I present here a proposal for constructing a global patent regime, which could be a reasonable compromise to the current bitter dispute fueled by TRIPS. It allows the right line to be drawn between prices and incentives because different lines can be drawn for different products.
The African Growth and Opportunity Act took effect in January 2001 to allow qualifying sub-Saharan African countries to export qualifying goods duty free to the US. The act was expressly designed to "increase trade and investment between the US and sub-Saharan Africa." The evidence over the short time since it was enacted reveals that: most of the AGOA benefits have gone to oil exporters; most of the imports eligible for duty-free treatment are still being taxed, notwithstanding their eligibility. This is probably due to logistical difficulties in claiming AGOA benefits. AGOA has not increased trade flows from eligible countries to the US yet there are structural features of the law which threaten to reduce its developmental impacts.
Over the last several years, the United States and other major donor countries have supported a historic initiative to write down the official debts of a group of heavily indebted poor countries, or HIPCs. Donor countries had two primary goals in supporting debt relief: to reduce countries' debt burdens to levels that would allow them to achieve sustainable growth; and to promote a new way of assisting poor countries focused on home-grown poverty alleviation and human development. While the current "enhanced HIPC" program of debt relief is more ambitious than any previous initiative, it will fall short of meeting these goals. We propose expanding the HIPC program to include all low-income countries and increasing the resources dedicated to debt relief. Because debt relief will still only be a first step, we also recommend reforms of the current "aid architecture" that will make debt more predictably sustainable, make aid more efficient, and help recipient countries graduate from aid dependence.