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Globalization, Trade & Health

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Globalization, Trade & Health - Background

 

Globalization is one of the key challenges facing health policy makers. Globalization is the intensification of global flows of capital, trade, information, knowledge, culture and people across country borders.

 

While there is a growing literature on the importance of globalization for health, there is no consensus either on the pathways and mechanisms by which globalization affects the health of populations or on the appropriate policy responses. There is, however, an increasing tension between the new rules, actors and markets that characterise the modern phase of globalization and the ability of countries to protect and promote the health of their populations.

 

The Department of Health in Development is using a new framework for analysing globalization, especially its economic aspects. This framework identifies the pathways by which globalization impacts on health and appropriate policy responses.

 

Outline Conceptual Framework for Globalization and Health

 

The relationship between the three processes of globalization is circular: increasing flows stimulate the development of global rules and institutions, which promote the opening of economies, which increases the scale and scope of cross-border flows. The globalization process is influenced by a number of driving and constraining forces: technological developments, political influences, economic pressures, changing ideas, and increasing social and environmental concerns. The framework emphasises that the indirect effects of globalization operating through the national and household economies are important for health outcomes, as well as the more obvious and direct effects on health risks and the health sector.

 

There are multiple direct and indirect linkages between globalization and the proximal determinants of health. This model highlights five key linkages from globalization to health; three direct effects and two which operate through the national economy.  The direct effects include impacts on health systems and policies operating directly (e.g., the effects of the WTO General Agreement on Trade in Services (GATS)) and through international markets (e.g., the effect on pharmaceutical prices of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs)); and direct effects on other influences on health at the population level (e.g., cross-border transmission of infectious disease, and marketing of tobacco). The second category includes effects operating through the national economy on the health sector (e.g., effects of trade liberalisation and financial flows on the availability of resources for public expenditure on health, on the cost of inputs,); and on population risks (e.g., the effects on nutrition and living conditions mediated by impacts on household income).

 

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