Foreign Aid

Zambia has become highly dependent on foreign aid to operate health facilities and provide healthcare to the current population. Foreign aid comes from other countries and non-governmental organizations that desire to implement a program or give funds to the country to implement a program to assist, specifically in this analysis, healthcare needs of the population. An article from The Wall Street Journal in 2009 argued that the continent of Africa needs to begin “weaning” itself off of foreign aid. The dependency on annual international funds is not allowing African countries to develop sustainable models to generate revenue to fund healthcare programs. Already more than $50 billion dollars in aid is sent to Africa every year to help with different programs to improve the quality of life of the people. Even though the African countries are given this “free money” to spend usually on a certain program, there is still corruption and many of the countries fall into debt from incorrectly using the money or overspending funds. It was estimated in 2002 that about $150 billion dollars of donor funds were being lost annually as a result of corruption in Africa. The continent needs to begin relying less on international donor funds and develop a more sustainable system of raising funds within the continent because annual donor funds are not reliable and could be withdrawn at any point (Moyo W1).

Possible recommendations that have been given for the removal of aid is the adoption of more international civil service opportunities in Africa rather than giving monetary funds. This idea allows direct service actions to help the continent move forward. Emphasis on entrepreneurship and competitive markets needs to also be highlighted to inspire individuals to open a business and build an economy that brings in revenue for funding of health programs (Moyo W1).

In order to eliminate dependence on foreign aid, the central government of Zambia needs to dedicate more funds to the healthcare sector. Between 2011-2012 the Zambian government reached the Abuja Commitment, by pledging 16.4% of government funds to the healthcare system (commitment was 15% of funds) (PPD 1). This was a significant accomplishment, but the government needs to also reach a US$60 per capital health expenditure to meet the Millennium Development Goals. Currently each household is spending about 29% of funds to pay for healthcare, which is causing many families to become bankrupt and unable to afford health services (Chibuye 41). If the Ministry of Health could work towards forming and approving a universal health package, the population could have an increased opportunity to  meet the health expenditure goals and develop an accessible healthcare program.

With more commitment and transparency regarding the use of funds by the Ministry of Health and the Zambian government, the country could become more financially independent and form a sustainable healthcare system that will be able to provide equitable care for all (University of Zambia 39-50). Researchers future suggestions to form affordable healthcare programs include drafting a social healthcare system with universal care coverage, basing healthcare off a performance based model, or creating affordable private insurance plans (Chibuye 42). Each of these models presents different issues within developing the financial structure of a sustainable healthcare system. Once revenue can be generated within the country, it can be assessed as to how equitable coverage can be attained.

Charts in a clinic tracking the number of individuals tested for HIV/AIDS. Much of the funding for these tests is provided by foreign aid. Photo courtesy of Laura Arnold.