The G20 meeting in London will bring together leaders focusing on the global economic crisis. The financial crisis could contribute to a health crisis poor countries. The G20 can take actions to avert a health crisis. We spell these actions out in a policy brief available here.
The threat to health budgets in poor countries is severe. Foreign direct investments are collapsing. Remittances, aid, and multilateral funding appear likely to fall. The 23 countries where aid makes up 30% or more of health sector funding are especially threatened. While this is happening, more people will rely on public sector healthcare as social insurance (provided through employers) and private insurance coverage drops.
In the policy brief, we make three recommendations for G20 action. First, the G20 must continue and expand foreign aid to the health sector. Not only are many poor countries not able to plan fiscal stimulus for their economies, they also cannot protect access to healthcare. Without continued treatment for people with HIV, or continued preventative treatment for chronic diseases, healthcare costs will rise and people will die.
Second, prevention – the core of public health – must be strengthened to maximise the return on investment in health. We learned from Thailand’s experience in the 1997 financial crisis how expanding enrolment in national health plans, and putting in place collective bargaining strategies for drugs can deliver more health for less money.
Third, global institutions – including the World Health Organization, World Bank, International Monetary Fund, Global Fund, and World Trade Organization, can make reforms that allow them to better protect and promote health. Critically, these institutions can be asked to do much more. National governments, rich and poor, are being pushed to their limits, and more can be asked of international institutions too.
The G20 Summit brings to London a group of influential leaders to facilitate cooperation on what might be the greatest crisis of our lives. Of course, financial stability will be the focus of these discussions, and the G20 is not a representative institution for global decision making. But, the Leaders have the influence, the means, and the opportunity to prevent the financial crisis from turning into a health crisis with a small amount of financing and minor policy adjustments in international institutions. We hope we might inform this critical work.
June 26th, 2009 at 8:26 am
This is a very interesting and informative post. I would have to agree that there’s a direct effect between financial crisis and health crisis, especially in the developing countries. I think despite the crisis going on, developing countries are striving, like allowing low-cost medicine in to their country just to provide what their people need. I know there’s a question of quality, but in the midst of crisis, they are trying to balance out everything. The only difference would be the officials leading the country. I know it will make a difference if one leader is smart enough to know the top priorities of their country.