Smells of the Soviet past: economist explained why the number of pharmacies in Ukraine should not be reduced
Kyiv • UNN
Andriy Novak, head of the Committee of Economists of Ukraine, stated that reducing the number of pharmacies in Ukraine is a return to the Soviet economy. He emphasized that in a market economy, the number of pharmacies is determined by consumer demand.
In a market economy, consumer demand determines the volume of goods and services produced. State intervention in this process would mean a return to the times of the Soviet Union. Andriy Novak, head of the Committee of Economists of Ukraine, expressed this opinion in an exclusive comment to UNN.
The initiative of some deputies to reduce the number of pharmacies smells too strongly, I would say, it smells badly of long-forgotten and past approaches and principles of the communist economy of the Soviet Union.
According to him, since the first days of independence, Ukraine has been living in a market economy, where the volume of goods and services produced is determined by the market, i.e., consumer demand.
And, in particular, regarding pharmacies - we currently have exactly as many pharmacies as there is demand for the relevant products in them.
According to him, in a market economy, which is how Ukraine should live, no one can tell businesses what to open and what to close.
This is determined exclusively by the market and consumer demand for certain products, for certain goods and services. Therefore, this initiative (regarding the reduction of the number of pharmacies - ed.) is at least 35 years old. And this should be reminded to those deputies who are currently pushing such an initiative.
Let's add
Economic expert Oleh Hetman shares a similar opinion.
"Deputies who want to reduce something, the number of economic entities, this is wild, this is North Korea. So these are just absolutely senseless proposals, because we live in a market economy. Economic entities, entrepreneurs, businesses, they themselves will decide what and when to open. This is decided by supply and demand, this is decided by the market," he said in a comment to UNN.
The economist emphasized that if competition is excessive, the number of pharmacies will decrease.
Recall
Ukrainians are negative about the idea of reducing the number of pharmacies in the country. People interviewed by UNN journalists believe that such an initiative will not only limit access to medicines, but also lead to an increase in drug prices.