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As more countries rise out of poverty, CGD’s work in this area focuses on the inequities and emerging problems that jeopardize global health progress.
As more countries rise out of poverty, CGD is focusing on the inequities and emerging problems that jeopardize global health progress: How should governments allocate scarce health budgets rationally and equitably? How can the world advance global health security and fight infectious diseases? What can be done to address treatment inequalities between developed and developing countries? What are the benefits of, mechanisms for, and threats to, greater family planning provision? CGD research helps policymakers build sustainable health systems, respond to shifting realities, and deliver value for money.
We use data from seven low and middle income countries with diverse drug procurement systems to assess the effect of centralized procurement on drug prices and provide a theoretical mechanism that explains this effect. We find that centralized procurement of drugs by the public sector allows much lower prices but that the induced price reduction is smaller when the supply side is more concentrated.
This paper focuses on the role that price transparency may play in the efficient and effective procurement of medicines by middle- and low-income countries. Will making prices publicly available make procurement more efficient and cost-effective medicines more accessible? We conclude that transparency of the procurement process significantly lowers costs by encouraging bidders.