Transfer of contraceptive production technology to developing countries.

Explores the value of local production as a supply option for contraceptives. The views of donor agencies service organizations multinational firms and developing countries are frequently divergent on this issue. At present 20 developing countries have contraceptive use rates above the level required for full scale production of orals IUDs or condoms. 14 of these countries already have some production capacity or have conducted feasibility or preinvestment studies in preparation for technology transfer. In most cases current local production capacity is not sufficient to meet local public sector demand. Often the local products are competing with donor supplied imported contraceptives which are distributed free of charge or at a subsidized price. The problems of technology transfer to developing countries for contraceptive production are common to the establishement of any industrial technology requiring high standards of quality rigorous manufacturing practices and precision equipment. These problems can be overcome but the process requires more time than is usual for the developed world and project costs can escalate rapidly. Costs of the finished product may not be lower than those in the developed country in spite of lower costs for land buildings labor raw materials or other inputs. However savings in foreign exchange currencies can be expected when compared with purchase of imported products. Careful planning on the part of developing countries and donor agencies can ensure the optimum outcome for local production decisions. These decisions will not always be made solely on the basis of technical and economic feasibility. Strategies for effective decision making are detailed for donors and developing countries as well as critical decision paths for choosing supply options. (authors modified)