New Wemosreport on health budgets in Africa
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In 2005, Wemos together with several Southern organizations conducted case studies in Ghana, Zambia, Kenya and Uganda. The studies examine the role of the International Monetary Fund (IMF) in determining budgets for health, particularly for health workers' salaries.
Achieving the health-related Millennium Development Goals (MDGs) requires a substantial financial injection in the health sectors of low-income countries. Particularly important is the investment in sufficient and qualified health personnel. At the moment, many developing countries face a considerable shortage of health workers. Public expenditure, however, is restricted by IMF macroeconomic policies and conditions, a.o. in the form of ceilings on the public sector wage bill. The IMF believes that restrictions on public expenditure are needed to improve the composition of spending (e.g. through civil service reform) and to maintain macroeconomic stability - and thus economic growth necessary to deliver the resources for the health and education sectors.
In a report describing the main findings and conclusions of the four case studies, Wemos explains why the budget ceilings imposed by the IMF are ineffective and have negative effects on the health sector. Although exemptions can be made (and sometimes are) if extra money becomes available for the health sector, these increases do not come anywhere near the expenditure needed to achieve the health-related MDGs. The social and economic impact of nót sufficiently investing in the health sector is nowhere taken into account in IMF macroeconomic policy making. But not only the IMF should improve its analysis and advice; donors need to increase their aid levels and provide predictable and sustainable aid levels for health. The IMF could help countries in making donors keep their aid promises. And, not in the last place, governments need to improve their expenditure patterns. The prudent financial policies from the IMF and ministries of finance should not be allowed to override social ambitions without even considering the trade-offs for health.
To read the report and the country studies, click here:
http://www.wemos.nl/en-GB/Content.aspx?type=news&id=2483
For more information, please contact Ellen Verheul, Team Manager Advocacy, or Merel Mattousch, Project Coordinator Health Budgets (info@wemos.nl).
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Leontien Laterveer
mailto:Leontien.Laterveer@wemos.nl