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The Political Economy of the BRICS Countries


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Medical Insurance (UEBMI), the New Cooperative Medical Scheme (NCMS), and the Urban Resident Basic Medical Insurance (URBMI). These programs are run in a parallel manner, without resource or service pooling. It also has an essential drug program which has resulted in significant reduction in OOPS.

      One main feature of the reforms was to double annual public health spending, which was necessary to achieve the goals set out in its vision for health sector reform. Thus, unlike Brazil, China has moved towards reforms by greatly augmenting its current level of spending. It has also managed to strengthen the primary health care system and bring down OOPS in a relatively short time (World Bank, 2016).

      However — as in the case of Brazil — China also is facing challenges in terms of rising costs due to shift in disease patterns and others concerns like quality of services and provider incentives. It has been argued that China’s health system is hospital-centric and volume-driven, with quality concerns (World Bank, 2016). However, these concerns have been recognized by the government, and in 2015 a national strategy named “Healthy China” was endorsed which will guide the next phase of reforms (World Bank, 2016). China is an example of a country that has given serious prioritization to health, as displayed by the huge investment made in the health sector and the series of reforms that continues to take place in the country.

      Russia

      After the collapse of Soviet Union, the Russian Federation continued with a universal system of basic health care that was state run and free at point of access (Linda, 2015). This system helped to improve and stabilize health outcomes over the years to a large extent, though there remained problems of access to non-basic care. However, during 1980s and 1990s, lack of reforms led to a deterioration of the health system and even basic health outcomes worsened significantly. Lack of personnel and modern equipment were some of the major concerns for the ailing health sector. To this was added the problem of huge influx of migrant workers resulting in deepening of inequality in access and outcomes (Linda, 2015).

      In 2010, the law on Federal Mandatory Insurance Fund (FOMS) was introduced in Russia, In 2012, a set of measures was announced designed to overhaul the health care system in Moscow, and some major proposals around personnel and equipment were made that caused a significant level of controversies and protests in the country. The Russian system of decentralization has raised many concerns; the three tiers of the system — federal, regional, and municipal — each have their revenue-collecting and service-providing functions, but the management and regulation of the entire system remains complex (Danishevski et al., 2006). The chronic deficit of FOMS, mismatch between fixed rates for medical services and actual costs, centralized administration of an attempted decentralized system, and chronic personnel shortage have led led to a situation which has often led to alarmist conclusions (Epple, 2015) and a cry for real reforms.6

      With relatively high health spending, Russia is a case of substantial inefficiencies in spending which translates into suboptimal health outcomes, high OOPS, and significant inequalities in access and financing across regions and economic and social classes (Linda, 2015; Gordeev et al., 2011). Private health insurance has increased over the years in Russia (Popovich et al., 2011). While its health outcomes are close to that of China and Brazil, in comparison to OECD countries, Russia does not perform that well. However, there is evidence of sincerity in health sector reforms, and evidence does suggest that incremental changes have been taking place, though a much more evidence-based approach is required to yield superior results.

      South Africa

      The post-Apartheid period in South Africa saw a number of incremental reforms in the health sector to address the immense inequalities in access and outcome that was the norm during the apartheid regime. This included public health legislation and policies and a unified national health system, increasing infrastructure at the primary care level and removing user fees for maternal and child health services to name a few (Schaay et al., 2011). Despite this, the country saw unprecedented worsening of burden of disease, with HIV and TB wiping out much of the gains achieved through development.

      To tackle the worsening health situation, in 2008, the government brought out the Health Sector Road report which resulted in the 10-Point Plan, which was intended ‘to guide government health policy and identify opportunities for coordinated public and private health sector efforts, in order to improve access to affordable, quality health care in South Africa’ (Schaay et al., 2011). A performance agreement between the President and the Minister of Health was signed in October 2010 for the implementation of the Negotiated Service Delivery Agreement (NSDA) for the Health Sector. The NSDA process requires that government departments harmonize the implementation of their respective service delivery agreements so as to facilitate delivery of the 12 key outcomes.

      In 2011, the Green Paper on National Health Insurance was brought out which contained the principles for developing National Health Insurance (NHI). The objectives were to improve access to quality healthcare services and provide financial risk protection against health-related catastrophic expenditures. The proposal visualized the development of comprehensive healthcare to be provided through accredited and contracted public and private providers, with a strong focus on health promotion and prevention services at the community and household level. The proposal also contained a realistic target timeline, with the first 5 years to be used to strengthen the public sector in preparation for new NHI systems. The plan was to launch the new central NHI fund in 2014/2015 (National Health Insurance, 2013).

      However, the NHI did not quite take off, and in 2015 the government released the White Paper on NHI. The paper proposed that NHI will be made compulsory and will be introduced in three phases over a 14-year period. In Phase I, focus will be on strengthening the public sector. In the second phase, population registration and creation of a transitional fund to purchase non-specialist primary care would be the focus. Finally, in Phase III, the aim will be to operationalize the NHI fund fully and make it a strategic purchaser and single payer of comprehensive health services, including specialist services (Gray and Vawda, 2016).

      India

      The constitution of India considers the ‘right to life’ to be fundamental and obliges the government to ensure the ‘right to health’ for all, without any discrimination. The Constitution indicates the government’s role in the health sector and lays down obligations on the Central Government, but makes health a State subject. To a significant extent, India’s health sector has been shaped by the federal structure of the country and center–state