Resource allocation and health financing

‘Beyond Aid’ for sustainable development
Hudson A and Jonsson L: Overseas Development Institute, 2009

This briefing proposes that while prospects for developing countries are often shaped by domestic and regional politics and aid, it is necessary to looks at beyond aid at issues like trade, migration, investment, environmental issues, security and technology. The authors explore the progress made towards policy coherence and conceptualise a three-phase cycle: phase 1 includes setting and prioritising objectives, which requires political commitment and policy statements; phase 2 looks at policy coordination and the implementation mechanisms by establishing formal mechanisms at inter-ministerial level for coordination and policy arbitration; and phase 3 is about effective systems of monitoring, analysis and reporting. The paper concludes by recommending that the Beyond Aid agenda could help drive faster progress towards partnerships for community development and policies that are more ‘development-friendly’, in practice as well as on paper.

Civil Society representatives meet in Johannesburg May 2009
Taskforce on Innovative International Financing for Health Systems,

Following a meeting in London on March 5, civil society representatives from across Africa and Asia gathered in Johannesburg on 13 and 14 May. The purpose of the meeting was broadly the same as the earlier session held in London in April: to allow individuals and groups with first-hand experience of the challenges around healthcare provision and funding to feed their views into the Taskforce’s deliberations. Delegates turned their attention to a series of key issues, including ways to bridge gaps in existing resources, provide more of those resources, and link such measures to existing international and national health system frameworks.
They also had the chance to quiz members of the Taskforce secretariat in plenary sessions, which provoked valuable debate on issues such as stakeholder participation in potential solutions and the way in which the Taskforce operates, as well as airing challenges to be overcome in individual countries. Mrs. Graca Machel, Taskforce member and President of the Foundation for Community Development in Mozambique, addressed delegates on both days of the meeting. In her opening remarks, Mrs. Machel seized on the ‘monumental’ nature of the challenge to meet the health-related MDGs by 2015. Existing crises in food and fuel had been compounded in 2008 by a financial crisis; left unaddressed, these combined crises will cause over 200,000 additional deaths. She called on delegates to consider, in their discussions, how solutions could be ‘country-owned’, but also internationally credible, with monitoring systems implemented which focus firmly on results.

Reducing user fees for primary health care in Kenya: Policy on paper or policy in practice?
Chuma J, Musimbi J, Okungu V, Goodman C and Molyneux C: International Journal for Equity in Health: 8 May 2009

Whether or not the positive impacts of user fees removal policies are sustained has hardly been explored. This study documents the extent to which primary health care facilities in Kenya continue to adhere to a 'new' charging policy three years after its implementation. Data was collected in two districts, Kwale and Makueni, and focus group discussions and patient exit interviews were conducted. Adherence to the policy was poor in both districts, and drug shortages, declining revenue, poor policy design and implementation processes were the main reasons given for poor adherence to the policy. In conclusion, reducing user fees in primary health care in Kenya is a policy on paper that is yet to be implemented fully. Caution must be taken when deciding on how to reduce or abolish user fees and all potential consequences should be carefully considered.

The household costs of health care in rural South Africa with free public primary care and hospital exemptions for the poor
Goudge J, Gilson L, Russell S, Gumede T and Mills A: Tropical Medicine and International Health: 14(4):458–467, April 2009

The objective of this study was to measure the direct cost burdens (health care expenditure as a percentage of total household expenditure) for households in rural South Africa, and examine the expenditure and use patterns driving those burdens in a setting with free public primary health care and hospital exemptions for the poor. Data was drawn from a cross-sectional survey of 280 households. The low overall mean cost burden of 4.5% suggests that free primary care and hospital exemptions provided financial protection. However, transport costs, the difficulty of obtaining hospital exemptions, use of private providers, and complex treatment patterns undermined this. The significant non-use of care shows the need for other measures such as more outreach services and more exemptions in rural areas. Fee removal anywhere must be accompanied by wider measures to ensure improved access.

The place of aid in Africa’s solutions to its problems
Ndungane N: African Monitor, 2009

Should development aid be withdrawn because it does not work? No. Under present circumstances aid resources are vital for human survival and the development of many people in Africa. Despite receiving US$38 billion in aid flows in 2008, Africa still faces a serious resource gap to bring about economic and social development and the recent near-collapse of the global financial architecture provides vital evidence that well-targeted and properly administered aid resources are vital to poor people. Africa has recently experienced one of the longest consistent economic growth rates and it has started to make a dent in reducing poverty, which needs to be built on. The debate on the demise or ineffectiveness of aid provokes serious questions about who really holds the key to redressing the injustices that exist globally.

Demand grows for international currency transaction levy
The Times: 3 April 2009

Over 100 Civil Society Organisations worldwide are united in calling on G20 leaders to introduce a currency transaction levy (CLT). At a time when the financial crisis is endangering the lives of millions in the developing world additional finance is desperately needed to meet the Millennium Development Goals, particularly relating to health. In an open letter, addressed to Gordon Brown as Chair of the G20 and published in The Times newspaper, the message of this growing coalition of organisations is simple: implement a CTL now to meet the aid revenue shortfall and safeguard lives from the worst ravages of the economic storm.

The International Monetary Fund's (IMF) facilities and financing framework for low-income countries: The first stage of the IMF review of financing for low-income countries
International Monetary Fund, 2009

This paper assesses the adequacy of the Fund’s toolkit for low-income countries (LICs), with a view to ensuring that it keeps pace with a changing world, particularly as global economic conditions deteriorate and put pressure on countries. It seeks to answer the following key questions: What are the needs of LICs in relation to Fund financing and how have they changed? How have existing instruments met LIC needs, and are there gaps or overlaps? Could changes to access rules, financing terms, or conditionality help the Fund better support LICs? What is the available concessional resource envelope and how will the changing external environment affect possible financing needs through the medium term? What scope is there to make the concessional financing framework more flexible?

UK Prime Minister urged to fund World Social Bank with tax haven losses
Townsend S: Third World Network, 31 March 2009

Third World Network report a call for a World Social Bank funded by abolishing offshore tax havens. A letter from civil society, sent in advance of the April G20 summit, appeals to United Kingdom Prime Minster Gordon Brown and other world leaders to 'reform international finance in a way that provides a real boost to the growth of the third sector'. About £255bn is said to be lost each year to tax havens, and the funds couold be used for a World Social Bank that could stimulate social investment by developing the infrastructure for an international social investment market, working with private investors to grow this market and encouraging collaboration between different countries.

GAVI and the Global Fund explore expansion of their mandates
GAVI and the Global Fund: March 2009

The heads of GAVI and the Global Fund have written a letter to Gordon Brown and World Bank head Robert Zoellick seeking an expansion of their mandates to cover all health MDGs. The letter was sent to the two co-Chairs of the High Level Taskforce on Innovative Finance and asks for GAVI and the Global Fund to 'refocus on all of the health-related MDGs as a renewed commitment to meeting the basic health service delivery needs in poor countries'. The letter goes on to state that both GAVI and the Global Fund are prepared to make this move promptly if they are given donor support. The letter has been posted on the web page of the High Level Taskforce on the IHP+ site.

International assistance and cooperation in sexual and reproductive health: A human rights responsibility for donors
de Mesquita JB and Hunt P: Essex University, December 2008

States' obligations under some international treaties extend beyond their national borders to international assistance and cooperation for human rights, including the rights to sexual and reproductive health, in other countries. This paper focuses on what is expected of donors in the context of this responsibility. It shows how many donors are taking important steps towards fulfilling this duty through measures they are taking to integrate the rights to sexual and reproductive health into their policies and programmes, but also argues that many donors can also do more. The publication concludes with a set of recommendations addressed to donors and their developing country partner governments.

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