scholarly journals How healthy is a ‘healthy economy’? Incompatibility between current pathways towards SDG3 and SDG8

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
M Koutsoumpa ◽  
M Meurs ◽  
L Seidelmann ◽  
B Fienieg ◽  
K Kramer ◽  
...  
Keyword(s):  
Economic Growth ◽  
Structural Adjustment ◽  
Health Spending ◽  
Well Being ◽  
Policy Advice ◽  
Social Spending ◽  
Gdp Growth ◽  
Policy Objective ◽  
National Policies ◽  
The Imf

Abstract Background The link between health and the economy is well known. However, economic growth as measured in SDG8, continues to leave people behind and the funding gap for realizing SDG3 for good health and well-being remains vast. International financial institutions, i.e. the IMF, influence national policies in ways that may undermine the SDGs. We examine incoherencies between economic growth and health goals in Malawi, Uganda, and Tanzania. Methods We conducted qualitative research based on policy analysis. To analyse IMF policy advice in the three countries we reviewed relevant program documents, article IV consultation reports (2016-18) and literature on structural adjustment. We accessed health information from WHO and World Bank databases, and national policies. Results In all three countries, some indicators, e.g. infant and child mortality, improved, but others lag behind. Underfunding is a major cause for poor health and inequities. GDP increases (as a measure of economic growth) do not automatically translate to increases in health spending. Health expenditure from domestic public resources remains much lower than international thresholds. To achieve this level of spending domestically, GDP in these countries would require an unrealistic manifold increase. IMF policy advice and loan conditionality that focus on GDP growth and tight monetary and fiscal targets impair social spending, while suggested taxation measures are generally regressive. Conclusions The GDP-focused SDG8 can delay efforts towards the SDG3 if governments opt to focus on GDP growth without measures to equally distribute wealth and invest in social sectors, often under IMF's influence. Although the IMF has acknowledged the importance of social development, its policy advice still adheres to austerity, harming population health. To realize the SDGs everywhere, governments should abandon GDP growth as a policy objective, strive for equitable economic development and emphasise global co-operation. Key messages GDP increases do not automatically translate to an increase of health spending, partly a result of IMF structural adjustment programs and policy advice. To realize the SDGs everywhere, governments should abandon GDP growth as a policy objective and place more emphasis on SDG17 on global co-operation.

scholarly journals How healthy is a ‘healthy economy’? Incompatibility between current pathways towards SDG3 and SDG8

2019 ◽  
Vol 15 (1) ◽  
Author(s):  
Mariska Meurs ◽  
Lisa Seidelmann ◽  
Myria Koutsoumpa
Keyword(s):  
Economic Growth ◽  
Access To Health Care ◽  
Health Spending ◽  
Well Being ◽  
Policy Advice ◽  
Gdp Growth ◽  
Policy Objective ◽  
Health And Well Being ◽  
Funding Gap ◽  
The Imf

Abstract Background The interconnections between health and the economy are well known and well documented. The funding gap for realizing SDG3 for good health and well-being, however, remains vast. Simultaneously, economic growth, as expressed and measured in SDG8, continues to leave many people behind. In addition, international financial institutions, notably the International Monetary Fund (IMF), continue to influence the economic and social policies that countries adopt in ways that could undermine achievement of the SDGs. We examine the incoherence between the economic growth and health goals of the SDGs with reference to three East African countries, Malawi, Uganda, and Tanzania, where our organization has been working with partner organizations on SDG related policy analysis and advocacy work. Results In all three study countries, some health indicators, notably infant and child mortality, show improvement, but other indicators are lagging behind. Underfunding of the health sector is a major cause for poor health of the population and inequities in access to health care. GDP increases (as a measure of economic growth) do not automatically translate to increases in the countries’ health spending. Health expenditure from domestic public resources remains much lower than the internationally recommended minimum of USD 86 per capita. To achieve this level of health spending from domestic resources only, GDP in these countries would require an unrealistic manifold increase. External aid is proving insufficient to close the funding gap. IMF policy advice and loan conditionality that focus on GDP growth and tight monetary and fiscal targets impair growth in health and social sector spending, while recommended taxation measures are generally regressive. Conclusions The existence of the GDP-focused SDG8 can delay efforts towards the achievement of the SDG3 for health and well-being if governments choose to focus on GDP growth without taking sufficient measures to equally distribute wealth and invest in the social sectors, often under the influence of policies advised or conditions put in place by the IMF. Although the IMF has started to acknowledge the importance of social development, its policy advice still adheres to austerity and pro-cyclical economic development harming a country’s population health. To realize the SDGs everywhere, governments should abandon GDP growth as a policy objective and place more emphasis on SDG17 on global co-operation.

Health care and the future of economic growth: exploring alternative perspectives

2019 ◽  
Vol 15 (4) ◽  
pp. 419-439 ◽  
Author(s):  
Martin Hensher ◽  
John Tisdell ◽  
Ben Canny ◽  
Craig Zimitat
Keyword(s):  
Economic Growth ◽  
Health Care ◽  
Health Expenditure ◽  
Global Economy ◽  
Global Financial Crisis ◽  
Health Care Systems ◽  
Health Financing ◽  
Well Being ◽  
Gdp Growth ◽  
Care Systems

AbstractThe strong and positive relationship between gross domestic product (GDP) and health expenditure is one of the most extensively explored topics in health economics. Since the global financial crisis, a variety of theories attempting to explain the slow recovery of the global economy have predicted that future economic growth will be slower than in the past. Others have increasingly questioned whether GDP growth is desirable or sustainable in the long term as evidence grows of humanity's impact on the natural environment. This paper reviews recent data on trends in global GDP growth and health expenditure. It examines a range of theories and scenarios concerning future global GDP growth prospects. It then considers the potential implications for health care systems and health financing policy of these different scenarios. In all cases, a core question concerns whether growth in GDP and/or growth in health expenditure in fact increases human health and well-being. Health care systems in low growth or ‘post-growth’ futures will need to be much more tightly focused on reducing overtreatment and low value care, reducing environmental impact, and on improving technical and allocative efficiency. This will require much more concerted policy and regulatory action to reduce industry rent-seeking behaviours.

scholarly journals The Impact of Public Expenditure Structure on Economic Growth in Russia

2018 ◽  
Vol 13 (6) ◽  
pp. 8-35
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
National Economy ◽  
Positive Impact ◽  
Empirical Studies ◽  
Social Spending ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
General Government ◽  
The Impact

In this paper we estimate the impact of changes in the structure of general government expenditure on GDP growth rate in Russia. We construct two types of models: with expenses as shares of total general government spending and as percentages of GDP. The structural vector autoregression (SVAR) methodology from [Corsetti et al., 2012] has been used. According to our estimates, an increase in the share of productive expenditures (national economy, education and health) has a positive impact on the rate of economic growth, while an increase of the share of non-productive expenditures (national defense and social policy) has a negative effect on the growth rate of GDP. The largest positive effect among productive expenditures belongs to expenditure on the national economy: increasing spending on the national economy by 1% of GDP while maintaining the total expenditure unchanged leads to an increase in GDP growth rate by 1.1 p.p. The second largest effect is produced by expenditure on education: a 1% of GDP increase in this expenditure with constant total spending leads to additional GDP growth of 0.8 p.p. Expenditure on health care has the least positive impact on growth: the effect of its increase is estimated at +0.1 p.p. to GDP growth rate. For defense and social spending the effect is negative: -2.1 p.p. and -0.7 p.p. respectively. The results obtained in this paper are generally consistent with the results in previous empirical studies for Russia based on fiscal multipliers, as well as results in empirical studies with foreign and international data.

Oil, Rates and Inflation

2005 ◽  
pp. 4-20
Author(s):  
E. Yasin
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Raw Materials ◽  
Gdp Growth ◽  
Business Activity ◽  
Demand For Money ◽  
Percentage Points

Currency inflow in Russia from raw materials exports allows taking into account high business activity to assimilate growing money supply transforming it into economic growth. Fall in business activity as a result of pressure on business led to saturation of demand for money. This considerably increases the danger of inflation growth and requires sterilization of excess money supply including the usage of the Stabilization Fund. According to the author's estimates, corresponding losses in GDP growth will equal 1-2 percentage points per year.

Economic Growth and Macro Variables in India: An Empirical Study

2015 ◽  
pp. 42-59
Author(s):  
Saba Ismail ◽  
Shahid Ahmed
Keyword(s):  
Economic Growth ◽  
Growth Rates ◽  
Trade Openness ◽  
Capital Formation ◽  
Gdp Growth ◽  
Fdi Inflows ◽  
Domestic Capital ◽  
The Government ◽  
Macro Variables ◽  
Determinants Of Economic Growth

The research objective of this paper is to explore the empirical linkages between economic growth and foreign direct investment (FDI), gross fixed capital formation (GFCF) and trade openness in India (TOP) over the period 1980 to 2013. The study reveals a positive relationship between economic growth and FDI, GFCF and TOP. This study establishes a strong unidirectional causal flow from changes in FDI, trade openness and capital formation to the economic growth rates of India. The impulse response function traces the positive influence of these macro variables on the GDP growth rates of India. The study also reveals that the volatility of GDP growth rates in India is mainly attributed to the variation in the level of GFCF and FDI. The study concludes that the FDI inflows and the size of capital formation are the main determinants of economic growth. In view of this, it is expected that the government of India should provide more policy focus on promoting FDI inflows and domestic capital formations to increase its economic growth in the long-term.

Tax revenue and economic growth in developing country: an autoregressive distribution lags approach

2020 ◽  
Vol 7 (54) ◽  
pp. 205-217
Author(s):  
Mnaku Honest Maganya
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Testing Procedure ◽  
Gdp Growth ◽  
Bounds Testing ◽  
Causality Test ◽  
Significance Level ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
The Government

AbstractTanzania, like most other developing countries, faces numerous economic challenges in striving to achieve sustainable economic growth and development through taxation. In the literature, the debate on how effective taxes are as a tool for promoting economic growth and economic development remains inconclusive, as various research have reported mixed effects of tax on economic growth. This article investigates the effect of taxation on economic growth in Tanzania using the recently developed technique of autoregressive distributed lag model (ARDL) bounds testing procedure for the period from 1996 to 2019. Various preliminary tests were conducted including stationary tests as well as the pair-wise Granger causality test. According to the results obtained, domestic goods and services (TGS) taxes are positively related to GDP growth and are statistically significant at 1% level. Income taxes, on the other hand, were found to be negatively related to GDP growth and to be statistically significant at 5% level. The pair-wise Granger causality results indicated that there is bidirectional Granger causality between TGS and GDP growth at 1 % significance level. The government should aim at growing, nurturing and sustaining tax base to positively drive economic growth even further.

Economic behavior of households and their welfare: models and forms of interaction

2020 ◽  
pp. 3-8
Author(s):  
Maryana Bil ◽  
Olha Mulska
Keyword(s):  
Economic Growth ◽  
Social Protection ◽  
Well Being ◽  
Central Place ◽  
Economic Behavior ◽  
Human Potential ◽  
Modern Theory ◽  
Economic Behaviour ◽  
Theoretical Approaches ◽  
The Impact

The article defines the content of welfare as a measure of socially oriented efficiency of economic growth, which reflects the appropriate level of providing the population with material and spiritual goods with the formation of favourable conditions for human development and capitalization of human potential in a competitive mobile space. The modern theory of welfare testifies to the deepening of scientific discussions on the transformation of economic welfare into mobile and inclusive, as well as the opposition of competitive and social protection welfare policy. Another milestone in the evolution of welfare theory is the individualization of its provision. Conditions of competition and mobility increase the importance of households in providing their well-being with further reflection on the processes of economic growth of the community, region, and state. This gives grounds to actualize the issues of household welfare research and strengthening economic growth based on behavioural economics. The needs, interests, motives, and incentives determine the economic behaviour of households. At higher levels, it defines an economic culture that is closely linked to the national mentality. In this regard, the main models of economic and social behaviour of households – socialization, adaptation, integration, values, regulation, and the definition of financial development strategies are outlined. Theoretical approaches to the explanation of economic behaviour are generalized, namely religious-ethical, psychological, substantive theories, theories of motivations and acquired needs, process theories, theories of justice, and others. Based on the ideas of foreign scientists, the main determinants of the economic policy of households are proposed. Political, stabilizing, and economic determinants are distinguished in the group of general determinants. In the group of determinants directly related to households, the financial, demographic, cultural, social, empirical, and psychological are suggested. The author’s emphasis is placed on the importance of the impact of financial determinants of the households’ economic behaviour, the central place among which is occupied by savings.

LIVING STANDARDS AND PROPORTIONS AFFECTING FOR STRUCTURAL CHANGES IN THE ECONOMY

2020 ◽  
Vol 2 (9) ◽  
pp. 42-46
Author(s):  
G. T. PULATOVA ◽  
◽  
T. A. KADYROV ◽  
Keyword(s):  
Economic Growth ◽  
Theoretical Analysis ◽  
Structural Changes ◽  
Well Being ◽  
The State ◽  
Living Standards ◽  
Total Production ◽  
Direct Connection ◽  
Fund Industry ◽  
Time Changes

This article considers the direct connection of the state of living of the population with the structures of the economy. In this regard, it is noted that the territorial aspects of the structure of the economy are also factors in shaping the structure of people 's needs, despite the fact that the latter are poorly structured. The study showed that the extent of structural changes in the economy, apart from the needs of the population, is affected by such critical proportions as the ratio of production to consumption, the savings fund to consumption fund, industry and agriculture, growth of production and transport development, growth of cash incomes of the population and their commodity coverage. In total production theoretical analysis has also shown that structural changes in the economy depend on the level of change in the share of each sector of the economy At the same time, changes also affect economic growth and human well-being in different ways.

The Nexus Between Seniors' Tourism Expenditure and Well-Being in China

2020 ◽  
Vol 25 (1) ◽  
pp. 169-174
Author(s):  
Renuka Mahadevan ◽  
Vanessa Sha Fan
Keyword(s):  
Economic Growth ◽  
Life Satisfaction ◽  
Government Policy ◽  
Rural Areas ◽  
Empirical Relationship ◽  
Well Being ◽  
Tourism Demand ◽  
Leisure Travel ◽  
Policy Strategy ◽  
Tourism Expenditure

An examination of the two-way relationship between tourism expenditure and life satisfaction for seniors is undertaken in this article. This examination uses panel data on China's seniors and tracks the same seniors over 3 years. Results show that there is bidirectional causality between tourism expenditure and life satisfaction, casting doubt on previous studies that do not consider this two-way relationship. This empirical relationship highlights the importance of a two-pronged policy strategy— a government policy committed to social tourism programs for seniors who may not be able to afford travel and those who reside in rural areas. Another government strategy is to address aged concerns related to mobility and health to improve well-being and the provision of appropriate facilities for leisure travel. Senior tourism demand was found to be income inelastic and this result means that senior tourism can buffer Chinese economic growth in times of economic crisis and uncertainty, making the twin policy strategy a worthwhile consideration.

Growth and Social Capital: Empirical Analysis of the Relationship

2019 ◽  
pp. 128-134
Author(s):  
Ksenia V. Bagmet
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Economic Development ◽  
Social Development ◽  
Empirical Analysis ◽  
Panel Data Analysis ◽  
Well Being ◽  
Developed Countries ◽  
International Institute ◽  
Level Of Economic Development

The article provides an empirical test of the hypothesis of the influence of the level of economic development of the country on the level of development of its social capital based on panel data analysis. In this study, the Indices of Social Development elaborated by the International Institute of Social Studies under World Bank support are used as an indicators of social capital development as they best meet the requirements for complexity (include six integrated indicators of Civic Activism, Clubs and Associations, Intergroup Cohesion, Interpersonal Safety and Trust, Gender Equality, Inclusion of Minorities), comprehensiveness of measurement, sustainability. In order to provide an empirical analysis, we built a panel that includes data for 20 countries divided into four groups according to the level of economic development. The first G7 countries (France, Germany, Italy, United Kingdom); the second group is the economically developed countries, EU members and Turkey, the third group is the new EU member states (Estonia, Latvia, Lithuania, Romania); to the fourth group – post-Soviet republics (Armenia, Georgia, Russian Federation, Ukraine). The analysis shows that the parameters of economic development of countries cannot be completely excluded from the determinants of social capital. Indicators show that the slowdown in economic growth leads to greater cohesion among people in communities, social control over the efficiency of distribution and use of funds, and enforcement of property rights. The level of tolerance to racial diversity and the likelihood of negative externalities will depend on the change in the rate of economic growth. Also, increasing the well-being of people will have a positive impact on the level of citizens’ personal safety, reducing the level of crime, increasing trust. Key words: social capital, economic growth, determinant, indice of social development.

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