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More jobs to foreign countries ... Pharmaceutical Research next?
by Mike Crane

Another industry gearing up to send American jobs to a foreign country, this time the Pharmaceutical Industry. Of course we will be told how this is good for us . Both major parties, the Republicans and Democrats and especially the current Bush Administration continue to treat offshoring - the sending of American jobs to foreign countries as a boost to our country's economy ( Failed Bush policy  - over-invested in high-cost geographies like the U.S.).

Over and over we are told how this creates more jobs than are lost. But it is a stretch to find an empty factory or  research lab that employs many people. But they continue to tell us that sending jobs is good for us . As the number of empty factories, call centers, banking centers, human resource centers, high tech development centers and soon pharmaceutical research centers become empty - one fact can not be disputed. The Americans who used to work there - do not work there any longer. But we are told that this is good for us.

Many of our elected politicians provide eloquent statements about this loss of jobs and expertise is good for us - but they never count the real costs and effects on our citizens, economy and society.

Every lost job has a real impact on the family that was supported by that job. Lost salaries do not pay bills. Unemployment benefits are paid either by tax payers or contribute to the cost of goods and service in the form of unemployment insurance paid by employers. Long term unemployment or lowered salary on replacement jobs have a direct effect on the affected family. Costs to society contribute to the growing expense side of local, State and federal budgets.

For every service or product that moves offshore it weakens our country's economy. The services or products are now imports and contribute to the continuing deterioration of our country's international trade position which is running massive deficits (See: Bush Economic Polices - Once again - bragging about trade deficit failure ... ).. These deficits can not continue indefinitely.

These are real, very real on the personal level, impacts of the current policy of encouraging outsourcing. We especially hold the Bush Administration responsible. In his re-election campaign last year both the Elect Bush Campaign and Republican National Committee used call centers in India to perform millions of telephone calls (See: India claims big election victory and laughs at Americans ).

You are presented explanations about how this is "Free Trade." That Free Trade is good for both sides. However this is actually "Expensive Trade" and you are providing in effect a citizen supplied subsidy for the multi-national corporations that are utilizing outsourcing. Free Trade or Expensive Trade are just terms to describe the effects of the current Administration and major party supported Trade Policy. Look at who benefits - multinational corporations and those they support. Since they benefit they use the much touted term "Free Trade." Look at who pays the price - our citizens and country. You should be using the term "Expensive Trade."

Our government at all levels has the duty to represent both citizens and special interests, not just special interests. Our government should be worked for "Fair Trade." A trade policy that is balanced, where overall trade between between our country and a foreign country is balanced (See: A Southern Party of Georgia Position on solving our country�s Trade Deficit ). Only when trade is balanced can both trading partners benefit.

In our current trade policy our country and its citizens lose!

Until you - the citizens demand a change, you are stuck with "Expensive Trade." It is up to you to decide how long you will let multinational corporations and foreign countries to continue to reap the benefits while you pay the price - both directly and indirectly.

The next time you hear some politician talking about how the current "Free Trade" is good for us - let them know that you will not vote for them again until they support Fair Trade! And do it! Until then nothing will change ...

The following article gives fair warning of what is coming for the Pharmaceutical Industry.

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`Pharma sector to be worth $48 bn by 2007`
Our Corporate Bureau / New Delhi May 23, 2005
The Indian pharmaceutical sector can be worth $48 billion by the year 2007 from the present $6 billion, according to a study by the Confederation of Indian Industry (CII).
The CII study predicts that India could become a global leader by exporting domestically produced generic products and presenting itself as an offshoring location for clinical and pre-clinical research amongst other support services.
The study projects that it will be imperative for Indian companies to leverage emerging opportunities and meet key challenges to achieve this target.
However, it depends on the ability to withstand shocks and consistently deliver profitable growth. It will also be important to focus on operational excellence, the study observes. If India were to evolve on the global landscape, it will largely be through consolidating and creating large global generic players.
This argument gains ground if one were to look at the international scenario where top 10 generic players already constitute 27 per cent of the global market.
The study lays special stress on R&D especially for chronic diseases, lifestyle drugs and life threatening diseases. In India, the spending on life threatening ailments especially is abysmally low, and that has to increase.
Greater incentives in this aspect need to be provided through higher EXIM Bank allocations, public-private partnerships and an increased budgetary allocation for research,the study suggests while special zones, registration of global sourcing units for extended tax holidays and facility of soft loans will give a leg up to contract manufacturing facilities.
For clinical trials, there is a need to improve the regulatory approval process and increase public awareness and transparency.
The study has also focused on the need for creating ethics committees for private hospitals and thereafter ensuring compliance.
The global industry is currently worth $550 billion, while the Indian pharmaceutical industry is pegged at $6 billion , growing at 10 per cent per annum.
India�s share in the global generics market is likely to be significant on patent expiry and is expected to grow from the current 4 per cent to around 33 per cent.

Source: http://www.business-standard.com/common/storypage.php?storyflag=y&leftnm=lmnu1&leftindx=1&lselect=6&chklogin=N&autono=189598

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