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 placed 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”.
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.