IMPACT Magazine interviewed Nancy Birdsall for economic insight on a range of development issues.
From the Article:
STEVEN CHAPMAN: Do you think the economic crisis has reduced governments’ willingness to invest in development assistance?
NANCY BIRDSALL: I don’t think it has reduced the traditional donors’ willingness, but it has definitely affected their political ability to sustain the rates of increase that have existed for the last five years. In developing countries, I think it has not really reduced willingness or ability in any major way. Most developing countries have managed reasonably well to cope with the financial crisis; after a bit of a downturn, they are doing better than the rich countries.
SC: What trends do you see in spending levels and investments in health by developing country governments?
NB: For low-income countries there is no question that the general trend in the last decade has been for them to increase the resources they are putting into their own health programs. That is partly related to their general overall improvement in their macroeconomic position and their policies. It’s also related to, particularly in Africa, the AIDS crisis, which has, I believe, opened up additional funding sources both in the donor world and in affected countries. Spending has gone up in part because AIDS is very visible and compelling. So, the question really for the future is whether both donors and recipient countries will be able to maintain the rate of increase, and the answer seems to be ‘no’.
SC: Can you point to developing countries that you think are doing particularly well in terms of investing in health?
NB: I think most of the low-income countries in Africa, particularly Ghana, Tanzania and Malawi.
SC: How do you feel about private sector solutionsto health challenges
NB: I think they’re a good thing. Frankly, it’s hard to be against private sector solutions if they reduce the demands of the fiscal budget of countries. Health is a merit for people, and there are a lot of positive externalities associated with better health, particularly in terms of infectious diseases. I do think we have to be careful not to overhype the extent to which market-driven solutions are the answer.