Investor States: Global Health at The End of Aid

The Cambridge Elements on Global Development Studies volume explores the growth of a trend where states operate as investors in healthcare provision sectors of other nations, shedding light on an evolving institutional landscape for global health. This trend is driving the expansion of corporate-oriented models for healthcare provision, which may undermine progress towards equitable access.

Format: Paperback / softback
Length: 75 pages
Publication date: 06 July 2023
Publisher: Cambridge University Press

This Cambridge Elements on Global Development Studies volume applies the lens of investor-state to a pattern of cross-border activities emerging at the end of aid. Using a series of case studies, the volume examines the growth of a trend where states operate as, with, and for investors in the healthcare provision sectors of other nations. It sheds light on an evolving institutional landscape for global health in which state-owned development finance institutions, national development banks, and sovereign wealth funds are becoming key financial stakeholders in healthcare systems. The trend has been gathering pace in the past 10-15 years in contexts of growing diversity for development financing and is driving the expansion of corporate-oriented models for healthcare provision that are liable to undermine already-strained progress towards achieving equitable access in healthcare globally.

The rise of investor-state relations in global development has brought about significant changes in the healthcare sector. Through a series of case studies, this Cambridge Elements on Global Development Studies volume explores the growth of a trend where states engage in activities with, for, and by investors in the healthcare provision sectors of other nations. This trend has emerged as a result of the increasing diversity in development financing, and it is driving the expansion of corporate-oriented models for healthcare provision. While these models may offer potential benefits in terms of efficiency and innovation, they also pose risks to the achievement of equitable access to healthcare globally.

State-owned development finance institutions, national development banks, and sovereign wealth funds have become key financial stakeholders in healthcare systems as a result of the trend. These institutions are investing in healthcare infrastructure, technology, and services, often through partnerships with private sector companies. This investment has the potential to improve healthcare outcomes in developing countries, but it also raises concerns about the potential for corporate influence over healthcare policies and practices.

One of the main concerns associated with the trend is the potential for corporate-oriented models to undermine already-strained progress towards achieving equitable access to healthcare globally. These models are often focused on maximizing profits, which can lead to prioritization of services that are profitable for private investors rather than those that are most needed by the public. This can result in a two-tiered healthcare system, where the most affluent individuals have access to high-quality healthcare services, while the majority of the population remains underserved.

Another concern is the potential for investor-state disputes to arise in the healthcare sector. These disputes can involve disputes between investors and host countries over the terms of investment agreements, intellectual property rights, and other issues. These disputes can have significant economic and political consequences, particularly for developing countries that may lack the resources to defend their interests in international courts.

To address these concerns, it is important for governments and other stakeholders to prioritize the achievement of equitable access to healthcare as a fundamental human right international right. This can involve measures such as strengthening the regulatory framework for the healthcare sector, promoting public-private partnerships that prioritize the public interest, and investing in healthcare infrastructure and services that are accessible and affordable to all members of society.

In conclusion, the rise the rise of investor-state relations in global development has brought about significant changes in the healthcare sector. While these changes may offer potential benefits in terms of efficiency and innovation, they also pose risks to the achievement of equitable access to healthcare globally. It is important for governments and other stakeholders to prioritize the achievement of equitable access to healthcare as a fundamental human international right and to take measures to address the concerns associated with the trend of corporate-oriented models for healthcare provision. By doing so, we can ensure that the healthcare sector remains a force the healthcare sector remains a force for positive change in the world.

ISBN-13: 9781009209557