The Impact of Globalization on the Health Sector in South Africa

After the Apartheid era, massive inequalities in income, health status, access to health care and other social services continued to dominate in South Africa. The Apartheid era was a system of racial segregation that was implemented in South Africa from 1948 to 1994. Due to colonization, whites had ruled South Africa for several centuries, which resulted in the creation of a system that was constructed to serve as a legal framework for continued economic and political dominance by people of European descent (WHO 2003: Antiretroviral Therapy). The apartheid era came to an end as a consequence of both inner and global pressure and South Africa’s new democratic government.
It is the role of the national Treasury to exercise coordination of the budget process and determine general resource allocations across different spheres of government and in the providences. Because the Treasury is in charge of financial allocations, it has important connotations on available finance for health care. Taking these external Actors into account, it is evident that they play an important role in regards to the National Treasury (McIntyre 2004). The IMF, World Bank and Financial markets will always be exerting a need for fiscal discipline, liberal orthodox policies and sound basis for foreign investment (Stiglitz 2001).
Another important government actor that plays an important role in matters pertaining to health in South Africa is the Department of Trade and Industry. The Department of trade involves development of policy for international trade and industrial development in South Africa. As an effect of globalization, it is engaged in multinational trade negotiations, agreements and cooperation’s with the World Trade Organization (WTO). These trade agreements have important health ramifications and example of these agreements is TRIPS, which covers trade in drugs. Others are related to health services that including policy regarding health professionals. As will be later discussed, these agreements impact the supply of and demand for, health professionals and pharmaceuticals (McIntyre 2004).
The third actor discussed is the National