Clinton Philanthropy Comes At Price For American AIDS Patients

The Clinton Foundation is a multi-headed hydra. On the one hand it has been characterized as a money laundering and personal branding enterprise designed to disguise influence peddling in the wrap of humanitarianism, while at the same time it is consistently lauded by even its detractors as doing some valuable charitable work, particularly in regards to its mission to deliver cheap and affordable drugs to 8 million AIDS patients in the "developing world".

The specific entity doing the good work is called the Clinton Health Access Initiative or CHAI which was spun off from the Foundation into its own discrete organization. According to their website they were instrumental in lowering the cost of AIDS treatment from $10,000 a year to $100 to $200 a year and the number of people receiving treatment rose from 200,000 to over 8 million largely due to their efforts. That is a truly fantastic outcome.

And yet, there is a hidden price tag to that wonderful result. The subterranean expense is not shouldered by Foundation donors or drug companies or benevolent billionaires, it is born by the patients and citizens and governments of the more developed and wealthier countries although they are probably unaware of it. The cost of providing cheap drugs in developing countries is part of a deal made by the Clintons and their Foundation with the drug companies wherein the Clintons protect high domestic prices for the benefit to Pharma while the Clintons reap the image enhancement of being Great Philanthropists. Who knew? I didn't until I tumbled across this article this morning:

Clinton Foundation Plagued By Corruption and Conflict which spells out the deal very succinctly in the words of the head of CHAI, longtime Clinton Ira Magaziner :

“We have always told the drug companies that we would not pressure them and create a slippery slope where prices they negotiate with us for poor countries would inevitably lead to similar prices in rich countries,” complained Magaziner in a 2011 email released by WikiLeaks about comments made by Bill Clinton in regards to lowering domestic AIDS drug prices. “We were taken by surprise by President Clinton’s comments on world AIDS day and wish that someone had consulted with us before he made these comments,” wrote Magaziner. “As you will see when you read this memo, we think that publicly pressuring the U.S. and European AIDS drug companies to lower prices and bringing pressure to allow generic AIDS drugs into the United States will have limited if any success and could seriously jeopardize our negotiations to continually lower prices in poor countries.”

Magaziner added that if the Clinton Foundation supported lowering AIDS drug prices in the U.S., it would undermine their work abroad. “We can go to war with the U.S. drug companies if President Clinton would like to do so, but we would not suggest it,” said Magaziner. “I do not think it is a good idea for President Clinton to be taking one position and CHAI another.”

Interesting, no? One would think that true philanthropists would be interested in lowering drug costs worldwide to the benefit of all AIDS victims everywhere. Why isn't that the case?

I'll go out on a limb here and advance my own theory about this. Opening the market to Pharma and AIDS drugs in the developing world is all good from a capitalist, profit making perspective - that market barely exisited before the deal, only 200,000 patients which exploded to 8,000,000 patients afterwards. Because I am a cynic, I would venture that even at 100-200 dollars a year for the generic drugs being provided, the companies are still making lots of money. But, I would also venture that despite proving that they are capable of providing generic drugs at a reasonable price, the profit driven pharmaceutical companies have no intention of eroding their already established higher cost non-generic drugs in wealthier countries, because MONEY. I freely admit this is simply a theory and anyone with information to the contrary is more than welcome to post the flaws in my reasoning.

So, IMO while the Clintons may be the Benevolent Providers in developing countries, they have built that image on the back maintaining of higher drug costs here and in Europe.

If Hillary Clinton ever had the fortitude to have an actual press conference, maybe someone could ask her about this.

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Amanda Matthews's picture

Clinton groupies. It was so much fun watching them trying to justify poor people in wealthy countries being screwed over by this bunch of opportunists.

I am starting to despise a whole bunch of my 'fellow' Americans.

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I'm tired of this back-slapping "Isn't humanity neat?" bullshit. We're a virus with shoes, okay? That's all we are. - Bill Hicks

Politics is the entertainment branch of industry. - Frank Zappa

Phoebe Loosinhouse's picture

I haven't been around too much lately because Real Life has been kind of hectic. But my theory is that someone always misses something the first time around and if its interesting and important a couple of go-rounds just cements it.

If I were in a masochistic mood, which I'm not, I would post it at Daily Frontal Lobotomy just to enjoy the pretzel logic.

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" “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR "

Amanda Matthews's picture

it or not but TRUST ME ON THIS ONE, the Clinton creature's supporters lose their minds when you point out that they're more than willing to let poor American's (or Brits or whomever) suffer, do without meds, and possibly DIE because they want to look like such good humanitarians. It's really funny the excuses they come up with.

They're a touchy bunch of fake Progressives, oh Hell, fake DEMOCRATS. The 'party' has had some real sleazy members and candidates in the past, but this election has brought out the WORST!! But a Clinton is running so that should go without saying, I guess.

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I'm tired of this back-slapping "Isn't humanity neat?" bullshit. We're a virus with shoes, okay? That's all we are. - Bill Hicks

Politics is the entertainment branch of industry. - Frank Zappa

sojourns's picture

CFvsDWB.png

I suppose 'other' could be anything. From paper clips to jacuzzi maintenance services. It occurs to me that the money just sitting there under the Clinton Foundation mattresses is accruing interest that is not held accountable. I can't help bu assume the worst from these grifters.

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"I can't understand why people are frightened of new ideas. I'm frightened of the old ones."
John Cage

Phoebe Loosinhouse's picture

the Clinton Foundation. It has a unique structure which is why Charity Navigator won't rate them. I read somewhere that they are more like middlemen and brokers of charitable endeavors rather than a traditional charity. Bill Clinton has made a couple of references to "administrative fees"making me think that they get something off the top and that's how they support their huge administrative costs? That's just conjecture on my part Their webpages are completely opaque IMO filled with feel good gobbledy goop and short on detail It also seems to functions as an amployee warehouse/dormitory for Clinton sycophants between other gigs.

The one entity that has a pretty solid rep is the CHAI arm which was spun off to be independent of the more amorphous Foundation, but then you find out something like what this essay is about.

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" “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR "

sojourns's picture

To obfuscate, of course.

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"I can't understand why people are frightened of new ideas. I'm frightened of the old ones."
John Cage

Arrow's picture

has a friend in Bill.

Bill fought to keep the status quo in world drug markets.

Little known fact is - countries have a sovereign right to make and use patented anything for government use and national emergency.

A country like Botswana wanted to do just that and contract generic AIDS drugs to fix their pandemic.

Bill swooped in and said 'No No No We'll give you charity pricing and grants for the rest if you don't do that.' Can't have 3rd world countries making their own cheap drugs. Gotta be subservient to Multinational corporations.

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I want a Pony!

Phoebe Loosinhouse's picture

India had this great program to build a great grid using domestically made solar panels which would employee tens of thousands of people across the country. All good - update infrastructure and employ people using home grown environmentally responsible product. But American solar industry comes in and says "oh no you don't" because it puts American solar panels at a competitive disadvantage so the entire program gets dismantled. Ironically, the exact same scenario has the potential to be played out here and India is thinking of filing similar suits in the US.

This was all litigated due to the WTO.

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" “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR "

ggersh's picture

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I never knew that the term "Never Again" only pertained to
those born Jewish

"Antisemite used to be someone who didn't like Jews
now it's someone who Jews don't like"

Heard from Margaret Kimberley

Yes, when you include what's contained in the Trans-Pacific Partnership draft, the multi-headed hydra of corporate greed knows no bounds! Especially, when they have people like the Clintons doing their dirty work!

It's about enabling Big Pharma to drastically increase drug prices around the globe. Period.

You see, the Trans-Pacific Partnership agreement insures higher prices for drugs worldwide. (And, I'm pretty certain that similar intellectual property clauses--which, among other things, relate to protecting Big Pharma's drug patents, globally--are also contained in the TransAtlantic Trade and Investment Partnership [TTIP] and the Trade in Services Annex [TISA] to the General Agreement on Trade in Services [GATS]. Yeah, the 1% really has this all quite "buttoned-up," and in more ways than most realize. They've got us 'coming and going.")

Don't Trade Away Our Health

By JOSEPH E. STIGLITZ
NEW YORK TIMES OP-ED
JAN. 30, 2015

A secretive group met behind closed doors in New York this week. What they decided may lead to higher drug prices for you and hundreds of millions around the world.

Representatives from the United States and 11 other Pacific Rim countries convened to decide the future of their trade relations in the so-called Trans-Pacific Partnership (T.P.P.). Powerful companies appear to have been given influence over the proceedings, even as full access is withheld from many government officials from the partnership countries.

Among the topics negotiators have considered are some of the most contentious T.P.P. provisions — those relating to intellectual property rights. And we’re not talking just about music downloads and pirated DVDs. These rules could help big pharmaceutical companies maintain or increase their monopoly profits on brand-name drugs.

The secrecy of the T.P.P. negotiations makes them maddeningly opaque and hard to discuss. But we can get a pretty good idea of what’s happening, based on documents obtained by WikiLeaks from past meetings (they began in 2010), what we know of American influence in other trade agreements, and what others and myself have gleaned from talking to negotiators.

Trade agreements are negotiated by the office of the United States Trade Representative, supposedly on behalf of the American people. Historically, though, the trade representative’s office has aligned itself with corporate interests. If big pharmaceutical companies hold sway — as the leaked documents indicate they do — the T.P.P. could block cheaper generic drugs from the market. Big Pharma’s profits would rise, at the expense of the health of patients and the budgets of consumers and governments.

There are two ways the office of the trade representative can use the T.P.P. to maintain or raise drug prices and profits.

The first is to restrict competition from generics. It’s axiomatic that more competition means lower prices. When companies have to fight for customers, they end up cutting their prices. When a patent expires, any company can enter the market with a generic version of a drug. The differences in prices between brand-name and generic drugs are mind- and budget-blowing. Just the availability of generics drives prices down: In generics-friendly India, for example, Gilead Sciences, which makes an effective hepatitis-C drug, recently announced that it would sell the drug for a little more than 1 percent of the $84,000 it charges here.

That’s why, since the United States opened up its domestic market to generics in 1984, they have grown from 19 percent of prescriptions to 86 percent, by some accounts saving the United States government, consumers and employers more than $100 billion a year. Drug companies stand to gain handsomely if the T.P.P. limits the sale of generics.

The second strategy is to undermine government regulation of drug prices. More competition is not the only way to keep down the prices of essential goods and services. Governments can also directly restrain prices through law, or effectively restrain them by denying reimbursement to patients for “overpriced” drugs — thus encouraging companies to bring down their prices to approved levels. These regulatory approaches are especially important in markets where competition is limited, as it is in the drug market. If the United States Trade Representative gets its way, the T.P.P. will limit the ability of partner countries to restrict prices. And the pharmaceutical companies surely hope the “standard” they help set in this agreement will become global — for example, by becoming the starting point for United States negotiations with the European Union over the same issues.

Americans might shrug at the prospect of soaring drug prices around the world. After all, the United States already allows drug companies to charge what they want...

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"Freedom is something that dies unless it's used." --Hunter S. Thompson

Phoebe Loosinhouse's picture

The trade pacts are absolutely another head on the hydra. I didn't mention it because the AIDS drug deal with CHAI seems to be a one-of private negotiation. I read recently that the entire Canadian Healthcare system is being subjected to a trade suit as we speak although I wasn't able to find the details for this comment.

But, along those lines, here is an article concerning how the Canadians will get shafted with the TPP in regards to Hep C treatment drugs. Why This Doctor Thinks The TPP is Bad For Public Health and that is just one example of one drug.

The trade pacts are good for corporations who will push the profits to the oligarchs but not good for nations or people, no matter how hard the political paid minions try to push them.

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" “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR "

Under these 'trade deals', the public of each involved country can be sued for hundreds of millions or hundreds of billions of dollars by any/each of thousands of involved corporations/billionaires for any law protecting the public/environment which has the potential to reduce their future self-anticipated maximized profits.

Unlimited industrial pollution, for example, is (short-term) cheaper for industry, as are unsafe products and workplaces, so that their maximization of future anticipated profits are harmed by there being any restrictions at all. Minimum wage laws, even at starvation levels, will be more than slave wages in countries using slave labour, such as Malaysia and will have to go.

Think of all of the draining, damaging and destructive things Republicans have been demanding for their lords and masters becoming universal corporate law.

How many potential trillions can the public of each country perpetually pay these corporations and billionaires annually - especially at wages likely allowing for few citizens to be living under a roof or to be buying enough food, let alone be paying much in taxes - in trying to keep the bulk of citizens at least alive for a little longer, before falling into the grasp of international finance, as with Greece? Or, I suppose, having their countries officially seized/sold out from under them at fire-sale prices...

The dismissal of elected officials and their replacement with 'Emergency Managers' selling off public property to the wealthiest has already been established in the US oligarchy 'democracy'.

Not that there's been much pretense of democracy any more, and the last shreds appear to be pretty much being yanked off as the corporate jaws close in with the first corporate coup of the TPP to be traitorously signed by Obama right after the Coronation of any of the 3 TPP-supporting candidates, should the long pre-selected Hillary fail.

The only amusing thing is that the unregulated-by-law financial institutions will crash and burn with the tax-payers virtually all dry from being even more grossly underpaid and unable to bail them; the only ones to suffer more from this will be the wealthy not running the financial markets and losing their deposits/investments which will all wind up in the hands of the very, very, very few as they cannibalize each other. Oh, that and they'll run low on, and shortly thereafter, out of oxygen as the natural life cycle producing and cleansing it perishes in the near future under those so-profitable abuses.

The TPP et al must be stopped.

Never vote for evil!

Vote Green, for life and democracy and fight the incredibly stupid and ignorant cheating Powers That Shouldn't Be.

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Psychopathy is not a political position, whether labeled 'conservatism', 'centrism' or 'left'.

A tin labeled 'coffee' may be a can of worms or pathology identified by a lack of empathy/willingness to harm others to achieve personal desires.