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Is corruption a barrier to effective public financial management for health? - P4H Network

Is corruption a barrier to effective public financial management for health?

Corruption undermines efforts to achieve Universal Health Coverage. Combining anti-corruption efforts with well-designed PFM systems offers a two-pronged approach to achieving UHC.

Corruption is a significant barrier to achieving Universal Health Coverage (UHC), which aims to provide everyone with access to affordable healthcare. This CGDev blog post estimates that roughly 6% of health aid funds are lost to corruption each year. The complex nature of health systems and the lack of transparency in budgeting processes make them particularly susceptible.

The blog explores how corruption can occur throughout the entire budget cycle. During the planning stage, funds might be deliberately misallocated to favor certain projects or regions, or even used to create “ghost workers” by inflating payroll numbers. The procurement of health services and products is another high-risk area during budget execution. Bribery and undue influence can manipulate decisions and inflate costs, especially when procurement processes are fragmented or overly complex. Weak oversight throughout the budget cycle allows for misuse of funds and missed opportunities to identify corruption. This lack of transparency and accountability ultimately erodes public trust in the government’s ability to deliver healthcare services.

The blog argues that stronger Public Financial Management (PFM) systems are essential to combat corruption. These systems promote transparency and accountability throughout the budget cycle, making it more difficult to misuse public funds. The authors emphasize the need for further research to identify the most effective anti-corruption strategies. This includes conducting in-depth analyses of how corruption manifests throughout the budget cycle in different countries. By working together and sharing best practices, we can develop and implement effective solutions to achieve UHC and ensure that everyone has access to the healthcare they need.

Reference
Julia Sallaku , David Clarke , Sanjeev Gupta , Sheila O’Dougherty , Jennifer Asman , Danielle Serebro, Hélène Barroy, Corruption—Standing in the Way of Effective Public Financial Management for Health?, Center For Global Development