Amount and predictability of funding
Most donor commitments are short to medium term (one to three years). This allows agencies to cut aid if it is not effective or used as agreed but it is also influenced by the length of term of many funding governments (i.e. financial commitments beyond the term of any one government are often not encouraged).
Without assured long-term funding, recipient governments will become reluctant to scale-up interventions and invest in long-term activities that strengthen health systems and reduce dependency. Furthermore, the short-term nature of funding cycles and constant need for annual reviews means that time and money is devoted towards compiling reports and negotiating future funding.
Another problem is that governments often receive less aid than they have been promised. Unpredictable funding may threaten health outcomes. For example, if aid inflows stop and medication supplies are stopped or interrupted. To date, whilst trends in donor funding has risen, it is still insufficient to achieve levels forecasted to meet the needs of the health-related Millennium Development Goals by 2015.
Without assured long-term funding, recipient governments will become reluctant to scale-up interventions and invest in long-term activities that strengthen health systems and reduce dependency. Furthermore, the short-term nature of funding cycles and constant need for annual reviews means that time and money is devoted towards compiling reports and negotiating future funding.
Another problem is that governments often receive less aid than they have been promised. Unpredictable funding may threaten health outcomes. For example, if aid inflows stop and medication supplies are stopped or interrupted. To date, whilst trends in donor funding has risen, it is still insufficient to achieve levels forecasted to meet the needs of the health-related Millennium Development Goals by 2015.
Recommended readings
- Fiscal space and sustainability: towards a solution for the health sector
- ( High-Level Forum on the Health Millennium Development Goals (MDGs) , 2005)
- Donor commitments to individual countries remain short-term and highly conditional and do not come close to reflecting the global promises of increased aid, while donor disbursement performance remain...
- Funding flows for health: what might the future hold?
- ( M. Pearson / HLSP Institute, UK , 2007)
- This HLSP paper maps out how overall funding flows for health in developing countries might evolve over the coming years. It considers the key factors that affect levels of spending including governme...
