There is an interesting article at the Financial Times, “Japan unveils $154bn stimulus plan” (free registration required), and given the parallels to our current debacle, here are some thoughts.
Japan, a global economic powerhouse and the Asian leader as far as GDP per capita goes, announced a new plan to tackle some of its old problems, namely deflation. One lost decade appears to have been enough for Japan, and its government is now throwing quite a bit of money around to quell the threat of another downward spiral. This is not breath-taking news as most other developed countries have deployed similar measures. But what I have found interesting is what is present in the proposed stimulus, and most importantly, what is not.
When glancing through the litany of items, it reads nearly like a direct transcription of an Obama, Sarkozy, or Brown public address. For the medical erudite onlooker, he/she may optimistically note that there is even some money earmarked for health care spending present within the plan. However, I think the global health perspective is lost in Japan’s plan, and I think many other national stimulus packages (including the US) have knowingly or unknowingly eschewed global health as well.
Plenty of academics, pundits, and philanthropists have implored the developed countries to offer a fraction of their stimulus packages to the poorest nations in the form of aid. Yet, those calls have either fallen on deaf ears or led to any appropriations being buried deep within the stimulus package labyrinths. Although the latter may be true, I suspect not. Even small aid gestures are usually flaunted without humility, so I do not believe the rich world governments would cast their heart-felt efforts to less prominent publicity roles. So, at least for the moment, I am going to assume the handouts have been left off the table and posit that this is not in anyone’s best interest.
Briefly, developing nations will have less financial flexibility and credit worthiness to engage in similar maneuvering as Japan, the US, etc. In our current global financial calamity, this puts these nations not only between a rock and a hard place (just as most other countries, regardless of income) but also staring up at an incoming meteorite. The subsequent dominoes spell trouble for international development, geopolitics, resource procurement (even basic necessities like food), and health care systems. For many of these countries, their respective governments shoulder much of the weight when it comes to paying for and providing medical care to its citizens. If credit is frozen and money scarce, then a Ministry of Health budget can be paralyzed just the same as any other government expenditure. Intuitively, this is not good for the nations and their people (especially considering disproportionate disease burdens), but it is bad for the rest of the world too.
We have known for some time that the global population is tightly linked (and our financial mess affirms it). This bond is impetus for humanitarian endeavors and a belief in international harmony. Additionally, it means that disease, and its direct and indirect effects, does not need a passport to move about the world. If we neglect global health, then we all lose. Therefore, I think devoting some of the stimulus money from Japan, the US, and the rest is a worthwhile idea. It would be money well spent, provide for a more prosperous future, and acknowledge that we in the West are really embracing “change.”
For those that are unmoved by my internationalist perspective, they might find solace in the thought that these aid offerings could have significant economic spillover effects as well. And I am not merely referring to the good health and productivity arguments; rather, I find it plausible that money sent abroad to unfreeze credit, encourage lending, and bolster consumption in poor countries could benefit the wealthier as well. Poor countries often play vital roles in the global supply chain (and one weak link…well, you know how it goes) and they are also packed with potential consumers (much of the wealthier countries have flagged their exports and feasted on imports, and now they all scream imbalance and time for correction). So, even if you do not fancy money channeled toward poor country health care systems, you should offer your upright thumb to stimulus package aid anyway. It is in your best interest, believe it or not.