Select Committee on International Development Written Evidence


Memorandum submitted by the UK Consortium on AIDS and International Development (Health Systems Group)

  With increased amounts of DFID's funding being channelled though the World Bank it is vitally important that this assistance is in line with DFID's priorities and objectives. In particular, DFID's support to the World Bank should allow for greater scrutiny of the Bank's reassertion of its role in the health sector. Assessing whether DFID's priorities in health can be pursued effectively through World Bank funding is especially timely as the UK rolls out the planning of the International Health Partnership (IHP) concept, in which the Bank has been delegated with a conceptual role and will be a lead technical partner in implementation.

THE ROLE OF THE WORLD BANK IN STRENGTHENING THE HEALTH SECTOR

  1.  The World Bank has a history of promoting policies such as; structural adjustment, user fees, and a decreased role of the state in service provision, none of which enabled increased access to basic health for poor women, men and children.[157] Health systems in developing countries have been severely under-funded for decades and the need to strengthen and, in many cases, rebuild them now is a direct result of structural adjustment programmes which undermined the public sector in many countries.

  2.  The Bank has recently developed a new ten year Health, Nutrition and Population (HNP) strategy in which it has positioned itself as a lead organisation on health systems strengthening (HSS) and health systems policy advice at a global level. Additionally it has worked to limit other development partners' role in HSS, explicitly the Global Fund to Fight AIDS, Tuberculosis and Malaria, a health financing partner whose programmatic reach in the three diseases and integrated health services would be sustained, given an expanded role in financing HSS. The Bank cites its expertise in health financing, incentives for workers, governance of health systems, amongst other issues, as the basis for taking greater leadership.[158]

  3.  While the Bank is a key source of finance for the health sector and for health systems strengthening in the developing world, the role that the Bank has envisaged it will play vis-a"-vis HSS is of concern. The role the Bank plays in imposition of limits on public-sector spending and the ongoing encouragement of the use of fees for public services countermands the UK's own policy. This has a deleterious effect on public health systems and throws into question whether the Bank can effectively lead in redeveloping health systems to expand access to the human right to health.

  4.  The Bank's HNP strategy calls for an increased role for the Private Sector Development and International Financial Cooperation sections of the Bank, which focus on encouraging private sector growth.[159] This increased focus on the private sector's role in health service delivery is problematic. There is serious evidence that private providers are unable to deliver equitable access to health services; Oxfam's research in South Asia has shown that Sri Lanka and Kerala State in India were able to provide far greater universal protection from health risks through publicly financed models of public provision, where services are free at the point of use.[160]

  5.  DFID must ensure that the Bank is fully accountable to them as a major donor to IDA and the lead stakeholder in the IHP. There must be consistency between the health policies of the Bank and DFID. For example, DFID should ensure that whenever DFID funding is used by the Bank, that cost recovery through user fees is not encouraged. Moreover, DFID should ask the Bank for a clear position on how to compensate for elimination of user fees. Any policies promoted by the Bank must ensure that they do not push people further into poverty, and that they actively work to prevent this.

  6.  The Bank has a comparative advantage in advising governments and donors on health sector financing arrangements. But they must ensure that national financing supports a vision of a well planned, well managed and well staffed public health system for all citizens, based on need rather than ability to pay.[161]

  7.  Given adequate policy coherence, DFID should ensure that IDA expenditure prioritises the health sector and meets health goals including the health MDGs and the targets for universal access to comprehensive HIV/AIDS services. IDA could be mobilized to channel funds directly through sector wide approaches (SWAps) and help DFID to double the percentage of ODA for health, recommended to meet its fulfillment of objectives set by the Commission on Macroeconomics and Health.

  8.  DFID should work with the Bank to ensure that macroeconomic constraints limiting public spending and other fiscal policy conditions set by the International Monetary Fund are lifted without impeding countries access to ODA. These policies set strict limits on public spending in order to keep inflation low and meet deficit reduction targets. Whilst macroeconomic stability is important and runaway inflation is damaging, it is impossible for countries to vastly increase public spending on health unless these restrictions are changed.

  9.  DFID must do more to monitor the Bank's policies and the impact of these on health care provision in the developing world, and expand opportunities for civil society engagement. The UK should set an example of transparency in governance and public private partnership's in the planning and development of IHP implementation in the pilot countries.

October 2007
















157   Stop AIDS Campaign, Policy Briefing: Strengthening Health Systems to Achieve Universal Access to HIV & AIDS Services, January 2007 Back

158   McCoy, D. The World Bank's new health strategy: reason for alarm? Lancet 2007; 369 May 5,2007 Back

159   Ibid. Back

160   Oxfam, 2007. Wrong Diagnosis, Wrong Medicine: World Bank strategy for health, nutrition and population results 2007 to 2017, Oxfam Response Back

161   Correspondence from NGOs and distinguished health experts to Paul Wolfowitz, January 9th, 2007. Back


 
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