Financial Crises and Social Spending : The Impact of the 2008-2009 Crisis

This paper examines the impacts of the 2008-2009 economic crisis on social spending, drawing on evidence at the global, national, and household levels, to provide a sense of the nature and the effects of the worldwide downturn on spending in the social sectors. It summarizes existing empirical evidence on the relationship between crises, or other serious dislocations on education, health, HIV/AIDS, and nutrition as background to the analysis of growth and social spending. The paper analyzes the relationship between GDP growth, growth in education and health spending, and projects expenditure responses to 2012, to illustrate how expected changes in future economic growth are likely to affect both absolute spending and growth in social expenditures. It provides an analysis of the effects on HIV/AIDS spending, a relatively new funding category and therefore outside the purview of the econometric analysis. It examines the responsiveness of Overseas Development Assistance (ODA) to financial crises in terms of subsequent allocations from the developed world, and the impacts on ODA spending for education and health in developing and transition countries. The paper concludes by citing existing evidence on regional impacts of the crisis on public spending, and the effects on household budgets in Eastern Europe and Central Asia, the region hardest hit by the current crisis.

Bibliographic Details

Main Authors:	Lewis, Maureen, Verhoeven, Marijn
Language:	English en_US
Published:	World Bank, Washington, DC 2010-06-18
Subjects:	ABILITY TO PAY, ADEQUATE NUTRITION, ADOLESCENTS, AIDS PANDEMIC, AIDS PATIENT, AIDS RELIEF, BABIES, BEHAVIOR CHANGE, CASH PAYMENTS, CASH TRANSFERS, CHILD HEALTH, CHILD HEALTH SERVICES, CHILD MORTALITY, CITIZENS, COPING STRATEGIES, COST EFFECTIVENESS, CURRENCY DEVALUATION, DEATHS, DEBT, DEVELOPING COUNTRIES, DEVELOPMENT ASSISTANCE, DONOR FUNDING, DROUGHT, EARLY CHILDHOOD, ECONOMIC CRISES, ECONOMIC CRISIS, ECONOMIC DOWNTURNS, ECONOMIC GROWTH, ECONOMIC PROSPERITY, ECONOMIC SHOCKS, EDUCATED WOMEN, EDUCATION GOALS, EMERGENCY PLAN, EPIDEMIC, ESSENTIAL DRUGS, FAMILIES, FERTILITY, FINANCIAL COMMITMENTS, FINANCIAL CRISES, FINANCIAL CRISIS, FISCAL POLICY, FOOD CONSUMPTION, GENERIC DRUGS, GOVERNMENT SPENDING, HEALTH CARE, HEALTH CARE DELIVERY, HEALTH CARE EXPENDITURES, HEALTH CARE SERVICES, HEALTH CARE SPENDING, HEALTH CARE USE, HEALTH ECONOMICS, HEALTH EXPENDITURE, HEALTH EXPENDITURES, HEALTH INSURANCE, HEALTH INVESTMENTS, HEALTH OUTCOMES, HEALTH PROGRAMS, HEALTH SERVICES, HEALTH SERVICES RESEARCH, HEALTH SYSTEM, HEIGHT FOR AGE, HIV, HIV/AIDS, HOSPITAL, HOSPITAL BEDS, HOUSEHOLD CONSUMPTION, HOUSEHOLD LEVEL, HOUSEHOLD LEVELS, HOUSEHOLD SURVEYS, HUMAN CAPITAL, HUMAN CAPITAL INVESTMENTS, HUMAN DEVELOPMENT, INCOME, INCOME SUPPORT, INFANT, INFANT MORTALITY, INFANT MORTALITY RATE, INFANTS, INFORMAL SAFETY NETS, INSURANCE, INTERNATIONAL AID, INTERNATIONAL COMMUNITY, INVESTMENTS IN EDUCATION, LABOR MARKET, LOCAL GOVERNMENTS, MALARIA, MALNUTRITION, MIGRANTS, MINIMUM WAGE, MINISTRY OF EDUCATION, MINISTRY OF HEALTH, MINORITY, MORTALITY, NUTRITION, OFFICIAL DEVELOPMENT ASSISTANCE, OUTPATIENT CARE, PANDEMIC, PATIENT, PATIENTS, PHYSICAL DEVELOPMENT, POCKET PAYMENTS, POCKET SPENDING, POLICY DEVELOPMENT, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POOR, POVERTY REDUCTION, PREVENTION EFFORTS, PREVENTIVE CARE, PREVENTIVE HEALTH, PREVENTIVE HEALTH CARE, PRIVATE SECTOR, PRIVATE TRANSFERS, PROGRESS, PUBLIC, PUBLIC EDUCATION, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEW, PUBLIC HEALTH, PUBLIC HEALTH SPENDING, PUBLIC INVESTMENT, PUBLIC RESOURCES, PUBLIC REVENUES, PUBLIC SAFETY NETS, PUBLIC SECTOR, PUBLIC SERVICES, PUBLIC SPENDING, PUBLIC SUPPORT, QUALITY OF HEALTH, QUALITY OF HEALTH CARE, RECIPIENT COUNTRY, REMITTANCES, RISING DEMAND, RISK GROUPS, SAFETY NET, SAFETY NETS, SAVINGS, SCHOOL ATTENDANCE, SCHOOL ENROLLMENT, SCHOOL ENROLLMENTS, SERVICE DELIVERY, SHOCK, SHORT SUPPLY, SOCIAL EXPENDITURES, SOCIAL INVESTMENTS, SOCIAL MEASURES, SOCIAL PROGRAMS, SOCIAL SECTOR, SOCIAL SECTORS, SOCIAL SECURITY, SOCIAL SERVICE, SOCIAL SERVICES, SOCIAL SPENDING, STRUCTURAL REFORMS, SUPPORT TO FAMILIES, TARGETING, TEACHER SALARIES, TEMPORARY EMPLOYMENT, TRANSITION COUNTRIES, TRANSITION ECONOMIES, TRANSITIONAL ECONOMIES, TUBERCULOSIS, UNEMPLOYMENT, URBAN CENTERS, VULNERABILITY, VULNERABLE POPULATIONS, WAGE BILL, WASTE, WELFARE OF FAMILIES, YOUNG CHILDREN,
Online Access:	http://documents.worldbank.org/curated/en/2010/06/16403571/financial-crises-social-spending-impact-2008-2009-crisis https://hdl.handle.net/10986/12965
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