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Monday, 2 March 2015

Response to “The International Monetary Fund and the Ebola outbreak”

There are several factual inaccuracies in the Comment by Alexander Kentikelenis and colleagues.1
First, it is not correct to say that health-care expenditures have declined in Sierra Leone, Guinea, and Liberia. As Benedict Clements, Masahiro Nozaki, and I note in a recent blog,2 spending on health and education have increased faster in low-income countries with programmes supported by the International Monetary Fund (IMF) than in those without. According to IMF estimates, in Guinea, spending increased by 0·7 percentage points from 2010 to 2013, in Liberia by 1·6 points, and in Sierra Leone by 0·24 points.
More generally, World Bank data3 show that health outcomes in sub-Saharan Africa, including the three Ebola-hit countries, have improved significantly over the past decade or so, including improvements in mortality rates (falling by about 30%), child nutrition, defined as the proportion of children aged younger than 5 years whose weight for age is more than 2 SD below the median for the international reference population ages 0–59 months (improving by 9%), and sanitation (improving by 9%).
Second, it is simply not correct to say that the IMF requires caps on the public-sector wage bill. In 2007, the IMF announced a new policy on wage bill ceilings,4 as part of an overall effort to promote more effective and sustainable use of aid flows to low-income countries. In fact, IMF programmes in Guinea, Liberia, and Sierra Leone have not had any limits on the wage bill during the period 2000–14.5
The fact is that Guinea, Sierra Leone, and Liberia were doing relatively well trying to overcome years of instability, including civil wars that claimed tens of thousands of lives and had a devastating effect on social infrastructure.
The arrival of Ebola put severe pressure on already fragile infrastructure and health-care systems. The IMF recognised the urgency of the situation and moved quickly to help, as Kentikelenis and colleagues note.1 The IMF made available6 an additional US$130 million to the three countries to fight Ebola. We are also working on mechanisms to allow us to move rapidly to provide more debt relief to these countries—which would free up more resources that could be used for health-care spending.

References

  1. Kentikelenis, A, King, L, McKee, M, and Stuckler, D. The International Monetary Fund and the Ebola outbreak. Lancet Glob Health. 2014; (published online Dec 22.)http://dx.doi.org/10.1016/S2214-109X(14)70377-8.
  2. Clements, B, Gupta, S, and Nozaki, M. What happens to public health spending in IMF-supported programs? Another look. http://blog-imfdirect.imf.org/2014/12/21/what-happens-to-public-health-spending-in-imf-supported-programs-another-look/. ((accessed Dec 23, 2014).)
  3. The World Bank. World development indicators. http://databank.worldbank.org/data/views/variableSelection/selectvariables.aspx?source=world-development-indicators. ((accessed Dec 30, 2014).)
  4. Martijn, JK and Tareq, S. IMF moves to clarify aid role. http://www.imf.org/external/pubs/ft/survey/so/2007/NEW0720B.htm. ((accessed Dec 23, 2014).)
  5. International Monetary Fund. The IMF and aid to sub-Saharan Africa. http://www.imf.org/external/np/ieo/2007/ssa/eng/pdf/report.pdf. ((accessed Dec 30, 2014).)
  6. IMF Survey. IMF approves $130 million for countries worst hit by Ebola. http://www.imf.org/external/pubs/ft/survey/so/2014/new092614a.htm. ((accessed Dec 23, 2014).)