How to finance health and education for all

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Poverty prevents as many as 200 million young children and adolescents from attending primary or secondary school.

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Poverty prevents as many as 200 million young children and adolescents from attending primary or secondary school, according to a recent estimate. In 2015, about 5.9 million children under the age of five died from easily preventable or treatable causes. Children in emerging countries die from unsafe childbirth, diseases that could be prevented by vaccinations, malaria for which there are low-cost treatments and nutritional deficiencies—all of these have been almost completely eradicated in developed countries.

 

There is evidence that health and education are closely linked in the development challenge, but both donors and recipients have responsibilities. In 1970, the world’s richest countries agreed to give 0.7% of their GNI (Gross National Income) as official international development aid, annually. Since then, despite billions given each year, rich nations have rarely met their actual promised targets.

 

Of course Official Development Aid (ODA) remains a precious resource—particularly for the least developed countries and fragile states.  But assistance is most powerful when it is used as a transformative tool—one that can act as the catalyst for investment and support domestic resource mobilisation. Some countries still have a long way to go towards eradicating extreme poverty and ensuring that economic growth everywhere is inclusive and sustainable.  Each country is unique in its needs, but a common thread is that many African countries still need to deliver quality but cost-effective education and health for all their citizens.

 

In the face of dwindling ODA budgets, it is perhaps time to start thinking out of the box on how education and health can be provided for all.  We must try to lessen the dependence on ODA.  One secure and sustainable way of doing this is to focus on domestic resources and Innovative Financing for Development (IFD) to determine new sources of revenue and manage, leverage and protect these revenues.  This could be done with the assistance of the global IFD specialist, LSL World Initiative, and its technological partners. LSL partners with governments to set up and operate national strategic development initiatives tailored to the local context. These initiatives operate with revenues generated by a comprehensive suite of micro-contributions levied in key globalised sectors such as telecommunications—which offer the best opportunities in terms of volumes and growth potential.

 

There are a range of potential revenue-creating opportunities that could be explored. In fact, micro-contributions on telecommunications and money transfers into Haiti—one of the world’s poorest countries—from the millions of Haitians living abroad has enabled the funding of a comprehensive free education-for-all programme for Haiti’s needy children. Thanks to this programme, about 1.4 million children now attend school free of charge and the elementary school attendance rate has risen from 55% to 90%.

 

Click to Tweet: Says Laurent Lamothe: “The money is there—it just has to be unlocked from the diaspora flows like remittances”.

 

A great number of untapped resources can be mobilised in this way for socio-economic development.  Harmless and microscopic contributions on enormous volumes of transactions, when aggregated, create significant amounts of revenue in sectors that benefit the most from globalisation.  These contributions could be used to send children to school or upgrade health systems.  A micro-contribution can make a mega-difference!

 

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We try to lessen the dependence on Official Development Aid. 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Poverty prevents as many as 200 million young children and adolescents from attending primary or secondary school.

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Poverty prevents as many as 200 million young children and adolescents from attending primary or secondary school, according to a recent estimate. In 2015, about 5.9 million children under the age of five died from easily preventable or treatable causes. Children in emerging countries die from unsafe childbirth, diseases that could be prevented by vaccinations, malaria for which there are low-cost treatments and nutritional deficiencies—all of these have been almost completely eradicated in developed countries.

 

There is evidence that health and education are closely linked in the development challenge, but both donors and recipients have responsibilities. In 1970, the world’s richest countries agreed to give 0.7% of their GNI (Gross National Income) as official international development aid, annually. Since then, despite billions given each year, rich nations have rarely met their actual promised targets.

 

Of course Official Development Aid (ODA) remains a precious resource—particularly for the least developed countries and fragile states.  But assistance is most powerful when it is used as a transformative tool—one that can act as the catalyst for investment and support domestic resource mobilisation. Some countries still have a long way to go towards eradicating extreme poverty and ensuring that economic growth everywhere is inclusive and sustainable.  Each country is unique in its needs, but a common thread is that many African countries still need to deliver quality but cost-effective education and health for all their citizens.

 

In the face of dwindling ODA budgets, it is perhaps time to start thinking out of the box on how education and health can be provided for all.  We must try to lessen the dependence on ODA.  One secure and sustainable way of doing this is to focus on domestic resources and Innovative Financing for Development (IFD) to determine new sources of revenue and manage, leverage and protect these revenues.  This could be done with the assistance of the global IFD specialist, LSL World Initiative, and its technological partners. LSL partners with governments to set up and operate national strategic development initiatives tailored to the local context. These initiatives operate with revenues generated by a comprehensive suite of micro-contributions levied in key globalised sectors such as telecommunications—which offer the best opportunities in terms of volumes and growth potential.

 

There are a range of potential revenue-creating opportunities that could be explored. In fact, micro-contributions on telecommunications and money transfers into Haiti—one of the world’s poorest countries—from the millions of Haitians living abroad has enabled the funding of a comprehensive free education-for-all programme for Haiti’s needy children. Thanks to this programme, about 1.4 million children now attend school free of charge and the elementary school attendance rate has risen from 55% to 90%.

 

Click to Tweet: Says Laurent Lamothe: “The money is there—it just has to be unlocked from the diaspora flows like remittances”.

 

A great number of untapped resources can be mobilised in this way for socio-economic development.  Harmless and microscopic contributions on enormous volumes of transactions, when aggregated, create significant amounts of revenue in sectors that benefit the most from globalisation.  These contributions could be used to send children to school or upgrade health systems.  A micro-contribution can make a mega-difference!

 

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Poverty prevents as many as 200 million young children and adolescents from attending primary or secondary school, according to a recent estimate. In 2015, about 5.9 million children under the age of five died from easily preventable or treatable causes. Children in emerging countries die from unsafe childbirth, diseases that could be prevented by vaccinations, malaria for which there are low-cost treatments and nutritional deficiencies—all of these have been almost completely eradicated in developed countries.

 

There is evidence that health and education are closely linked in the development challenge, but both donors and recipients have responsibilities. In 1970, the world’s richest countries agreed to give 0.7% of their GNI (Gross National Income) as official international development aid, annually. Since then, despite billions given each year, rich nations have rarely met their actual promised targets.

 

Of course Official Development Aid (ODA) remains a precious resource—particularly for the least developed countries and fragile states.  But assistance is most powerful when it is used as a transformative tool—one that can act as the catalyst for investment and support domestic resource mobilisation. Some countries still have a long way to go towards eradicating extreme poverty and ensuring that economic growth everywhere is inclusive and sustainable.  Each country is unique in its needs, but a common thread is that many African countries still need to deliver quality but cost-effective education and health for all their citizens.

 

In the face of dwindling ODA budgets, it is perhaps time to start thinking out of the box on how education and health can be provided for all.  We must try to lessen the dependence on ODA.  One secure and sustainable way of doing this is to focus on domestic resources and Innovative Financing for Development (IFD) to determine new sources of revenue and manage, leverage and protect these revenues.  This could be done with the assistance of the global IFD specialist, LSL World Initiative, and its technological partners. LSL partners with governments to set up and operate national strategic development initiatives tailored to the local context. These initiatives operate with revenues generated by a comprehensive suite of micro-contributions levied in key globalised sectors such as telecommunications—which offer the best opportunities in terms of volumes and growth potential.

 

There are a range of potential revenue-creating opportunities that could be explored. In fact, micro-contributions on telecommunications and money transfers into Haiti—one of the world’s poorest countries—from the millions of Haitians living abroad has enabled the funding of a comprehensive free education-for-all programme for Haiti’s needy children. Thanks to this programme, about 1.4 million children now attend school free of charge and the elementary school attendance rate has risen from 55% to 90%.

 

Click to Tweet: Says Laurent Lamothe: “The money is there—it just has to be unlocked from the diaspora flows like remittances”.

 

A great number of untapped resources can be mobilised in this way for socio-economic development.  Harmless and microscopic contributions on enormous volumes of transactions, when aggregated, create significant amounts of revenue in sectors that benefit the most from globalisation.  These contributions could be used to send children to school or upgrade health systems.  A micro-contribution can make a mega-difference!

 

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