Financing Rural Public Health Activities in Prevention and ...
To Be and To Be Better: Financing Medical Care and Education in Rural China
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To Be and To Be Better: Financing Medical Care and Education in Rural China Huashu Wang, Henk A.J. Moll, and Shenggen Fan Contact: [email protected] Problem statement and Objective Financing predictable and unexpected expenditures is a major concern of rural households with irregular incomes and related with financial shocks resulting in their decline into poverty. In this study we compare the actual financing of Education and Medical care by rural households to gain insight into their capability to invest and deal with shocks. Finding 3 Government and donor support only for primary education. Substantial expenditures for secondary education and medical care may endanger livelihood rural households Finding 1 Financing education mainly through savings; financing medical care mainly through informal loans, some savings and selling assets. (Hypothesis accepted) Finding 2 Formal loans play no role, even for the richest group of households. Methodology • Data of total households in three villages in Guizhou, South-West China (n=790). • Statistics analyses (both parametric and non-parametric) are used to test the Hypothesis. Conclusions • Formal financial services, both savings and credit services, require more attention to enable households of all income categories to invest in education and enterprises. • Health insurance will increase welfare in rural China, especially for the lower income groups who now need to sell productive assets to finance medical care. Hypothesis Predictable (education) expenditures are financed internally through savings whereas unexpected (medical) expenditures are financed externally through loans Explorative questions • role of formal lending • role of other ways of financing Investing in education In need of medical care Incomes: low and unpredictable Figure. Proportion of the expenditures to total living expenditure of Chinese rural households(%) 0 2 4 6 8 10 1986 1988 1990 1993 1996 1998 2001 . . Medical care Education
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Education. Medical care. Figure. Proportion of the expenditures to total living expenditure of Chinese rural households(%). To Be and To Be Better: Financing Medical Care and Education in Rural China Huashu Wang, Henk A.J. Moll, and Shenggen Fan. Problem statement and Objective - PowerPoint PPT Presentation
Transcript of To Be and To Be Better: Financing Medical Care and Education in Rural China
To Be and To Be Better: Financing Medical Care and Education in Rural China
Huashu Wang, Henk A.J. Moll, and Shenggen Fan
Contact: [email protected]
Problem statement and ObjectiveFinancing predictable and unexpected expenditures is a major concern of rural households with irregular incomes and related with financial shocks resulting in their decline into poverty. In this study we compare the actual financing of Education and Medical care by rural households to gain insight into their capability to invest and deal with shocks.
Finding 3
Government and donor support only for primary education. Substantial expenditures for secondary education and medical care may endanger livelihood rural households
Finding 1
Financing education mainly through savings; financing medical care mainly through informal loans, some savings and selling assets. (Hypothesis accepted)
Finding 2
Formal loans play no role, even for the richest group of households.
Methodology• Data of total households in three villages in Guizhou, South-West China (n=790).• Statistics analyses (both parametric and non-parametric) are used to test the Hypothesis.
Conclusions• Formal financial services, both savings and credit services, require more attention to enable households of all income categories to invest in education and enterprises. • Health insurance will increase welfare in rural China, especially for the lower income groups who now need to sell productive assets to finance medical care.
HypothesisPredictable (education) expenditures are financed internally through savings whereas unexpected (medical) expenditures are financed externally through loans
Explorative questions• role of formal lending• role of other ways of financing
Investing in education
In need of medical care
Incomes: low and unpredictable
Figure. Proportion of the expenditures to total living expenditure of Chinese rural households(%)
02468
10
1986 1988 1990 1993 1996 1998 2001
.
.Medical care
Education
