Leaders in emerging markets are under pressure. Economies are strained. Geopolitical tension is rising. Growth must be sustained. Yet policy debates often miss one core driver of national performance: health. In fact, healthcare investment drives growth by improving productivity and stability for these economies.
A nation’s health is tightly linked to its economic strength. Health care is not a side issue. It is the base layer that supports productivity, resilience and long-term demand. When people are healthy, they can work consistently. They contribute more reliably. They participate in the economy for longer. When they are not, productivity drops fast and deeply.
Working-age adults drive the economic engine room. When cancer, diabetes, chronic disease, or poorly managed acute illness weigh down this group, countries lose more than well-being. They lose output. They lose skills. They lose the momentum that fuels sustained expansion.
Healthcare Investment Drives Growth Through Productivity
Societal health unlocks the drivers of growth, directly linking GDP to population well-being. Productivity improves when absenteeism falls. Innovation rises when talent stays in the workforce. Resilience strengthens when health shocks do not push families and employers into crisis.
Developing markets have already seen how progress can transform growth. Mobile communication changed trade and access. Aviation reshaped movement and supply chains. But infrastructure and technology alone cannot carry an economy if the population is unwell.
Governments and global decision-makers must shift their approach. Rather than treating healthcare spending as an unrecoverable cost, they should view it as a strategic investment in future economic output.
Healthcare Investment Drives Growth When Innovation is Funded
Public debate often frames medicines as the main reason health budgets are under pressure. That perception can reduce support for innovation, including advances in medicine technology. Yet the numbers suggest a more balanced view.
Pharmaceuticals account for roughly 0.7% of global GDP, while total healthcare spending averages around 9%. Innovative medical technology can reduce long-term costs. It enables earlier diagnosis and supports effective treatment. It helps prevent complications that become far more expensive later.
Innovation is also broader than new medicines. It includes diagnostics, digital tools, more innovative patient pathways, and systems that help clinicians intervene earlier and more effectively.
Generic Pricing Models Can Unlock Value in Health Systems
Fundamental inefficiency often sits in structural design. Generic medicine pricing is one example. Generics are vital for widening access and lowering costs. But the scale of price reductions matters.
In mature markets like Germany, generics enter at roughly half the original price once exclusivity ends. In South Africa, price reductions often stall at 20%. These limited savings deprive health systems of the headroom they need to fund broader access and future innovation.
Aligning generic pricing structures more closely with global norms could unlock meaningful value. It could free resources to expand services, support new therapies, and strengthen system performance.
Access Depends on Clinicians and Modern Tools
Doctors and nurses remain the backbone of every health system. In emerging markets like South Africa, clinical dedication is often exceptional. But even the best teams cannot deliver optimal outcomes without modern tools, reliable supply chains, and pathways that enable early intervention.
The opportunity is clear. Countries can rethink how they fund, structure, and prioritise health care. A balanced model protects access while creating space for innovation. This approach improves health outcomes and supports stronger, more durable growth.
- Rangoonwala is the senior vice-president of Johnson & Johnson EMEA Emerging Markets
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