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NON-COMMUNICABLE DISEASES (NCDs) NATIONAL FORUM AT
 THE GREAT RIFT VALLEY LODGE, NAIVASHA, KENYA: AUGUST
                       24-26, 2011




   The Political Economy of NCDs and
         Country Development




       Klaus Hornetz, Atia Hossain, Anna Carin Matterson, GIZ Kenya
http://www.thecommonwealth.org/news/236456/090511ncdlancet.htm
The Economics of NCDs and Country Development


      • Economic Facts and Assumptions
      • Some Case Studies
      • Costing and Financing NCDs in Kenya
• NCD’s affect and – for lower income
  countries threaten - economic and
  human development
Economic costs of NCD
• Life years lost
• Poverty enhanced
  – Increased (“catastrophic”) out-of-pocket
    expenditure
  – Decreased earning
• Productivity decreased (% of GDP)
• Resource allocation and spending – changed
  focus
• Poor/developing countries face challenges where
  NCDs become a major problem
      - Indonesia’s private healthcare spending is projected to more
      than double by 2020, compared to 2005*
      - India’s NCD mortality to cost USD237 Billion to the National
      Income by 2015**
•      Social and economic costs of NCD are high:
      - China will lose over $550 billion in productivity between 2005
      and 2015*
      - $84 billion of lost national output from 2006-2015 in 23 low-
      and middle-income countries***
• NCDs share of all global healthcare costs = 75%****


Sources: * Dr Shin Young-soo, Director for Western Pacific. WHO. 2010.
** India Health Progress. 2010 /PRNewswire.
• 1/3rd of people living on US$1-2 a day die prematurely of
  NCDs*
• Low-income households suffer from the cost of long term
  treatment and the cost of unhealthy behaviours*
   – Out of pocket expenses for treatment range from 4 to 34%
     of household income/expenditures**
   – Cost of caring for a family member with diabetes can be
     23% (Sudan) - 34% (India) of low-income household***
   – Poorest households spend > 10% of their income on
     tobacco*
   – Cost of essential drugs to treat and cure cancer -
     unaffordable for the poor*
Sources: * WHO, Economic and Social Council resolution High-level Segment 2009.;
** The Rising Prevalence of NCDs: Implications for Health Financing and Policy. Charles Holmes, 2011. PEPFAR,
USAID.
*** Self-reported social class, self-management behaviors, and the effect of diabetes mellitus in urban, minority
young people and their families. Lipton R et al. Arch Pediatr Adolesc Med.2003.
Macro-economic impact of NCDs:
                       lost national income
            600
            550
            500
            450
            400                                                                               2005
billion $




            350
            300                                                                               2006-2015
            250
            200                                                                               (cumulative)
            150
            100
             50
              0



                                                           Pakistan
                              China




                                                                      Federation
                                       India



                                                 Nigeria




                                                                                   Tanzania
                     Brazil




                                                                       Russian
            WHO: "Heart disease, stroke and diabetes alone are estimated to
            reduce GDP between 1 to 5% per year in developing countries
            experiencing rapid economic growth“ (WHO Chronic Diseases Report, 2005)
Public Policy and the Challenge of Chronic Non-communicable Diseases.
Olusoji Adeyi et al. 2007. World Bank.
Improving primary care for the prevention
and treatment of people at risk of NCD’s,
is cost effective and will reduce the
burden on health systems
How much prevention

How much medical
care?
The Case of Northern Karelia
• Early Seventies men in Finland had the highest :mortality rates
  of coronary heart disease in the world,
• Intervention: a comprehensive prevention program to reduce
  the risk factor levels in the population through general
  lifestyle changes
• Results: over the years, great reductions in the population
  levels of the risk factors took place, associated with dramatic
  reduction in age-adjusted CVD mortality rates and
  improvement in public health.


“The experience of diminishing the prevalence of risk
factors in the population is a powerful demonstration
of how the CVD epidemic can be successfully
confronted”
National Institute for Health and Welfare (THL), FI-00271 Helsinki, Finland.
pekka.puska@thl.fi
The Case of Northern Karelia


• First province of North Karelia as a pilot
  (5 years), then national action (1972–77)
• Continuation is North Karelia as national demonstration
  (1977–95)
• Good scientific evaluation to learn of the experience
• Comprehensive national action



          Adapted from Pekka Puska , 2009`
The Case of Northern Karelia
Use of Butter on Bread
                  (men age 30–59)
      %
100
                                               North Karelia
                                               Kuopio province
 80                                            Southwest Finland
                                               Helsinki area
                                               Oulu province
 60
                                               Lapland province

 40

 20

  0
      1972 1977 1982 1987 1992 1997 2002

            Adapted from Pekka Puska , 2009`
Milk Consumption in Finland
       in 1970 and 2006 (kg per capita)
      kg
140
120                Whole milk

100
                                        Low fat milk
 80
      Whole form milk
 60
 40

 20
                           Skim milk
 0
  1960      1970        1980     1990        2000        2010

                                           Source: Pekka Puska , 2009
CHD Mortality in All Finland and
                         in North Karelia, Men Aged 35-64
       Per 100 000
   700
                 start of the North Karelia Project
                            extension of the Project nationally
   600

   500
                                                                     North Karelia
   400

   300

   200                                                                                                  - 85%
                                                        All Finland
   100
                                                                                                - 80%
     0
         69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06


Source: Statistics Finland                                    Year          Source: Pekka Puska , 2009`
Mortality Changes in North Karelia
      from 1969–71 to 2006 (Men 35–64 Years, Age Adjusted)

                          Rate (per 100.000) Change from
                          1969–71 2006 1969–71 to 2006

All causes                   1509      572              - 62%
All cardiovascular            855      182              - 79%
Coronary heart disease        672      103              - 85%
All cancers                   271       96              - 65%
Lung cancers                  147       30              - 80%

                                       Source: Pekka Puska , 2009
Source: OECD 2011 http://www.oecd.org/document/11/0,3746,en_2649_37407_47731659_1_1_1_37407,00.html
Morbidity is much more expensive than mortality.
Once engaging in NCDs on larger scale will result in
ever growing resource needs.
Germany
                                 • Who’s Life?


                            Demographic trends in Germany                                                      Health care cost and age in Germany
                            19                                                             14


                            18
                                                                                           13
Population > 65 years [%]




                            17
                                                                                                New-born [‰]




                                                                                           12
                            16


                            15
                                                                                           11

                            14

                                                                                           10
                            13


                            12                                                             9
                             1970   1975   1980     1985       1990      1995    2000   2005
                                                      Time [years]


                                                  > 65 years          New born
Engaging on national level against NCDs is not only
a diagnostic and therapeutic enterprise:
Systems of social protection and care are to be
developed in parallel to meet NCD related
challenges i. a. to avoid catastrophic expenditures,
need for long-term and for palliative care.
Chile
The individual in society is not an abstract entity: one is
born, develops, lives, works, reproduces, falls ill, and dies in
strict subjection to the surrounding environment, who
different modalities create diverse modes of reaction, in the
face of the etiologic agents of disease. This material
environment is determined by wages, nutrition, housing,
clothing, and culture…

S. Allende
Chile: Health Care Expenditures 1970 - 2000
NCDs will not “go away” from national
policy and political discourses. Those paying
taxes and insurance premiums are the same
citizen demanding adequate diagnostic and
therapeutic infrastructure.
Who shall live
And who shall die
Who shall fulfil his days
And who shall die before his time….

Yom Kippur; Day of Atonement Prayer Book
La Historia de la Medicina en Mexico:
gente demanda mejor salud, 1953, Fresco, Hospital de La Raza, Ciudad de México
Disease dynamics in Kenya and the
          Dilemma of Health Politics:


               poor          wealthy




“diseases of
poverty”
               +++               --


“diseases of
affluence”
                 +               +++



                 Demand Matrix
Disease dynamics in Kenya and the
           Dilemma of Health Politics:


                poor            wealthy




“diseases of
poverty”
                  €




                                  €
“diseases of
affluence”




                  Cost Matrix
Prevalence of overweight and obesity amongst Kenya women aged 15
                             – 49 years

                                        Trends in 15 – 49 yr olds

                                                      BMI >25



                        25


                        20                                             BMI >25
           Percentage




                        15


                        10


                        5


                        0
                             DHS 1993      DHS 1998         DHS 2003




Source: KIPPRA 2010
• NCDs today depend largely on domestic
  resources

• Despite the growing importance of NCDs
  for low and middle income countries, only
  2-3 % of donor funding supports NCDs
  while 46% goes into the 3 big ones only.
Sector Budget paper 2011
    (requirements as presented in sector budget hearing on 12 January 2011)

                  Millions KSHs - Education about 60% of total


Sub-sector                     2011/12              2012/13             2013/14

Education                      162,360              167,644             173,198

Labour                            3,964                4,414                  4,889

Medical                         56,740                60,704              63,067
Services


Public health                   35,846                40,189              45,411

Total                          258,910              272,951             286,565
Total User fees (KES million) collected




Source: KIPPRA 2010
“Interventions for responding (to CDs)
and NCD’s represent opportunities for
improving health systems in low and
middle income countries provided that
such investments are planned to include
these broad objectives at the onset. “
Thank You

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Dr. Klaus Hornetz Presentantion on NCDs 2011

  • 1. NON-COMMUNICABLE DISEASES (NCDs) NATIONAL FORUM AT THE GREAT RIFT VALLEY LODGE, NAIVASHA, KENYA: AUGUST 24-26, 2011 The Political Economy of NCDs and Country Development Klaus Hornetz, Atia Hossain, Anna Carin Matterson, GIZ Kenya
  • 3. The Economics of NCDs and Country Development • Economic Facts and Assumptions • Some Case Studies • Costing and Financing NCDs in Kenya
  • 4. • NCD’s affect and – for lower income countries threaten - economic and human development
  • 5. Economic costs of NCD • Life years lost • Poverty enhanced – Increased (“catastrophic”) out-of-pocket expenditure – Decreased earning • Productivity decreased (% of GDP) • Resource allocation and spending – changed focus
  • 6. • Poor/developing countries face challenges where NCDs become a major problem - Indonesia’s private healthcare spending is projected to more than double by 2020, compared to 2005* - India’s NCD mortality to cost USD237 Billion to the National Income by 2015** • Social and economic costs of NCD are high: - China will lose over $550 billion in productivity between 2005 and 2015* - $84 billion of lost national output from 2006-2015 in 23 low- and middle-income countries*** • NCDs share of all global healthcare costs = 75%**** Sources: * Dr Shin Young-soo, Director for Western Pacific. WHO. 2010. ** India Health Progress. 2010 /PRNewswire.
  • 7. • 1/3rd of people living on US$1-2 a day die prematurely of NCDs* • Low-income households suffer from the cost of long term treatment and the cost of unhealthy behaviours* – Out of pocket expenses for treatment range from 4 to 34% of household income/expenditures** – Cost of caring for a family member with diabetes can be 23% (Sudan) - 34% (India) of low-income household*** – Poorest households spend > 10% of their income on tobacco* – Cost of essential drugs to treat and cure cancer - unaffordable for the poor* Sources: * WHO, Economic and Social Council resolution High-level Segment 2009.; ** The Rising Prevalence of NCDs: Implications for Health Financing and Policy. Charles Holmes, 2011. PEPFAR, USAID. *** Self-reported social class, self-management behaviors, and the effect of diabetes mellitus in urban, minority young people and their families. Lipton R et al. Arch Pediatr Adolesc Med.2003.
  • 8. Macro-economic impact of NCDs: lost national income 600 550 500 450 400 2005 billion $ 350 300 2006-2015 250 200 (cumulative) 150 100 50 0 Pakistan China Federation India Nigeria Tanzania Brazil Russian WHO: "Heart disease, stroke and diabetes alone are estimated to reduce GDP between 1 to 5% per year in developing countries experiencing rapid economic growth“ (WHO Chronic Diseases Report, 2005)
  • 9. Public Policy and the Challenge of Chronic Non-communicable Diseases. Olusoji Adeyi et al. 2007. World Bank.
  • 10. Improving primary care for the prevention and treatment of people at risk of NCD’s, is cost effective and will reduce the burden on health systems
  • 11. How much prevention How much medical care?
  • 12. The Case of Northern Karelia
  • 13.
  • 14. • Early Seventies men in Finland had the highest :mortality rates of coronary heart disease in the world, • Intervention: a comprehensive prevention program to reduce the risk factor levels in the population through general lifestyle changes • Results: over the years, great reductions in the population levels of the risk factors took place, associated with dramatic reduction in age-adjusted CVD mortality rates and improvement in public health. “The experience of diminishing the prevalence of risk factors in the population is a powerful demonstration of how the CVD epidemic can be successfully confronted” National Institute for Health and Welfare (THL), FI-00271 Helsinki, Finland. pekka.puska@thl.fi
  • 15. The Case of Northern Karelia • First province of North Karelia as a pilot (5 years), then national action (1972–77) • Continuation is North Karelia as national demonstration (1977–95) • Good scientific evaluation to learn of the experience • Comprehensive national action Adapted from Pekka Puska , 2009`
  • 16. The Case of Northern Karelia
  • 17. Use of Butter on Bread (men age 30–59) % 100 North Karelia Kuopio province 80 Southwest Finland Helsinki area Oulu province 60 Lapland province 40 20 0 1972 1977 1982 1987 1992 1997 2002 Adapted from Pekka Puska , 2009`
  • 18. Milk Consumption in Finland in 1970 and 2006 (kg per capita) kg 140 120 Whole milk 100 Low fat milk 80 Whole form milk 60 40 20 Skim milk 0 1960 1970 1980 1990 2000 2010 Source: Pekka Puska , 2009
  • 19. CHD Mortality in All Finland and in North Karelia, Men Aged 35-64 Per 100 000 700 start of the North Karelia Project extension of the Project nationally 600 500 North Karelia 400 300 200 - 85% All Finland 100 - 80% 0 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 Source: Statistics Finland Year Source: Pekka Puska , 2009`
  • 20. Mortality Changes in North Karelia from 1969–71 to 2006 (Men 35–64 Years, Age Adjusted) Rate (per 100.000) Change from 1969–71 2006 1969–71 to 2006 All causes 1509 572 - 62% All cardiovascular 855 182 - 79% Coronary heart disease 672 103 - 85% All cancers 271 96 - 65% Lung cancers 147 30 - 80% Source: Pekka Puska , 2009
  • 21. Source: OECD 2011 http://www.oecd.org/document/11/0,3746,en_2649_37407_47731659_1_1_1_37407,00.html
  • 22. Morbidity is much more expensive than mortality. Once engaging in NCDs on larger scale will result in ever growing resource needs.
  • 23. Germany • Who’s Life? Demographic trends in Germany Health care cost and age in Germany 19 14 18 13 Population > 65 years [%] 17 New-born [‰] 12 16 15 11 14 10 13 12 9 1970 1975 1980 1985 1990 1995 2000 2005 Time [years] > 65 years New born
  • 24. Engaging on national level against NCDs is not only a diagnostic and therapeutic enterprise: Systems of social protection and care are to be developed in parallel to meet NCD related challenges i. a. to avoid catastrophic expenditures, need for long-term and for palliative care.
  • 25. Chile
  • 26. The individual in society is not an abstract entity: one is born, develops, lives, works, reproduces, falls ill, and dies in strict subjection to the surrounding environment, who different modalities create diverse modes of reaction, in the face of the etiologic agents of disease. This material environment is determined by wages, nutrition, housing, clothing, and culture… S. Allende
  • 27.
  • 28. Chile: Health Care Expenditures 1970 - 2000
  • 29.
  • 30. NCDs will not “go away” from national policy and political discourses. Those paying taxes and insurance premiums are the same citizen demanding adequate diagnostic and therapeutic infrastructure.
  • 31. Who shall live And who shall die Who shall fulfil his days And who shall die before his time…. Yom Kippur; Day of Atonement Prayer Book
  • 32. La Historia de la Medicina en Mexico: gente demanda mejor salud, 1953, Fresco, Hospital de La Raza, Ciudad de México
  • 33.
  • 34. Disease dynamics in Kenya and the Dilemma of Health Politics: poor wealthy “diseases of poverty” +++ -- “diseases of affluence” + +++ Demand Matrix
  • 35. Disease dynamics in Kenya and the Dilemma of Health Politics: poor wealthy “diseases of poverty” € € “diseases of affluence” Cost Matrix
  • 36. Prevalence of overweight and obesity amongst Kenya women aged 15 – 49 years Trends in 15 – 49 yr olds BMI >25 25 20 BMI >25 Percentage 15 10 5 0 DHS 1993 DHS 1998 DHS 2003 Source: KIPPRA 2010
  • 37. • NCDs today depend largely on domestic resources • Despite the growing importance of NCDs for low and middle income countries, only 2-3 % of donor funding supports NCDs while 46% goes into the 3 big ones only.
  • 38. Sector Budget paper 2011 (requirements as presented in sector budget hearing on 12 January 2011) Millions KSHs - Education about 60% of total Sub-sector 2011/12 2012/13 2013/14 Education 162,360 167,644 173,198 Labour 3,964 4,414 4,889 Medical 56,740 60,704 63,067 Services Public health 35,846 40,189 45,411 Total 258,910 272,951 286,565
  • 39. Total User fees (KES million) collected Source: KIPPRA 2010
  • 40. “Interventions for responding (to CDs) and NCD’s represent opportunities for improving health systems in low and middle income countries provided that such investments are planned to include these broad objectives at the onset. “