Global Health Watch 1 in one file
Global Health Watch 1 in one file Global Health Watch 1 in one file
Health and globalization | A1 economy. The privatization of state enterprises eliminated a further source of revenues that might have been used to support social programmes such as education and health care. Other causes for the public revenue decline included a continuous slide in world prices for copper, Zambia’s main export; Japan’s 1990s recession (it was Zambia’s main importer of copper); high debt service costs; declining development assistance; and capital flight (WTO 1996, Lindsey 2002). Faced with public revenue declines and a donor preoccupation with ‘cost recovery’, Zambia began to impose user charges for schools and health services in the 1990s. Not surprisingly, this was followed by a rapid rise in school dropout and illiteracy rates, projected to double by 2015 (UN-Habitat 2003b), and costs became the main reason people failed to seek health care or did not follow up medical treatment (Atkinson et al. 1999). The Zambian government is now seeking to undo many of these policies, to reimpose tariffs on salaula, and to reorient its development inwards. ‘In a sense,’ two officials recently wrote, ‘Zambia is now a victim of its own honest policies. Trade in goods and services is now one of the mainstays of the economy, to the detriment of more productive activities and thereby employment opportunities’ (Mtonga and Chikoti 2002). Or, as one of the Zambians interviewed by Jeter (2002) commented, ‘The young people really love the [salaula] clothes they see … but is this the way to develop your economy?’ Globalization played an important part in Chileshe’s HIV infection. The web of connection between globalization and the HIV pandemic in Africa has many strands. Two of these include the debt crisis and the donors’ response, particularly by the wealthy G7 countries (Canada, Germany, Italy, Japan, the UK and the USA). Debt and aid The long-standing debt crisis is a major factor in the inability of low-income countries to sustain or benefit from economic growth (UNCTAD 1999), or to invest in health-sustaining infrastructures. Worldwide, the amount of money returned to high-income countries dwarfs the amount received in development assistance: donor countries receive back many times over in debt repayments what they give in aid. Journalist Ken Wiwa, son of Ken Saro-Wiwa, the activist hanged for opposing Shell Oil’s destruction of Nigerian homelands, noted: ‘You’d need the mathematical dexterity of a forensic accountant to explain why Nigeria borrowed $5 billion, paid back $16 billion, and still owes $32 billion’ (Wiwa 2004). The specific causes of debt crises vary from country to country and over time but the major contributors are as follows: 24
1.2 1985-86 2000 2006 1.0 1990-91 2001 2012-13 (promised) 0.8 1999 2002 % of GNI 0.6 0.4 0.2 0.0 Canada France Germany Italy Japan UK USA Denmark Sweden Norway Figure A1 Trends in G7 development assistance, with selected comparison countries (Source: OECD 2004a, Chirac 2003, MacAskill 2004) • The oil price shocks of 1973 and 1979–1980. All countries were affected, but low-income countries in particular had to borrow to pay the costs of suddenly expensive imported oil. • Profligate lending by banks stuffed with new petrodollars, with few checks on the viability of the loans, or whether the money would simply disappear into the offshore bank accounts of corrupt political leaders. • The rapid increase in inflation-adjusted interest rates during the early 1980s, resulting from US monetarist policies. Poor, indebted countries Sub-Saharan Africa South Asia Middle East, North Africa Latin America, Caribbean Europe, Central Asia East Asia & Pacific -150 -125 -100 -75 -50 -25 0 25 US$ billion, 2000 Development assistance Debt service Figure A2 How debt servicing dwarfs debt assistance (Source: Pettifor and Greenhill 2002) Health for all in a ‘borderless world’? 25
- Page 1 and 2: About this book Today’s global he
- Page 3 and 4: Global Health Watch 2005-2006 An al
- Page 5 and 6: Contents Boxes, figures and tables
- Page 7 and 8: C2.1 The facts about disability 180
- Page 9 and 10: Illustrations 1 Medicine cannot dea
- Page 11 and 12: Acknowledgements The following indi
- Page 13 and 14: London School of Hygiene and Tropic
- Page 15 and 16: Victoria, Canada; Centre for Health
- Page 17 and 18: Foreword New reports on different a
- Page 19 and 20: Introduction Origins The Global Hea
- Page 21 and 22: Child malnutrition, death and disab
- Page 23 and 24: Human rights and responsibilities A
- Page 25 and 26: impacting on health. The Watch hope
- Page 27: part a | Health and globalization T
- Page 30 and 31: Health and globalization | A1 and h
- Page 32 and 33: Health and globalization | A1 in 20
- Page 34 and 35: Health and globalization | A1 is gl
- Page 36 and 37: Health and globalization | A1 peopl
- Page 38 and 39: Health and globalization | A1 numbe
- Page 40 and 41: Health and globalization | A1 and p
- Page 44 and 45: Health and globalization | A1 Box A
- Page 46 and 47: Health and globalization | A1 half
- Page 48 and 49: Health and globalization | A1 appro
- Page 50 and 51: table a1 Key health concerns with W
- Page 52 and 53: Health and globalization | A1 Healt
- Page 54 and 55: Health and globalization | A1 merci
- Page 56 and 57: Health and globalization | A1 thems
- Page 58 and 59: Health and globalization | A1 Even
- Page 60 and 61: Health and globalization | A1 • A
- Page 62 and 63: Health and globalization | A1 non-v
- Page 64 and 65: Health and globalization | A1 27-28
- Page 66 and 67: Health and globalization | A1 Jenki
- Page 68 and 69: Health and globalization | A1 Satte
- Page 70 and 71: Health and globalization | A1 WHO (
- Page 72 and 73: and regulatory authorities mandated
- Page 74 and 75: Health care systems | B1 4) selecti
- Page 76 and 77: Health care systems | B1 • And si
- Page 78 and 79: Health care systems | B1 • declin
- Page 80 and 81: Health care systems | B1 user charg
- Page 82 and 83: Health care systems | B1 focus on t
- Page 84 and 85: Health care systems | B1 for health
- Page 86 and 87: Health care systems | B1 their cont
- Page 88 and 89: Health care systems | B1 health car
- Page 90 and 91: Health care systems | B1 ing servic
<strong>Health</strong> and globalization | A1<br />
economy. The privatization of state enterprises elim<strong>in</strong>ated a further source of<br />
revenues that might have been used to support social programmes such as<br />
education and health care.<br />
Other causes for the public revenue decl<strong>in</strong>e <strong>in</strong>cluded a cont<strong>in</strong>uous slide<br />
<strong>in</strong> world prices for copper, Zambia’s ma<strong>in</strong> export; Japan’s 1990s recession<br />
(it was Zambia’s ma<strong>in</strong> importer of copper); high debt service costs; decl<strong>in</strong><strong>in</strong>g<br />
development assistance; and capital flight (WTO 1996, L<strong>in</strong>dsey 2002). Faced<br />
with public revenue decl<strong>in</strong>es and a donor preoccupation with ‘cost recovery’,<br />
Zambia began to impose user charges for schools and health services <strong>in</strong> the<br />
1990s. Not surpris<strong>in</strong>gly, this was followed by a rapid rise <strong>in</strong> school dropout<br />
and illiteracy rates, projected to double by 2015 (UN-Habitat 2003b), and costs<br />
became the ma<strong>in</strong> reason people failed to seek health care or did not follow up<br />
medical treatment (Atk<strong>in</strong>son et al. 1999).<br />
The Zambian government is now seek<strong>in</strong>g to undo many of these policies,<br />
to reimpose tariffs on salaula, and to reorient its development <strong>in</strong>wards. ‘In a<br />
sense,’ two officials recently wrote, ‘Zambia is now a victim of its own h<strong>one</strong>st<br />
policies. Trade <strong>in</strong> goods and services is now <strong>one</strong> of the ma<strong>in</strong>stays of the economy,<br />
to the detriment of more productive activities and thereby employment<br />
opportunities’ (Mtonga and Chikoti 2002). Or, as <strong>one</strong> of the Zambians <strong>in</strong>terviewed<br />
by Jeter (2002) commented, ‘The young people really love the [salaula]<br />
clothes they see … but is this the way to develop your economy?’<br />
<strong>Global</strong>ization played an important part <strong>in</strong> Chileshe’s HIV <strong>in</strong>fection. The<br />
web of connection between globalization and the HIV pandemic <strong>in</strong> Africa has<br />
many strands. Two of these <strong>in</strong>clude the debt crisis and the donors’ response,<br />
particularly by the wealthy G7 countries (Canada, Germany, Italy, Japan, the<br />
UK and the USA).<br />
Debt and aid<br />
The long-stand<strong>in</strong>g debt crisis is a major factor <strong>in</strong> the <strong>in</strong>ability of low-<strong>in</strong>come<br />
countries to susta<strong>in</strong> or benefit from economic growth (UNCTAD 1999), or to<br />
<strong>in</strong>vest <strong>in</strong> health-susta<strong>in</strong><strong>in</strong>g <strong>in</strong>frastructures. Worldwide, the amount of m<strong>one</strong>y<br />
returned to high-<strong>in</strong>come countries dwarfs the amount received <strong>in</strong> development<br />
assistance: donor countries receive back many times over <strong>in</strong> debt repayments<br />
what they give <strong>in</strong> aid. Journalist Ken Wiwa, son of Ken Saro-Wiwa, the activist<br />
hanged for oppos<strong>in</strong>g Shell Oil’s destruction of Nigerian homelands, noted:<br />
‘You’d need the mathematical dexterity of a forensic accountant to expla<strong>in</strong> why<br />
Nigeria borrowed $5 billion, paid back $16 billion, and still owes $32 billion’<br />
(Wiwa 2004). The specific causes of debt crises vary from country to country<br />
and over time but the major contributors are as follows:<br />
24