But the market still does not reflect what people want?
Most people don't have malaria, they don't care about malaria, and they will only care if it affects them.
It is not that capitalism is evil regarding that, but why a person living in Japan for example will care if someone half planet away that have zero interaction with him will die?
Now suppose that farmers that make your food are plagued with some disease... This would make your food expensive, and this would make you want to heal them, so they make your food cheap again.
What happens today, is that the news about the world are faster than the economic interactions, you feel pity for people in blasted places, but you don't need them, most people don't need them, so most people won't care for them. Now tell me, if someone had asked for donations to do more research on the cancer that killed Steve Jobs, I am sure lots of people would help, not because they like Steve Jobs or because it is noble to do so, but because they like what he did.
Face it, even collectivist humans are still thinking about themselves, humans either think about themselves only (the ultimate individualism) or about their immediate community.
Few people care about a person with no genetic relation to you, that live half planet away, and have no economic interaction with you, either as buyer or seller.