Globalization and health equity: The impact of structural adjustment programs on developing countries

Area of Science:

• Global Health
• Health Economics
• International Development

Background:

• Health inequities are driven by various factors, including international economic policies.
• Organizations like the International Monetary Fund (IMF) promote market-oriented reforms in developing countries through structural adjustment programs.
• The impact of these IMF-mandated reforms on national health equity remains insufficiently understood.

Purpose of the Study:

• To examine how IMF structural adjustment programs influence health equity between nations.
• To assess the relationship between policy reforms and health system access and neonatal mortality.
• To identify specific reform types, such as labor market policies, contributing to health equity variations.

Main Methods:

• Utilized an original dataset of IMF-mandated policy reforms for up to 137 developing countries (1980-2014).
• Employed regression analysis to evaluate the impact of reforms on health equity indicators.
• Accounted for non-random selection and design of IMF programs in the analysis.

Main Results:

• Structural adjustment reforms were found to decrease health system access.
• These reforms were associated with an increase in neonatal mortality rates.
• Labor market reforms were identified as a key driver of these negative health equity outcomes.

Conclusions:

• IMF structural adjustment programs negatively affect health equity in developing countries.
• The findings suggest that these programs endanger the achievement of Sustainable Development Goals.
• Policy implications highlight the need to reconsider the health impacts of global economic policies.