The old saying, “options are power”, is a good starting point for reflection as we mark World Contraception Day, September 26th, 2024. This year’s theme is “A choice for all. Freedom to plan, power to choose.”
Pregnancy, contraception, and the overall topic of family planning might not be the first things to come to mind when thinking about equal opportunities as an investment theme, but in fact they’re highly relevant. A woman’s right to choose whether she wishes to have a child, or when exactly she does, is essential for her empowerment, and contraception is a vital tool for her to make those choices. Implications of the power of choice on a personal level, can also impact individual and social potential for economic value creation.
Social and economic value
Family planning and contraception spans a diverse set of products and services. As defined by the World Health Organization it ranges from informational tools and education about body and fertility awareness methods; to pharmaceuticals such as injectables or oral contraception pills; medical devices such as patches, condoms, vaginal rings and intrauterine devices (IUDs); and medical procedures such as implants, sterilization and abortion.
Research shows that investment in family planning services is highly cost-efficient. Estimates show that each US dollar invested in family planning can result in a US$ 60 – 100 return in terms of to economic growth. Each additional dollar spent on contraceptives would reduce the cost of pregnancy-related and newborn care by three US dollars.[7]
This makes for an interesting social and economic case, given the prospects of increased workforce participation, reduced healthcare costs, and improved health outcomes for women. From the microeconomic perspective, it also opens a discussion around attracting and retaining talent.
Central to the empowerment investment theme
In our Equal Opportunities solutions theme, we have defined women’s healthcare as an important strand of our investment theme around achieving better access to healthcare. As a part of this investment theme, we have invested in several companies that produce and manufacture contraceptive drugs.
One of those is Organon, spun off from Merck in 2021, forming a company that was dedicated to improving women’s health through all her stages of life. Organon provides different types of contraceptives and other reproductive health solutions to ensure better and broader access to contraceptive methods.
Another, Gedeon Richter, is a pharmaceutical company that, amongst other themes, focuses on women’s health by offering a wide range of contraceptives. The company aims to address unmet needs within women’s healthcare by providing innovative pharmaceutical products for women.
Global ambition for reproductive health rights policies
The policy landscape is mature in terms of ambition. As far back as 1994, at the International Conference on Population and Development (ICPD) in Cairo,179 governments affirmed the ICPD Programme of Action recognizing reproductive health and rights as “fundamental” for development. During the conference, the governments also affirmed that, for societies to advance, women’s empowerment and gender equality are essential. [1]
Yet, three decades on, it’s fair to say however, that those ideals haven’t come to fruition. Currently, around the world about half of all pregnancies are unplanned.[2] And globally, there are still misconceptions about the use of contraception, for instance about negative side effects and the long-term effects on fertility. Moreover, some women may feel stigmatized and hide their use of contraception, while others cannot access contraception due to lack of awareness or affordability.
These, among other reasons, have led to the current state where 257 million women around the world who want to avoid pregnancy, but are not using safe methods of contraception.[3] That’s a significant gap in empowerment.
Policy at stake
The upcoming U.S. presidential election in November present a significant potential turning point in this space, from the domestic US standpoint, as well as in the global perspective.
Of the two leading candidates in the election polls, the Democratic Party candidate Kamala Harris takes a fairly clear policy stand, declaring: “As President, she will never allow a national abortion ban to become law. And when Congress passes a bill to restore reproductive freedom nationwide, she will sign it.” [4]
On the other hand, GOP candidate Donald Trump is more ambivalent, stating: “We will oppose Late Term Abortion, while supporting mothers and policies that advance Prenatal Care, access to Birth Control, and IVF (fertility treatments).” Beyond that, he says that, in principle, all decisions on reproductive rights should be left to each US state to decide.[5]
In terms of concrete actions, in his previous term in office as President of the U.S., Trump appointed several U.S. supreme court justices who have since sided with decisions that could limit abortion rights.
Globally the stakes are potentially even higher in terms of the impact of the election on support for reproductive health centred around women’s right to choose. As President, Trump had notably activated the so-called “Mexico City Policy, which barred non-profits organizations outside the USA from receiving U.S. government funding if they provide abortion counselling or referrals. The history shows a consistent pattern of GOP presidents enacting this policy, and Democratic ones reversing it, since it was first enacted in 1985 by Ronald Reagan.[6]
As is evident, contraception is a sector with a great deal of potential. While the sector could be impacted by policies to some degree, both in the short and long term, the underlying demand for contraceptive products and services seem to be significantly unfulfilled. If contraceptive options are power, much can be done yet to spread that power around.
Sources:
[1] United Nations Population Fund
[2] Organon Pro, World Contraception Day 2023
World Contraception Day 2023 - Organon Pro Thailand
[3] UNFPA, World Contraception Day 2024
https://www.unfpa.org/events/world-contraception-da
[4] Kamala Harris 2024 Electoral Platform
https://kamalaharris.com/issues/
[5] Donald Trump 2024 Electoral Platform
https://rncplatform.donaldjtrump.com/?_gl=1*16vu70l*_gcl_au*MTQ2MzI4Mjk0OS4xNzI2ODQwNzIy
[6] PBS.org, “Biden rescinds abortion restrictions on U.S. foreign aid”
https://www.pbs.org/newshour/politics/biden-rescinds-abortion-restrictions-on-u-s-foreign-aid
[7] Guttmacher Institute, Policy brief
Investment_Case_for_Family_Planning_Policy_Brief.pdf (guttmacher.org)