The S-GLOBAL’s New Economy transition concept, which came into effect by 2013, argues that a well-functioning Healthcare Tourism Industry, we named as New Economy, should be a set of sectors; it should be competitive, inclusive, well-governed, ageing friendly, resilient and integrated (six qualities).

How we design and evaluate our investments and technical assistance projects in Healthcare Tourism Industry.

Why do we have a NEW ECONOMY concept?

Because HTI objectives are clear and need to be knows. The purpose of S-GLOBAL shall be to foster the transition towards NEW ECONOMY and to promote private and entrepreneurial initiative. This defined the purpose of S-GLOBAL in terms unlike the charters of conventional development institutions. S-GLOBAL will to foster a change in economic systems – i.e., the way economic decisions are made - rather than directly pursuing development outcomes. What exactly constituted a “healthcare tourism industry-oriented economy” are specifically defined, and so developing a shared understanding of it is an important task early in the S-GLOBAL’s life.

What lay behind the way transition into New Economy as we formulated in 2009?

The transition concept was ‘formalized’ only in 2009 by our Business & Investment Development Director. It was set out three dimensions for transition impact.

1. the creation, expansion and deepening of the idea, HEALTHCARE TOURISM INDUSTRY.

2. the establishment and strengthening of policies, strategies and targets that support the HTI (including PPP).

3. the adoption of behavior patterns and skills that have a NEW ECONOMY perspective.

Does the new transition concept represent the need for a new balance between market and state?

Yes, one of the key lessons of the past 7 years is that transition is not only about building HTI, but also about redesigning the state-mind. Modern HTI rely on efficient state institutions. Market and state are not substitutes, they complement each other. Therefore in order to build a NEW ECONOMY we should not minimize the state; instead, we should improve the quality of both state and HTI market institutions. This new “complements rather than substitutes” view has direct implications for the S-GLOBAL’s work – as we enhance our policy dialogue activities to complement our investments.

What changes with our new transition qualities?
We are now shifting towards the desirable qualities of a NEW economy. This emphasis remains compatible with a focus on systemic change. But it also implies that fostering a HTI economy should not be separated from the intended outcomes.  The six qualities identified foster and support sustainable HTI economy which continues to be our overarching aim. Here we understand preventive care sustainability far broader than medical care sustainability only (although first one obviously remains our priority). We have in mind sustainability of HTI economy. Whenever the benefits of the HTI will be shared broadly, transition will be perceived as fair by all people so that reforms oh the NEW ECONOMY will be realized successfully.

Our works contributes to building not just a competitive, but also a well-governed and inclusive HTI economy. Inclusion makes sure that HTI reforms deliver not only to 60+ but also to all people (including disabled, addicted, obesity and diabetic people etc.). Governance is crucial for rewarding talent and hard work rather than hotel rooms sale-seeking and prevents only creating plastic surgery, dental treatment and hair transplantation activities of vicious circle. Both governance and inclusion are vital for the continued popular support of the HTI reforms.

We also believe that HTI sectors must be integrated. Internal and cross-border connectivity and integration of HTI sectors promotes competitiveness and resilience; thus, integration could be considered as a tool to achieve other qualities. Integration as a separate quality of a sustainable HTI economy is especially important.

The ageing frirendly environment considerations set out as part of S-GLOBAL’s operations from the very beginning have also come under closer scrutiny as the world moves to tackle ageing issues.

Business sectors we work in HTI