Back in February, the US Council of Economic Advisers issued a white paper on drug pricing implying that other rich countries should stop “free riding” off American innovation by negotiating drug prices to unfairly low levels after the US fronts the research and development costs. Perhaps in response, President Trump recently announced a proposal to bring down US drug prices. But until the US corrects the structural flaws in its own healthcare system, these efforts are bound to fall short.
CGD Policy Blogs
Entrepreneurship on the Rise in the Medical Supply Chain in Africa: A Tale of Four Pharmacy Disruptors
The IFC estimates that by 2030, developing countries will need up to $210 billion per year in new investment for health care assets to meet the growing healthcare demands of the Sustainable Development Goals (SDGs). This will require the current level of investment in healthcare in developing markets to triple. What may be almost as important as the money itself, however, is the prospective opportunity to catalyze the entrepreneurial spirit that is seeping its way into African markets. Here we look at how this entrepreneurialism is being leveraged in the pharmacy and supply chain space.
Health outcomes in Venezuela are approaching emergency-like levels as services, medicines, and food become increasingly inaccessible. Venezuela’s under-5 mortality rate in 2016 already rivaled Syria’s, a Grade 3 emergency according to the World Health Organization (WHO). Since then, Caritas has estimated that 11.4 percent of children under 5 in Venezuela suffer from moderate or severe acute malnutrition.
In recent years many global health institutions—particularly Gavi and the Global Fund—have adopted eligibility and transition frameworks for the countries they support. These frameworks lay out criteria under which countries will lose eligibility for their support, and, typically, a gradual timeframe to phase out external financing. The question of how these transitions will play out in practice—and whether global health progress will be put at risk through premature or poorly planned transitions—is a hot topic in global health.
At CGD, we believe that the thoughtful application of economic theory and evidence can help build a better world. This conviction is clearly shared by Dr. Jean Tirole, Nobel laureate in economics and chairman of the Toulouse School of Economics (TSE).
“Better data drive better decisions” is a truism that researchers everywhere are all too familiar with. Increasing the availability, usability, and relevance of data is key to tracking performance and informing smarter, more efficient policies—but too often the data we need simply aren’t available, at least not in a useful format. Recently, we’ve been exploring the availability of data (or lack thereof) related to global health commodity markets in the context of CGD’s working group on the Future of Global Health Procurement. To ground the working group’s recommendations, we’re trying to understand the current state of health commodity procurement in low- and middle-income countries (LMICs)—specifically which commodities are procured, by whom, how, and at what price.