The Global Political and Economic context of health by Thomas Deve

1. The Global Political and Economic context of healthby Thomas Deve People’s Health Assembly Cape Town South Africa 7 July 2012

2. Background • The current global financial and economic crisis is a result of failure in the model of development, characterized by excessive deregulation and liberalization in all sectors of the economy. • In 2009, we were arguing that Africa was nominally affected by the first generation impact of the financial crisis, in part, because its financial markets were insulated and not fully integrated into the global financial system.   • But as we progressed, we noted that Africa was and will continue to be particularly hard hit through an unprecedented crisis in the productive sectors of the economy as evidenced by pervasive reductions in growth targets, contraction of economic activities; reduction in export earnings and trade credits, remittances from the African Diaspora; divestments, company closures; retrenchments and increasing unemployment. • This current financial crisis has compounded the existing challenges and shocks caused by high food and energy prices, which have impacted on the African poor, particularly women, children and small-scale producers. African countries will inevitably be unable to meet their development goals, including the MDGs, if far-reaching political and socio-economic restructuring is not undertaken, urgently. • Of particular note is the failure of the State to meet its obligations towards the people and the realization of social goals such as health for all, poverty eradication, universal access to education, and the fulfillment of human potential.