Jul 06, 2007

In Global Health, Money Isn’t the Problem

by Laura Starita

The proposition that the main reason that diarrhea, respiratory illness, malaria and AIDS kill so many of the world’s poor is because the West doesn’t donate enough money to stop it is widely discussed and widely believed. The logic goes that if the money were there, those deaths would end.

A recent article in the Economist shows the deficiencies of the “money is the problem” logic. The article argues that there is more than enough money earmarked for health initiatives (a recent $8 billion commitment to The Global Fund is just one example), but that the available funds are not being dispersed. Experts disagree on the root cause of this lag between cash committed and cash spent—some argue the lack of health workers in developing countries creates a bottleneck; others feel that the attention given to the Big Three (AIDS, Malaria and Tuberculosis) steals attention from more quotidian but equally fatal ailments such as diarrhea and respiratory illness—but the end result is the same.

The private sector is posing an interesting alternative, however. In the interest of improving productivity, some African companies are offering health services for their workers. Other for-profit businesses providing health services such as pharmaceuticals, bed nets or eyeglasses, or offering medical care are also providing services where governments and aid are failing. One example that has received wide notice is the HealthStore micro-franchising approach in Kenya.

The Economist: More Money than Sense

World Resources Institute: HealthStore’s Franchise Approach to Health Care