Health Research Spending Tops US$ 160 Billion, Yet Investment Fails To Meet The Needs Of Developing Countries

Main Category: Pharma Industry / Biotech Industry
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Article Date: 03 Nov 2008 - 3:00 PDT

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A report launched today by the Global Forum for Health Research reveals global expenditure on health research in 2005 was US$ 160.3 billion - the greatest sum ever spent on health research, up from US$ 125.8 billion in 2003. Yet despite the high investment levels research is failing to address the significant health needs of low- and middle-income countries.

The report, which is the only publication to assess the total amount of money spent on health research around the world, found that:

- Together G7 countries were responsible for over 88% of all publicly funded health research undertaken by high-income countries in 2005: USA US$ 35 billion, Japan US$ 6.3 billion, UK US$ 4.2 billion, France US$ 3.5 billion, Germany US$ 3.3 billion, Canada US$ 2.7 billion, Italy US$ 2.5 billion

- 97% of spending on health research continues to be conducted by high-income countries, the remaining 3% by low- and middle-income countries

- Most of the money spent by high-income countries went towards generating products, processes and services required for their own health-care needs

- The global investment in health research represents 4.1% of the total estimated national health investments worldwide

- There is a small but encouraging increase in investment in health research to US$ 5.1 billion by low- and middle-income countries

- Sweden and Finland have exceeded the target EU expenditure level of 3% of GDP on research, yet Portugal and Greece are yet to reach the target of 1% set for African Union countries

"Millions of people are still suffering and dying each year from diseases that disproportionately affect poor populations. For example, globally almost 10 million children under five years old die each year and 97% of child deaths occur in low-and middle-income countries," said the Global Forum's Executive Director, Professor Stephen Matlin. "Ongoing health research in developed countries is of course very important, but what this report shows is that despite the levels of health research investment, all countries need to commit a bigger proportion of their spending to the challenges in the developing world."

"In recent weeks we have seen governments across the world working together to solve the global financial crisis. No one country can ignore what has been happening and by working together governments know they have more chance of affecting real change. In the same way, the global community must act together to invest in health research and achieve global health gains."

The changing global health landscape is another reason health research is urgently required. Over the next 25 years the situation in low- and middle-income countries will become even more complex as health problems more associated with high-income countries affect more people. The 2005 report found that the state of adult health globally is characterised by three major trends: the slowing down and widening of health gaps, increasing complexity of the burden of disease and globalisation of adult health risks.

Dr Gill Samuels, Head of the Foundation Council of the Global Forum for Health Research, said "We are seeing vast changes in the global health landscape with the burden of disease shifting from infectious to non-communicable diseases. Chronic conditions such as heart disease, stroke and diabetes now account for 60% of deaths globally and an alarming 80% of these deaths occur in low- and middle-income countries."

As health challenges in the developing world become increasingly diverse and complex it is important that a wide spectrum of health research is conducted to meet these disparate challenges. Research will need to be broad and multi-disciplinary.

The regular tracking of research resources has become increasingly valued as a tool to help promote the closure of health inequities. The Global Forum for Health Research will be introducing a tracking tool in the form of a regular Report Card as part of the Monitoring Financial Flows for Health Research.

The Global Forum for Health Research calls on governments, corporations and NGOs to work together to increase investment into health research to ensure we continue to address the pressing health needs of developing countries now and into the future.

The next Global Forum for Health Research report on financial flows will be available in 2009.

The current report and all other Global Forum publications are available for download on the website http://www.globalforumhealth.org from where paper copies may also be ordered, free of charge.

Source
Sarah Saunders
Fleishman-Hillard
Healthcare, London
40 Long Acre
Covent Garden
London WC2E 9LG

Global Forum for Health Research