The Consequences Of Saps On Health And Healthcare Services

2028 Words9 Pages
Adjusting to Adjustment: The Consequences of SAPs on Health and Healthcare Services in Developing Countries Policy Brief Final Draft Key Messages Economic reform due to SAPs, undermines social aspects of a country including the health sector, which has deteriorated in many developing countries as a consequence. Decentralization of government services through privatization of healthcare and increased NGO presence within countries are the main reasons for this deterioration. There needs to be immediate policy reform in order to adequately address these issues and prevent further loss of money and economic decline in these countries. Target Audience: This policy brief is addressed to the Board of Governors of the World Bank Group, which…show more content…
It is not the loans themselves that have been shown to increase poverty and inequality (see Table 1) but instead the macroeconomic conditions attached to them (Crisp & Kelly, 1999). For example, in order for a country to receive aid from the WB they are required to do several of the following: raise food prices to cut the burden of subsidies, privatize all or part of state-owned enterprises (Peabody, 1996), raise the price of public services (Creese, 1991), cut public sector budgets, reduce tax on foreign investment, devalue local currency, and cut wages (Pfeiffer & Chapman, 2010). These conditions are a way for the WB to establish accountability and to ensure that the loans they are giving to countries are being used for policies that the WB sees as part of good development. In theory, the concept of SAPs is perceived as being necessary and important, but in practise it has not showed the aspired results. Summary of Health Concerns Associated with SAPs Many of the policy reforms in SAPs have a purely economic basis, and thus considerations on how they may affect other aspects of a country in the long-term have not been taken into account. One such aspect is the health sector of developing countries, which have suffered greatly due to SAPs. The main issues include: increased vulnerability of health care budgets due to reduced government spending (Pfeiffer & Chapman, 2010),
Open Document