NEOLIBERAL REFORMS IN THE HEALTH SECTOR AND TRADE UNIONS’ RESISTANCE



A Critical Perspective on the Deepening of PPPs in Nigeria and Union Response
by Baba Aye[1]

Introduction
The past decade has witnessed reforms in the health sector, at the heart of which has been a systematic ingraining of neoliberal values, methods and thrust by the government in the framework of the national health system. The trade unions have responded to this in several ways. There have been quite some successes, won through struggle and established with creative strategies and tactics. A number of challenges do however remain. 

With a focus on the phenomenon of Public Private Partnership, this brief paper would attempt to: locate the situation in the health sector within the broader context of attacks on public services; identify critical elements of the state’s offensive on the soul of public healthcare delivery; presenting trade union responses, and; discussing the challenges and potentials before trade unions in the sector.

Crises and the enthronement of the “for profit” god in the 20th century
In the aftermath of decolonisation, great premium was placed on the provision of public services by the new, native rulers. This was particularly so with the social sector: health and then education. Internationally, the dominant ideology of state intervention (as the welfare state in Europe and North America) supported this as some form of modernization.

Things changed in the wake of the “neoliberal counterrevolution”, which itself was the bosses-class’ response to the mid-1970s systemic crisis of capitalism. Globally, 1978 marked a contradictory moment in humankind’s. On one hand was the Ala Ata Declaration. On the other hand was the emergence of Ronald Reagan; the flagbearer (along with Margaret Thatcher) of neoliberalism. 

In Nigeria, both elements of that movement played up half a decade later with the Prof Olikoye Ransome-Kuti’s turn to prioritising primary healthcare delivery on one hand, as Minister of Health while the Head of State, General Ibrahim Babangida introduced the IMF and World Bank-designed structural adjustment programme. Within a decade, it was clear in Nigeria and Africa as a whole that the SAPs had failed generally and with regards to the health sector.

This was the context for the launching of the UN Special Initiative on Africa (UNSIA) in March 1996 “with a view to strengthening country-driven strategies as the primary basis of donor assistance” with its “health sector component…aimed primarily at coordinating the resources of the United Nations system and and other health development partners (supposedly) to accelerate the development and implementation of comprehensive health sector reform programmes in African countries”[2] (Lambo and Sambo 2003).

Interestingly though, in determining the contextual factors for the need of health reforms based on the UNSIA mandate, lack of economic resources ranked the least with 10 points (apart from “others” with 3 points), whilst “Health Services and Systems (e.g. inequities in access, poor quality of services, inefficiencies in the running of facilities, inadequate community participation, poverty/access, existence of vertical programmes, uncoordinated service delivery by providers, lack of drugs and supplies, inadequate financing, poorly motivated health workers, institutional weaknesses, health systems not responsive to consumer needs)” came tops with 33 points.

As is the usual case with the ideologically driven agenda which neoliberalism is, the international financial institutions and local bosses-class insist that the remedy for our social ailment is more of the drugs that caused such in the first place. Continued expansion of the for-profit motive into social services, and in this particular case healthcare delivery was presented as the solution. A major excuse was and continues to be the need for bringing in more resources, which even from their findings is not necessarily true, especially in resource-rich countries like Nigeria.

More of the same in the 21st century: the different shades of PPP
Matters were not to get better in terms of this policy direction. On the contrary, the spin doctors of profit before people got even more sophisticated in delivering what essentially is a flawed, if not nonsensical logic. As with the beginning, policy was the point of departure, both for initiating and furthering the neoliberal agenda.

At the turn of the century, NEPAD set the context for the formulation of the National Economic Empowerment and Development Strategy (NEEDS) in Nigeria. Their NEEDS was launched in 2003. Two years later, after eight months of “consensus building” the Federal Ministry of Health’s National Policy on Public Private Partnership on Health in Nigeria was issued in November 2005. It was of course part of the NEEDSful agenda of the state to foster private interests of the bosses, subsidised from our collective patrimony. 

It is instructive to point out an ideological fraud in the very definition of “the partners” assumedly envisaged for the PPPs in this policy. The public partners are restricted to the executives and legislators at all tiers of governance (including health parastatals as part of the executive bodies). But regarding “private partners”, enterprises, chambers of commerce, labour unions, faith based organisations, NGOs, philanthropists, club/societies and other civil society organisations and cooperatives are lumped together as if water and oil do mix. This fraud becomes clearer when we note that virtually everywhere the PPPs have been well instituted, the labour unions have been attacked with the kind of ferociousness that “partners” are quite unlikely to use in relating with each other!

The document also goes ahead to divide PPPs into two broad types: public-driven PPPs and private-driven PPPs. The two major forms of public-driven PPPs in the sector have been facility management and outsourcing. Private-driven PPPs in the main entails the establishment of new health facilities that generally cost an arm and a leg in fees, making them to all intents and purposes inaccessible to the poor working people. The irony of things though is that thus far, most efforts at building such private-driven PPP facilities have been much more of failures than even the demonised public healthcare delivery system.

In justifying the need for PPPs, the Federal Ministry of Health (FMoH) argues that “(a)nnual public sector budgetary allocations to health are low, and often fall below what is recommended by WHO”. Coming four years after the Abuja Declaration of African Heads of States to dedicate not less than 15% of budgetary provisions to public health, this is justifying the indefensible, mores so as countries with much less resources like Rwanda for example, have met this target.
It goes ahead to note that “(i)n addition, actual expenditures often do not even match approved allocations, as a result of bureaucratic and other barriers”. 

One could very well read “other barriers” to mean corruption. Much more naira than what is needed for full public funding of universal health coverage has been looted by the bosses from the state’s treasury. So the problem really is not so much lack of resources as that the system is designed to make the rich richer by any means and the poor poorer by every means.   

Outsourcing by the FMoH goes by the euphemism of “financing options” and its policy on PPPs set the stage for outsourcing in the following years, which we now still confront.
For efficiency gains, it identified the following “Non-clinical Support Services” for outsourcing:

a.      Mortuaries
b.      Security
c.      Laundry
d.      Maintenance of clinical equipment
e.      Amenity wards
f.       Catering
g.      Cleaning/Ground Maintenance
h.      Ambulance
i.        Engineering maintenance
j.        Record keeping
k.      Revenue collection
l.        Administration
m.   Information technology and technology transfer

Unfortunately, the Nigeria Medical Association has been a croaky voice calling for the sphere of this outrageous PPP to be expanded. It has continually learnt its support to furthering the outsourcing of Supportive Clinical Services, particularly (radiological and laboratory) diagnostics[3]. And more recently, it went the whole hog of supporting, going beyond support for outsourcing to calling for full privatisation of some public health facilities, supposedly so as to curb “medical tourism[4].

A major reason why the medical and dental practitioners’ positions on this matter is quite akin to those of the bosses in general is that as the (self-) perceived bosses in the sector with interests in the private sector, they tend to benefit from a widening of “private public partnerships” with a leg in each leg of the partnership’s pair of trousers.

Outsourcing has resulted in job losses. In the Federal Health Institutions alone, over 33,000 jobs have been cut as a result. The jobs supposedly “created” with contract staffing in different forms are not only much less, the wages and working conditions of contract staffers are terrible to say the least.

Lives have also been lost and the convalescence of several patients undermined. A good example is the National Hospital Abuja, which is presented as the country’s “apex healthcare facility”. Private sector caterers and hotels which took over the work of the dietary and catering departments had to be changed a number of times. This was because, in the absence of trained dieticians generalised food would be served with dire, and a couple of times morbid, consequences.

Trade union rights are also compromised. Not only do the labour contractors refuse to allow casual staffers to be organised, in “public” hospitals under private facility management like Garki Specialist Hospital in Abuja, trade unionists were sacked and the union banned. In these circumstances, managerial unilateralism become law.

While it is easy to condemn public healthcare facilities, such private-driven PPPs as the establishment of new healthcare facilities have more often than not floundered. The American Hospital which the Association of Local Governments (Chairmen) of Nigeria (ALGON) was at the heart of is yet to take off even the construction stage, five years after, despite the commitment of N4.5bn to the “project”. Corruption is not strictly a public sector affair. And indeed, even in the public sector, corruption is mainly perpetuated by the bosses and it takes a virile trade union movement within the publics to curtail such obscenities. 

Similarly, we are yet to see much done regarding the Cross River State Referral Hospital. When the PPP agreement was signed by the state government with UCL Healthcare Services Ltd, an international consortium two years ago, we were assured that the facility would be ready by 2015. That year is coming to an end with hardly anything to show for it.

Privatisation by dispossession appears to be more attractive than building (and those –even if on arguable terms, expanding) healthcare delivery infrastructures. An ongoing case is that of the privatisation of 1 specialist hospital, 10 general hospitals and 523 primary health care centres by the Imo State government. When workers resisted last month, occupying the facilities, combined teams of police and military personnel were sent in to dislodge them. But the unions have persisted and a reversal has for now been won. 

Union response
The trade unions have been at the fore of the fightback against privatisation in the health sector. This has been mainly on the platform of the Joint Health Sector Unions (JOHESU) which was formed in 2008 and comprises 3 PSI (and NLC) affiliates and two other unions which are both TUC affiliates. The formation of JOHESU that year was, at least in part, a result of the sabotage of a campaign of resistance by PSI, from within the NCC, in 2005.

In a number of health facilities local JOHESU chapters have also been formed over the past four years. With central coordination, they have been of great importance in mobilising joint action against privatisation and other anti-worker policies at the base.

In terms of policy engagement, the national body of JOHESU successfully led a struggle against the passage of the National Health Bill in a manner that reflected the “professionist” chauvinism of medical and dental practitioners. The National Health Act that was eventually passed entails a more balanced essence, albeit with compromises on all parts. It has also aptly utilised the mechanisms of collective bargaining and the law courts (National Industrial Court of Nigeria) to win significant victories¸ which the state however refuses to heed.

Regarding its anti-privatisation stance, JOHESU and its member-unions have been quite vocal, but a more systematic approach is required. This should include in depth research work on both the state of privatisation in Nigeria and the construction of alternatives and a campaign thrust of work that would entail the forging of alliances with the broader labour movement of sister trade unions and civil society organisations.

The Imo State experience is most likely a tip of the iceberg. The time to take decisive actions for an all-out research-propelled and mass based anti-privatisation struggle is now.

In lieu of a conclusion
The expansion of neoliberal values, policies and programmes of the bosses in the health sector cannot be separated from the broader avalanche of assaults against the working class nationally, continentally and globally. 

Despite the self-evident failures of privatisation in its different guises, commercialisation and (within the broader social-economic system) deregulation, policies keep being rolled out on the basis of the same anti-poor working people’s basis, within and across countries.
 
Policies have to be engaged and counter-policy policy influence established. But, while this is necessary, it might not be sufficient. Building JOHESU was a major step forward for working class’ resistance within the sector. Possible mergers of unions could be a reasonable consideration for this movement to be stronger.

While we should continue with the element of interpretation (i.e. the law courts), determining what ought to be and should be i.e. anti-neoliberal policies which alone can lead to universal health coverage has to be a major focus of JOHESU’s activities.

There are great challenges but also obvious potentialities for progress. It is stil morning yet on creation day.


[1] Being a leadoff paper presented for discussion at the PSI-WAHSUN Regional Ebola Conference held on November 19-20, 2015 at the Belle Cote Hotel, Abidjan, Cote d’Ivoire
[2] The parentheses are mine BA
[3] See Elumelu 2014
[4] ”See the canvassing of this by the Abuja NMA Chair Dr Zainab Mariam at the 2015 Annual Conference of the doctors: http://www.medicalworldnigeria.com/2015/09/privatisation-of-public-health-institutions#.Vk67XL9XLIU

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