Sustainable financing for health: Forging a new path
On the eve of the Summit for a New Global Financing Pact convened later this month by the government of France, many of the world’s poorest countries face a host of competing policy priorities while struggling to raise the funds to address them. In the wake of the COVID-19 crisis, developing countries need to regain losses in health and learning, arrest increases in hunger and poverty, and counter climate change. Yet, most developing economies have not returned to their pre-pandemic growth path, and in many of them, government spending is expected to stagnate or contract for years to come. As both public debt and interest rates have increased, interest payments divert increasingly large shares of government funding from critical investment priorities.
The summit will explore options to increase financial solidarity with the global south, supporting countries to increase their fiscal space, help resolve debt challenges, and aim to move rapidly to address national development goals. One of the summit’s focus areas is health, for three decades recognized as a mainstay of long-term growth, in many places, however, insufficiently funded to make any meaningful progress toward the health-related sustainable development goals. To turn the tide, we must forge a new path with three critical changes in the way we finance health.