POL-CT 11

HCM 550/22374

Healthcare Policy Analysis and Development

Module 11: Critical Thinking

Saudi Electronic University

150031997

Huda Alogaili

Economic Growth in Saudi Arabia

Saudi Arabia is a rich country that has strong economic status. It has the main reserves of oil globally which is approximately 25% of the world’s total oil supply (Albejaidi, 2010). The economy has been dependent on oil export which allows for many economic developmental aspects. Saudi Arabia have had significant economic development over the years. Currently, it focuses on the development of other economic sectors including adopting important policies to provide a favorable environment where all sectors can be stabilized. It has developed various plans which have focused on ensuring the development of a sustainable economy through improving the living standards of its citizens (Kingdom of Saudi Arabia vision 2030, 2016b). These plans have been taken into consideration in Saudi Vision 2030 with an aim of a thriving economy that rewards opportunities, invests long term goals, opens for business and improves healthcare quality (Kingdom of Saudi Arabia vision 2030, 2016b). Therefore, this paper describes the relationship between economic growth in Saudi Arabia and the higher quality of healthcare. Also, the opportunities for policy-makers in the Ministry of Health (MOH) to improve healthcare. Besides, the key aspects of healthcare economy in Saudi Vision 2030.

Saudi Vision 2030

Saudi vision 2030 is a strategic tool that provides the kingdom with a detailed framework to focus on improving the economic development. The strategic location of Saudi Arabia makes the vision 2030 realistic especially based on the implementation of the plan in which the Council of Economic and Development Affairs is responsible for evaluating and monitoring (Felemban et al., 2017).The vision 2030 is based on important elements that include reduction of the country’s dependence on oil, embrace economic diversity through the integration of strategic economic measures and improve the public service sectors with a key emphasis on health, education, infrastructure and tourism (Kingdom of Saudi Arabia vision 2030, 2016b). The different provisions addressed in Saudi Vision 2030 aims at creating a sustainable economy that is developed on strong economic pillars capped with positive public engagement (Wilson & Graham, 2016).

Saudi Arabia aims for a thriving economy through building a strong education system affiliated with population needs and creating economic opportunities for investments and large corporations to take place (Kingdom of Saudi Arabia vision 2030, 2016b). It is important to consider that education is the most powerful investment in future of Saudi Arabia. Education is an important determinant of health that leads to good health, empowerment and better opportunities of employment (Brandt, 2015). It helps to build more aware and strong societies in which women are building a better future for their children (World Health Organization, 2009). Educated parents often promote better health of their own children through education, encouragement and awareness (Noble et al., 2015). Investing in educating, training and developing young population is needed for future jobs and better economy in the country.

Another aspect that helps to develop the economy in the country is employment. Employment is an important social determinant that affects the health of individuals, families and communities (Benach et al., 2014). Saudi government have launched the National Labor Gateway (TAQAT) which is a key nationwide initiative to build the main virtual labor market platform in the Kingdom of Saudi Arabia (TAQAT, 2018). TAQAT aims to offer better employment opportunities, training and development services to develop the labor force effectively and efficiently (Alyamani, 2016).

Saudi Arabia is planning to establish sector councils to accurately recognize the talents, skills, knowledge and capabilities required by every socio-economic sector (Kingdom of Saudi Arabia vision 2030, 2016b). Providing professional training and scholarship opportunities are needed to serve population priorities as well as focusing on advanced technologies, innovation and investments. Diversify in economy will allow for growing job opportunities, attracting skillful and highly qualified employees as well as top investments globally (Kingdom of Saudi Arabia vision 2030, 2016b). This will improve quality of services provided including healthcare services and improve business environment. Preparing right environment for economic growth and development based on population needs is important aspect in Saudi Vision 2030.

Small and medium-sized enterprises (SMEs) are considered important agents of Saudi economic development. Adaileh (2012), mentioned that “The SMEs sector as a whole can galvanize an entire economy”. (p.169). SME sector can create employment opportunities, support innovation and enhance exports (Kingdom of Saudi Arabia vision 2030, 2016b). In Saudi Arabia, SMEs are not main contributors to the country’s Gross domestic product (GDP). Therefore, Saudi government established the SME Authority to encourage young entrepreneurs to participate in business, provide them with easier access to funding, share of national gaining and government bids (Kingdom of Saudi Arabia vision 2030, 2016b).

Saudi Arabia pays attention to the skills and abilities of productive families in which the Council of Saudi Chambers (CSC) added productive families’ file as a new drive of Saudi economy. Now, productive families’ file is considered one of the important files that a lot of economists focus on the effective participation of Saudi families in Saudi economy (CSC, 2018). Productive families don’t have official and secured jobs, they work at home in different fields such as cooking and art crafting to earn money that support their families. Productive families sell their products and increase their income to offer their children better healthcare services that they can afford. Therefore, Saudi government considers productive families’ file as basic right to work and earn money. Saudi government encourages the work of productive families, builds their abilities and funds their initiatives to enjoy marketing opportunities through internet websites, social media and digital platforms (Kingdom of Saudi Arabia vision 2030, 2016b).

Saudi Vision 2030 focuses on the concept of equality to improve Saudi economy in which Saudi government established Job Creation and Anti-Unemployment Commission. This includes providing opportunities for everyone, so they can contribute to the best of their abilities (Kingdom of Saudi Arabia vision 2030, 2016b). Also, providing equal training and job opportunities make the most of the workforce potential for high performance and effectiveness. All these plans can improve Saudi economy including healthcare economy which is related to improve population health.

Saudi women are powerful contributors to Saudi economy. Over 50% of Saudi university graduates are female (Kingdom of Saudi Arabia vision 2030, 2016b). Developing their talents, strengthen their future and investing in their productive abilities and knowledge will contribute to the development Saudi economy. Especially, taking care of their children, educating them and helping them to be aware of their rights and health. Women have the power to protect future generations. World Health Organization (2009), mentioned “woman today is an investment not just for the present but also for future generations”. (p.3). It is important to consider that women driving licenses are expected to boost the Saudi economy. One of the goals addressed in Saudi Vision 2030 is to increase number of Saudi nurses and health allied professionals including females per 100,000 people (Kingdom of Saudi Arabia vision 2030, 2016a). Also, to increase the attractiveness of nursing and medical support career pathways to overcome the challenge of healthcare workforce shortage (AlYami, 2014).

The Status of Economic Growth in Saudi Arabia

The realization that the country has limited oil deposits has provided a very different focus on achieving sustainable economic development. Saudi Arabia has had a steady GDP averaging at 1.04 from 201 to 2017 (Trading Economics, 2018). The country has an oil-dependent economy where shipments of oil products account for approximately 87% of the total exports, which represent approximately 46% of the country’s GDP (Trading Economics, 2018). In order to achieve sustainable economic growth, Saudi government has been actively participating in using the oil revenues to expand different sectors such as telecommunications, petrochemicals, power generation sectors as well as natural gas exploitation in such for alternatives to oil (El Bcheraoui et al., 2015).

The country has embarked on a post-oil era where the country is expected to rely on its megacities to sustain the country’s economic growth. The development of the cities is based on creating a very attractive focus to foreign investors who will provide better focus regarding business allowing for effective consideration of economic development (Kingdom of Saudi Arabia vision 2030, 2016b). Industrial cities have been identified as the solution to the existing economic challenges which limit the overall focus on positive development based on economic growth.

In 2017, Saudi government announced that it had focused on building a mega city worth approximately $500 billion (Garfield, 2017). The city is expected to run on 100% renewable energy as well as crucial focus on go green initiative based on global standards. The project is expected to be funded largely by the government and private investors. Opening up the country to foreign investors has provided a favorable environment through the development of favorable policies, which have been positively engaged to create a conducive environment where it would be possible to achieve sustainable economic growth (Mahalik, Babu, Loganathan & Shahbaz, 2017). The main objective of diversifying the country’s economy and ensure that it is less dependent on crude oil.

Economic Growth and Healthcare Quality

             Saudi Arabia is considered the largest country in middle east. Saudi population is increasing in which there should be a comprehensive plan to support the healthcare sectors. Saudi government has been making continuous efforts to improve and strengthen the economy. It is challenging to come up with considerable improvements in the healthcare system which include developing policies, plans and regulations to overcome the increase in health expenditures (Yusuf, 2014). World Health Organization (2010), estimated Saudi health expenditures to reach 19 billion US$ in 2010 and it is expected to increase every year. Therefore, Saudi Vision 2030 addressed this issue in its theme of corporatization (Kingdom of Saudi Arabia vision 2030, 2016b).

Corporatization will improve and ensure quality of healthcare services in which it allows the government to pay attention to its legislative, governing and administrative roles. It will promote specialization in healthcare services and enable consumers to choose their preferred healthcare providers (Kingdom of Saudi Arabia vision 2030, 2016b). Saudi government is devoted to a course of improvements to the healthcare system to be responsive to the needs and demands of Saudi population (Gough, 2011). Privatization of healthcare sectors is one of the solutions to improve economic growth. The basis of privatization is the transformational changes in healthcare objectives, incentives and control mechanisms that lead to improved performance (Tiemann & Schreyögg, 2011).

Saudi health insurance is one of the Saudi government’s plans for improving economic growth, healthcare quality and access to healthcare services. Saudi healthcare system need to control and manage a health insurance policy to ensure its effectiveness in Saudi healthcare sector (Almalki, Fitzgerald & Clark, 2011). MOH is facing the challenges of financing, controlling and managing public healthcare sectors (Almalki, Fitzgerald & Clark, 2011). Therefore, restructuring Saudi MOH is another important solution to control the increase of health expenditures. Giving authority to the regional health directorates, applying health insurance system and encouraging privatization of public healthcare settings will improve healthcare economy and focus more improving healthcare quality.

Healthcare Quality Policies

The Saudi government has significantly put in place important measures to ensure the devolvement of high quality healthcare standards. Saudi Arabia has adopted a national health system where the government through its healthcare agencies provides healthcare where it is possible to evaluate the existing healthcare standards. The private sector has been making significant headway in the provision of quality healthcare services. MOH lays an important role in supervising and maintaining quality of healthcare services (Almalki, Fitzgerald & Clark, 2011). The ministry of healthcare focuses on providing quality primary healthcare through numerous health centers across the kingdom (Niblock, 2015).

MOH has integrated key policies which have aimed at creating an improved environment where it would be possible to achieve a high quality of healthcare. The established policies have integrated aspects in healthcare where important procedures are implemented accordingly. One of these policies is Saudi health information exchange authentication policy in which data processing system can by only accessed by authorized entities in authorized ways (MOH, 2018b). The implementation of eHealth strategy and electronic health records across the country have transformed healthcare to an improved level. Advanced information technology need administrative policies including usage, security and privacy requirements for each system. E-medical services in clinics and hospitals have been made possible creating a greater level of achieving positive understanding of quality healthcare delivery. The application of technology within healthcare environment focuses on important elements such as complicated procedures and management of patient information which improve quality of healthcare (Walston, Al-Harbi & Al-Omar, 2008).

Also, private health institutions policy in which these institutions should be owned by Saudi physicians and corporative health insurance policy in which health insurance is provided to Saudi citizens and non-Saudis (MOH, 2018a). Saudi Commission for Health Specialties (SCFHS) have established some important and well recognized policies such as professional registration, classification and institution accreditation as well as credentialing (SCFHS, 2018). Cardiovascular procedures, organ transplants, cancer treatments taking into consideration bone marrow transplants are fully covered by the government. Employers are responsible for providing an extensive package for private sector expatriates who are entitled to quality healthcare (Felemban et al., 2017). All healthcare settings are required to achieve effective and comprehensive performance as well as quality reporting which should be supported in up to date policies (Kingdom of Saudi Arabia vision 2030, 2016a).

Conclusion

Saudi Arabia has integrated Saudi Vision 2030 as ambitious plan which is aimed at transforming the country from oil-dependent economy to a diverse economy. The Saudi Vision 2030 aims to acheive a higher level of success and improvements of economic growth. Improvements in economic growth is related to quality of healthcare in many aspects including education, employment, equity, SMEs and women contributions (Kingdom of Saudi Arabia vision 2030, 2016b). The success of Saudi Vision 2030 in future depends on establishing and updating policies to ensure effective implementations in order to improve the existing efforts that have been put in place limiting the dependence on crude oil. The policies include healthcare quality that focus on different aspects such as healthcare technology, health insurance, credentialing and accreditation.

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