Congo Ebola crisis prompts IMF to consider pandemic financing reforms | Today’s news
(Bloomberg) — The International Monetary Fund is considering incorporating pandemic preparedness reforms into its financing program for the Democratic Republic of Congo, as the country’s worsening Ebola epidemic exposes weaknesses in the way it finances and responds to health emergencies.
Congo is working with the World Health Organization and the World Bank on measures that could be included in the IMF’s Resilience and Sustainability Facility in a future review, according to a report it released on Tuesday. Discussions focused on developing a strategy for funding pandemic prevention and response.
“Public health shocks in the DRC are recurring rather than exceptional,” the Washington-based lender said, citing repeated outbreaks of Ebola, cholera, measles and other diseases. Without stronger preparedness and more effective financing and coordination, future health emergencies could “threaten macroeconomic stability.”
The urgency has increased since the IMF completed its assessment in mid-June. The Ebola outbreak in Congo has spread to 6,686 confirmed infections and 3,226 deaths in six provinces as of September 6. The epidemic remains unchecked, with transmission easing in some former hotspots while accelerating in others.
Congo and its partners now estimate they need $1.3 billion for six months to deal with the epidemic. Treatment capacity must more than double to around 3,000 beds by the end of October, which will require thousands of additional health workers, the WHO said on Tuesday.
Congo’s framework for epidemic preparedness and response remains “fragmented and incomplete”, the IMF said. Declining international aid has further weakened its ability to prevent, detect and respond to epidemics.
Congo is particularly vulnerable because its government spends little on health and relies heavily on outside aid. A rapid decline in development aid, combined with limited domestic health financing, has weakened the country’s ability to prevent, detect and respond to epidemics, the IMF said. External sources account for almost 40% of current healthcare expenditure.
A protracted Ebola outbreak could increase government spending while disrupting trade, transport, agriculture and mining logistics, the IMF said.
Previous epidemics have incurred fiscal costs equivalent to about 0.1% to 0.2% of gross domestic product, while the current outbreak may require higher government spending due to delayed detection, logistical difficulties and reduced international health and humanitarian aid, the lender said.
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