By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    An Expert’s Guide To Building and Improving Endurance
    June 30, 2022
    medical assistants
    What Do Medical Assistants Do On a Day to Day Basis?
    April 5, 2022
    superfoods to help with prostate health
    10 Healthy Foods That Can Help Protect Your Prostate
    August 29, 2022
    Latest News
    Getting Back in the Game: Sports Injuries Rehabilitation Tips
    May 31, 2023
    4 Signs It’s Time to See a Therapist
    May 24, 2023
    11 Ways To Modernize Your Private Practice
    May 17, 2023
    How to Recognize the Signs of Hormonal Imbalance in Men
    May 29, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Guide on Critical Illness Insurance
    September 28, 2020
    unplanned pregnancy counseling
    Unplanned Pregnancy: Counseling Patients and Finding Help
    April 2, 2021
    medical school lending
    Why Refinancing Medical School Lending Makes Sense
    November 7, 2022
    Latest News
    MRI Sedation Options: What You Should Know Before Screening
    May 17, 2023
    What is the Process of Creating Medicine from Nature?
    May 2, 2023
    Choosing the Right Treatment Option for Varicose Veins
    May 2, 2023
    What Are Wrong-Site Surgeries and How Do They Occur?
    April 27, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Ethiopia’s AIDS Spending Cliff
Share
Sign In
Notification Show More
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Global Healthcare > Ethiopia’s AIDS Spending Cliff
Global Healthcare

Ethiopia’s AIDS Spending Cliff

Amanda Glassman
Last updated: 2012/09/11 at 3:27 PM
Amanda Glassman
Share
6 Min Read
SHARE

 

This is a joint post with Kate McQueston.

 

This is a joint post with Kate McQueston.

More Read

everest healthcare

The Everest Foundation’s Mission to Support Inclusive Healthcare

Using EHR systems in healthcare for Cost-Effective Services
Benefits of Emerging Technology in Healthcare in 2023
Simplifying the Genetic Testing Process: How At-Home Kits are Changing the Game
Why a Health Retreat Can Be the Best Medicine

There’s an AIDS spending cliff in Ethiopia and the government is already in free fall. Next year, Ethiopia will experience a 79% reduction in US HIV financing from PEPFAR. The announcement of these cuts came with an explanation that PEPFAR was “free(ing) up resources by reducing programs in lower HIV prevalence countries” (see blog). Further, Global Fund monies have gone almost completely undisbursed in 2012. These cuts in spending might be warranted due to epidemiological trends and improved efficiency, or might cripple progress as health programs dependent on external donors are cut back. The truth is, with the current poor status of basic information on beneficiaries and costs, it’s difficult to judge whether these cuts are good or bad.

The US$191 million decline of PEPFAR funding from 2012 to 2013 is part of a broader trend of decreasing funding in recent years. With its dynamic and popular minister of health, Dr. Tedros Ghebreyesus, Ethiopia had long been a donor darling. Cumulatively, PEPFAR contributed more than $1.4 billion to Ethiopia, and, between 2006 and 2011, PEPFAR’s annual contribution to Ethiopia more than doubled. Ethiopia received more funding from the Global Fund than any other country—with total disbursements of $1.16 billion. In 2008, AIDS spending accounted from more than 20% of total spending on health, of which 84% was externally funded.

Yet, as shown in the chart below, total funding from PEPFAR-Global Fund peaked in 2010, and has since decreased by almost 50 percent as of 2012. The Global Fund has yet to disclose how much of two newly signed grants (US$424 million designed to span 5 years) will be disbursed in 2013. But even if the full amount of these new grants were to be spent during 2013, this hypothetical PEPFAR-Global Fund total wouldn’t get close to matching Ethiopia’s total annual funding from these two sources in 2010.

Increased government spending might be one reaction to donor cuts. However, the Ministry of Finance publicly reported expenditure for the last time in 2009 and the most recent round of National Health Accounts is from 2007/8, so what fiscal adjustments have been made are yet to be seen. Even with increasing public spending associated with several years of positive economic growth, Ethiopia has always had an extremely low revenue to GDP ratio and high inflation (and associated tight cash controls on government expenditure), making substantial new public funding to health unlikely. A new factor in the equation is the political instability following the death of Prime Minister Meles Zenawi that may also compromise the size and speed of disbursements.

Increasing amounts of funding up to 2010 may have resulted in the peak number of individuals that received ART in 2011 as well as other effects, but will the funding crash of 2012/13 affect these gains? Can the same or better be provided with much less? In other words, could the backlog of funding and efficiency improvements make it possible to provide more with less in Ethiopia?

Sources:

PEPFAR, PEPFAR, PEPFAR Funding Allocations, Global Fund, PEPFAR, UNAIDS

*Note: Global Fund Disbursements for 2012 are to-date. 2013 figures for PEPFAR are included in the Administration’s budget request to Congress. 2013 figures for the Global Fund are approved disbursements from grants round 10 and lower.

A recent CSIS paper suggests that Ethiopia should still be on track to achieve universal coverage of ART in 2014 despite reduced HIV funding. Unfortunately, it’s very difficult for external commentators to assess this possibility. We don’t know exactly what interventions PEPFAR, the Global Fund and -perhaps most importantly- the Government of Ethiopia are currently financing and for whom, and we don’t know the actual cost of these interventions in Ethiopia. Therefore, we can’t link spending to enrolled patients or disease results. It’s possible that PEPFAR and the Global Fund have this analysis in their pocket? I hope so, since without this link, even a well-intentioned donor or Minister of Finance can’t understand or plan for the programmatic and human impact of cuts, or assess the potential for savings and reallocation via improved efficiency.

The AIDS spending cliff in Ethiopia also raises issues on likely funding cuts and new eligibility and allocation policies in general. It’s a great idea to reallocate monies to more affected, more impoverished countries, or countries that can spend monies more efficiently. Yet when you’re funding life-saving care for a defined population and you’re not able to connect money to patients, cutting abruptly is a terrible idea. Transitioning to a new allocation requires a basic set of information on expenditure and its uses –ideally connected to patients themselves, and it requires dialogue with country governments and other donor partners to smooth any cliffs into gentle slopes.

 

TAGGED: AIDS, Ethiopia

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Amanda Glassman September 11, 2012
Share this Article
Facebook Twitter Copy Link Print
Share
By Amanda Glassman
As a healthcare blogger and author, I have been writing about the latest developments in the medical field for over 10 years. My work has been featured on various online publications, including Healthline and WebMD. I am passionate about educating people on how to stay healthy through proper nutrition and exercise practices. In addition to my blog posts, I have also authored several books that focus on health topics such as dieting tips, disease prevention strategies, and mental health awareness initiatives. My goal is to provide readers with reliable information so they can make informed decisions regarding their well-being.
Previous Article Understanding Physician Shortages Means Asking the Right Questions
Next Article Image New Tools of the Trade to Use in Your HealthCare Organization

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

11 ways nurses can care for patients during mental health crises
11 ways nurses can care for patients during mental health crises
Mental Health June 6, 2023
test
Essential Steps for Starting Your Journey as a Fitness Instructor
Fitness June 5, 2023
mimosa pudica
Health Benefits of Mimosa Pudica: The Marvel of Nature
News June 2, 2023
medical bills
Who is Responsible for Paying the Medical Bills After an Injury?
News June 1, 2023

You Might also Like

MRI sedation options
Global Healthcare

MRI Sedation Options: What You Should Know Before Screening

May 17, 2023
medicines from nature
Global Healthcare

What is the Process of Creating Medicine from Nature?

May 2, 2023
US healthcare system
Global Healthcare

3 Ways to Improve the U.S. Healthcare System By 2030

March 14, 2023
Clinical Studies
Global Healthcare

6 Steps To Ensure Speed And Efficiency Of Clinical Studies

March 14, 2023
//

We influence million of users and is the most authentic source of information on healthcare business and technology news.

Quick Links

  • About
  • Contact
  • Privacy
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US

© 2008-2023 HealthWorks Collective. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?