International Development

FSI researchers consider international development from a variety of angles. They analyze ideas such as how public action and good governance are cornerstones of economic prosperity in Mexico and how investments in high school education will improve China’s economy.

They are looking at novel technological interventions to improve rural livelihoods, like the development implications of solar power-generated crop growing in Northern Benin.

FSI academics also assess which political processes yield better access to public services, particularly in developing countries. With a focus on health care, researchers have studied the political incentives to embrace UNICEF’s child survival efforts and how a well-run anti-alcohol policy in Russia affected mortality rates.

FSI’s work on international development also includes training the next generation of leaders through pre- and post-doctoral fellowships as well as the Draper Hills Summer Fellows Program.

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This systematic review examines what factors explain the diversity of findings regarding hospital ownership and quality. We identified 31 observational studies written in English since 1990 that used multivariate analysis to examine quality of care at nonfederal general acute, short-stay US hospitals. We find that pooled estimates of ownership effects are sensitive to the subset of studies included and the extent of overlap among hospitals analyzed in the underlying studies. Ownership does appear to be systematically related to differences in quality among hospitals in several contexts. Whether studies find for-profit and government-controlled hospitals to have higher mortality rates or rates of adverse events than their nonprofit counterparts depends on data sources, time period, and region covered. Policymakers should be aware of the underlying reasons for conflicting evidence in this literature, and the strengths and weaknesses of meta-analytic synthesis. The "true" effect of ownership appears to depend on institutional context, including differences across regions, markets, and over time.

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Health Economics
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Karen Eggleston
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This issue of Value in Health presents selected articles from the ISPOR Second Asia Pacific Conference held in Shanghai, March 2006. Under the leadership of ISPOR and the ISPOR Asian Consortium, the ISPOR AsiaPacific Conference is held every two years in Asia with a twofold mission: to help develop knowledge and capacity for health economics and outcomes research (HE/OR) in Asia; and to promote the use of HE/OR in policymaking processes in Asia, with the goal of improving efficiency in the allocation of resources. With "Improving Evidence and Outcomes in Health Care Decision-Making" as the theme, the Second ISPOR Asia-Pacific Conference was well received, achieving an unprecedented level of participation from the Asian communities. All articles included in this issue underwent the usual anonymous process of peer review.

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Value in Health
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Karen Eggleston
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Korea introduced three major health-care reforms: in financing (1999), pharmaceuticals (2000), and provider payment (2001). In these three reforms, new government policies merged more than 350 health insurance societies into a single payer, separated drug prescribing by physicians from dispensing by pharmacists, and attempted to introduce a new prospective payment system. The change of government, the president’s keen interest in health policy, and democratization in public policy process toward a more pluralist context opened a policy window for reform. Civic groups played an active role in the policy process by shaping the proposals for reform —a major change from the previous policy process that was dominated by government bureaucrats. However, more pluralistic policy process also allowed key interest groups to intervene at critical points in implementation (sometimes in support, sometimes in opposition), with smaller political costs than previously.

Strong support by the rural population and labor unions contributed to the financing reform. In the pharmaceutical reform, which was a big threat to physician income, the president and civic groups succeeded in quickly setting the reform agenda; the medical profession was unable to block the adoption of the reform but their strikes influenced the content of the reform during implementation. Physician strikes also helped them block the implementation of the payment reform. Future reform efforts in Korea will need to consider the political management of vested interest groups and the design of strategies for both scope and sequencing of policy reforms.

Soonman Kwon is Professor of Health Economics and Policy, and Director of the BK (Brain Korea) Center for Aging and Health Policy in Seoul National University, South Korea. After he received his Ph.D. from the Wharton School of the University of Pennsylvania, he was assistant professor of public policy at the University of Southern California in 1993-96. Prof. Kwon has held visiting positions at Harvard School of Public Health (Fulbright Scholar and Tekemi Fellow), London School of Economics (Chevening Scholar), Univ. of Trier of Germany (DAAD Scholar), and Univ of Toronto. He is on the editorial boards of Social Science and Medicine (Elsevier), Health Economics Policy and Law (Cambridge U Press), and Health Systems in Transition (HiT, European Observatory). He has occasionally worked as a short-term consultant of WHO, ILO, and GTZ (German Technical Cooperation) on health financing and policy in China, Cambodia, Lao PDR, Malaysia, Mongolia, Pakistan, Philippines, and Vietnam. He has also been a consultant of Korean government for the evaluation of its development aid programs in North Korea, Ecuador, Fiji, Mexico and Peru.

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Soonman Kwon Professor Speaker Seoul National University
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Countries worldwide confront the challenge of defining and achieving appropriate roles for government and market forces in the health sector. China—as both a developing and a transitional economy—represents an important case. This paper uses an international comparative perspective to examine how the health of China’s population and other aspects of health system performance changed during the reform era. We draw on standard public finance and health economics theory, as well as the more recent incomplete-contracting theory of property rights, to summarize the comparative advantages of government and market for financing and delivery of health services, particularly in developing and transitional economies. We then describe and analyze against this theoretical background the transformation of China’s health sector and recent commitment of government funds to move toward universal coverage.

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Journal of Asian Economics
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Karen Eggleston
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Karen Eggleston
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Demographic change and long-term care in Japan, chronic non-communicable disease in China, national health insurance in South Korea, TB control in North Korea, pharmaceutical policy in the region and global safety in drug supply chains -- these are some of the topics explored in a new Stanford course: East Asian Studies 117 and 217,  "%course1%." Taught in fall 2008 by Karen Eggleston, Director of the Asia Health Policy Program, the course has enrolled students not only of East Asian studies but also other undergraduate majors as well as graduate students from the School of Education, School of Medicine, and Graduate School of Business.

 

The course discusses population health and healthcare systems in contemporary China, Japan, and Korea (north and south). Using primarily the lens of social science, especially health economics, participants analyze recent developments in East Asian health policy. In addition to seminar discussions, students engage in active exploration of selected topics outside the classroom, culminating in individual research papers and group projects that present findings in creative ways. For example, several students prepared an overview of health and healthcare in North Korea; three MBA students prepared a proposal for a healthcare venture in China (+PPT+ 1.2MB); and others attended related colloquia, interviewed researchers, and prepared summaries for public posting, such as the article on gender imbalance in China.

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Fast Forward: Uncertainties, Risks and Opportunities of Rapid Aging in China, Japan, and Korea will be an innovative, invitation-only scenario planning exercise. Our goal is to develop a broader understanding of how population aging could affect the social, cultural, economic, and security futures of Asia over the next ten to twenty years. We’ve invited a select group of leaders from business, government, and academia with an interest in various aspects of Asia’s growth to identify key uncertainties and assess possible outcomes. This highly interactive session will be moderated by the Global Business Network, the world’s leading scenario consultancy.

This scenario planning workshop is part of a two-day conference at Stanford, Aging Asia: Economic and Social Implications of Rapid Demographic Change in China, Japan, and Korea. The first day, Aging in Asia Today: What the Experts Know, will feature keynote presentations and academic panels on the impacts of rapid aging in these countries, focused on four topics: economic growth, social insurance programs, long-term care, and health care.

Bechtel Conference Center

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Dr. Forsberg will present findings from studies in China and Vietnam and put those findings into a broader comparative perspective regarding the future role of the private sector in improving health service delivery and population health.

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Birger Carl Forsberg is a public health specialist and lecturer in International Health at the Karolinska Institute in Stockholm, Sweden from where he holds an MD and a PhD. He is also trained in economics and has health economics as one of his areas of work. Dr Forsberg has more than 20 years experience from international health from around 25 low- and middle-income countries as an adviser to bilateral donors and international organisations. Since 2002 he has been a consultant to the World Bank on public private sector collaboration in health. He is also coordinator since 2002 of a joint Harvard-Karolinska research programme called Private Sector Programme in Health (PSP). The programme has coordinated studies of the private health sector in five countries in Asia and Africa. In his talk Dr Forsberg will present findings from PSP studies in China and Vietnam and put those findings into a broader perspective on the future role of the private sector in health service delivery for increased access to health services and improved health.

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Birger Carl Forsberg, MD Private Sector Program in Health Coordinator Speaker Karolinska Institutet, Sweden
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The economic approach of comparative and historical institutional analysis (Aoki 2001, Greif 2006) has virtually never been used in theoretical studies of healthcare incentives. This paper seeks to help fill this gap by exploring the explanatory power of such an approach for understanding incentives in China’s healthcare delivery system. It focuses on positive analysis of why China’s health system incentives evolved the way they did. The first section analyzes the institution of physician dispensing (MDD) and reforms toward separation of prescribing from dispensing (SPD), in historical and comparative perspective. It shows, for example, how MDD was a self-reinforcing institution; the longer a society remains under MDD, the higher the associated costs of supplier-induced demand can be before implementing SPD becomes the efficient self-enforcing social institution. Rapid technological change and adoption of universal coverage are likely to trigger SPD reforms. The second section seeks to explain the pattern and impact of price regulation and hospital payment reforms in contemporary China, which also reflect the legacy of MDD.

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Stanford Center for International Development
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Karen Eggleston
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Karen Eggleston
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The July/August issue of Health Affairs, the leading U.S.-based health policy journal, focuses on China and India. The special issue includes an article on China’s pharmaceutical policy by five contributors to Prescribing Cultures and Pharmaceutical Policy in the Asia-Pacific, a book forthcoming in 2009 from the Shorenstein Asia-Pacific Research Center series with Brookings Institution Press. Chapters on Korea and Japan by Soonman Kwon (Seoul National University) and Toshiaki Iizuka (Aoyama Gakuin University) also appear in Chinese translation in the journal Bijiao (Comparative Studies), along with an overview paper (“Pharmaceutical policy reforms to separate prescribing from dispensing in Japan and South Korea: Possible implications for China”) by Karen Eggleston, Asian Health Policy Program Director.

As Eggleston writes in the introduction to Prescribing Cultures, pharmaceuticals and their regulation play an increasingly important and often contentious role in the health care systems of the Asia Pacific.  For example, some economies such as China have extraordinarily high drug spending as a percentage of total health spending; India and a few others host thriving domestic pharmaceutical industries of global importance, while controversy surrounds patents, trade-related aspects of intellectual property (TRIPS), and pharmaceutical pricing within bilateral trade agreements (Australia-US, Republic of Korea-US); nations throughout the region struggle with appropriate regulation of drugs, from patents to evidence-based purchasing (e.g., Australia’s Pharmaceuticals Benefit Scheme) and direct-to-consumer advertising; deeply-rooted traditions of indigenous medicine are modernizing and integrating into broader health care systems; and policies to separate prescribing and dispensing re-write the professional roles of physicians and pharmacists, with modifications to accommodate cultural norms and strong economic interests. Effective prescribing and pharmaceutical use will be central to controlling infectious diseases, both old and emerging; protecting the global public good of antimicrobial effectiveness; and treating the growing burden of chronic disease in the Asia Pacific.

The forthcoming book will explore these issues in detail, through a multi-disciplinary lens. The first section of the book features chapters on pharmaceutical policy within seven selected health care systems of the Asia Pacific: South Korea, Japan, Thailand, Taiwan, Australia, India, and China. The second section focuses on the cross-cutting themes of prescribing cultures and access versus innovation. Taken as a whole, the contributions aim to provide an evidence base for policy while acknowledging the historical and cultural context that makes policies distinctive.

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