PHA-Exchange> New Wemosreport on health budgets in Africa

[Leontien.Laterveer at wemos.nl]

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 at wemos.nl).
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