SikhSpectrum.com Quarterly Issue No.18, November 2004
World Bank and Poverty Alleviation
by Priya Rajan AID India
I would like to thank Karthik Ramanathan for providing the summary of Dr. Gupta's talk.
Dr. Vineeta Gupta is a renowned medical doctor and a human rights
activist, who recently spoke at a seminar in Houston, Texas (USA). It was a pleasure hosting her, and the seminar was one of the best we (AID) have had in Houston. Dr. Gupta discussed many issues relating to health and human rights, shared her
personal experiences, and made recommendations on policy changes.
Dr. Gupta started with different levels of health treatment available to Indian citizens,
namely primary, secondary and tertiary, and the constitutional right for all Indian citizens to basic medical treatments.
Vineeta Gupta
Dr. Gupta’s presentation also focused on the central and state budgets in hospitals
and its transformation into corporation thereby making expense
unaffordable for the common masses. Vineeta discussed the problems of
corruptions and funding for mega projects from the World Bank, an organization that is privatizing healthcare in Third World countries by
funding commercial projects in the name of poverty alleviation.
India
is an excellent example of this trend. The Punjab Health Systems
Corporation (PHSC), financed by the World Bank, is
facilitating the commercialization of healthcare in Punjab. The
result, however, is more expensive and less accessible healthcare for
the poor, parallel health infrastructure, and increased corruption.
The problems that were identified with the World Bank's work in the
health sector include, among others:
1. The WB promotes healthcare as a commercial activity, thus advancing
the underlying philosophy that those without money will not receive
treatment. This results in a denial of the right to health and
undermines the state's responsibility in providing basic healthcare to
its citizens.
2. The poor and women are hit worse by the increased costs of
treatment. This often forces them to depend on quacks and
superstitious methods of treating their medical problems. Though
banned by the courts, "quacks" (unqualified medical practitioners,
most of them totally illiterate) flourish in India because medical
treatment is unaffordable for common people. Quack practitioners can
undermine healthcare, by spreading communicable diseases like AIDS and
Hepatitis-B, and will often provide inadequate guidance on the use of
drugs, thus increasing drug resistance.
3. Provisions to facilitate healthcare access for the poor are often
designed in a way making it difficult for people to take advantage of
the services. For example, in parts of India the poor require a
government-issued 'yellow card' in order to access certain benefits.
However, actually getting this card is extremely difficult.
Under WB health corporation projects, costs by component and
categories of expenditure are allocated in such a manner that
non-medical items, like furniture, are prioritized over lifesaving
drugs.
4. There is a lack of accountability and transparency as to the
functioning of WB-funded health corporations, and this encourages
certain kinds of fraud and corruption. For instance, certain
medical supplies lend themselves to accounting fraud during the
purchasing process. These supplies are sometimes bought not because
they are needed but because they are a source of corrupt revenue for
corporation employees. As a result, supplies do not correspond with
demand. There are numerous well-publicized reports where disposable
syringes are supplied without any injectable medicines; surgeons'
disposable masks and caps are supplied to centers with no surgical
facility. Intravenous (I.V.) infusion sets are supplied without any
I.V. fluids; lab chemicals are supplied to centers with no laboratory;
X-Ray machines are installed at many places without any radiographer
to use them; and medical goods that are nearly expired are purchased
in much greater quantity than are required.
5. Huge WB loans often lead to increased corruption since there is a
lack of concern for the utilization of the loan. A corruption scam at
Sangrur in Punjab provides a good example. The WB funded a $US600
million Reproductive and Child Health (RCH) Project, which fell victim
to the siphoning off of funds by individuals within the project.
World Bank funded healthcare projects often suffer from poor
management because the problems of the previously state-run health
services are not addressed. Instead, every failure is deliberately
attributed to the lack of funds.
6. The WB's funding for parastatal healthcare corporations that
operate in parallel to state institutions is the source of great
confusion for disadvantaged as well as common consumers. The same set
of bureaucrats in charge of previous systems head these corporations.
In Punjab this has created confusion among healthcare providers and
recipients as to the division of responsibility between the state
health department and the corporation for service delivery.
7. In an attempt to increase profits, health personnel are pressured
with monthly targets and the fear of punishment if they fail to meet
them. This results in malpractice, as the doctors try to achieve
targets by hook or by crook. In a recent move, the Punjab corporation
doctors were allotted a minimum number of major and minor operations
to be performed, plasters (for fractures of bones) to be cast,
patients to be admitted, and invasive tests to be done.
8. Bank lending may result in increased state debt without generating
any positive outcome. Ordinary people end up paying this back through
a further decrease in spending on health, education and public
services. More debt means more cuts in subsidies for basic services,
more out-sourcing of public services and huge increases in fees in
educational institutions. The result is that people's social and
economic rights are undermined and the state increasingly absolves
itself of responsibility towards its citizens.
9. The Bank also uses its lending in some sectors as leverage to
dictate policies in other sectors. For example, the World Bank
approved India's US$272 million integrated rural water supply and
environmental sanitation project in 1995. When the government made the
unrelated announcement that it intended to provide free electricity to
certain farmers, the WB stalled the aforementioned project in order to
influence the government's electricity related announcement.
Not only does the World Bank financed privatization of the healthcare
system undermine healthcare provision to marginalized populations, but
the projects also serve to increase the overall levels of
indebtedness. This results in the states growing subjugation to the
dictates of international financial institutions who use their
leverage to influence an expanding range of sectors.
Lack of transparency and accountability is leading to lot of problems
especially corruption. People should know their rights and duties so
that these corruption practices can be eliminated.
After the seminar, we had a long informal discussions on activism,
corruption, remedial methods etc. In the end it was a
worthwhile evening for many, as most of us learnt a lot from Dr. Vineeta Gupta.