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International Trade in Services.pdf - DSpace at Khazar University

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132 <strong>Intern<strong>at</strong>ional</strong> <strong>Trade</strong> <strong>in</strong> <strong>Services</strong><br />

Box 4.11: Case Study: A Successful Government-Led Str<strong>at</strong>egy to Develop<br />

Medical Tourism, Cuba<br />

The Cuban government views health export promotion as an important part of its<br />

overall economic development str<strong>at</strong>egy. Cuba has long been a popular dest<strong>in</strong><strong>at</strong>ion<br />

for medical tourism, <strong>at</strong>tract<strong>in</strong>g p<strong>at</strong>ients mostly from Europe and elsewhere <strong>in</strong> L<strong>at</strong><strong>in</strong><br />

America and the Caribbean and North America.<br />

A number of specialized cl<strong>in</strong>ics <strong>in</strong> the country provide high-quality care <strong>at</strong><br />

competitive prices and also function as tra<strong>in</strong><strong>in</strong>g centers for medical schools for<br />

domestic and foreign students. Early <strong>in</strong> the process, Cuba’s str<strong>at</strong>egy focused on<br />

health spas and m<strong>in</strong>eral spr<strong>in</strong>gs, medical support and emergency care for travelers,<br />

and the supply of specialized medical care not readily available elsewhere <strong>in</strong> L<strong>at</strong><strong>in</strong><br />

America and the Caribbean. It also aimed <strong>at</strong> specialized services, focus<strong>in</strong>g on the<br />

tre<strong>at</strong>ment of certa<strong>in</strong> k<strong>in</strong>ds of sk<strong>in</strong> disease th<strong>at</strong> are not tre<strong>at</strong>ed <strong>in</strong> other countries and<br />

on the development of new procedures and medic<strong>in</strong>es. This trade promotion<br />

str<strong>at</strong>egy had several underly<strong>in</strong>g objectives, <strong>in</strong>clud<strong>in</strong>g the employment of qualified<br />

health service providers, the use of excess capacity for the manufacture of medical<br />

and pharmaceutical products, and the use of trade resources to <strong>in</strong>vest <strong>in</strong> health care<br />

<strong>in</strong>frastructure and the public health system.<br />

Cuba’s success <strong>in</strong> the health service trade may be <strong>at</strong>tributed to the foresight and<br />

long-term plann<strong>in</strong>g of the M<strong>in</strong>istry of Health, <strong>in</strong> collabor<strong>at</strong>ion with other <strong>in</strong>stitutions,<br />

<strong>in</strong> the areas of tourism, migr<strong>at</strong>ion, commerce, and <strong>in</strong>dustry. An important factor <strong>in</strong><br />

this success has been the establishment of Grupo Cubanacan (formerly Servimed), a<br />

st<strong>at</strong>e-run trad<strong>in</strong>g company hosted by the M<strong>in</strong>istry of Health, which supports the<br />

market<strong>in</strong>g and promotion of Cuban health services overseas. Cubanacan, together<br />

with tour oper<strong>at</strong>ors and travel agents <strong>in</strong> target markets, prepares health packages<br />

th<strong>at</strong> <strong>in</strong>clude air travel (on Cubana de Aviación, Cuba’s n<strong>at</strong>ional airl<strong>in</strong>es) for p<strong>at</strong>ients<br />

and accompany<strong>in</strong>g persons, companion personnel to accompany p<strong>at</strong>ients after<br />

arrival <strong>at</strong> the airport, 24-hour assistance, tre<strong>at</strong>ment, rep<strong>at</strong>ri<strong>at</strong>ion, and postoper<strong>at</strong>ive<br />

checkups. Cubanacan relies on a network of 35 cl<strong>in</strong>ics and 42 resorts <strong>in</strong> Cuba, priv<strong>at</strong>e<br />

cl<strong>in</strong>ics overseas, and commercial represent<strong>at</strong>ion <strong>in</strong> target markets such as Argent<strong>in</strong>a,<br />

Brazil, Chile, Mexico, and República Bolivariana de Venezuela.<br />

Cuba offers free or subsidized care to p<strong>at</strong>ients from some countries, essentially<br />

countries <strong>in</strong> Africa and L<strong>at</strong><strong>in</strong> America. Cuba has also concluded bil<strong>at</strong>eral agreements<br />

with social security <strong>in</strong>stitutions <strong>in</strong> several countries <strong>in</strong> L<strong>at</strong><strong>in</strong> America and the Caribbean<br />

to facilit<strong>at</strong>e trade. In addition, the government has provided for easy payment facilities<br />

for credit cards <strong>in</strong> any convertible currency. Two smaller agencies have also been<br />

established <strong>in</strong> health tourism to provide rehabilit<strong>at</strong>ive and convalescent health services<br />

through resorts and spas follow<strong>in</strong>g the Cubanacan model.<br />

Source: Blou<strong>in</strong>, Drager, and Smith (2007).<br />

governments have played an important role <strong>in</strong> the success of the countries th<strong>at</strong> are<br />

lead<strong>in</strong>g health service exporters. Public sector <strong>in</strong>volvement could be crucial <strong>at</strong> all<br />

stages from the design to the implement<strong>at</strong>ion of export promotion str<strong>at</strong>egies.<br />

A common problem is the lack of st<strong>at</strong>istics on trade <strong>in</strong> health services th<strong>at</strong> could<br />

transl<strong>at</strong>e <strong>in</strong>to a lack of coherent sectoral development str<strong>at</strong>egies by governments.<br />

For example, <strong>in</strong> elabor<strong>at</strong><strong>in</strong>g an export str<strong>at</strong>egy for medical tourism, one would

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