Resource allocation and health financing

Experts warn Zimbabwe’s gains in HIV/AIDS could be eroded if funding is cut
Sandra Nyaira, Health Concepts Africa, 7 December

Global Fund spokesman Jon Liden said it is not exceptional for proposals to be rejected, adding that Zimbabwe has enough funds coming from the organization to keep its programs going. Health experts said Monday that Zimbabwe’s gains in the fight against HIV/AIDS could be eroded if the Global Fund to fight AIDS, Tuberculosis and Malaria adopts a decision by its technical review panel not to fund Zimbabwe’s Round 10 proposal.A spokesperson for the Global Fund confirmed the technical panel had not recommended funding of the country’s latest HIV and TB grant requests. But Jon Liden said it is not unusual for proposals to be rejected, adding that Zimbabwe has enough funds coming from the organization to keep its programs going. Coordinator Gilles Van Cutsen of the medical relief group Doctors Without Borders said the Global Fund should reconsider its decision. Cutsen told VOA Studio 7 reporter Sandra Nyaira that the failure to recommend funding of the proposal is a disaster for Zimbabwe, noting that other countries in the region such as Lesotho and Mozambique have also seen their latest bids rejected. Programs manager Raymond Yekeye of the National Aids Council said Zimbabwe must look to other sources for funding to ensure gains are not rolled back.

Global Fund rejects Zimbabwe’s HIV and TB funding application
Afrique Avenir: 4 December 2010

The Global Fund to Fight HIV, Tuberculosis (TB) and Malaria has rejected Zimbabwe’s application for US$220 million to finance HIV and TB programmes for 2011, threatening to derail progress achieved so far towards efforts containing the two diseases. The Global Fund did not give reasons for the rejection. Zimbabwe had applied for US$170 million for HIV and US$50 million for TB. National Aids Council chief executive, Dr Tapiwa Magure, described the development as devastating, and doubted that Zimbabwe would be able to attain the Millennium Development Goal of universal access to treatment. Zimbabwe’s adult HIV prevalence has been on a downward trend, dropping from 18.1% in 2006 to 13.7% in 2009. Yet, according to the government, about 343,600 adults and 35,200 children under 15 years urgently need anti-retroviral (ARV) treatment out of a total of 1.2 million Zimbabweans living with HIV and AIDS. The government’s anti-retroviral programme only caters for about 200,000 infected people, while an estimated 3,000 people die of AIDS-related illnesses every week.

Microfinance: A general overview and implications for impoverished individuals living with HIV/AIDS
Caldas A, Arteaga F, Muñoz M, Zeladita J, Albujar M, Bayona J and Shin S: Journal of Health Care for the Poor and Underserved 21(3):986-1005, August 2010

Microfinance among people living with HIV and AIDS (PLWHAs) faces some opposition and remains understudied. This literature review examines microfinance’s evolution and impact on a variety of social and health indicators and its emerging implementation as a primary prevention tool for HIV and economic intervention for PLWHAs. There is an abundance of literature supporting the apparent utility of microfinance. However the author argues that understanding of the subject remains clouded by the heterogeneity and methodological limitations of existing impact studies, the still limited access to microfinance in this population and inadequate understanding of the specific challenges posed by the socioeconomic and health issues of PLWHA. The author concludes that carefully designed studies are needed to assess the role of microfinance for PLWHA.

World Health Report
World Health Organization: November 2010

In its annual World Health Report, the World Health Organization (WHO) shows how all countries, rich and poor, can adjust their health financing mechanisms so more people get the health care they need. It highlights three key areas where change can happen – raising more funds for health, raising money more fairly, and spending it more efficiently. WHO says that in many cases, governments can allocate more money for health. In 2000, African heads of State committed to spend 15% of government funds on health, a goal that three countries – Liberia, Rwanda and Tanzania – have already achieved. If the governments of the world’s 49 poorest countries each allocated 15% of state spending to health, they could raise an additional $15 billion per year – almost doubling the funds available, notes the report. Countries can also generate more money for health through more efficient tax collection, and find new sources of tax revenue, such as sales taxes and currency transactions. A review of 22 low-income countries shows that they could between them raise $1.42 billion through a 50% increase in tobacco tax. The report also cites the role of the international community, noting that most donors still need to allocate 0.7% gross domestic product (GDP) to official development assistance. Smarter spending could also boost global health coverage anywhere between 20-40%, the report points out, highlighting 10 areas where greater efficiencies are possible, including the use of generic drugs wherever possible – a strategy that saved almost US$2 billion in 2008.

Aid effectiveness: Why does it matter to partners in South-South co-operation?
Gurria A: Development Outreach, October 2010:10-12, 2010

What is the relevance of the aid commitments embodied in the Paris Declaration on Aid Effectiveness (2005) and the Accra Agenda for Action (2008) to development actors in South-South co-operation? While research on South-South co-operation is increasing, this article notes that it appears to be largely focused on financial flows or on a limited number of emerging economies, but not on the experiences of practitioners of South-South (SS) co-operation themselves. The article offers two reasons why aid matters for SS partners. First, aid effectiveness is important for partner countries. The effectiveness commitments embodied in the Paris Declaration and the Accra Agenda for Action have failed to promote behavior change, for example, in increasing the use of country systems and in making aid more predictable. One possible solution is the internationally recognised Survey on Monitoring the Paris Declaration, which tracks the implementation of the Paris commitments. Second, development actors need to go beyond the conventional ‘donor-recipient’ relationship, especially as the development co-operation architecture is becoming more diversified and complex. The Accra Agenda for Action in 2008 opened the door to encourage an inclusive and effective development partnership with civil society, parliamentarians, private sector, providers of South-South co-operation, foundations and global programmes. More actors are taking ownership of the aid effectiveness agenda by shaping it with their own views and experiences. One such example is the Dili Declaration (April 2010), in which a group of fragile states, including the Democratic Republic of Congo, have adapted aid effectiveness principles to their situations of national conflict and fragility.

Catalysing change: The system reform costs of universal health coverage
Rockefeller Foundation: 15 November 2010

This report aims to call health leaders’ attention to the importance and feasibility of establishing the systems and institutions needed to pursue universal health coverage (UHC). It also seeks to quantify the transition costs associated with reforming a health system away from one that relies on out-of-pocket payments and towards one in which health expenditures are more evenly distributed and that can supply UHC. Although models for UHC vary by country, governments are re-organising national health systems to share health costs more equitably across the population and its life cycle, instead of concentrating the burden on the few who face catastrophic illness in any given year. Using examples from four countries that have made tremendous strides toward achieving universal coverage, including Rwanda, the report puts an approximate price tag on these investments. It concludes that relatively small early investments can set countries on the path toward UHC.

Countdown to 2015: Assessment of official development assistance to maternal, newborn, and child health, 2003-08
Pitt C, Greco G, Powell-Jackson T and Mills A: The Lancet 376(9751), 30 October 2010

Many of the 68 priority countries in the Countdown to 2015 Initiative are dependent on official development assistance (ODA). This study analysed aid flows for maternal, newborn, and child health for 2007 and 2008 and updated previous estimates for 2003—06. It found that, in 2007 and 2008, US$4.7 billion and $5.4 billion, respectively, were disbursed in support of maternal, newborn and child health activities in all developing countries, reflecting a 105% increase between 2003 and 2008, but no change relative to overall ODA for health. Targeting of ODA to countries with high rates of maternal and child mortality improved over the six-year period, although some of these countries persistently received far less ODA per head than did countries with much lower mortality rates and higher income levels. Funding from the GAVI Alliance and the Global Fund to Fight AIDS, Tuberculosis and Malaria exceeded core funding from multilateral institutions, and bilateral funding also increased substantially between 2003 and 2008, especially from the United States and the United Kingdom. However, the authors caution that these increases do not reflect increased prioritisation relative to other health areas.

Equity and adequacy of international donor assistance for global malaria control: An analysis of populations at risk and donor commitments
Snow RW, Okiro EA, Gething PW, Atun R and Hay SI: The Lancet 376(9750): 1409-1416, 23 October 2010

This study found that international financing for malaria control has increased by 166% (from $0.73 billion to $1.94 billion) since 2007 and is broadly consistent with biological needs. African countries have become major recipients of external assistance, but countries where malaria continues to pose threats to control ambitions are not as well funded. Twenty-one countries have reached adequate assistance to provide a comprehensive suite of interventions by 2009, including twelve countries in Africa. However, this assistance was inadequate for 50 countries, representing 61% of the worldwide population at risk of malaria - including ten countries in Africa and five in Asia that co-incidentally are some of the world’s poorest countries. Approval of external funding for malaria control does not correlate with gross domestic product, the study found. In conclusion, funding for malaria control worldwide is 60% lower than the US$4.9 billion needed for comprehensive control in 2010. This includes funding shortfalls for a wide range of countries with different numbers of people at risk and different levels of domestic income. More efficient targeting of financial resources against biological need and national income should create a more equitable investment portfolio that with increased commitments will guarantee sustained financing of control in countries most at risk and least able to support themselves.

The world health report: Health systems financing: The path to universal coverage
World Health Organization: November 2010

In this report, the World Health Organization maps out what countries can do to modify their financing systems so they can move more quickly towards the goal of universal health coverage and sustain the gains that have been achieved. The report builds on new research and lessons learnt from country experience. It provides an action agenda for countries at all stages of development and proposes ways that the international community can better support efforts in low income countries to achieve universal coverage and improve health outcomes. To ensure universal coverage, countries must raise sufficient funds, reduce the reliance on direct payments to finance services, and improve efficiency and equity. The report proposes three ways for governments to raise money: increase the efficiency of revenue collection, re-prioritise government budgets and put innovative financing mechanisms in place.

African finance ministers accused of failing to fund health sector
Olupot M: AllAfrica.com: 28 September 2010

The deputy speaker of Uganda’s Parliament, Rebecca Kadaga, has accused finance ministers in Africa of being insensitive by failing to prioritise the health sector during allocation of funds. She accused finance ministers of being unaware of the realities of everyday health care. She recommended that the ministers should be invited to conferences like the regional meeting of the Southern and Eastern Africa Parliamentary Alliance of Committees on Health near Kampala, where she was speaking. Kadaga said Uganda had registered progress in various sectors of development, including education, women’s empowerment and HIV and AIDS, but women and infant health had lagged behind. She attributed this to the country’s ‘weak health system, as well as inadequate human resources for health, especially reproductive health’. The reproductive health and family planning services, Kadaga said, remain mainly urban-based yet most women live in rural areas. Kadaga also decried the high population growth rate in Africa, saying it was a major challenge to the Governments' efforts to reduce poverty.

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