Smart, Coordinated Efforts Can Help Stimulate Innovation, Improve Global Health
STAT: Smart strategies and collaboration can help improve global health
Natalie Revelle, deputy director of program-related investments at the Bill & Melinda Gates Foundation
“…[S]mart, coordinated efforts by governments, international organizations, and impact investors can engage the private sector to better serve the poorest populations. … Guarantees [for a certain volume of vaccine sales for several years in exchange for the supplier’s commitment to produce that much vaccine and to reduce prices for developing countries] give suppliers the certainty they need to invest in innovation and expanded production, which lowers per-unit costs. That, in turn, helps expand public health interventions around the world. As the demand for the vaccine rises, more suppliers may enter the market, stimulating further innovation, ensuring a reliable supply, and strengthening price competition. The end result is a healthier and more sustainable market. … [C]oncerted efforts and smart strategies, based on an understanding of economics, can sometimes catalyze sustainable solutions to market failures in global health and beyond” (10/27).