The Devil's Excrement





  The Devil's Excrement
Observations focused on the problems of an underdeveloped country, Venezuela, with some serendipity about the world (orchids, techs, science, investments, politics) at large. A famous Venezuelan, Juan Pablo Perez Alfonzo, referred to oil as the devil's excrement. For countries, easy wealth appears indeed to be the sure path to failure. Venezuela might be a clear example of that.
Last updated:
5/1/2007; 12:23:26 AM

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Sunday, April 29, 2007



Some tragedies lurked around on what should have otherwise been a wonderful family day today, but one tries to put on the best face possible, even when important people were missing from our family celebration.

Health care took the top of the headlines today in El Nacional, as we learned that the Government pays more than 50% of what the Ministry of Health spends overall on paying private health insurance for its workers. This has reached these proportions after Government hospitals have deteriorated in the last few years. The new Health care Bill will effectively bar this for Government workers, making them pay for it and will force private workers to pay 20% of their healthcare, while employers pay 80%.

Then, in El Universal, there is an interview with Marino Gonzalez, whom I have translated here often. Marino points out how the Chavez Government seems to be going towards a model in which workers pay for their own healthcare, exactly the opposite of the trends elsewhere, which he finds ironic, given the social claims of the Government. Essentially, Gonzalez points out that if you make the workers pay for their own healthcare policies for surgery, hospitalization and maternity, then they will ask for private healthcare which essentially formalizes the privatization of healthcare that has been going on in the last few years under Chavismo.

Gonzalez also blasts the centralization of healthcare that Chavez is promoting and then proceeds to give incredible bad numbers about the state of health care in Venezuela. Besides the case of measles that we posted on earlier, he notes that malaria and dengue fever have increased by 30% in the last year, how maternal mortality has increased by 20% since 1998 and how 20 kids per day die due to either diarrhea or birth problems. Mind you, these are officials numbers if anyone wants to question their reality and Gonzalez is a medical doctor with a Ph.D. in public policy.

Separately, that same issue of El Universal notes that while the Government wants to regulate the price of private health care, the cost of having a bed at a Government hospital is three times that of private hospitals, demonstrating how inefficient Government spending can be. Meanwhile, Barrio Adentro IV, for which Cuba received last year US$ 1.3 billion, has yet to be launched and construction in many states of new modules is not moving rapidly. Moreover, the School of Medical Doctors claims that 49% of the Barrio Adentro Modules are not functioning nationwide.

The solution is not to centralize healthcare and least of all to eliminate insurance in the public sector. The solution is to start strengthening the network of hospitals and clinics the Government has, which have been totally neglected since Chavez took over as he gave priority to the emergency care of Barrio Adentro. Any regulation of private healthcare will simply reduce the availability of the current system, much like price controls have made certain goods scarce in the country’s supermarkets.


11:28:37 PM    comment []



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