The Economist's Digest 8

Economics focusMoney v mosquito
(Originally from The Economist Nov.3~10)
Summary:
A new drug against malaria in Africa called artemisinin gives hope when the old one is unable to use, but it costs a lot to such a poor continent. Thus, some international organization such as the World Bank, AMFm(抗瘧疾組織)…etc , are going to give them money to buy it.
Then it’s a problem: Does it work? Does it worth? Outsiders may think Africans can get cheap malaria medicines from government. However, it’s difficult for them sometimes and thus it ended up buying them from private suppliers. But if the plan works, the price of the new medicine will fall down.
Many scholars support the plan, while there is others don’t agree. Because when the manufacturing and retailing is less competitive, the prices might up and benefits someone. There are two concerns about it:
One is the weak competition between manufacturers can make price firm. The other is the few sellers may hold the medicine and control the price------which makes a profit for them, and this may lead to the in ability of the money given by AMFm. In other words, the subsidy(補助) will be abused. Yet there’s still a solution: Set limits to the prices.
On the other hand, fake medicine is another problem. One scholar says the solution is the plan of subsidy. He thinks the AMFm should teach everybody (in Africa) the right prices of the medicine.
Despite remaining great uncertainties, for fighting against malaria, it’s still worth trying.

What I think:
The price-controlling problem of goods is a problem not only for medicine but also for many other things, even our food. The ups and downs of the prices of vegetables reflect the economic construction problems of Taiwan. (Regardless of the inability of our government.)
The other subject I want to discuss is why we have to help Africa with their diseases. This involves not only humanitarian concerns but also global economics.
If people in Africa all died out or the tropical diseases spread out through vehicles, who knows what will happen next?