The government should stop trying to control the prices of pharmaceutical drugs and leave the market to itself, says an article on the website www.qianlong.com. Following is an excerpt:
With the healthcare reform plan soon to be finalized and announced, people are questioning the government for controlling the prices of medicines in the market.
The good news is that the central government will stop setting unified prices for drugs. The bad news: the control now will be in the hands of the provincial governments, according to the latest version of the scheme.
History shows the government is never omnipotent. Instead, it should have limited power.
It's wrong to control prices on goods, even special goods like medicines, in a market economy. The reason is simple: it will distort the normal price change in the market and make room for corruption. That's why the public has long panned the concept.
Probably, the government intends well in its bid to control prices. For example, it may fear that prices will skyrocket unless they cap them.
However, price controls cannot help the government with its aim of protecting the poor.
Rather, it gives the government too much control, opening the possibility of corruption between the regulator and the businessman.
(China Daily?March 23, 2009)