[Reader-list] IMF and TB
Ananth S
sananth99 at gmail.com
Sun Jul 27 11:52:32 IST 2008
Weekend Edition
July 26 / 27, 2008
How the IMF Contributes to Rising TB Rates
The Scourge of the IMF
By ROBERT WEISSMAN
http://www.counterpunch.org/weissman07262008.html
Tuberculosis, a treatable disease, kills 1.7 million people a year
worldwide.
TB incidence, according to the World Health Organization seems to be
correlated to broad social factors, like access to clean water and
sanitation, HIV incidence and national health expenditures.
A just published study in the journal PLoS (Public Library of Science)
Medicine investigates the role of different possible explanatory
factor: the International Monetary Fund (IMF). The researchers' study
focuses on the period 1991 to 2003 for the former Soviet Union and
Eastern Europe, a region for which there is robust data.
The results: The researchers concluded "that IMF economic reform
programs are strongly associated with rises in tuberculosis mortality
rates in post-communist Eastern European and FSU [former Soviet Union]
countries, even after correcting for potential selection bias,
tuberculosis surveillance infrastructure, levels of economic
development, urbanization, and HIV/AIDS."
"We estimated an increase in tuberculosis mortality rates when
countries participate in an IMF program, which was much greater than
the reduction that would have been expected had the countries not
participated in an IMF program. On the other hand, we estimated a
decrease in tuberculosis mortality rates associated with exiting an
IMF program."
In other words: When countries entered IMF programs, TB rates went up.
When the programs ended and countries escaped from IMF influence, TB
rates went down.
OK, but the region was in chaos after the fall of the Soviet Union.
Economies crashed and per capita income plummeted. Crime rose,
incarceration rates jumped, HIV spread. Aren't these the real factors
behind rising TB rates?
Explains Sanjay Basu of Yale University, one of the study authors:
"First of all, not all of these countries in this region were
dependent on the former Soviet Union. Many of them actually had an
increase in GDP after the fall of the former Soviet Union. Several
were not part of the trading bloc. And in some of the key countries
where TB rates rose, we actually saw an increase in economic growth.
So economic downturns could not explain, as the WHO itself has stated,
the trends of tuberculosis in that regions. Something else was going
on."
"The reason we use such heavy statistics is precisely to factor in
these other issues -- incarceration, HIV, changes to the economy,
changes to the healthcare infrastructure. We found a statistically
independent effect of the IMF. That's not to say that the IMF was the
only cause of TB in this region. The economy, incarceration, HIV --
these are all very important, but those factors could not fully
explain TB in the region."
The PLoS study found that participating in an IMF program correlated
with increases in tuberculosis incidence of 13.9 percent and an
increase in TB mortality rates of 16.6 percent. Basu says that, if the
study results are valid, they suggest "we would have averted tens of
thousands of deaths and hundreds of thousands of new cases" if
countries in the region had never entered IMF programs.
The theory of the study authors is that IMF programs drive down
healthcare spending, and this reduced investment in healthcare
explains the rise in TB incidence and death. Basu emphasizes,
correctly, that the issue is not so much the IMF directing countries
to spend less on health. Rather, it imposes a set of policy
constraints -- including overall limits on government spending, and
needlessly low inflation targets -- that inevitably result in
countries spending less on health.
There are always variations between regions, but there is nothing
about the PLoS researchers' story that suggests things are any
different in Africa, the region where the IMF now exerts the most
influence.
Not surprisingly, the IMF has rejected the PLoS findings. "Severe
methodological shortcomings limit the scope of these results and
prevent any causal interpretation," asserts an IMF response that is
much more subdued than comments from spokespeople. "The fundamental
problem is that this study does not take properly into account that
countries implement IMF-supported reforms in times of economic
distress."
Says the IMF response: "The authors do not take into account that the
economic and social instability following the collapse of Soviet Union
may have had a direct impact on TB incidence in the 21 transition
economies considered in the study."
The problem with this line of argument is that it is not true. The
authors did take the economic and social instability into account.
Can anything be done about IMF policies with such harmful impacts?
Yes. The IMF is a human creation, not a force of nature.
The United States Congress will next year have a unique opportunity to
influence IMF policy. The IMF needs approval from the Congress to go
ahead with plans to sell some of the gold it controls. This gold would
be used to fund the IMF's administrative costs -- a new income stream
the IMF desperately needs. Interest payments from middle-income
countries previously paid for administrative costs, but these
countries have paid back their loans in order to escape from IMF
influence.
As the U.S. Congress looks to approve gold sales to finance the IMF,
it must insist that the IMF first end the mandates that effectively
restrict countries' health spending, and force borrowing countries to
implement a discredited market fundamentalist policy agenda.
Robert Weissman is editor of the Washington, D.C.-based Multinational
Monitor, and director of Essential Action.
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