness campaign. I am very grateful for the interest that the Global Business Coalition: Europe, MTV Europe and the European Broadcasting Union have already shown in this. I encourage others in the private sector to get on board.
As for Europe’s pharmaceutical industry, it has devoted vast resources to providing more and better drugs for treatment. But new efforts should also be directed towards research on preventive technologies. The Commission is ready to support industry-led research on AIDS vaccines and microbicides. Strong guidance from pharmaceutical companies is vital if this is to bear fruit, and the Commission has already established partnerships with the Alliance for Microbicide Development, the Global HIV Vaccine Enterprise and, indeed, the Global Business Coalition itself.
Ladies and gentlemen,
Every company has the potential to contribute to, and be a valuable partner in, the fight against HIV/AIDS. So let me finish tonight by raising a glass – a half full glass! – to those companies that have led the way: our award winners tonight.
Thank you.
