I am writing to share with you a new report

from the Brookings Institution that analyzes

the capacity of Ethiopia, along with 17 other

countries, to effectively utilize private investments

in healthcare R&D.

 

 

 

 

 

Increased investment in public health is more important than ever. Although the public sector is critical to the financing of medical research and development, the private sector has a large role to play

as well. Given the proper environment—one in which it

is clear that vaccines, drugs, and diagnostics will pass

regulatory, policy, and legal muster—private sector financing

can be a key source of investment in healthcare innovation.

Therefore, assessing a nation’s capacity to make effective

use of external resources is a critical step toward increasing

private sector investment in health R&D both in that

country and around the world.

In “Health Governance Capacity: Enhancing

Private Sector Investment in Global Health,

” authors Darrell West, John Villasenor, and Jake

Schneider examine the quality of healthcare governance

in a set of 18 low- and middle-income African and Asian

countries, including Ethiopia. “Good governance is a

foundational condition for global health investment,”

the authors write. “It conditions the overall environment

in which both public and private sector health investment

takes place.”

The researchers empirically assess what they call

“overall health governance capacity” by examining

25 indicators related to the management capacity,

regulatory processes, health infrastructure and

financing, health systems, and policy conditions

in each of the 18 examined nations. Among their

key findings are many facts that are relevant to

stakeholders and policymakers in Ethiopia, such as:

• Ethiopia ranked 12^th out of 18 nations on the authors’ Health Governance Capacity Index (HGCI) Its scores on each dimension are as follows:
•         . 14 on “Leadership and Management Capacity”
  • 16 on “Health Policies”
  • 12 on “Regulations”
  • 11 on “Infrastructure and Financing”
  • 10 on “Health Systems”
• Each dimension is scored out of 20 possible points. Thus, Ethiopia scored 63 out of 100 total possible points on the HGCI.
• Vietnam, South Africa, China, and Ghana ranked highest on the Index, indicating these nations have a strong ability to attract and leverage private investment in health R&D.
• The nations that scored the lowest received low scores on the dimensions of “Management Capacity” and “Health Systems.” Targeted efforts in those areas could significantly improve their ability to absorb new investments relevant to global health goals.
• In general, low- and middle-income countries can attract greater private investment in health R&D by increasing government transparency and stability, lowering tariffs on medical products, expediting the regulatory process for new drugs, investing in health infrastructure, and increasing government spending on health care (to the amount fiscally possible) in an efficient and targeted manner.

The authors conclude: “By boosting private investment

in global health R&D, the world can achieve even more

impressive gains in personal well-being and economic

growth.” You can read the full analysis at

https://www.brookings.edu/research/health-governance-capacity/.

Please let me know if you have any questions or would

like to speak with the authors.

Kindly,

Louis

Louis Serino
Communications Manager, Governance Studies
Managing Editor, Brown Center Chalkboard
BROOKINGS | 1775 Massachusetts Ave. NW |

Washington DC 20036
Phone: (202) 797-6115| Email: lserino@brookings.edu

Health governance capacity