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Research on the Legal Regulation upon the Rent-seeking Activities in Chinese Drug Market

Author: BaiLi
Tutor: LiuJinYe
School: Shanxi University of Finance
Course: Economic Law
Keywords: drug market rent-seeking legal regulation market regulation
CLC: D922.16;D923.8
Type: Master's thesis
Year: 2007
Downloads: 109
Quote: 0
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Abstract


Drug is the special commodity which is related to body healthy and life safety of people closely. To ensure safe medication of people is the important function of maintaining social stability and promoting social harmony. However, from‘qi-er-yao’event to‘xing-fu’event, and a series of particular phenomenon that happened, such as‘a drug had many names’,‘millions of new drugs had been examined and approved in one year, though descended for more than ten times, the drug price was still high’, made people panic and angry. Wherefore, state council decided to take specific actions to rectify and standardize the regulation of drugs in one year since august 2006, and printed < State Council Office: Notification on Printing and Distributing Specific Plan to Rectify and Standardize Drug Marketing Order>( State Council Office Directive; Document No: [2006]51)The confusion of drug market and great actions taking by government this time attracted writer to participate in this issue, tried to deconstruct this social issue in terms of Legal Regulation, and tried hard to find the new method of innovating, consummating and legal regulating the drug market.Observing our drug market closely, it was the‘rent-seeking’activities which due to so confused situation.----searching from drug research link, drug production link to drug circulation link, drug using link, all of links infiltrated the poison of rent-seeking. There were rent-setting of Certification Committee for Drugs (relative supervision and management department etc.) as well as rent-setting of hospital side that was in the green tree. They were connected with the rent-seeking principal pharmaceutical factory, allied each other for their own interest, and aggrieved the patient’s interest. We analyzed rent-seeking mechanism one by one, found it divided into two types: one type was medical treatment rent, the reason which due to medical treatment rent was that traditional medical treatment social security system; drug mixed management system and medical-drug collaboration system that depended on traditional medical treatment social security system put the hospital pharmacy on a relative monopoly state, all of this produced better developing environment for rent-seeking and rent-setting. And because the main body of rent-setting—doctors, the payout and reward of them was unbalanced; also because the main body of rent-seeking--pharmaceutical factory, their maximized the profit chasing made the medical treatment rent overrun. Another type was regulation rent, the reason which due to regulation rent was that the selfish of regulation main body inspired rent-seeking activities, the multitiered regulation organization intensified rent-seeking activities and the weakness of regulation supervision brought up rent-seeking activities.If we want maintain the drug market order and get rid of rent-seeking, there needs legal to regulated the activities of drug market main body and government. After regarded idea of the legal regulation as interest trade-off, we pointed out the concrete system of legal regulation included the legal system of regulation main body, namely economic management main body—nation, eka-economic management main body—guild and social mediated organization, and the legal system of regulation content, namely drug registration regulation, price regulation system, information publishing system, the specification of drug advertisement system, drug market regulation system at internet. Base this foundation, we made further probe to carrying out legal regulation effective. Writer thought that it could force the effective carry-out of legal regulation by the following four sides. Firstly, there should set up more sufficient anti-rent-seeking system and enhance the effective carry-out of legal in order to destroy the breeding ground of rent-seeking. Secondly, we should make the legal responsibility of rent-seeking clear and widen the legal relief method in order to resist recurring illness of rent-seeking. Thirdly, we should enhance the legal supervisor system and supervise legal carry-out in order to restrict the rent-seeking activities. Fourthly, we should reform the relative regulations and cooperate with the legal carry-out in order to restrain rent-seeking completely.Finally, it should be pointed out that the legal regulation of drug market rent-seeking activities is a most complicated problem, we should have a proper psychology to face it, the very thing we should do is that everyone fulfils his duties. The meaning of this paper is to catch the attention of everybody, hope to bring some enlightenment for scholars, and do my pygmy effort to the legal regulation rent-seeking activities research in Chinese drug Market.

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