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Countries face sharp health financing cliffs amid dwindling aid, warns The Lancet article - P4H Network

Countries face sharp health financing cliffs amid dwindling aid, warns The Lancet article

Global health aid is declining, with over 3 billion people in debt-burdened countries. Nations like Nigeria and Thailand are adapting, but coordinated, sustainable solutions are urgently needed.

The global health community is facing a critical juncture, as highlighted in a recent Lancet comment titled Navigating health financing cliffs: a new era in global health, published on April 25, 2025. Authored by Kumanan Rasanathan, Maylene Beltran, Alberta Biritwum-Nyarko, Mark Blechner, Mark Dybul, Hajime Inoue, and others, and supported by the World Health Organization (WHO), the article outlines the implications of declining development assistance for health and the urgent need for financial transition strategies.

Since the UN Millennium Declaration in 2000, global health progress has been shaped by substantial increases in aid and domestic investment. However, a sharp reduction in external funding in early 2025—particularly from the US and European donors—has strained countries already facing economic pressure. This has led to what the authors describe as “health financing cliffs,” with over 3 billion people now living in countries that spend more on debt servicing than on health or education.

The article discusses how countries such as South Africa, Nigeria, and Thailand are adopting measures to address funding shortfalls, from reallocating national budgets to integrating externally supported services into domestic systems. It also explores the potential of alternative financing tools, including debt-to-health swaps, digital innovation, and regional procurement mechanisms.

The authors emphasise the importance of coordinated global support, improved data transparency, and strategic planning to ensure continued progress toward universal health coverage. The piece calls for renewed leadership and sustainable investment models suited to evolving national and global realities.

Reference
Kumanan Rasanathan, Maylene M Beltran, Alberta A Biritwum-Nyarko, Mark S Blecher, Mark Dybul, Hajime Inoue, Kelechi Ohiri, Walaiporn Patcharanarumol, Yogan Pillay, K Srinath Reddy, Minghui Ren, Zubin Cyrus Shroff, Bright Simons, Susan Sparkes, Kalipso Chalkidou, Navigating health financing cliffs: a new era in global health, The Lancet, 25 Apr 2025