The report explains that the economic impact in poor countries is seen in the form of grants and loans that the World Bank grants. The report explains that credit worthy countries that are extremely poor can qualify for long-term interest free credit. These credits are given under the International Development Assistance program. Although some countries qualify for these interest free credit, they often resort to borrowing funds because IDA funds are limited and based on a first come first serve basis.
Countries that have both IDA and loans for the purpose of healthcare for citizens are under what is referred to as an IDA blend. It is referred to in this manner because the terms under which the funds are borrowed is a mixture of the ID and those of the International Bank for Reconstruction and Development (IBRD) program. The author explains that the IBRD program carries an interest rate but is well below the rate that a private financial institution would carry. The author further explains that IBRD loans
"are available to creditworthy countries with a per capita income below $5,225.
When countries reach this threshold, the process of "graduating" from the IBRD
scheme is triggered. In its IBRD loans, the Bank borrows at preferential interest rates and then on-lends to the borrowing country at a rate that is somewhere between the rate the Bank borrows at and the market rate. International Development Assistance credits are financed in part through the income earned on IBRD loans, and in part through contributions from bank members (Wagstaff,
2001)."
Although borrowing money for health services solves one problem, it also creates a problem which is that of debt.. Debt is particularly problematic as it relates to poor countries and healthcare because it effects the ability of the country to get additional loans as the loans are based on creditworthiness. Having to pay back loans also impedes on the ability of the country to provide its citizens with other services. The overall economies of these countries are also affected by the debt because it prevents the government from invest in revenue creating Although there has been some effort to provide these countries with debt relief so that they can move forward and create economic opportunity for the country.
Obviously the economic condition of an entire country along with the economic conditions of the individual family unit affect access to healthcare. In addition, the cost of delivering healthcare to the masses is a real expense. Debates concerning whether or not healthcare should be free or consists of user fees. The research suggests that free healthcare is problematic because the quality of the care isn't as good as fee-based care. In addition, free care often leads to extended waiting periods that can cost people time. On the other hand, fee-based systems are costly for poor people and in many cases the cost associated with fee-based care places the burden on people in society that can least afford it. As such, economic issues affect the development and implementation of health policies.
In addition to the political and economic forces that govern health policy, social forces also exists. Health policy is a social issue because healthcare is a necessity for every human being. There is a time in every persons life when healthcare is needed. As a result of this need health policy is related to the society as it pertains to quality of life issues.
According to many scholars providing healthcare is an ethical issue. Many governments believe that being able to provide healthcare for everyone is necessary for social equity. Social equity guarantees that the resources that are available to some people are available to all people. This includes services such as education, and healthcare. When a society does not provide healthcare for the entire populous in a manner that is affordable and efficient, certain ethical questions arise. The main question that arises is whether or not healthcare is a right as opposed to a privilege. For many, access to healthcare is a privilege because they don't have access to affordable insurance and as such they can not receive the care that they need.
According to Navarro (2009), health policies are also affected by class alliances. Navarro asserts that there is "an alliance between the dominant classes of developed and developing countries -- a class alliance responsible for the promotion of its ideology, neoliberalism. This is the cause of the enormous health inequalities in...
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