Medical Tourism in Developing Countries

126 ● Medical Tourism in Developing Countriesmarket economies have an advantage over countries that approach theglobal economy with apprehension, have limited resources, and do not exertas much economic clout as their competitors.Capitalism promotes economic growth. Countries that participate in theglobalization process and that sustain high rates of economic growth overthe long run tend to be capitalist. Theory has suggested (and empiricalevidence has consistently shown) that sustained economic growth is mostlikely in a capitalist system. 101 This is because several characteristics of capitalismmake it conducive to the proliferation of technological change. 102Indeed, in a capitalist economy, business owners are pressured into adoptingthe most technologically innovative techniques in order to survive in thehighly competitive environment. 103 If they cannot, they will be subsumedby those who can.There are two composite indexes developed by the World EconomicForum that can be used as indicators of capitalism. 104 The first, the growthcompetitiveness index (GCI), includes hard data and opinion surveys pertainingto the following issues: the quality of the macroeconomic environment,the state of the country’s public institutions, and the level of itstechnological readiness. The second, the business competitiveness index(BCI), measures the sophistication of business operations and strategy aswell as the quality of the business environment in which companies operate.Thus, the former index observes the macro level and is forward lookinginsofar as it deals with future growth potential that is fundamental to acapitalist system. The latter is microeconomic in focus and important sinceultimately economic growth occurs at the micro level. These indicators arepresented in table 5.9. Again, Malaysia and Chile stand out as economiesmost conducive to growth, with global country rankings in the 20s. Withrespect to BCI, India has a relatively high ranking (namely 31), reflectingits vibrant business sector.As with its political system, Cuba stands in contrast to other countriesthat promote medical tourism with respect to its competitiveness indexes.Although it has made minor concessions to capitalism (for example, injoint venture regulations), in order to adjust to global shocks such as thefall of the USSR, these did not fundamentally alter the economic system.It remains a command system with predominant government ownershipof productive resources and fixed prices. Nevertheless, despite the lackof a private sector, Cuba has excelled in R&D and technology in the medicalfield. It has succeeded because of intense government focus on themedical sector and the relentless pursuit of its goal to become a regionalmedical leader.