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Section C Measuring Research Need and Research Investments: Global Estimates and Dialogue Population and BOD by Country Income Level, 2000 Low-middle High Population in thousands (%) 4,976,748 (85%) 907,828 (15%) Total DALYS (in thousands) (%) 1,274,259 (92%) 108,305 (8%) 3 The Burden of Disease by Group The burden of disease by group (DALYs/100,000 pop.), 2000 Low-and middle-income High-income Comm. dis. (incl. mat., perin., & nutr.) 11,206 863 Non-communicable diseases 10,200 9,664 Injuries 4,198 1,403 4 Comparison of Groups of BOD: HICs, China, & Africa 5 Rationale Health research is essential to the design and implementation of health interventions, health policies, and health service delivery Financing health research and development (R&D) is critical to its success Information on investments for health research, however, is fragmented 6 Resource Flows for Health Research: First Estimates Preliminary assessments done for the year 1992 US$56 billion invested annually in health research worldwide R&D investments in diarrhea, pneumonia, and TB—about 20% of global disease burden—totaled just 0.2% of global health expenditure in 1992 7 The Problem Is … Less than 10% of global research funds are invested in exploring health problems affecting 90% of the world’s population … now called the “10/90” gap in health research Captures the huge discrepancy between the magnitude of disease burden in the world and the allocation of research funding These are estimates and the exact figures are not known 8 Second Estimates Global health R&D funding for 1998 (in US$ billion) Total Percent Advanced/transition 34.5 47 Developing 2.5 3 Pharma industry 30.5 42 Private non-profit 6.0 8 73.5 100 Public funds Private funds Total 9 R&D Estimates for Selected Developing Countries, 1998 R&D as % of health Brazil 1.2 Cuba 1.4 Costa Rica 1.08 Argentina 0.98 India 0.88 Malaysia 0.4 10 Health R&D as Percentage of GDP, 1998 Data Source: Global Forum for Health Research. (2001). Monitoring financial flows for health research. 11 Observations for 1998 In comparison with 1992, there seems to be an increase in total research funds for 1998 Research on conditions accounting for highest burden still underfunded Biomedical research well-funded vs. health economics and social sciences research 12 Global Health Research Spending, 1990–2001 13 Third Estimate Global health R&D funding for 2001 (in US$ billion) Total Percent Public funds 44 Private for-profit 48 Private non-profit 8 Total 106 100 14 Global Distribution of R&D Expenditures, 2001 15 International Activities Funding, NIH 16 Global R&D 2001 (1) US$106 billion includes the largest known contributors Most of increase from 1998, in expenditures by the private sector, was in HIC R&D efforts of many low- and middle-income countries are still largely unknown or unaccounted Measuring is far from precise and there are still huge gaps in our knowledge 17 Global R&D (2) Gates was the top foundation in health-giving, at US$518.9 million in 2001, focusing on diseases of highest burden worldwide HICs have also increased their investments through Official Development Assistance programs Most of the spending done by high-income countries is in high income-countries generating products tailored to health care markets of high-income countries A small share is funded and carried out by low- and middle-income countries 18 Global R&D (3) An even smaller share is funded by high-income countries but carried out in and for the benefit of low- and middle-income countries In fact, few LMICs have met the target set by the 1990 Commission of Health Research for Development of 2% of national health expenditures on health R&D Mexico, Cuba, India, and Brazil have met target Even a small shift in budgets of LMICs to allocate more money for health research that addresses the urgent health needs of their populations could make a big difference 19 Public Funding of Health R&D 20 Global Investments in Health R&D 21 Resource Flows Reflections on resource flows 22 Issues: 1 Global allocation for diseases not done collectively or uniformly Relation between priorities in developing countries and funding sources (national vs. international) is critical Funding for social science, health economics and such research very poor 23 Issues: 2 Cost of R&D to develop drugs and vaccines is immense—but “magic bullet” effect Fraction of public funds into fundamental research leading to a marketed drug Funding by developed countries to Northern institutions for R&D on problems relevant to developing countries 24 Issues: 3 Institutional structures to focus attention on research investments absent at global level The “politics” of resources heavily influenced by clinical and visible products The social accountability of research investments not considered Decision making at institutional and national levels not consistent with priorities 25 Future Actions? Concerted efforts needed to reduce global inequities in investments in health and health research - HOW? Reasonable for the poorest countries to concentrate health resources on delivering health services and on research on operational and health systems research - TRUE? 26 Thanks To ... Global Forum for Health Research www.globalforumhealth.org Dr. Andres DeFrancisco Dr. Abdul Ghaffar 27