Resource allocation and health financing

Estimating the obstetric costs of female genital mutilation in six African countries
Adam T, Bathija H, Bishai D, Bonnenfant Y, Darwish M, Huntington D, Johansen E and the FGM Cost Study Group of the World Health Organization: Bulletin of the World Health Organization 88: 281–288, April 2010

This study's main objective was to estimate the cost to the health system of obstetric complications due to female genital mutilation (FGM) in six African countries. A multistate model was used, which depicted six cohorts of 100,000 15-year-old girls who survived until the age of 45 years. The risk of obstetric complications was estimated based on a 2006 study of 28,393 women. The annual costs of FGM-related obstetric complications in the six African countries studied amounted to I$ 3.7 million and ranged from 0.1 to 1% of government spending on health for women aged 15–45 years. In the current population of 2.8 million 15-year-old women in the six African countries, a loss of 130,000 life years is expected owing to FGM’s association with obstetric haemorrhage. This is equivalent to losing half a month from each lifespan. Beyond the immense psychological trauma it entails, FGM imposes large financial costs and loss of life. The cost of government efforts to prevent FGM will be offset by savings from preventing obstetric complications.

Fixing failed foreign aid: Can agency practices improve?
Williamson CR: Development Research Institute, New York University, 2010

The goal of this paper is twofold. First, the paper extends the analysis evaluating the performance of aid agencies by creating several best and worst practices indices, including an overall aid agency index. It does so by relying on a newly available dataset and draw from the benchmarks established in the previous literature where different measures of aid transparency, specialisation, selectivity, ineffective aid channels and overhead costs are utilised. Secondly, the analysis attempts to explain agency behaviour, addressing why agencies behave the way they do. This section relies on bureaucracy theory to address the capability of agencies to achieve best practices, highlighting both economic and political constraints.

Greening aid? Understanding the environmental impact of development assistance
Hicks RL, Parks BC, Roberts JT, Tierney MJ: Oxford University Press: 2008

Every year, billions of dollars of environmental overseas development aid (ODA) flow from high income countries in the North to low income countries in the South. This book interrogates this flow of ODA by addressing a number of questions. Why do countries provide this ODA? What do they seek to achieve? How effective is the ODA provided? And does it always go to the places of greatest environmental need? These questions are addressed using a comprehensive dataset of ODA.

Public financing of health in developing countries: A cross-national systematic analysis
Lu C, Schneider MT, Gubbins P, Leach-Kemon K, Jamison D and Murray CJL: the lancet.com, 9 April 2010

This study was based on a systematic analysis of all data sources available for government expenditures on health as agent in developing countries, including government reports and databases from the World Health Organization and the International Monetary Fund. It found that, in all developing countries, public financing of health in constant US$ from domestic sources increased by nearly 100% from 1995 to 2006. Furthermore, development assistance for health (DAH) to government appeared to have a negative and significant effect on domestic government spending on health – for every US$1 of DAH to government, government health expenditures from domestic resources were reduced by $0•43. To address the negative effect of DAH on domestic government health spending, the study recommends strong standardised monitoring of government health expenditures and government spending in other health-related sectors; establishment of collaborative targets to maintain or increase the share of government expenditures going to health; investment in the capacity of developing countries to effectively receive and use DAH; careful assessment of the risks and benefits of expanded DAH to non-governmental sectors; and investigation of the use of global price subsidies or product transfers as mechanisms for DAH.

Who pays for health care in South Africa?
Health Economics Unit, University of Cape Town: Information sheet 4, 2009

This information sheet provides basic facts about financing of health care in South Africa. Health care financing is based on tax, which, in South Africa, is relatively progressive. Tax revenue is the only funding in South Africa that is used for health services that benefit all. Out-of-pocket payments or direct payments to health care providers are regressive. Medical scheme contributions are the biggest single share of health care financing in South Africa. Lower income medical scheme members contribute a higher percentage of their income than higher income medical scheme members. The greatest burden of funding health services rests on medical scheme members, particularly the lowest income scheme members, and the largest part of this burden takes the form of medical scheme contributions.

Health care financing in South Africa: Moving towards universal coverage
Ataguba JE and Akazili J: Continuing Medical Education, 28(2): 74–78, February 2010

This article argues that South Africa’s proposed national health insurance (NHI) puts it on a trajectory of achieving universal access to quality health care for all its residents. It reports that current inequalities and inequities in access and utilisation of health care services place a greater burden on the poor and vulnerable. While it argues that the proposed NHI is not a magic bullet for all the problems of the health sector in South Africa, if it is well designed, planned, managed and effectively implemented, it is likely to improve the overall health outcomes of South Africans, as well as nudge the country towards achieving the Millennium Development Goals.

Interview with Global Fund director Michel Kazatchkine
Plus News: 12 March 2010

In this interview, the executive director of the Global Fund to Fight AIDS, Tuberculosis and Malaria, Michel Kazatchkine answers some questions about HIV and AIDS funding at the launch of the organisation's 2010 report. He said that he considered AIDS an exceptional threat, quoting the large numbers affected by the epidemic. He did not think that too much has been invested in HIV and AIDS to the detriment of other illnesses, pointing out that over a third of the overall funding of the Global Fund goes to strengthening health systems. The interview reports on the limited impact of the financial crisis on the Global Fund, the significant contribution of the Fund to anti-retroviral treatment in low-income countries and observations on the channels for the funds of the organisation.

National and subnational HIV/AIDS coordination: Are global health initiatives closing the gap between intent and practice?
Spicer N, Aleshkina J, Biesma R, Brugha R, Caceres C, Chilundo B, Chkhatarashvili K, Harmer A, Miege P, Murzalieva G, Ndubani P, Rukhadze N, Semigina T, Walsh A, Walt G and Zhang X: Globalization and Health 6(3), 2 March 2010

This study reviews primary data from seven country studies on the effects of three GHIs on coordination of HIV and AIDS programmes: the Global Fund to Fight AIDS, Tuberculosis and Malaria, the President's Emergency Plan for AIDS Relief (PEPFAR), and the World Bank's HIV and AIDS programmes, including the Multi-country AIDS Programme (MAP). In-depth interviews were conducted at national and sub-national levels (179 and 218 respectively) in seven countries in Europe, Asia, Africa and South America, between 2006 and 2008. Studies explored the development and functioning of national and sub-national HIV coordination structures, and the extent to which coordination efforts around HIV and AIDS are aligned with and strengthen country health systems. Positive effects of GHIs included the creation of opportunities for multi-sectoral participation, greater political commitment and increased transparency among most partners. However, the quality of participation was often limited, and some GHIs bypassed coordination mechanisms, especially at the sub-national level, weakening their effectiveness. The paper identifies residual national and sub-national obstacles to effective coordination and optimal use of funds by focal GHIs, which these GHIs, other donors and country partners need to collectively address.

OECD International Development Statistics 2010
Organization for Economic Co-operation and Development (OECD): 17 February 2010

Aid to developing countries in 2010 will reach record levels in United States dollar terms after increasing by 35% since 2004. But it will still be less than the world’s major aid donors promised five years ago at the Gleneagles and Millennium + 5 summits. Though a majority of countries will meet their commitments, the underperformance of several large donors means there will be a significant shortfall, according to this OECD review. Africa, in particular, is likely to get only about USD 12 billion of the USD 25 billion increase envisaged at Gleneagles, due in large part to the underperformance of some European donors who give large shares of official development assistance (ODA) to Africa. Other Development Assistance Committee (DAC) countries made varying ODA commitments for 2010, and most, but not all, will fulfill them. The United States pledged to double its aid to sub-Saharan Africa between 2004 and 2010. Canada aimed to double its 2001 International Assistance Envelope level by 2010 in nominal terms. Australia aimed to reach $A 4 billion. New Zealand plans to achieve an ODA level of $NZ 600 million by 2012-13. All four countries appear on track to meet these objectives. Norway will maintain its ODA level of 1% of its GNI, and Switzerland will likely reach 0.47% of its GNI, exceeding its previous commitment of 0.41%.

Public sector health care spending in South Africa
Health Economics Unit (HEU), University of Cape Town: HEU Health Care Financing Information Sheet, 2009

This sheet provides information on public sector health care spending in South Africa. I found that public sector health spending as a share of total government spending has remained relatively constant. However, it has been following a downward trend in that it did not keep pace with inflation or population growth through much of the 1990s, but there have been recent increases. Public sector health personnel employment also declined in the 1990s; there is an urgent need for additional clinical staff. The largest single share of funds is spent on primary care and district hospitals. It argues that meeting one of South Africa's major health challenges, namely HIV and AIDS treatment, will require resources that exceed those currently available.

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