Six major issues prevent aid from being more effective: funding volatility, aid fragmentation, the displacement of domestic finance, ineffective prioritization, lack of transition planning, and lack of country ownership.
CGD researchers propose a new approach to address these challenges and promote country ownership. The new approach would employ locally-led, evidence-informed priority-setting to allow countries to set their own health priorities. This, in turn, would enable domestic financing of the core packages of high-priority services and the consolidation of aid into a top-up package of additional health services and other cross-cutting support. The long-term aim is for strong, country institutions and processes and that, as countries’ health financing improves, health aid focused at the margin is naturally crowded out.
