Prime Minister Dmitry Medvedev has signed a resolution that continues the policy of protectionism and import substitution in medicine. The decision of the government has expanded the list of medical devices that are state and municipal medical institutions are forbidden to buy from foreign manufacturers. The document mentions bandages, diapers and breast implants posted Friday on the official website of the Russian government.
Updated list of products, when you choose that you want to give preference to domestically produced goods, supplemented by 14 positions. Including a list of added “medical gauze bleached cotton”, “bandages sterile and non-sterile gauze”, medical masks, sterile dressing packs and swabs, anti-bedsore mattresses, etc. In the list also there were “hygiene products – absorbent underwear (diapers),” although an exception has been made for diapers size XS, reports “Interfax”.
The list also appeared the devices of artificial ventilation of lungs (IVL), inhalation anesthesia apparatus, the endoprostheses of the joints of limbs, crutches, chairs-chairs with sanitary equipment, orthopedic shoes for children and breast prostheses (mammary) glands on the basis of silicone gel, as well as different sets of biochemical reagents.
In the previous version of the list dated February 5, 2015 these positions do not exist.
According to the report on the website of the Russian government, “analogues of each of these medical products are produced in sufficient quantity at least two Russian companies”.
About import substitution, Russian officials started talking in 2012. Then it was about the development of agriculture to ensure food security. However, after the annexation of Ukrainian Crimea to Russia, which was considered by the international community as an act of aggression and led to the introduction of sanctions against Russia, Moscow began to develop the program of import substitution in other sectors, including medicine. Under the pretext of stimulating the development of domestic pharmacology authorities began screwattack import of medicines for privileged categories of citizens. The officials believe that imported foreign products can be replaced by their national counterparts, which, if you win in price, you often lose in quality.
In General, the import substitution contributes to a significant increase of domestic production, creates new jobs, but in the long term observed deceleration of industrial growth. Economists who have studied this phenomenon on the example of Latin America, explained the problem loss advantages from specialization and international trade. Protectionist policies and the increase in the share of public sector reduces the incentives of entrepreneurial risk and leads to a decrease in efficiency, which generates a trade deficit.
In Russia import substitution also brings modest results. For example, the promise of low prices and high quality local products, the Russians did not wait. In terms of withdrawal from the market of foreign competitors domestic producer loses interest in producing high-quality and cheap goods.
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