The Effects Of Increased Privatization Of Health Care On...

The World Bank (WB or Bank) has transformed from serving primarily to reconstruct post WWII Europe to the world’s largest external funder of health due to the globalization movement. To the global South, the Bank will primarily be known by its controversial Structural Adjustment Programs (SAPs). This essay will examine the effects of increased privatization of health care in Africa as a result of loan conditionalities imposed by the Bank SAPs. Effects of SAPs on health and social determinants of health in African countries will be examined with the support of empirical data, followed by a possible explanation for lack of response from the Bank. An outline of existing and proposed alternative solutions will also be evaluated. Overview of SAPs SAPs are the result of the Bank’s increasing role in the health sector in the 1980s and 1990s. Conditional loans are given by the Bank to developing countries for â€Å"policy adjustment† in order to stimulate economic growth. Main principles of such SAPs include macroeconomic management and stability, trade liberalization, and public sector contraction (2), which entails decentralizing the government through privatization of state-owned enterprises, opening up markets for foreign trade, and reducing public sector (including health) budgets. Motives for such policy reform as stated by the Bank include: the need to address resources misallocation and insufficiency, equitable competition of health care through free market, and the need forShow MoreRelatedThe International Monetary Fund And The World Bank Were1419 Words   |  6 Pagesglobal economic order. The World Bank s focus is the provision of long-term loans to support development projects. The IMF concentrates on providing loans to stabilize countries with short-term financial crises Critics of the World Bank and IMF have argued that policies implemented by African Countries, intended to control inflation and generate foreign exchange to help pay off the IMF debts, often result in increased unemployment, poverty and economic polarization thereby impeding sustainable developmentRead MoreSo Far International Monetary Fund (Imf) Has Been Failed to Curve Corruption, Reduce Public Spending and Develop Macroeconomic Policies4014 Words   |  17 PagesNations are members of the IMF with a few exceptions such as Cuba, Lichtenstein and Andorra. (About the IMF:IMF Website) The IMF was originally designed to promote international economic cooperation and provide its member countries with short term loans so they could trade with other countries (achieve balance of payments). The IMF is one of the most powerful institutions on Earth -- yet few know how it works. Functions of IMF: 1. International Monetary Cooperation 2. Promote exchange RateRead MoreNeoliberalism Is A Political Project For Restore Class Power1813 Words   |  8 Pages20 percent accounts for three-quarters of world income . Income inequality increased by 32% between 1960 and 2005 in the UK and in the US it increased by 23% . Neoliberal governance often departs from the theoretical template, providing further proof for Harvey’s thesis that neoliberalism is a political project to restore class power. These pragmatic departures prove very beneficial to the rich and in turn result in increased inequality and poverty. Harvey argues that neoliberal governance has twoRead More Failure of IMF and World Bank Policies in Sub-Saharan Africa4500 Words   |  18 PagesIMF and World Bank Policies in Sub-Saharan Africa Over the last several hundred years, Africa has been deprived of the peace that it so desperately needs. For over 400 years, Africa was subjected to the harsh trans-Atlantic slave trade. Europeans and Americans brutally uprooted millions of Africans and shipped them away. Torn away from their homes, Africans were inhumanely exploited for their labor. The slave trade had a devastating effect not only on those involved, but also on