Providing free healthcare to millions of women and children in some of the world's poorest countries has come a step closer, with the unveiling on 23 September of a US$5.3 billion financing package by British Prime Minister, Gordon Brown. The funds, to be used to roll back user fees in six countries, including Malawi, would reportedly benefit 10 million people – mainly women and children – and help cut maternal mortality. In announcing the initiative, Brown said that charging the poor even a few cents for health services ‘became a death sentence for millions’. The funding commitment was the result of twelve months' work by a taskforce on International Innovative Finance for Health Systems, co-chaired by Brown and World Bank President Robert Zoellick, and is to include a pledge of US$3 billion from the online travel industry. The goal is to help developing countries meet their health millennium development goals by 2015, and the financing represents commitments rather than cash immediately available.
Resource allocation and health financing
On 22 August, the Western Cape Interim Steering Committee of the Conference of the Democratic Left hosted a public meeting on South Africa’s proposed national heath insurance (NHI). More than 100 activists from a wide range of communities and organisations attended the meeting. The Conference made several important decisions to further their campaign to mobilise popular (community and worker), progressive and left voices on the NHI by releasing and circulating widely all available documents on the NHI policy discussions, building the campaign from existing community and worker struggles on health issues, and ensuring the campaign is driven by community organisations, trade unions and shop-stewards organised around local health facilities, as well as ordinary people who use the public health system – their experiences, energies, interests and aspirations. As part of the campaign, a People’s Conference on the NHI and the public health crisis is being planned.
This paper set out to assess the long-term needs and consequences of ARV procurement and to identify policies and practices that could assure long-term sustainable access to ARVs. An analysis of ARV price variation between 2005 and 2008 was carried out using Global Price Reporting Mechanism (GPRM) from the World Health Organization (WHO). A selection of 12 ARVs was identified and price reductions were evaluated for both innovator and generic products. There was a large ARV price variation across countries, even for those countries with a similar socioeconomic status. The price reductions between 2005 and 2008 were greatest for those ARVs that had more providers. Three key factors appear to have an influence on a country’s ARV prices: whether the product is generic or not; the socioeconomic status of the country; and whether the country is a member of the Clinton HIV/AIDS Initiative (CHAI). Factors that did not influence procurement below the highest direct manufacturing cost (HDMC) were HIV prevalence, procurement volume, whether the country belongs to the least developed countries or a focus country of the United States President’s Emergency Plan for AIDS Relief (PEPFAR).
In 2005, the Paris Declaration formulated a number of challenges facing development cooperation. While the principles of the Declaration were broadly accepted, there seemed to be a lack of shared understanding of key underlying issues shaping the debate of EU aid effectiveness. This publication archives all the outputs generated through Whither EC Aid (WECA), from the Initial Discussion Note to the reports of the dozen roundtables held and the thematic Briefing Notes. A year after the adoption of the Accra Agenda for Action, it looks back on the perceptions of various group of stakeholders about the aid effectiveness agenda, to see to what extent the different points of view shared during the WECA process find an echo today in the international agenda on aid. The WECA Compendium is the final stage of a joint ECDPM-Action Aid project initiated in mid-2007.
Will leaders act now to save lives and make health care free in poor countries? On 23 September 2009 leaders met at the United Nations General Assembly in New York for a high-level event on health. On the table was a proposal to support at least seven developing countries to fully implement free care for women and children or to expand free health services to all, including Malawi and Mozambique. Oxfam recommends that governments of these countries make high-level commitments to introduce free health care for women and children and/or fully implement and expand free health care for all, as well as increase government spending on health to at least 15% of the national budget. The authors argue that the same commitments are required from rich country donors and multilateral aid agencies to provide additional long-term and predictable funding necessary to successfully implement free health care in all seven countries, and to officially extend the offer of financial and technical support for free health care to all poor countries who wish to remove fees and to make this event a global turning point in the fight to make health care free for all.
The African National Congress has released a rough outline of how it sees the proposed National Health Insurance scheme on its website. But the document is short on detail and has no timelines. The broad objective of the NHI is to put into place the necessary funding and health service delivery mechanisms, which will enable the creation of an efficient, equitable and sustainable health system in South Africa. It will be based on the principles of the right to health, social solidarity and universal coverage.
In response to the problem of aid fragmentation, joint country assistance strategies have emerged as a preferred method to coordinate and harmonise aid. This paper determines that, to date, donor teams and recipient governments have come together in at least twelve countries to prepare joint strategies. A number of lessons were learnt and conclusions drawn. Lack of communication between stakeholders was identified, especially regarding strategy processes. Poverty reduction strategy processes should ideally be separated from the joint country strategy process to reduce government workload. An inclusive, thorough and effectively managed process has a greater chance to create the trust, cooperative spirit and follow-through during the implementation phase than one that stresses the production of a quality report without adequate venting of differing views and interests. In countries where government lacks capacity or will, the donor community may wish to identify one agency as the presumptive leader among donors for aid coordination on the ground.
This paper looks at whether aid partnerships established early or late matter significantly for aid quantities, and how this in turn affects aid fragmentation. It also details how aid partnerships have evolved over time and how donors have, if at all, shifted priorities. Furthermore the authors seek to evaluate the effect of current aid reform on aid fragmentation. It found that donor countries allocate larger shares of their aid budgets to recipients that entered early in their portfolios, while they have allocated smaller aid quantities to new partnerships. This has direct consequences for aid fragmentation, with many donors disbursing small amounts to a recipient. Fragmentation appears to be a product of portfolio expansion and it increases direct transaction and indirect costs creating dysfunctional bureaucracy and political behaviours by lowering the level of bureaucratic quality. Aid is less efficient in countries when it is fragmented. Donors' decisions to give less aid to late recipients, coupled with the sheer expansion in the number of their partnerships, has direct consequences on aid fragmentation.
This research shows that funding for health in developing countries has quadrupled over the past two decades – from US$5.6 billion in 1990 to US$21.8 billion in 2007. Private citizens, private foundations and non-governmental organisations are shifting the paradigm for global health aid away from governments and agencies like the World Bank and the United Nations and making up an increasingly large piece of the health assistance pie – 30% in 2007. However, health aid does not always reach either the poorest or unhealthiest countries. Overall, poor countries receive more money than countries with more resources, but there are strong anomalies. Sub-Saharan Africa receives the highest concentration of funding, but some African countries receive less aid than South American countries with lower disease burdens – like Peru and Argentina. HIV and AIDS took the lion’s share of funding, receiving at least 23 cents out of every dollar going into development assistance for health, while tuberculosis and malaria received less than a third of that.
This paper notes that post-conflict countries face enormous development challenges and substantive policy consequences. It calls for appropriate responses for conflict-affected nations such as financial assistance from donors, private investment and capacity building. Arguments given for resource transfers to post-conflict countries are that by increasing income, they reduce the risk of renewed conflict and also mitigate humanitarian crises left by the conflict. The second argument assumes that the humanitarian needs of conflict countries are due to conflict. The paper outlines the political market imperfections, which make post-conflict countries vulnerable – rendering political incentives to pursue long-run development and peace weak. These imperfections should shape the goals and modalities of foreign assistance to facilitate the delivery of social services, infrastructure, and capacity-building. To achieve development goals, government officials must have incentives to pursue the broad public interest in order to reduce political market imperfections that distort decision-making and deter accountability.