By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    bowl of vegetable salad
    Raw Foods: benefits and harms
    November 9, 2021
    pros and cons of the keto diet
    Read This Before You Follow the Keto Diet
    May 18, 2022
    spinal cord injuries
    4 Potential Causes of Spinal Cord Injuries (and How to Seek Compensation)
    May 25, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Doctors Say No to Accountable Care Organizations
    May 13, 2011
    Maine Versus Vermont
    June 6, 2011
    What Difference Has RomneyCare Made?
    July 14, 2011
    Latest News
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
    Strengthening Healthcare Systems Through Clinical and Administrative Career Development
    June 13, 2025
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Ethiopia’s AIDS Spending Cliff
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Global Healthcare > Ethiopia’s AIDS Spending Cliff
Global Healthcare

Ethiopia’s AIDS Spending Cliff

Amanda Glassman
Last updated: September 11, 2012 3:27 pm
Amanda Glassman
Share
6 Min Read
SHARE

 

This is a joint post with Kate McQueston.

 

This is a joint post with Kate McQueston.

More Read

How Will We Care for Six Million Centenarians by 2050?- Video
12 Great Clinical Trial Finder Websites
Mosquito-Dissecting Robot May Bring Malaria Vaccine Closer to Reality
Social Media in Disasters – What’s in Your Disaster Toolkit?
AI in Healthcare: Balancing Innovation with Cybersecurity

There’s an AIDS spending cliff in Ethiopia and the government is already in free fall. Next year, Ethiopia will experience a 79% reduction in US HIV financing from PEPFAR. The announcement of these cuts came with an explanation that PEPFAR was “free(ing) up resources by reducing programs in lower HIV prevalence countries” (see blog). Further, Global Fund monies have gone almost completely undisbursed in 2012. These cuts in spending might be warranted due to epidemiological trends and improved efficiency, or might cripple progress as health programs dependent on external donors are cut back. The truth is, with the current poor status of basic information on beneficiaries and costs, it’s difficult to judge whether these cuts are good or bad.

The US$191 million decline of PEPFAR funding from 2012 to 2013 is part of a broader trend of decreasing funding in recent years. With its dynamic and popular minister of health, Dr. Tedros Ghebreyesus, Ethiopia had long been a donor darling. Cumulatively, PEPFAR contributed more than $1.4 billion to Ethiopia, and, between 2006 and 2011, PEPFAR’s annual contribution to Ethiopia more than doubled. Ethiopia received more funding from the Global Fund than any other country—with total disbursements of $1.16 billion. In 2008, AIDS spending accounted from more than 20% of total spending on health, of which 84% was externally funded.

Yet, as shown in the chart below, total funding from PEPFAR-Global Fund peaked in 2010, and has since decreased by almost 50 percent as of 2012. The Global Fund has yet to disclose how much of two newly signed grants (US$424 million designed to span 5 years) will be disbursed in 2013. But even if the full amount of these new grants were to be spent during 2013, this hypothetical PEPFAR-Global Fund total wouldn’t get close to matching Ethiopia’s total annual funding from these two sources in 2010.

Increased government spending might be one reaction to donor cuts. However, the Ministry of Finance publicly reported expenditure for the last time in 2009 and the most recent round of National Health Accounts is from 2007/8, so what fiscal adjustments have been made are yet to be seen. Even with increasing public spending associated with several years of positive economic growth, Ethiopia has always had an extremely low revenue to GDP ratio and high inflation (and associated tight cash controls on government expenditure), making substantial new public funding to health unlikely. A new factor in the equation is the political instability following the death of Prime Minister Meles Zenawi that may also compromise the size and speed of disbursements.

Increasing amounts of funding up to 2010 may have resulted in the peak number of individuals that received ART in 2011 as well as other effects, but will the funding crash of 2012/13 affect these gains? Can the same or better be provided with much less? In other words, could the backlog of funding and efficiency improvements make it possible to provide more with less in Ethiopia?

Sources:

PEPFAR, PEPFAR, PEPFAR Funding Allocations, Global Fund, PEPFAR, UNAIDS

*Note: Global Fund Disbursements for 2012 are to-date. 2013 figures for PEPFAR are included in the Administration’s budget request to Congress. 2013 figures for the Global Fund are approved disbursements from grants round 10 and lower.

A recent CSIS paper suggests that Ethiopia should still be on track to achieve universal coverage of ART in 2014 despite reduced HIV funding. Unfortunately, it’s very difficult for external commentators to assess this possibility. We don’t know exactly what interventions PEPFAR, the Global Fund and -perhaps most importantly- the Government of Ethiopia are currently financing and for whom, and we don’t know the actual cost of these interventions in Ethiopia. Therefore, we can’t link spending to enrolled patients or disease results. It’s possible that PEPFAR and the Global Fund have this analysis in their pocket? I hope so, since without this link, even a well-intentioned donor or Minister of Finance can’t understand or plan for the programmatic and human impact of cuts, or assess the potential for savings and reallocation via improved efficiency.

The AIDS spending cliff in Ethiopia also raises issues on likely funding cuts and new eligibility and allocation policies in general. It’s a great idea to reallocate monies to more affected, more impoverished countries, or countries that can spend monies more efficiently. Yet when you’re funding life-saving care for a defined population and you’re not able to connect money to patients, cutting abruptly is a terrible idea. Transitioning to a new allocation requires a basic set of information on expenditure and its uses –ideally connected to patients themselves, and it requires dialogue with country governments and other donor partners to smooth any cliffs into gentle slopes.

 

TAGGED:AIDSEthiopia
Share This Article
Facebook Copy Link Print
Share
By Amanda Glassman
As a healthcare blogger and author, I have been writing about the latest developments in the medical field for over 10 years. My work has been featured on various online publications, including Healthline and WebMD. I am passionate about educating people on how to stay healthy through proper nutrition and exercise practices. In addition to my blog posts, I have also authored several books that focus on health topics such as dieting tips, disease prevention strategies, and mental health awareness initiatives. My goal is to provide readers with reliable information so they can make informed decisions regarding their well-being.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

recovering from injury
Rebuilding After Injury: Path to Physical and Emotional Recovery
News
June 22, 2025
scientist using microscope
When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
Global Healthcare
June 18, 2025
How Therapy Can Improve Your Mental Health and Daily Life
How Therapy Can Improve Your Mental Health and Daily Life
Mental Health
June 18, 2025
healthcare facilities
Preventing Contamination In Healthcare Facilities Starts With Hygiene
Global Healthcare Infographics
June 15, 2025

You Might also Like

Image
eHealthGlobal HealthcareMobile Health

Mobile Health Around the Globe: eMocha Delivers Knowledge at the Point of Care

March 18, 2013
saving money in healthcare
BusinessGlobal HealthcareHospital Administration

Best Money-Saving Tips for Health Managers

January 12, 2023
conducting Clinical Trial
Global Healthcare

5 Tips for Conducting a Clinical Trial

July 26, 2023
Global Healthcare

The Formula of Driver and Demand- Indian Startups story

February 14, 2016
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?