Tag Archives: Developing Countries

Assessing the Macroeconomic and Welfare Effects of Universal Health Coverage in Palestine

The implementation of “Universal Health Coverage” (UHC) poses serious challenges. Some of these stem from the macro-fiscal space considerations while others relate to the micro-behavioral sphere.

This project seeks to assess the macro-fiscal conduciveness of UHC-oriented reforms in Palestine using a dynamic microsimulation-based Computable General Equilibrium (CGE) approach. Overall, UHC-oriented reform appears to enhance social welfare and economic growth. However, a parallel expansion in the breadth and width of coverage can have a sizeable budgetary impact, with fiscal deficit representing 14% of the GDP, of which about 2% is due to UHC. The latter would absorb about 10% of GDP, 15% of public spending and 57.4% of public spending on health. Under conditions of narrow fiscal space, an additional annual growth of 3.0% is required to progress along all the dimensions of UHC. A set of policy measures, which can help achieve UHC in a financially sustainable manner is advanced.