Background on the World Health Organization (WHO)
The World Health Organization (WHO) is a specialized agency of the United Nations responsible for global public health. Established in 1948, it works towards international cooperation in health matters and sets global health standards.
Relevance of the WHO
As a leading authority on global health, the WHO’s recommendations and policies significantly impact public health practices worldwide. Its current initiative focuses on addressing chronic health issues and generating additional government healthcare funding through taxes on unhealthy products.
WHO’s Push for Sin Taxes
The World Health Organization (WHO) is urging countries to increase the prices of sugary drinks, alcohol, and tobacco by 50% over the next decade through taxes.
This marks WHO’s strongest support for what are known as “sin taxes” to tackle public health challenges and bolster government healthcare budgets.
Rationale Behind the Price Hike
WHO asserts that this measure will help reduce consumption of these products, which contribute to diseases like diabetes and certain cancers. Moreover, it will generate funds at a time when development assistance is dwindling and public debt is rising.
Quote from WHO Official
Jeremy Farrar, Sub-Director General for Health Promotion and Disease Prevention and Control at WHO, stated, “Health-based taxes are one of the most effective tools we have. It’s time to act.”
WHO’s “3 for 35” Initiative
WHO launched its fiscal initiative, titled “3 for 35“, during the United Nations Conference on Development Financing in Sevilla.
According to WHO, this initiative could raise $1 trillion by 2035 based on evidence from health-based taxes implemented in countries like Colombia and South Africa.
WHO’s Long-standing Support for Sin Taxes
The WHO has long advocated for sin taxes on tobacco and, more recently, on alcohol and sugary beverages. However, this is the first time they have suggested a specific price increase target for all three products.
WHO Director-General’s Statement
Dr. Tedros Adhanom Ghebreyesus, WHO’s Director-General, emphasized during the conference that these taxes could assist governments in adapting to “new realities” and strengthening their health systems with the collected funds.
Example of Price Increase
Guillermo Sandoval, WHO’s Health Economist, explained that a middle-income country could raise taxes on these products to increase their price from $4 currently to $10 by 2035, accounting for inflation.
Future Fiscal Recommendations
Sandoval also mentioned that WHO is examining broader fiscal recommendations, including those on ultra-processed foods, once the agency completes its definition of such foods in the coming months. However, he anticipates opposition from involved industries.
Support for WHO’s Initiative
Bloomberg Philanthropies, the World Bank, and the Organisation for Economic Co-operation and Development (OECD) back WHO’s initiative. It also offers assistance to countries willing to implement these measures.
Key Questions and Answers
- What is the WHO’s main goal with this initiative? The WHO aims to reduce consumption of unhealthy products like sugary drinks, alcohol, and tobacco by increasing their prices through taxes. This initiative also seeks to generate additional government healthcare funding.
- What specific price increase is the WHO advocating for? The WHO is pushing for a 50% price hike on these products over the next ten years.
- What is the WHO’s new initiative called? The WHO has named this initiative “3 for 35.”
- What are sin taxes? Sin taxes are levies imposed on goods deemed harmful to public health, such as alcohol, tobacco, and sugary drinks.
- What is the estimated revenue from this initiative by 2035? The WHO projects that this initiative could raise $1 trillion by 2035.
- What additional products might the WHO include in future fiscal recommendations? The WHO is considering broader fiscal recommendations, potentially including ultra-processed foods.
