Invest $1.2 trn for access to health care, ILO tells developing countries

The International Labour Organisation (ILO) has urged developing countries to invest approximately US$1.2 trillion on average 3.8 per cent of their GDP to guarantee at least basic income security and access to essential health care for all in 2020.

The organisation in a new policy brief said since the outbreak of COVID-19 pandemic, the social protection financing gap increased by approximately 30 per cent.

“This is the result of the increased need for health-care services and income security for workers who lost their jobs during the lockdown and the reduction of GDP caused by the crisis.

“Situation is particularly dire in low income countries who would need to spend nearly 16 per cent of their GDP to close the gap – around US$80 billion.

“Regionally, the relative burden of closing the gap is particularly high in Central and Western Asia, Northern Africa and Sub-Saharan Africa (between 8 per cent and 9 per cent of their GDP).

“Even before the COVID-19 crisis, the global community was failing to live up to the social protection legal and policy commitments it had made in the wake of the last global catastrophe – the 2008 financial crisis”.

Also speaking,  Director ILO Social Protection Department, Shahrashoub Razavi, said  closing the annual financing gap requires international resources based on global solidarity.

He said only 45 per cent of the global population was effectively covered by at least one social protection benefit, adding the remaining population – more than 4 billion people – was completely unprotected.

“National and international measures to reduce the economic impact of the COVID-19 crisis have provided short-term financing assistance. Some countries have sought innovative sources to increase the fiscal space for extending social protection, like taxes on the trade of large tech companies, the unitary taxation of multinational companies, taxes on financial transactions or airline tickets. With austerity measures already emerging even with the crisis ongoing, these efforts are more pressing than ever, the study says.

Razavi further said: “Domestic resources are not nearly enough. Closing the annual financing gap requires international resources based on global solidarity.

“Mobilisation at the international level should complement national efforts.

“International financial institutions and development cooperation agencies have already introduced several financial packages to help governments of developing countries tackle the various effects of the crisis but more resources are needed to close the financing gap, particularly in low-income countries”.

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