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Allocation rules for global donors.

Alec Morton1, Ashwin Arulselvan1, Ranjeeta Thomas2

  • 1Strathclyde Business School, University of Strathclyde, United Kingdom.

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|February 16, 2018
PubMed
Summary
This summary is machine-generated.

Global health donors should fund slightly cost-ineffective interventions. This strategy encourages countries to invest their own resources, promoting efficient, fair, and sustainable disease control efforts.

Keywords:
Bilevel programmingDevelopment aidGame theoryGlobal healthResource allocationStackelberg game

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Area of Science:

  • Global Health
  • Health Economics
  • Development Economics

Background:

  • Major donors like the Bill and Melinda Gates Foundation significantly impact global disease reduction.
  • Current approaches often prioritize interventions based solely on cost-effectiveness ratios.

Purpose of the Study:

  • To propose an alternative framework for allocating global health aid.
  • To argue for funding interventions that are just cost-ineffective for recipient countries, thereby stimulating domestic resource contribution.

Main Methods:

  • Developed a theoretical model based on a leader-follower game.
  • Analyzed scenarios where a donor subsidizes country-implemented health interventions.
  • Proposed a decision rule for aid allocation.

Main Results:

  • The proposed algorithm suggests funding interventions that are marginally cost-ineffective for the country.
  • This approach incentivizes countries to co-finance health initiatives.
  • The model demonstrates justification within a game theory framework.

Conclusions:

  • Aid allocation should strategically fund interventions to encourage domestic resource mobilization.
  • This method offers a more efficient, equitable, and sustainable approach to global health funding.
  • The proposed decision rule balances donor support with national commitment.