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What Does it Cost to Raise an Orphan?. A Comparison of OVC Costs in Ethiopia and Botswana. Daniel Telake , Constance Formson , Steven Forsythe Health Policy Initiate, Task Order 1. Why Cost OVC Programs?. Budgeting for current and future needs Resource allocation
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What Does it Cost to Raise an Orphan? A Comparison of OVC Costs in Ethiopia and Botswana Daniel Telake, Constance Formson, Steven Forsythe Health Policy Initiate, Task Order 1
Why Cost OVC Programs? • Budgeting for current and future needs • Resource allocation • Understand what are the cost drivers • Cost-effectiveness analysis
Sites Costed • 19 Sites Costed in Ethiopia • 19 Sites Costed in Botswana
Costing Approach • Economic Costing • All resources were assigned a value, including donated items • Initial study not designed to assess effectiveness of services
Costing Approach • All Costs Disaggregated to one of seven OVC Services • Economic Strengthening/Income Generation • Food & Nutrition • Shelter and Care/Clothing and Bedding • Education • Health Care • Psychosocial Support (PSS) • Child Protection/Legal Support
Conclusions • The cost of the OVC program is substantially higher in Botswana (US$946) than in Ethiopia (US$80). • Despite the lower cost in Ethiopia, the number of services provided per child is greater in Ethiopia.
Conclusions (2) • The higher cost in Botswana is in part due to scale (Ethiopia’s OVC programs are, on average, 17 times larger than those in Botswana). • The cost components in Botswana and Ethiopia are comparable, although Botswana’s program is more labor-intensive and Ethiopia’s programs have lower overhead costs. • Some of the cost differences are due to cost of living, geographic and demographic differences.
Conclusions (3) • The analysis cannot determine which program is more cost-effective, but this cost analysis is the first step in evaluating cost-effectiveness.