The Banking and Strategy Initiative

Chillin' out till it needs to be funded

What will it be now? Health or Education

Portrait of a male doctor wearing surgical scrubs and holding a mobile phone

The verdict is out. most money this year will be spent in India, US, PIIGS, Europe and China on Infrastructure and Social Welfare. The first tranche on Infrastructure having already effected and initiated mega projects, financing needs to be closed in projects outside the U.S. and needs to catch up with where the money has already gone in the US and why it is not going to the identified Transportation and Security projects.

The Social Welfare bit is of course predominantly partaken through non profits in the west and where like in India and China this superstructure does not exist, the public exchequer sponsors the chalk-boarding and transmission of new and in pipe projects. We are in need of expertise to disciuss this non profit superstructure but that will also be ‘tabled’ very soon.

Of more importance is to catch the rising star in expense budgets as that is likely to be something that requires the preparation skills and the base delivered by a functioning private sector. And this the question – who will take the decade behind infrastructure? It can be Higher Education and indeed Education reforms at all levels. So, because No child Left Behind in the US was an answer to an almost criminal characterization of the state of Education in the US, because Europe while suffering from some under population and disfranchise in migration also noticed that it did not have the infrastructure required to produce aware citizens and because in India and China significant 50% and more of the population does not have the desired access to schools and Colleges.

Close-up of fruits and vegetables in a plate with a glass of milk

Health and Wellness

It could indeed be Health – Healthcare, Big Pharma, Public Health ( Sanitation, Vaccination, Basic Access), Health Education & Health and Wellness or the OTC revolution bringing Retail and Health under one roof. In the case of Health somehow, there are only two subsets of aware populations that will produce leadership in the Industry. The India-China-US-Latam axis that is more or less homogenized by processes, medications and a common understanding of global challenges and the other a Big Pharma led European/Boston hegemony that has different expectations but receding faith in the constituencies’ ability to pay up for renegade experiments and the Health Insurance lobby that has established proceses requiring it to raise premiums when it faces losses.

Well, at the risk of probably jumping the gun, despite some of the attention Education has already received and most importantly without making any distinction between the degree of importance of both the sectors, economically, even as education sets the base for the next revolution, health will come first. Basic Access to Health has in fact to be a fundamental right in all those that believe in a democracy and most do.

Health is indeed a vast field, the current Health bill but a visible ramification of the same..However the subjects are too tough to be dealt in high summary without more work. We have been following Big Pharma and Health Insurance companies with interest over the last year and with Novartis bypassing the emerging markets refusing to deal vaccination contracts without economic consideration and paying top dolllar for eye lotion, they have an uphill task earning returns for their business. While Glaxo on the other hand has done big ticket vaccination contracts in India, China and Brazil, it does not have that many ‘moneyspinners’ in the stable ( throwing a key concern, that of ethical hazards in the ring just with these verbal nuances) Industry wide concerns include Patent expirations..On the healthcare insurance side, health insurers and public administration have a key common concern, that of making a viable money making product available to the vast population and in that making sure the burden is a fair and lasting one, so that everyone wants to be insured.

Of course, the developing world and the BRIC nations are at a different stage of development but the top level concerns are the same. Let’s follow this yellow brick road..and get to the land of magic in the next 10 years. Technology Access started it off in India, Education a little behind. Meanwhile in the US, Technology and Costs seem to have gone overboard.


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