It’s so rare that I see a headline on my parents’ home state of Kerala that I couldn’t resist writing about this article in the Globe and Mail. For those of you who don’t know, Kerala (pronounced CARE-ah-la, and not cur-AH-la) is a mass of contradictions. It has the highest literacy rate in India but still has arranged marriages. The population of the state is the same as that of Canada, but Kerala’s birth rate is lower that the US rate, thanks to the intense family planning advocacy that’s gone on since my parents were children in the 1950s. A relatively high quality of life is contradicted by a very low GDP. And most paradoxical, the state has a Communist history: democratically-elected Communist governments.

This last point is the key to all the others. Since 1957, the Communist party has been democratically elected and in office, either alone or working with other left wing parties. The leftist governments prioritized public services, small scale co-ops and rural land reforms, resisting rabid globalization and the corporatization of agriculture. In other words, the governments have built upon Kerala’s strengths rather than following popular, often disastrous, employment trends. Strong labour unions are also responsible: workers of all stripes go on strike regularly in Kerala, with the result that the state has some of the best working conditions in the country.

Most importantly, Kerala illustrates one of the classic postwar economic paradoxes: it has a very low GDP but excellent labour conditions, lower poverty than the rest of the country, very strong women’s rights, and excellent health outcomes. How can that be when the state governments haven’t bought into the ideas of neoliberalism, globalization and corporate agriculture? For one, the excellent public health initiatives in Kerala are a direct result of a strong, affordable, health care system that was only possible with consistent leftist governments. Ditto education, which is the key to women’s economic and social independence. State education in Kerala, including free public and high schools, mean that Kerala doesn’t have untouchables: the caste system barely exists at all in the state. It has a very low incidence of religious intolerance (Hindus killing Christians, Muslims killing Hindus, etc.) The strength of the public sector balances out the lower employment in niche areas like traditional Kerala crafts and small-scale manufacturing and production.

All is not sunshine, however: the traffic and pressure on local roads is growing by 10% each year and the rate of road accidents is the highest in India. And unemployment, particularly among youth and women, is fairly high (a handy side effect of strong labour unions and a very well-educated population). This has resulted in massive emigration of Kerala’s population to the Arabian Gulf, the US, Canada, the UK, and Australia. More than 50% of Kerala’s population relies on wells for fresh water, which are still responsible for water-borne diseases such as typhoid, dysentery, and hepatitis. Environmental conditions are no picnic either: Booker Prize winning author Arundati Roy (The God of Small Things), who hails from Kerala, famously donated her prize winnings to fighting the Sardar Sarovar Dam project across the Narmada river.

Nevertheless, Kerala has achieved a remarkable amount with, measurably, very little. The state is just one more example that money may not be the key to happiness after all.

December 24, 2009 will become a date to remember: today the US Senate passed its landmark health care legislation in the first Christmas Eve vote since 1895. I wrote earlier on Canada’s rough ride to Medicare, and Bill HR 3962 (the Affordable Health Care for America Act) passed in the House of Representatives in another post. It’s an electrifying issue which is exciting regardless of where you stand on this complex issue. Health care, and the delivery of health services, are crucial issues for cities in the US. While there is a lot of debate about the differences between the Senate and House bills and the numerous concessions required to pass the Senate version (Bill HR 676, the National Health Care Act or Expanded and Improved Medicare for All Act), the legislation is a particular success for the still-young Obama administration. According to the White House, the main goals of the bill are to reduce long-term health insurance costs for governments and companies, ensure a choice of doctors and health insurance, prevent bankruptcies, invest in patients and wellness, improve patient safety and quality of care, ensure quality affordable health care for all Americans, maintain coverage when people change jobs or leave work, and end barriers to coverage for people with pre-existing health conditions.

Earlier this week, the Senate narrowly agreed on Bill 676, which they endorsed 60-40 at 1am on Monday. Sixty votes are required to bypass a lengthy debate (filibuster) and the Democrats have 58 Senate seats, so they need every vote plus the two Independents. Nebraska Democrat Sen. Ben Nelson was the keystone in cementing the 60-40 vote. Critics feel the bill is too expensive (CNN’s David Frum), delivers too little, and excludes too many (Michael Moore). Republican critics maintain that health care will be “rationed” and overall patient care will suffer: House minority leader John Boehner said it “puts bureaucrats in charge of decisions that should be made by patients and doctors.” Many Democrats are still divided on the issues of abortion represented in the bill (Huffington Post’s Judy Patrick) while others say it diminishes choice by forcing Americans to buy heath insurance. Most agree that the bill was diluted significantly in order to ensure its passage, citing the exclusion of a government-run insurance option that had been included in the House bill, but as Michael Tomasky wrote for the Guardian, “Half a loaf is better than none.” Nelson, in particular, held out for concessions like a federal contribution to Nebraska’s Medicare program. The “Senate test” on Monday was said to predict the passage of the bill today.

It is somewhat troubling that US health insurance companies like Aetna Inc., Signa Corp. and Humana Inc. instantly posted stock market increases, and Democrat Sen. Joe Lieberman (CT) got major contributions from these and other insurance companies to fight the bill. While the bill is expected to cover 30 million Americans who were previously uninsured (the population of Canada, by the way) the Congressional Budget Office reported earlier this year that there were 45.7 million uninsured people in the US. Although this number has been disputed, there will still be millions uninsured in the US, since health insurance will still be tied to employment and the government option has been eliminated. But it is encouraging that the bill bans discrimination of insurers based on pre-existing conditions and mandates employers to provide health insurance, providing tax breaks for small businesses and penalties for large ones.

Today’s Senate vote required the agreement of all 58 Democrats and 2 Independents to achieve the 60-39 win. Four different administrations have tried to pass health care bills in the US. This particular bill, HR 676, was introduced in 2003 by Representative John Conyers (D-MI), and has been reintroduced in every congress since. However, the release of Michael Moore’s Sicko (2007) focused attention on the country’s inadequate health coverage, in particular discriminatory treatment of insured people and the business ethic that pervades Health Management Organizations (HMOs). American friends told stories about the aftermath of seeing the movie in the theater: afterwards, audience members lingered the lobby, saying, “We’ve got to do something about this.” The DVD release of Sicko included a segment entitled “Sicko goes to Washington” which promoted the health care bill. Although the original bill suggested a single-payer system for universal coverage, public opinion was divided: most Americans are against government-run health care, although the American Medical Association favours the option. The single payer option was dropped from in the Senate bill (it still exists in the House bill). The next step involves harmonizing the Senate and House of Representatives bills, which may take until February.

While everything in HR 676 isn’t perfect, legislation rarely is. We’re currently awaiting the proroguing of Canadian parliament (the termination of the current session) which is how our Conservative Prime Minister deals with the fact that he doesn’t have the agreement of the whole House of Commons. This would mean all bills proposed and worked on in committees would die, including the long-awaited affordable housing act (Bill C-304), which has been introduced three times already. So Merry Christmas to our neighbours to the South, and celebrate your imperfect legislation!

In what has been called “a hard-fought victory for President Obama“, the Affordable Health Care for America Act (HR 3962), passed November 7, 2009 in the House of Representatives. The vote was 220:215, an extremely narrow victory (218 votes were needed to pass the bill). Among other things, the bill prohibits insurers from charging different rates or refusing treatment based on a patient’s medical history or gender, requires most employers to provide health insurance, increases Medicaid eligibility to cover more low-income people, a subsidy plan for low- to middle-income people to buy insurance, a central health insurance exchange where people can compare plans and rates, as well as a government-run insurance program.

In an earlier post, while the US was gearing up for its health care talks, I wrote extensively about some of the myths concerning public health care provision. Among these was the claim that public health care is much more expensive than private health care, which is simply not the case. In addition to the data I provided in that post, the Canadian Institute for Health Information’s annual report on health care spending was released today. According to their figures, Canada’s health care costs rose by 5% to $183.1 billion in 2009 compared to 2008. Canada’s per capita costs are highest at the early and late stages of life: $8,239 for an infant under one year old, and up to $17,469 for an adult over 80 years old. For those aged 1-64, the per capita cost is only $3,809 per person. There are also interesting regional differences, with Alberta and Newfoundland and Labrador having the highest per capita costs and BC and Quebec having the lowest. Our costs are in the top 20% worldwide: presumably the 20% with socialized health care systems, since our costs compare to France, the Netherlands, Germany, and Austria.

How do we compare to the US? The per capita cost in the US is $7,290 US, almost double Canada’s average of $3,895 and the highest of 26 countries surveyed by the Organisation for Economic Co-operation and Development (OECD). While Canada’s increased from 10.8% of the GDP in 2008 to an estimated 11.9% in 2009, the CIHI reported that the US was forecasting a similar increase in spending, up to 17.6% of its GDP. Interestingly, they also write that health care spending spikes during economic recessions.

The battle isn’t over yet in the US, which plans to take their health care bill to the Senate. Only one Republican in the House of Representatives voted for HR 3962, and 39 Democrats voted against it; the Democrats will need 60 of 100 votes in the Senate to end debate and bring the legislation to a vote. This was in part due to some controversial amendments at the last minute that added in some flexibility for states in dealing with abortion. Speaker of the House Nancy Pelosi compared the passage of the bill to the 1935 passage of Social Security, but it will be a rough run at the Senate if the abortion issue remains unsolved.