Relevance for Development and Poverty Reduction
Access to Health Services Alleviates Poverty
No quality of life without health. Source: MSI Uganda
Improving the health and life expectancy of poor people is a fundamental goal of economic development. This is what the WHO's Commission for Macroeconomics and Health wrote in its 2001 report, which still applies today. Health plays a crucial role for development as it affects people's quality of life, their productivity and opportunities.
In developing countries, poverty and poor health often go hand in hand. Poverty increases people's risk of falling ill and poor health reduces a person's chances of learning a skill, which in turn worsens a family's income situation. The income situation of the poor cannot be improved sustainably without improving their health situation.
Access to Health Services Reduces Poverty
Poor people, particularly in rural areas, not only suffer from the lack of health services - they also don't have the financial resources to be able to afford health services in the first place. Policies for free basic health services which have been introduced by many African governments fail to improve the health situation of the population in reality because of the persisting low service quality, insufficient staff, lack of medication or informal user fees.
One sick family member is enough to wipe out the income of an entire household. If the breadwinner falls ill, the whole family comes under financial distress. In such a case, even families of higher economic status may be forced to borrow money and thereby drop into poverty. This is mainly caused by the high share of health expenses they have to bear and the absence of functioning insurance systems.
KfW Entwicklungsbank therefore promotes programmes that make it easier for poor people to access health services, either by improving the offer of high-quality health services or by providing financial support to users, for instance in the form of vouchers or insurance policies.
Good Health Improves Development Opportunities...
...to which every person has a right. The decisions of individual households in developing countries are affected in various ways by the health risks and dangers to life these individuals are subject to. Where a high number of children is necessary to secure the survival of the family, this reduces the resources available to each family member. As a result, investments into an individual's future, such as education, are not possible or not attractive because of the high uncertainty in this context.
KfW Entwicklungsbank puts a focus on family planning programmes in order to create the conditions in which a country's population has better opportunities to realise their potential. A lower risk of illness resulting from a reduction in under-five and maternal mortality and the control of HIV/AIDS, tuberculosis and malaria opens up new scope for investments in the future. Thus, providing people with easier access to modern contraceptive methods and education can contribute to preventing the spread of HIV and to self-determined family planning. Moreover, awareness campaigns encourage mothers to space their births farther apart and, in this way, provide women with improved income opportunities.
In addition to family planning, KfW Entwicklungsbank also promotes programmes that support partner governments in improving their public health systems, for instance through programme-based approaches which centre on sector planning, financing aspects and nationwide implementation. The private sector is also involved in these concepts.
Last updated: July 2011
