Low-income countries spend just $17 per capita annually on health – WB – Financial Nigeria

Report on Health Financing Gaps and Alignment with Sustainable Development Goals

Critical Underfunding in Health Services and its Impact on SDG 3

A recent World Bank report, “At a Crossroads: Prospects for Government Health Financing Amidst Declining Aid,” indicates a severe shortfall in investments for essential health services in developing nations. This funding gap directly impedes progress towards achieving Sustainable Development Goal 3 (SDG 3), which aims to ensure good health and well-being for all. The report highlights that combined government and donor health spending has stagnated in real terms since 2018, creating a significant barrier to attaining Universal Health Coverage (UHC), a key target of SDG 3.

• Low-Income Countries: In 2024, per capita health spending averaged $17, which is less than one-third of the estimated $60 minimum required to deliver a basic package of essential services.
• Lower-Middle-Income Countries: The average per capita spending was $47, approximately half of the $90 benchmark needed for adequate health services.

Socio-Economic Implications and Broader SDG Linkages

The implications of this financing deficit extend beyond the health sector, affecting multiple Sustainable Development Goals. The lack of investment undermines efforts related to SDG 8 (Decent Work and Economic Growth) by limiting job creation within the health sector and reducing overall economic productivity due to poor public health. Furthermore, inadequate health systems exacerbate inequalities, hindering progress on SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities), as health crises disproportionately impact vulnerable populations.

Strategic Priorities for Achieving Universal Health Coverage

To address these challenges and accelerate progress towards SDG 3, the World Bank report outlines three primary priorities for action:

1. Enhance the efficiency of resource utilization to maximize the impact of existing funds.
2. Increase the allocation of public spending towards the health sector, prioritizing it as a fundamental component of national development.
3. Expand fiscal space through comprehensive macro-fiscal reforms to generate sustainable domestic revenue for health.

Global Collaboration and Partnerships for the Goals (SDG 17)

Achieving these priorities requires robust international cooperation, aligning with SDG 17 (Partnerships for the Goals). The report stresses that continued collaboration between governments, development partners, and donors is essential. A pivotal event to foster these partnerships is the upcoming Universal Health Coverage (UHC) High-level Forum.

• Event: Universal Health Coverage (UHC) High-level Forum
• Date: December 6
• Location: Tokyo
• Conveners: Government of Japan, World Bank Group, and the World Health Organisation
• Objective: To bring global leaders together to assess progress and commit to building stronger, more equitable health systems, thereby advancing the global agenda for health for all.

SDGs Addressed in the Article

SDG 3: Good Health and Well-being

• The article’s central theme is the insufficient financing for “essential health services” in developing countries. It directly discusses the goal of achieving “Universal Health Coverage (UHC),” which is a cornerstone of SDG 3. The report highlights the gap between current spending and the minimum needed to deliver basic health services, which directly relates to ensuring healthy lives for all.

SDG 1: No Poverty

• The article connects health investments to broader development outcomes, stating that they are critical for “saving lives, creating jobs, and driving growth.” By focusing on low-income countries and the role of health in economic stability, it implicitly links the lack of health funding to the persistence of poverty, as poor health is a major barrier to escaping it.

SDG 8: Decent Work and Economic Growth

• The connection to SDG 8 is explicitly made in the first paragraph, which states that essential health services are “critical for… creating jobs, and driving growth.” This highlights the role of a healthy population and a functional health sector as prerequisites for sustainable economic development.

SDG 17: Partnerships for the Goals

• The article underscores the importance of collaboration, calling for continued efforts “among governments, partners, and donors.” The mention of the upcoming UHC High-level Forum, co-convened by the World Bank and the World Health Organisation, exemplifies the multi-stakeholder partnerships required to mobilize resources and achieve global goals.

Specific SDG Targets Identified

Under SDG 3 (Good Health and Well-being)

• Target 3.8: Achieve universal health coverage (UHC), including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all. The article is entirely focused on this target, discussing the financing gap for “essential health services” and referencing the “Universal Health Coverage (UHC) High-level Forum.”
• Target 3.c: Substantially increase health financing and the recruitment, development, training and retention of the health workforce in developing countries. The report’s main finding is that “investments remain insufficient in developing countries to fund essential health services,” directly addressing the need for increased health financing.

Under SDG 17 (Partnerships for the Goals)

• Target 17.2: Developed countries to implement fully their official development assistance commitments. The article’s reference to “declining aid” and the role of “donors” points to the importance of official development assistance (ODA) in health financing for low-income countries.
• Target 17.3: Mobilize additional financial resources for developing countries from multiple sources. The report’s recommendations to “increase the share of public spending on health” and expand fiscal space, alongside donor funding, directly align with this target of mobilizing diverse financial resources.

Indicators for Measuring Progress

Explicitly Mentioned Indicators

• Government and donor spending on health per capita: The article provides precise figures for this indicator. It states that combined spending is “$17 per capita in low-income countries” and “$47 in lower-middle-income countries,” comparing these figures to the required benchmarks of $60 and $90, respectively. This makes it a direct, measurable indicator of the financing gap.

Implied Indicators

• Indicator 3.8.1 (Coverage of essential health services): While not giving a percentage, the article’s entire focus is on the inability to fund a “basic package of essential services.” The level of funding directly impacts the coverage of these services, making it the primary outcome indicator for the issues discussed.
• Health expenditure as a share of public spending: The report identifies that “the priority for health falling in many countries” and recommends an “increase in the share of public spending on health.” This implies that the proportion of the national budget allocated to health is a key indicator of a government’s commitment and progress.

Summary Table of SDGs, Targets, and Indicators

Source: financialnigeria.com