Academic journal article Seoul Journal of Economics

Effectiveness of Official Development Assistance for Tuberculosis Control by Governance of Recipients

Academic journal article Seoul Journal of Economics

Effectiveness of Official Development Assistance for Tuberculosis Control by Governance of Recipients

Article excerpt

(ProQuest: ... denotes formulae omitted.)

I.Background and Purpose of Research

Tuberculosis (TB) is second only to HIV/AIDS as the greatest killer worldwide because of an infectious agent (Vitoria et al. 2009). According to the WHO statistics, 9.6 million people were affected by TB in 2014, and 1.5 million died from this disease (WHO 2015). The demand of international support for the prevention and treatment of TB through official development assistance (ODA) has increased because TB is one of the main causes of morbidity and mortality in low-income countries.

Despite the rapidly increasing foreign aid for TB control, a large number of developing and low-income countries suffer from TB without proper diagnosis and treatment. TB is an air-borne disease and prevalent in low-income countries, where malnutrition and human immunodeficiency virus (HIV) infection are endemic. No perfect vaccine against TB is currently available. As such, the only solution to control TB is timely diagnosis and treatment. In a resource-limited environment, the same resources may be used more effectively for detection and notification by countries with enhanced governance than by countries with poor governance. To cure pulmonary TB with drugs, patients should take medicines for 6 months only to prevent developing drug resistance. In addition, monitoring the medicine intake of patients for 6 months requires high level of governance among health care providers.

Currently, a large share of ODA fund is allocated to the public health division (Piva, and Dodd 2009). However, studies on the effectiveness of ODA fund, especially for health-related programs, are limited. Our research aims to evaluate the effectiveness of ODA fund disbursed to TB control, with TB-related health outcomes, which can be interpreted as TB control program performance in recipient countries. In particular, this research focuses on the role of governance of recipient countries in improving the effectiveness of ODA funding for TB control.

The successful control of TB requires highly effective public health system and government efforts to perform timely diagnosis and to monitor patient undergoing long-term treatment. While our objective is to control TB in recipient countries, different levels of governance may affect the effectiveness of the whole program with the same amount of ODA fund. Therefore, the effectiveness of ODA amount for TB control heavily relies on the governance of ODA recipient countries (Atun et al. 2010).

However, limited research has addressed the importance of governance in recipient countries when the effectiveness of a specific program funded by ODA is evaluated, especially in the context of TB control. In this study, the effectiveness of ODA for TB control was empirically tested in terms of TB incidence rates from 2002 to 2014 among 117 countries that have received the ODA funding for TB controls. The aspects of governance necessary to improve the effectiveness of ODA were also examined.

II.Governance and Effectiveness of TB Control

The casual relationship between foreign aid and economic growth of recipient countries has been investigated. Previous studies on the effectiveness of foreign aid in economic development showed inconsistent viewpoints. For example, some scholars indicated that foreign aid is positively related to economic variables, which foster economic growth of developing countries (Chenery, and S trout 1966; Griffin 1970; Hansen, and Tarp 2000; Levy 1988; Clemens et al. 2012). Other researchers argued that foreign aid does not affect the economic growth; as such, foreign donors' prudence should be observed in allocating resources into developing countries (Boone 1996; Rajan, and Subramanian 2008). Conversely, some studies have suggested that conditional effectiveness of aid occurs only when recipient countries have good economic policies (Burnside, and Dollar 2000; Clemens et al. 2012; Jin, and Oh 2012). …

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