What happens to health financing during the middle-income transition?
This blog was first published in Brookings Future Development Blog. The authors are Ipchita Bharali and Indermit Gill. As countries move from low to middle income, they experience big shifts in the composition of public and private spending on health. One reason for the change in financing is the eligibility criteria for concessional development assistance: Foreign aid starts to decrease after countries move into middle income. This is evident from a snapshot of health expenditures across the income spectrum, used to proxy what happens to a country as its per capita income increases. Figure 1 charts health expenditures by source for countries organized from lowest to highest GDP per capita in year 2015; charts for 2000, 2005, and 2010 look similar. The black vertical lines mark the gross national income (GNI)…