Medical Tourism in Developing Countries
Medical Tourism in Developing Countries Medical Tourism in Developing Countries
Promoting Medical Tourism ● 121(and previously in Latin America) where at best fledgling democraciesexisted. In most LDCs, even if there are elections, they are rarely sufficientlyregular that the electorate can count on them to displace undesirable leaders.All too often these elections are rigged, unfair, and under-representative ofthe population at large. While countries may have multiparty systems intheory, there is often one dominant party that dominates the political arena.Leaders are often personality figures who enjoy vast powers. In such politicalcultures, democratic institutions and practices are under-represented. Thoseconditions do not bode well for the development of medical tourism.Political freedom reflects tolerance of those who hold different politicalviews. It is a crucial feature of any society that seeks to promote its medicaltourism. Indeed, Friedman pointed out, “When it comes to economicactivities, one of the greatest virtues a country or community can have is aculture of tolerance.” 91 Yet, despite its lack of political freedom (as well aspolitical rights and civil liberties), Cuba continues to be popular among alltourists, not just medical tourists, and not just leftist sympathizers and thosewho are against American superpower and sanctions. Indeed, Cuba is apolitical relic that has an exotic cache, as Michel Houellebecq noted: “It’sone of the last communist countries, and probably not for much longer, soit has a sort of ‘endangered regime’ appeal, a sort of political exoticism.” 92The Legal SystemAccording to Litwack, legality in a country implies both a mutually consistentset of laws and a government that can enforce those laws. 93 If there isno legality in the definition of political and economic relationships, thenlawlessness reigns both in personal and economic issues. Moreover, if thepopulation doesn’t have confidence in the government, then legality isbrought into question. Thus, laws and a government to enforce them areboth necessary, as one without the other fails in its goal to protect entitiesand facilitate relations between them. Their absence is detrimental to alleconomic activity, including medical tourism.Countries promoting medical tourism should have a well-developed legalsystem in place, one that spells out the rules and regulations for economic,political, and social behavior. They need to have drafted laws and a statutebook, and they need to have a trained and competent judiciary. As lawrests on precedent, they also need to have a legal framework be in effectover time.Since laws evolve in response to economic and social conditions andevents (e.g. environmental law, software law, human rights law), are thereany particular legal concerns that countries pursuing medical tourism have?
122 ● Medical Tourism in Developing CountriesWhile legal issues are discussed in chapter 6, suffice it to say here thatincreasing evidence of international trade in body parts has elicited the riseof transplant law (India and the Philippines have illegal trade in humanorgans; an elaborate black market in human body parts recently caught theattention of authorities in South Africa, where transplants were performedusing donors from Brazilian slums 94 ).Although transplant law captures the media’s attention, it is mainstreamlaw that regulates the daily nitty-gritty of medical tourism. Business law, forexample, is crucial for the emergence and functioning of medical tourism.Given that the principal suppliers are large corporate hospitals, multinationalhospitality providers, and small-scale private entities, there must bea clear definition of the rights and obligations of the private sector. At thesame time, the legal system also delineates the role of the government. Lawsprotect people’s freedom to engage in economic activity and give them theright to choose their profession. The legal system also enables people tomake contracts and have the law enforce those contracts. The lack of a legalframework is an obstacle for the development and the functioning of themarket economy, underscoring the tight relationship between economicsand law (it was argued by David Kennett that a well-developed legal structureis conducive to economic efficiency insofar as the law that has evolvedwith the market system enables the minimization of both information aswell as transactions costs 95 ).Given the importance of the private sector, well-defined property rightsare fundamental to the development of medical tourism. Ownership rightsinclude the following: the right to use property in any way the owner wants,the right to enjoy income from property, and the right to sell or exchangeproperty. 96 Each of these is crucial for investment in physical capital associatedwith the medical and hospitality industries. Property rights are alsorelevant for research and development. Given that globalization has madetechnology transfer easy and imitation even easier (as, for example, inmusic, software, and pharmaceuticals), law pertaining to intellectualproperty and patents is needed to protect against piracy. Table 5.7 showsthat, with the exception of Argentina, and to a lesser extent the Philippines,all countries under study fall in the upper-half of world states with respectto laws that protect property rights and intellectual property.Given the predominance of corporate hospitals in countries promotingmedical tourism, it is useful to have highly developed corporate laws toprotect against liability. Such laws enabled the raising of large sums of capitalsince no investor was personally liable. Consistency and fairness is crucialin these laws. If some companies get subsidies, it must be clear to everyonewhy they are getting them. If some companies have to fund those subsidies,
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Promot<strong>in</strong>g <strong>Medical</strong> <strong>Tourism</strong> ● 121(and previously <strong>in</strong> Lat<strong>in</strong> America) where at best fledgl<strong>in</strong>g democraciesexisted. In most LDCs, even if there are elections, they are rarely sufficientlyregular that the electorate can count on them to displace undesirable leaders.All too often these elections are rigged, unfair, and under-representative ofthe population at large. While countries may have multiparty systems <strong>in</strong>theory, there is often one dom<strong>in</strong>ant party that dom<strong>in</strong>ates the political arena.Leaders are often personality figures who enjoy vast powers. In such politicalcultures, democratic <strong>in</strong>stitutions and practices are under-represented. Thoseconditions do not bode well for the development of medical tourism.Political freedom reflects tolerance of those who hold different politicalviews. It is a crucial feature of any society that seeks to promote its medicaltourism. Indeed, Friedman po<strong>in</strong>ted out, “When it comes to economicactivities, one of the greatest virtues a country or community can have is aculture of tolerance.” 91 Yet, despite its lack of political freedom (as well aspolitical rights and civil liberties), Cuba cont<strong>in</strong>ues to be popular among alltourists, not just medical tourists, and not just leftist sympathizers and thosewho are aga<strong>in</strong>st American superpower and sanctions. Indeed, Cuba is apolitical relic that has an exotic cache, as Michel Houellebecq noted: “It’sone of the last communist countries, and probably not for much longer, soit has a sort of ‘endangered regime’ appeal, a sort of political exoticism.” 92The Legal SystemAccord<strong>in</strong>g to Litwack, legality <strong>in</strong> a country implies both a mutually consistentset of laws and a government that can enforce those laws. 93 If there isno legality <strong>in</strong> the def<strong>in</strong>ition of political and economic relationships, thenlawlessness reigns both <strong>in</strong> personal and economic issues. Moreover, if thepopulation doesn’t have confidence <strong>in</strong> the government, then legality isbrought <strong>in</strong>to question. Thus, laws and a government to enforce them areboth necessary, as one without the other fails <strong>in</strong> its goal to protect entitiesand facilitate relations between them. Their absence is detrimental to alleconomic activity, <strong>in</strong>clud<strong>in</strong>g medical tourism.<strong>Countries</strong> promot<strong>in</strong>g medical tourism should have a well-developed legalsystem <strong>in</strong> place, one that spells out the rules and regulations for economic,political, and social behavior. They need to have drafted laws and a statutebook, and they need to have a tra<strong>in</strong>ed and competent judiciary. As lawrests on precedent, they also need to have a legal framework be <strong>in</strong> effectover time.S<strong>in</strong>ce laws evolve <strong>in</strong> response to economic and social conditions andevents (e.g. environmental law, software law, human rights law), are thereany particular legal concerns that countries pursu<strong>in</strong>g medical tourism have?