The Global Economic Crisis Gemma OwensThink Global Initiative Project CoordinatorInternational Federation of Medical Students’ Associations (IFMSA)

Presentation

• The MDGs – How far have we got?• The impact of the financial crisis• The impact on the MDGs• The next step

The MDGs – How far have we got?

• Extreme poverty – down by 320 million since 2000

• Child mortality - 3 million fewer deaths• Education - 28 million more children in school• Clean water – access improving • Aid – Up from around $70 to $104bn 1999-2005

....But!• Most countries are off track for most targets• Child mortality – ‘2 million death deficit’ by 2015• Nearly 1 billion children malnourished• Rising food and energy costs:– pushing another 125 million into extreme poverty in

2007 (WFP 2008)– deepening poverty levels (World Bank 2009)– increasing child malnutrition by 44 million

(2006/2008)• Donors back-tracking on aid commitments – aid fell by

8% in 2007 (OECD 2008)

The impact of the financial crisis• Parental unemployment• Reduced expenditure – including essentials (food, water, etc).• Loss of housing• Children drop out of school• Increased child labour• Selling of productive assets • Food:

– Lower quality food - Reduced intake– Malnutrition - Starvation

• Health consequences:– Decreased immunity to disease– Micronutrient deficiencies night blindness, anaemia, increased

morbidity

The impact on the MDGs

• Started in US financial market – but hitting the 80% of humanity in developing countries– has implications for all MDGs

• Direct Effects:– Predicted to cost sub-Saharan Africa around 18 billion

USD. – Child mortality rate could increase by 200,000 - 400,000

(child malnutrition will be one of the main drivers).

The impact on the MDGs• Indirect:– Low-income countries which have made progress

towards universal primary education will suffer setbacks.

– Aid development assistance budgets within donor countries are also under increased strain.

– The EU’s aid commitment to provide 0.56 per cent of GDP in aid by 2010 is rapidly losing value with lower growth projections.

– The real financial value of the commitment in 2010 will be $4.6 billion lower.

The Next Step

• Health needs to be a priority

• Promote a greater focus on social justice

• Monitor the ACTUAL impact of the crisis

• Policy actions need to ensure social safety nets

• Developed countries need to affirm and deliver on 2005 commitments

• Avoid multiple ‘innovations’ and fragmented delivery – all the actors involved in global health need to work in partnership

Thank you for listening!

Contact thinkglobal@ifmsa.org