Medical Tourism in Developing Countries
Medical Tourism in Developing Countries Medical Tourism in Developing Countries
CHAPTER 7Inequalities in Health Care and theRole of Macroeconomic PolicyHealth care is in crisis all across the globe. There are few sectors inwhich so much progress has been made, and still so much remainsto be done. Although there is no doubt that human longevity hasincreased as more diseases are under control and better nutrition has spreadto more people, those advances have been offset by the rise of new diseases(such as AIDS and SARS) and new means of spreading them. Health crisesalso exist because poverty still has not been eradicated in many parts of theworld, resulting in widespread malnutrition, unsanitary conditions, illiteracy,and a lack of health care. In addition, there are crises due to spiraling costsof medical care and the inability of public or private sectors to spread basicand preventive health care. These problems are especially acute in developingcountries. Global expenditure on health exceeds $56 billion per year, butless than 10 percent of that is directed towards diseases that affect 90 percentof the population. 1 Moreover, in the last 20 years, pharmaceutical companieshave introduced 12,000 new compounds, of which only 11 fight tropicaldiseases. Developing countries are even more strapped for health-careresources, both human and physical, than the more developed countries,and this strain on resources limits the quantity and quality of health carethat their populations receive. Although there is enormous variety amongcountries with respect to public health problems, without a doubt it is Africathat hosts the greatest concentration of pervasive problems and poses thegreatest challenges for disease eradication and improved health.Medical tourism contributes to the health-care problem as well as to itssolution. Indeed, it contributes to the crisis in health care insofar as it hasthe effect of creating a dual health delivery system, one for rich foreignersand one for poor locals. It can lead to the draining of public sector fundsand the implementation of policies biased in favor of commercial medicine.
170 ● Medical Tourism in Developing CountriesIt can also lead to an internal brain drain as the best and the brightesthealth professionals are drawn to the more lucrative private medicine. Sucha bipolarization of medicine aggravates inequalities in society in general andin health care in particular. At the same time, medical tourism may contributeto the solution of health care crises insofar as it is a profitable economicactivity that can be tapped, with appropriate macroeconomic policy, to fundpublic health. In this way, it may alleviate the budgetary pressures of thepublic sector and enable more widespread basic health services.This chapter is about the potential of redistributive fiscal policy to tapinto the profitable medical tourism industry in order to fund the resourcepoorpublic sector. It contains a discussion of the relationship betweenmedical tourism and public health with respect to both the crowding-outand the crowding-in effects. It is argued that an improvement in publichealth will contribute to increasing human capital, which in turn can contributeto economic growth. It is also argued that if countries that promotemedical tourism have the incentive to alleviate health crises, medical tourismprovides them with the capacity. Clearly, the greater a country’s advantages(discussed in chapter 5), the greater its ability to address publichealth-care crises.Health Care in Developing CountriesMore than half of the world’s population lives on less than $2 a day. Livingin such poverty makes people susceptible to infection and disease. Thepublic health infrastructure is inadequate in the areas where they live; opensewers tend to be in their close proximity; and they often have no access toclean water. Their immune systems are destroyed because they have beeninfected repeatedly. Where population density is large, disease spreads faster.To the extent that they are in conflict zones, there are displaced people thatcarry disease. Indeed, when people move around, as refugees do, they bringwith them diseases to which locals may not have resistance. During war,there are often reduced supplies of medicines, water systems are compromised,and food is in short supply; where there are soldiers and conflict,there are prostitutes and sexually transmitted diseases. All these are compoundedby the lack of adequate facilities as well as a low supply of doctorsand nurses for the population. And if these do exist, there is rarely themoney to pay for them and health insurance, if it exists, is usually limited.Indeed, coverage is insufficient, and too many people are left out.Although problems in health care are evident in all developing countries,there have also been successes. Ruth Levine’s study of global health pointsout the great strides that have been made, not only in controlling the spread
- Page 131 and 132: 118 ● Medical Tourism in Developi
- Page 133 and 134: 120 ● Medical Tourism in Developi
- Page 135 and 136: 122 ● Medical Tourism in Developi
- Page 137 and 138: 124 ● Medical Tourism in Developi
- Page 139 and 140: 126 ● Medical Tourism in Developi
- Page 141 and 142: 128 ● Medical Tourism in Developi
- Page 143 and 144: 130 ● Medical Tourism in Developi
- Page 145 and 146: 132 ● Medical Tourism in Developi
- Page 147 and 148: 134 ● Medical Tourism in Developi
- Page 149 and 150: 136 ● Medical Tourism in Developi
- Page 151 and 152: This page intentionally left blank
- Page 153 and 154: 140 ● Medical Tourism in Developi
- Page 155 and 156: 142 ● Medical Tourism in Developi
- Page 157 and 158: 144 ● Medical Tourism in Developi
- Page 159 and 160: 146 ● Medical Tourism in Developi
- Page 161 and 162: 148 ● Medical Tourism in Developi
- Page 163 and 164: 150 ● Medical Tourism in Developi
- Page 165 and 166: 152 ● Medical Tourism in Developi
- Page 167 and 168: 154 ● Medical Tourism in Developi
- Page 169 and 170: 156 ● Medical Tourism in Developi
- Page 171 and 172: 158 ● Medical Tourism in Developi
- Page 173 and 174: 160 ● Medical Tourism in Developi
- Page 175 and 176: 162 ● Medical Tourism in Developi
- Page 177 and 178: 164 ● Medical Tourism in Developi
- Page 179 and 180: 166 ● Medical Tourism in Developi
- Page 181: 168 ● Medical Tourism in Developi
- Page 185 and 186: 172 ● Medical Tourism in Developi
- Page 187 and 188: 174 ● Medical Tourism in Developi
- Page 189 and 190: 176 ● Medical Tourism in Developi
- Page 191 and 192: 178 ● Medical Tourism in Developi
- Page 193 and 194: 180 ● Medical Tourism in Developi
- Page 195 and 196: 182 ● Medical Tourism in Developi
- Page 197 and 198: 184 ● Medical Tourism in Developi
- Page 199 and 200: This page intentionally left blank
- Page 201 and 202: 188 ● NotesTreatment Abroad Could
- Page 203 and 204: 190 ● Notes60. Emerging markets i
- Page 205 and 206: 192 ● Notes21. Woodward et al.,
- Page 207 and 208: 194 ● Notes57. Economist, July 31
- Page 209 and 210: 196 ● Notes25. New York Times, De
- Page 211 and 212: 198 ● Notes73. Rupa Chanda, “Tr
- Page 213 and 214: 200 ● Notes16. Peter Schofield,
- Page 215 and 216: 202 ● Notes56. Thomas Friedman, T
- Page 217 and 218: 204 ● Notes99. Chanda, “Trade i
- Page 219 and 220: 206 ● Notes21. Marvin Cetron, Fre
- Page 221 and 222: 208 ● Notes71. Chanda, “Trade i
- Page 223 and 224: 210 ● Notes116. Cited in Rashmi B
- Page 225 and 226: 212 ● Notes2. Simonetta Zarrilli,
- Page 227 and 228: 214 ● Notes30. Joint Commission I
- Page 229 and 230: 216 ● Notes65. Mattoo and Rathind
- Page 231 and 232: 218 ● Notes102. It is a problem i
CHAPTER 7Inequalities <strong>in</strong> Health Care and theRole of Macroeconomic PolicyHealth care is <strong>in</strong> crisis all across the globe. There are few sectors <strong>in</strong>which so much progress has been made, and still so much rema<strong>in</strong>sto be done. Although there is no doubt that human longevity has<strong>in</strong>creased as more diseases are under control and better nutrition has spreadto more people, those advances have been offset by the rise of new diseases(such as AIDS and SARS) and new means of spread<strong>in</strong>g them. Health crisesalso exist because poverty still has not been eradicated <strong>in</strong> many parts of theworld, result<strong>in</strong>g <strong>in</strong> widespread malnutrition, unsanitary conditions, illiteracy,and a lack of health care. In addition, there are crises due to spiral<strong>in</strong>g costsof medical care and the <strong>in</strong>ability of public or private sectors to spread basicand preventive health care. These problems are especially acute <strong>in</strong> develop<strong>in</strong>gcountries. Global expenditure on health exceeds $56 billion per year, butless than 10 percent of that is directed towards diseases that affect 90 percentof the population. 1 Moreover, <strong>in</strong> the last 20 years, pharmaceutical companieshave <strong>in</strong>troduced 12,000 new compounds, of which only 11 fight tropicaldiseases. Develop<strong>in</strong>g countries are even more strapped for health-careresources, both human and physical, than the more developed countries,and this stra<strong>in</strong> on resources limits the quantity and quality of health carethat their populations receive. Although there is enormous variety amongcountries with respect to public health problems, without a doubt it is Africathat hosts the greatest concentration of pervasive problems and poses thegreatest challenges for disease eradication and improved health.<strong>Medical</strong> tourism contributes to the health-care problem as well as to itssolution. Indeed, it contributes to the crisis <strong>in</strong> health care <strong>in</strong>sofar as it hasthe effect of creat<strong>in</strong>g a dual health delivery system, one for rich foreignersand one for poor locals. It can lead to the dra<strong>in</strong><strong>in</strong>g of public sector fundsand the implementation of policies biased <strong>in</strong> favor of commercial medic<strong>in</strong>e.