By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Tobacco Control Policies; Scaling Up Incentives
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Global Healthcare > Tobacco Control Policies; Scaling Up Incentives
Global Healthcare

Tobacco Control Policies; Scaling Up Incentives

Amanda Glassman
Amanda Glassman
Share
7 Min Read
SHARE

As the world readies for the upcoming UN high-level meeting on non-communicable diseases, the importance of good tobacco control efforts has been (yet again) affirmed. Along with this renewed interest is discussion around innovations in the implementation of tobacco control policies. These changes don’t need to start from scratch; in fact it is arguable that the combination of two particularly “un-novel” solutions to tobacco control—taxation and policy based lending—may be the innovation we need to curb tobacco usage globally.

 

As the world readies for the upcoming UN high-level meeting on non-communicable diseases, the importance of good tobacco control efforts has been (yet again) affirmed. Along with this renewed interest is discussion around innovations in the implementation of tobacco control policies. These changes don’t need to start from scratch; in fact it is arguable that the combination of two particularly “un-novel” solutions to tobacco control—taxation and policy based lending—may be the innovation we need to curb tobacco usage globally.

 

More Read

wellness centers massage spa
How Wellness Centers Can Turn it Up a Notch to Drive Business
How Will We Care for Six Million Centenarians by 2050?- Video
Hospital in Japan Struggling To Care for Patients
Fear of Nuclear Accidents Worse than the Accidents Themselves
Ebola: America Driven by Fear

Evidence for high tobacco taxes as mechanism for curbing tobacco use has been well examined in literature and deemed a cost-effective method to reduce tobacco consumption and related mortality in every region of the world. The World Bank recommends tobacco tax levels equivalent to two-thirds or more of the price of the tobacco product. However, a 2009 report from the WHO found that over 70 percent of low-income counties had tobacco taxes of 50 percent or less of the retail price. Overall, the affordability of tobacco products has actually increased over time in most lower- and middle-income countries (LMIC)—a function of increasing incomes and low tax rates as a percentage of the price of tobacco products.

The multilateral development banks (MDB) and the International Monetary Fund (IMF) routinely engage with governments to provide policy-based and programmatic lending for both the fiscal and health sectors. Policy-based loans condition tranches of funding on agreed changes in policy. Programmatic loans tie tranches of funding to progress on agreed policy design and implementation and/or on coverage and other results.

Last month Bill Savedoff suggested combining the two ideas above—that the World Bank raise tobacco taxes as part of their policy lending. Here, I suggest a mechanism on how this could work—by introducing financial and reputational incentives for country governments and MDB/IMF teams to include tobacco taxation and other tobacco control policies in their policy-based and programmatic lending programs.

This is appropriate because:

(i) Unlike other areas of health intervention, tobacco taxation is known to be effective in reducing tobacco use prevalence in most settings around the world;

(ii) Tobacco taxation has a very small or even negative cost to governments;

(iii) The implementation of the tax can be quickly, easily and transparently monitored by the MDB and external organizations, without distorting surveys and administrative data on coverage and outcomes; and

(iv) Only the commitment of political leadership at the level of prime minister, finance minister and health minister is required to implement, increasing the feasibility and effectiveness of the measure.

On the recipient government side, the financial incentives for policy change are already in place from previous lending operations. The ability to use the loan’s proceeds for general budget support is a main incentive for ministries of finance, complimented by factors such as the amount and concessional terms of the loan. To enhance these existing financial incentives, a modest amount of philanthropic funding could “ride” on the lending operations, with its disbursement attached to policy implementation targets such as maintenance of the tobacco tax at two-thirds the level of price for an 18-month period or routine reporting on tobacco use prevalence. Riding a grant on a lending operation has the advantage of leveraging existing financial incentives, while adding visibility to the operation—adding to the reputational incentives for tobacco control.

The MDB side will also benefit from reputational incentives attached to the operation’s visibility.  Grant funding could be provided for accompanying technical assistance and policy dialogue on tobacco taxation and other control measures, together with a process to recognize outstanding project teams within and outside the banks.

There are many key advantages to this method for financing tobacco control, namely:

  • Additional or external funding would be helpful but not necessarily required;
  • Small or negative cost to countries to implement;
  • Can be viewed as a “pilot” to increase demand for tobacco control reforms that could be evaluated and, if successful, subsequently scaled and maintained using existing funding and lending operations;
  • Builds on country-specific economic evidence packages developed by the World Bank and The Union;
  • Non-price tobacco control policies can also be included. For example, better quality reporting according to FCTC requirements could be included among policy conditionality;
  • Same mechanisms could be used to tie tranches of funding to tobacco use prevalence outcomes;
  • Can be focused on the World Bank and/or on the regional development banks. Given their size and geographic focus, the latter can sometimes be more flexible and responsive to external donors.

But, there are a few disadvantages that still need to be considered as well:

  • Unlike COD Aid,  this method predetermines policies intended to reduce tobacco use, possibly limiting the creativity and autonomy of recipient governments in their efforts;
  • Conditioning funding on policy change and maintenance has had a mixed track record in implementation, but is reportedly improving over time with better development outcomes—as shown in the World Bank’s report on the matter, here.

MDB operations represent unique opportunities to discuss and scale up the tobacco control agenda; yet in spite of their potential, only a handful of lending operations have included tobacco control measures. Overall this method could offer substantial benefits to global health by nudging LMICs to reduce tobacco consumption, increase tax revenues, and save lives.

TAGGED:global healthcaresmokingtobacco control
Share This Article
Facebook 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.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

a woman walking on the hallway
6 Easy Healthcare Ways to Sit Less and Move More Every Day
Health
September 9, 2025
Clinical Expertise
Healthcare at a Crossroads: Why Leadership Matters More Than Ever
Global Healthcare
September 9, 2025
travel nurse in north carolina
Balancing Speed and Scope: Choosing the Nursing Degree That Fits Your Goals
Nursing
September 1, 2025
intimacy
How to Keep Intimacy Comfortable as You Age
Relationship and Lifestyle Senior Care
September 1, 2025

You Might also Like

Modern Health Practices
Medical Innovations

What Does Science Say About Modern Health Practices?

November 12, 2023

Life Expectancy Paradox Explained by Smoking

October 14, 2011

Another Pan Mass Challenge Enters the History Books

August 12, 2011

Obesity Explained

December 2, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?