Access to drugs in developing countries is expected to worsen after 2005 when all World Trade Organization (WTO) Members, except least developed countries (LDCs), have to enforce the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). This chapter examines the role of promoting local production in improving the access to drugs in developing countries, in particular:

• the medium-and long-term strategies for the creation and improvement of domestic manufacturing capacities;

• the current policies and the legal environment, in general, for pharmaceutical production; and

• the feasibility of expanding existing manufacturing units or setting up new ones, as well as the possible instruments, such as subsidies, investment regulation and government procurement policies; incentives by developed countries to improve technology transfer or to provide technical assistance; as well as South-South technology transfer.