Focus: GS-III Indian Economy
Why in news?
The 15th Finance commission held a detailed meeting with representatives of the World Bank, Niti Aayog and member of the Commission’s High-level group (HLG) on the health sector.
In context of the pandemic, a billion-dollar loan has been given by World Bank to the Government of India.
Highlights of what was said about India’s Health Sector
- Finance Commission may like to look at health in three different ways: grants to enhance per capita spending, block grant for capacity building and a performance incentive for certain health outcomes.
- More than 60% of health demand in India is supplied by private sector.
- Leveraging private clinics along with DBT may be used as tools to increase engagement with private sector.
- In health sector, institutions like district hospitals, primary health centres, private providers, municipalities, social sector system may be leveraged carefully.
- World Bank could play a role in designing and implementation of such programs while working closely with such institutions.
Way Forward: A presentation made by World Bank Highlighted that:
- There is scope for service delivery reforms by using innovation, leveraging technology, institutional strengthening, coordination and empowering of States.
- The adverse economic impact is likely to be proportionally larger than the direct impact of the coronavirus on morbidity and mortality.
- Quality of care has emerged as a key issue in India’s health system.
- There is also a need for renewed focus on equity and need.
- Greater attention to resource allocation is required within States.
- Service delivery should rely on a robust public/private mix.
- Government of India can be an enabler of ‘open source’ approach to promote service delivery reforms.
- Service delivery innovations need to be encouraged like introducing technology solutions, primary health care centers in urban areas may be run by contracted private providers, public-private partnerships may be encouraged in areas of digital technology, data science, bottom of pyramid models; and multi-sector actions and community mobilization.
- Service delivery innovations need to be encouraged like introducing technology solutions, primary health care centers in urban areas may be run by contracted private providers, public-private partnerships may be encouraged in areas of digital technology, data science, bottom of pyramid models; and multi-sector actions and community mobilization.
- Strengthen national and state institutions to effectively prepare for pandemics (NCDC) and develop ICMR as a global center for excellence in medical research.
Click Here to read more about the Finance Commission and the XV-FC
Click Here to read more about the World Bank and the WB Group
