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WHO Releases Guidance to Tackle Drastic Cuts in Global Health Financing

  //business-finance.news-articles.net/content/202 .. kle-drastic-cuts-in-global-health-financing.html
  Published in Business and Finance on Saturday, November 8th 2025 at 13:34 GMT by The Daily Star
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WHO Releases Guidance to Tackle Drastic Cuts in Global Health Financing

The World Health Organization (WHO) has issued a comprehensive guidance document aimed at helping governments confront the severe reductions in health budgets that have plagued many countries in the aftermath of the COVID‑19 pandemic and the ensuing economic downturn. The guidance, titled “Addressing Drastic Global Health Financing Cuts: A Strategic Approach,” is designed to offer concrete steps for maintaining essential health services while navigating fiscal constraints.

Why the Guidance Was Needed

Health spending worldwide has faced a steep decline since 2019, according to the most recent WHO Global Health Expenditure Report. Low‑income countries, in particular, have seen a 12 % drop in per‑capita health expenditure, while middle‑income nations are reallocating funds to other pressing economic priorities. The guidance responds to a WHO Assembly resolution that called for a unified global strategy to safeguard health systems against such fiscal shocks.

WHO Director‑General Dr. Tedros Adhanom Ghebreyesus emphasized that “health is a fundamental human right, and cutting budgets compromises our ability to respond to health emergencies and to achieve universal health coverage (UHC).” He urged member states to implement the recommendations in the guidance to keep health systems resilient.

Core Components of the Guidance

The guidance is organized around five pillars, each addressing a critical area of health financing:

1. Mobilization of Domestic Resources
   The document recommends establishing a national health finance task force to identify untapped revenue sources. It encourages progressive taxation on health‑related commodities and the use of macroeconomic modeling to estimate the optimal health budget for each country’s income level. Countries that successfully increased their health share of GDP—such as Bangladesh’s rise from 4 % to 5 % in 2022—are highlighted as case studies.

2. Enhancing Efficiency and Value for Money
   WHO suggests the use of health technology assessment (HTA) to prioritize high‑impact interventions and the adoption of digital health platforms to reduce administrative costs. The guidance cites the World Bank’s Health Systems Strengthening (HSS) program as an example of how digital tools can streamline supply chains and data collection.

3. Strengthening Public‑Private Partnerships (PPPs)
   The guidance outlines models for PPPs that can deliver services at lower cost without compromising quality. It includes a section on how to structure contracts to ensure equitable access and maintain price controls, especially for essential medicines.

4. Transparency, Accountability, and Governance
   The guidance calls for robust financial reporting frameworks and independent audits of health spending. WHO recommends adopting the International Health Regulations (IHR) Annex 2 tools to monitor health system performance and to create a culture of data‑driven decision making.

5. Leveraging International Aid and Multilateral Support
   WHO stresses the importance of coordinated funding from entities such as UNICEF, Gavi, and the Global Fund. The guidance provides an overview of the Global Financing Facility (GFF) and the Global Fund’s 2024 allocation, encouraging countries to align their national plans with these mechanisms to avoid duplication and maximize impact.

Link‑Backs to Key Resources

The article on The Daily Star links to several critical WHO resources that deepen the context:

• WHO Guidance PDF – An 18‑page document offering detailed action plans, case studies, and financial modeling tools. It includes annexes on budget forecasting, risk‑adjusted cost‑effectiveness thresholds, and PPP contract templates.

• WHO Health Systems Strengthening Page – A web portal summarizing global best practices for health system resilience, including evidence‑based interventions for disease surveillance and workforce development.

• UNICEF Health & Nutrition Portal – Provides real‑time data on child and maternal health outcomes, which is essential for prioritizing interventions under constrained budgets.

• Gavi’s COVID‑19 Vaccine Initiative – Details how Gavi’s financing mechanisms support low‑income countries in maintaining immunization coverage even when domestic funds are low.

• Global Fund Annual Report 2023 – Offers a breakdown of disbursements, highlights successful projects, and outlines upcoming funding priorities for HIV, tuberculosis, and malaria.

These linked resources collectively offer a blueprint for governments to navigate the financial squeeze while ensuring that essential health services remain uninterrupted.

Implications for Low‑ and Middle‑Income Countries

The guidance is particularly relevant for countries that have faced abrupt budget cuts. For instance, the Philippines, which reported a 15 % reduction in its health budget in 2022, is now looking to WHO’s recommendations on PPPs to maintain maternal and child health services. Similarly, Kenya has expressed interest in the WHO’s proposed health technology assessment framework to better allocate limited resources.

The guidance also addresses the need for equitable access. It highlights that cuts often disproportionately affect rural and underserved populations. By advocating for targeted subsidies and community‑based health financing schemes, the guidance helps ensure that vulnerable groups are not left behind.

Looking Ahead

WHO’s guidance arrives at a critical juncture. While the global economy begins to recover, the shadow of fiscal austerity remains. By providing a clear, actionable framework, WHO aims to empower countries to sustain health gains made over the past decade and to accelerate progress toward UHC. Governments, donors, and civil society actors are urged to collaborate closely, aligning national plans with the guidance’s recommendations and the strategic priorities of international partners.

As nations grapple with tightening budgets, the guidance serves as a rallying point for a coordinated, evidence‑based approach to health financing—an essential step toward safeguarding public health in a post‑pandemic world.