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(b) Discuss possible strategies to reduce the severe shortage of vets. [15]

SAJC 2024

Note to students:
While it is interesting, in reality, the government would not likely implement measures to address shortages of vets. It is not likely that clinics on their own will be able to organise a collective effort to address the shortage at a market level.

Introduction

To reduce the shortage, the government can increase supply for vets or reduce the demand for pets

Decrease demand for pets

One way to alleviate the pressure on the veterinary workforce is to reduce the demand for pets, which would correspondingly lower the derived demand for veterinary services. The demand for veterinarians is derived from the demand for pets, as veterinarians are required to treat pets. A reduction in pet ownership would logically reduce the demand for veterinarians.

The government could implement public education campaigns aimed at changing consumers’ tastes and preferences. These campaigns could emphasise the responsibilities and long-term commitments associated with pet ownership, encouraging potential pet owners to carefully consider whether they are prepared for the demands of owning a pet. This form of moral suasion could be used to promote more responsible decision-making before buying or adopting pets. By influencing tastes and preferences, the government can shift the demand curve for pets to the left, from DD0 to DD1, thereby reducing the quantity of pets from Q0 to Q1.

As the demand for pets decreases, the demand for veterinarians will also fall, as fewer pets would require veterinary services. This could help reduce the shortage of veterinarians. Suppose the current market equilibrium represents a shortage of veterinarians at Qs2Qd3, where the quantity of veterinarians demanded exceeds the quantity supplied. If the demand for pets decreases and shifts the demand curve for veterinarians leftward, the shortage could be reduced to Qs2Qd2.

However, it is important to consider the limitations of this strategy. Many individuals purchase pets on impulse, particularly when emotional factors are involved, such as during holidays or after media coverage of popular pets. Education campaigns, while potentially effective for some, may not have a significant impact on overall demand for pets. Therefore, while reducing demand for pets could help alleviate some pressure on the veterinary workforce, it is unlikely to be a standalone solution.

Increase supply for vets

Alternatively, the government can focus on increasing the supply of veterinarians. This could involve introducing more university courses and training programmes designed to produce more qualified veterinarians. By increasing the number of trained veterinarians, the supply curve for veterinarians would shift to the right, from SS0 to SS1.

At the current price (Pactual), there is a shortage where the quantity of veterinarians supplied is Qs, but the quantity demanded is Qd. With an increase in supply, represented by a rightward shift to SS1, the equilibrium quantity of veterinarians would increase, and the new equilibrium price would still remain at Pactual, assuming demand remains constant. At the new equilibrium, the quantity of veterinarians demanded would be exactly equal to the quantity supplied, thus eliminating the shortage. The shortage gap between Qs and Qd would be reduced, bringing the market closer to equilibrium.

Nevertheless, increasing the supply of veterinarians takes time. The long training period of around eight years means that even if the government were to implement this strategy immediately, the effects would only be felt in the medium to long term. Additionally, if the demand for veterinarians continues to rise due to increasing pet ownership or other factors, the same problem of shortages may persist despite efforts to increase supply.

Conclusion

While strategies such as reducing the demand for pets and increasing the supply of veterinarians can help alleviate the shortage, they each face significant challenges. Reducing demand through moral suasion campaigns may have limited impact, given the impulsive nature of many pet purchases. Increasing the supply of veterinarians is a more direct approach, but it is constrained by the long training time required for veterinary qualifications. In reality, it is unlikely that the government would prioritise or implement either strategy fully. Therefore, addressing the shortage of veterinarians may require a combination of these strategies, alongside efforts from clinics themselves to improve work-life balance and retention, ensuring the industry remains attractive to both existing and prospective veterinarians.