Can Earmarking Mobilize and Sustain Resources to the Health Sector?
Bulletin of the World Health Organization, Vol. 86, No. 11, November 2008
4 Pages Posted: 25 Jan 2009
Date Written: January 5, 2009
Abstract
This paper aims to review whether earmarking can mobilize and sustain resources for the health sector. It starts from reviewing the impact of Global Health Initiatives to health care systems of developing countries, experiences in using specific tax on goods and services such as sin taxes from tobacco and alcohol, and additional levy on airline tickets. Then, pros and cons of earmarking are summarized. Finally, this paper concludes that earmarked taxes on harmful products have high potential in mobilizing and sustaining resources to health, although they require strong political leadership and social consensus. Amounts generated, even if they are small, can play catalytic roles towards active health promotion. No matter what the sources, efficient and transparent governance is required to manage these funds towards the country's public health goals.
Keywords: earmarking, health financing, global health initiatives, sin tax
JEL Classification: I18
Suggested Citation: Suggested Citation