
The shortage of medicines in South America is not just a healthcare challenge; it is also a phenomenon that exposes the weaknesses of global supply chains and opens a window of opportunity for strategic actors in Central Europe, such as the pharmaceutical industries in Slovenia and Croatia. However, this opportunity cannot be separated from a critical analysis of the responsibility that these companies bear to ensure social welfare through greater productivity and an ethical prioritization of their investments.
The Shortage in South America: Causes and Consequences

The lack of essential medicines in several South American countries has multifaceted roots: failures in global supply chains, rising costs of raw materials, logistical barriers exacerbated by the pandemic, and ineffective policies that hinder local distribution. The consequences are devastating: overwhelmed hospitals, increased mortality from treatable diseases, and a widespread deterioration of public health.
In this context, the region seeks solutions that include diversifying suppliers, investing in local production, and fostering international cooperation. However, global pharmaceutical players have yet to take decisive steps to address this problem.
Slovenia and Croatia: Innovation and Opportunity

Slovenia and Croatia, with their tradition in pharmaceutical research and development, have a unique opportunity to position themselves as key partners in alleviating this crisis. Companies like Krka, Pliva, and Belupo have demonstrated their capacity to produce high-quality generic medicines but have also followed a global pattern of prioritizing profit margins over productivity.
As South America struggles to secure basic medicines such as antibiotics, painkillers, and cancer treatments, Slovenian and Croatian pharmaceutical companies have the possibility to expand production, improve their supply chains, and take a more visible role in emerging markets. This step would not only strengthen their revenues but also contribute to global social welfare, consolidating their reputation in a sector where ethical responsibility is increasingly valued.
The Critical Side: Productivity and Ethical Priorities
Despite their capabilities, the global pharmaceutical industry faces a recurring problem: the lack of an agile response to urgent healthcare needs. Often, instead of increasing production to meet demand, many companies opt to maintain high profit margins by restricting supply. Additionally, significant resources are allocated to non-essential areas, such as promoting products of questionable health impact or investing in sectors unrelated to healthcare.
This model, driven by short-term profit motives, overlooks the long-term social impact of sustained and strategically directed productivity. The pharmaceutical industry must understand that its ability to contribute to social welfare is directly linked to its role as an efficient producer of essential goods. This is not only an ethical responsibility but also an economic sustainability issue: companies that contribute to social welfare tend to consolidate their position in global markets.
A Call to Action
For the pharmaceutical industry in Slovenia and Croatia to seize this opportunity and simultaneously demonstrate its commitment to global welfare, clear and decisive actions are needed:
Increase Productivity: Expand production capacity for essential medicines to meet the critical needs of affected regions such as South America.
Strategic Investments: Prioritize research and development of treatments that significantly impact public health rather than excessively diversifying into non-priority areas.
International Alliances: Establish collaborations with governments and health entities in South America to ensure efficient and accessible distribution of medicines.
Social Responsibility as a Business Strategy: Incorporate principles of ethics and sustainability into business strategies, demonstrating that profitability can coexist with positive social impact.
Conclusion
The shortage of medicines in South America is not only a humanitarian crisis but also an opportunity for the pharmaceutical industry in Slovenia and Croatia to demonstrate global leadership. However, for this opportunity to materialize significantly, companies must adopt a focus on productivity and social welfare. This approach will not only ensure an immediate positive impact on the most affected communities but also consolidate their reputation and relevance in a world where corporate social responsibility is increasingly crucial. Productivity, at the end of the day, is not just a matter of numbers; it is the pillar that supports the well-being and prosperity of our societies.
Author: Econ. Jose Miguel Estigarribia Villasanti
Sources
World Economic Forum: "Why are medicines scarce in some countries, and what can be done to ensure their supply?"
World Health Organization (WHO): Reports on access to essential medicines.
World Bank data and statistics on healthcare systems in Latin America.
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