35 In the WTO, the graduation principle presented by Cottier aims to give additional flexibility to the international system, so that the implementation of WTO provisions is conditional on the removal of a number of graduation constraints. In view of social and economic development, it could also correspond to the degree of competitiveness of the industries and sectors concerned.43 Countries that fall below a chosen threshold would be entitled to exceptions44.44 The threshold could be used to define the application of an agreement or rule specific to a particular industry in a country.45 It is an attempt to set the threshold for pharmaceutical patents under the TRIPS agreement in Bangladesh. 20 See details, WTO, “Intellectual Property: Least Developed Countries,” www.wto.org/english/tratop_e/trips_e/ldc_e.htm 90In the current technological capabilities of LDCs, it is difficult to predict more generally whether the IP system could play a role in promoting the ability of developing countries to develop and produce medicines for neglected diseases. The issue of research and development funding has a long history within WHO, where it has been the subject of bitter negotiations. In general, members agreed that there is a market failure that does not provide a financial incentive for companies to invest in research into neglected diseases, while members have been at odds for years on how to solve them. The WHO Commission on Macroeconomics and Health (CMH) 126 said a significant injection of funds into health services, infrastructure and research was needed to meet the health needs of developing countries. He felt that patent protection did not provide much incentive for disease research in developing countries in the absence of a large market.127 WHA in 2012 welcomed a CEWG report on the adoption of a possible contract for sustainable research and financing of diseases through negligence. However, differences of opinion between the parties on the issues relating to the adoption of a research and development contract have made it slip from the list of possible approaches. The CEWG resolution contains three areas of action: the creation of a global health research and research observatory, the implementation of demonstration projects, and the development of standards and standards to improve data collection on research and development in the health sector.128 if supported by a wider use of compulsory licences.129 However, a full compulsory licence may be counterproductive to encourage investment and technology transfer in the pharmaceutical sector, and the lack of innovative technological capabilities in most LDCs will prevent local pharmaceutical companies from using compulsory licenses to produce cheaper drugs. Thus, the establishment of strong, competitively protected market structures through competition law and enforcement could be more effective, both in improving access to medical technologies and in promoting innovation in the pharmaceutical sector.130 where IP rights impede competition and are therefore a potential barrier to innovation and access.131 As they adopt TRIPS-compliant patent law, least developed countries must ensure that their IP protection rules are not contrary to and comply with their public health policies.