Health

(i)                 Introduction

The average annual income of Cambodian people is as low as US$258 per capita. However, household expenditure for health care is as high as US$29 per person, most of which comes from savings and borrowed money. Health care remains a serious factor of impoverishment in Cambodia (where 36% of the people live below the poverty line of $0.5 per day). Yet, less costly household expenditures for health care would boost investment and consumption, two factors that contribute to economic development. Healthy workers are physically and mentally more productive and have a higher income. Also, a healthy workforce creates incentives for foreign companies to make long-term investments in the country.

Still, the OECD recently noted that “while health is widely understood to be an important outcome of development, the role of good health in promoting economic development and poverty reduction has been much less appreciated.” In Cambodia, the Ministry of Health has made consistent efforts to develop the public health sector, but structural obstacles have prevented it from reaching health-related poverty reduction goals established in the first Socio Economic Development Plan. As a matter of fact, the population health status remains very low and most health care consumers do not perceive changes from policy reforms. Medicam, representing 110 health organisations, urges the Royal Government of Cambodia, Donors and Development Banks to show their commitment in addressing these structural issues. At the same time, Medicam would like to recommend that the Ministry of Health prioritise intermediary measures, which will increase access to affordable and high quality health services thus contributing to poverty alleviation.

Consistent Achievements in the Health Sector

Drug supplies: In year 2001, as a result of the Ministry of Health's efforts, drug supplies have greatly improved.

Community participation: More feedback committees and health centre management committees have been established, which provide an opportunity to both health centre staff and local communities to better link with each other and improve the quality of existing health services.

Outreach activities: A guideline for outreach activities, as well as an allowance of 8,000 Riels has been established to encourage health centre staff to implement outreach activities.

Construction and renovation: Construction and renovation of health facilities have allowed the 1996 revised health coverage plan to be implemented at 81%, although new facilities are not always operational.

Priority Action Program (PAP): Though chaotic for a first year, the PAP, implemented in seven provinces, is also a positive step toward modernising the health financing system. However, reserves from the Ministry of Economy and Finance to expand this post-audit system to additional provinces and to possibly modify its scope have created uncertainties for the future.

Planning exercises: Planning exercises have also been better coordinated and implemented both at provincial and national levels, which is a crucial step in improving health service delivery. In particular, the on-going development of the Health Sector Strategic Plan, which should be finalised by the end of August 2002, has the potential of being a significant tool for management of the health sector if strategies and activities are prioritised in a realistic way.

(ii)        Key Issues and Structural Obstacles

Low wages:

All these positive developments, which show the willingness of the Ministry of Health to develop the public health sector, are however jeopardised by a number of structural obstacles, which are beyond the Ministry of Health's authority but need to be addressed at a higher level. Thus, the problem of low salaries, which discourages public health workers, jeopardises the quality and availability of public health services. Senior consultants who are supporting the Ministry of Health in building the national Health Sector Strategic Plan noted that the issue was not selected during the national workshop organised to establish the health sector priorities for 2003-2007. When participants were questioned informally about this, the response usually was that this issue " has come up time and time again and no one seems to be able to address it so we have given up…" Medicam joins other partners who strongly recommend an increase in salaries to the level of a living wage. The recently established "Position allowance" and the "Priority Mission Group" strategy adopted by the Council for Administrative Reform are two positive steps forward, but the salary increase they generate is so meagre for field health workers that they still do not address the low wage problem. Still, access to affordable quality health services in the public sector is a crucial factor of poverty reduction, and this can only happen if health workers are able to perform without the recurrent worry about insufficient income.

So far, the government has argued that it does not have the financial capacity to increase salaries. Medicam joins other partners who recommend that the government assess strategies