Chinese medicine and wisdom

• Published in: The OECD observer no. 256; pp. 14 - 15
• Main Authors: Molnar, Margit, Pigott, Charles
• Format: Journal Article
• Language: English
• Published: Paris Organisation for Economic Cooperation and Development (OECD) 01-07-2006
• Subjects: Access; Access to education; China (People's Republic); Developing countries; Economic development; Education; Education and state; Efficiency; Epidemics; Expenditures; Governance; Government spending; Graduates; Health care access; Health education; Health planning; Health services; Herbal medicine; Higher education; International economic organizations; LDCs; Medical sciences; Medicine; Money; Public finance; Public policy; Public services; Rural areas; Secondary education; Service sector; Strain; China
• ISSN: 0029-7054; 1561-5529

Some public services in China have come under serious strain, even as the economy has boomed. This appears to be the case with health and education, whose present level of public spending seems to be out of line with the country's development needs and goals. With its already wide income disparities, raising the private share of spending would not necessarily improve the access of poor people to education and healthcare services, and could even reduce their access in many cases. The market can be harnessed to help overcome some of these problems. For instance, the usual practice in OECD countries is for government to fund primary and secondary education because of its broad social benefits, and allow the market to contribute finance to higher education, through fees for instance, because the private benefits to graduates are considered greater. However, money alone will not solve the problems. Better governance is called for to improve efficiency.