Half of poorest countries have cut health spending despite Covid, says Oxfam
Many of the world’s poorest countries have cut health spending during the last two years, sometimes to make debt repayments to rich creditors, according to a report by Oxfam that shows inequality between rich and poor nations worsening during the coronavirus pandemic.
Analysis of national budgets across 161 nations found that despite the biggest global health emergency in a century, half of low- and lower-middle-income countries cut health spending, while almost half cut their welfare budgets and almost three-quarters cut education spending.
Oxfam said the 2022 Commitment to Reducing Inequality Index found that rich countries, including the UK, “exacerbated an explosion of economic inequality” by overseeing demands by lenders for huge debt repayments while the pandemic ravaged annual spending plans.
As finance ministers gather in Washington this week for the International Monetary Fund (IMF) and World Bank annual meetings, Oxfam said developing nations were facing “a global economy that is making it ever more difficult to meet the needs of their population”.
The charity accused the IMF of exacerbating economic inequality and poverty in poor countries by insisting on new austerity measures to reduce debts and budget deficits.
Oxfam and Development Finance International said analysis of data from the IMF showed that three-quarters of all countries were planning further cuts to public spending over the next five years, totalling $7.8tn (£7tn).
In the fourth edition of the index, Oxfam ranked governments on their commitment to reducing inequality. Areas covered include public services and welfare protection, taxation and workers’ rights. Policy commitments are also held up to scrutiny to test their implementation and their impact
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