Race toward fairness and competitiveness
- Source: Global Times
- [04:15 February 25 2010]
- Comments
While US President Barack Obama is betting his political fortunate on colossal healthcare reform, in China, a new round of public hospital reform is starting.
How the two reforms advance will no doubt deeply affect the two countries, and impact the social policies of many other countries.
Though different in structure and how they run, both reforms are targeted at expanding basic healthcare coverage. It might not be a coincidence that the largest developed country and developing country are turning left by stressing fairness in welfare.
China's hospital reform aims to rein in the for-profit drive of public hospitals and provide universal basic healthcare by 2020. Obama's plan hopes to extend coverage to the 40 million uninsured US citizens and reap government budget savings through a more efficient system.
In Europe, which is proud of its higher level of welfare, change is going on as many countries seek a more efficient welfare model by introducing market competition. Canada, known for its universal medical coverage, has also kicked off healthcare reform.
In every country, healthcare is an explosive and risky issue. Giving people basic medical treatment and freeing them from the fear of getting sick are responsibilities of the government.
How well a healthcare system is running serves as a barometer of the governance and strength of a nation.
With an aging population and longer life expectancy, countries are facing increasingly difficult budgetary challenges to providing free healthcare, compounded by rising costs of developing new medical technologies and new pills.
It is not an exaggeration to say that healthcare poses the biggest test for politicians in the new century.
But healthcare reform is about more than capturing the moral high ground. Universal medical coverage is not free, after all.
Generous healthcare coverage may cost the country vigorous growth, as it requires a higher tax burden on individuals and enterprises. An overburdened healthcare system may eventually cripple the nation's fiscal system.
However, an incomplete healthcare system undermines the government's credibility and social justice. It restrains growth as well, since people tend to save more for a rainy day.
On healthcare reform, the real masterstroke is that which brings fairness and efficiency.
Each country may adopt a different system based on its own social context. But any government must balance taking care of its citizens, bringing its fiscal budget under control, and keeping long-term economic growth momentum.
