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Case Analysis
The Macroeconomics and Health: The Case of Mexico presented a direct link
between health and economic growth. It generally states that the two go hand in hand in
a manner that economic growth simultaneously influences health care and vice-versa.
As Catherine Overholt and Margaret Saunders (1996) said, “Health status both affects
and is affected by macroeconomic phenomena, and the way that the national income is
spent affects the welfare of the population.”
Reading the case study, it can be concluded that the economy of Mexico was
able to withstand a high rate of economic growth during the late 1950’s and 1960’s.
Mexico’s Gross Domestic Product (GDP) grew high because of developing the domestic
market of the country. The strategy that the government used was very effective to the
Mexican economic development. In effect, the government was able to allocate enough
money for social expenditures. However, the considerable growth rate was not
maintained and as a result, it was insufficient to sustain the GDP per capita in the
1980’s. Furthermore, the standard of living of a large group of population of Mexico has
remained stationary, if not depreciated.
Overholt and Saunders (1996) stated that “Lower economic growth results in
unemployment and lower incomes. With less income, people, particularly those at the
lowest income levels, experience deterioration in their diets and nutritional status and
increased morbidity.” This is true in Mexico. When the government made major budget
cuts in government social expenditures (health, education, and social security),
Mexicans experienced inadequate health care, lack of basic needs, and poor health
status such as malnutrition and other nutritional deficiencies. These were even more
worsened when a large amount of government budget was allotted for debt services.
Overholt & Saunders. (1996). Policy Choices & Practical Problems in Health
Economics. World Bank.
Santerre & Neun. (2006). Health Economics: Theories, Insights & Industry Studies.
Thomas Learning Asia.