Development Assistance for Healthcare

In the context of achieving the millennium development goals (MDGs) for health, development assistance for health by donor countries assumes significance. The effectiveness of such aid depends upon the ‘absorptive capacity’ of the recipient countries. Absorptive capacity has macroeconomic, budgetary, management, and service delivery dimensions. It rests on critical macro conditions like: good governance, controlled corruption, and sound financial institutions.

Of crucial importance is the need to have trained human resources in public sector management and service delivery. In order to ensure the adherence to the desired norms of efficient spending, aid recipient countries must base their macroeconomic and sectoral reforms on poverty reduction strategies.