Abstract

BackgroundIt is widely acknowledged that austerity measures in the wake of the global financial crisis are starting to undermine population health results. Yet, few research studies have focused on the ways in which the financial crisis and the ensuing ‘Great Recession’ have affected health equity, especially through their impact on social determinants of health; neither has much attention been given to the health consequences of the fiscal austerity regime that quickly followed a brief period of counter-cyclical government spending for bank bailouts and economic stimulus. Canada has not remained insulated from these developments, despite its relative success in maneuvering the global financial crisis.MethodsThe study draws on three sources of evidence: A series of semi-structured interviews in Ottawa and Toronto, with key informants selected on the basis of their expertise (n = 12); an analysis of recent (2012) Canadian and Ontario budgetary impacts on social determinants of health; and documentation of trend data on key social health determinants pre- and post the financial crisis.ResultsThe findings suggest that health equity is primarily impacted through two main pathways related to the global financial crisis: austerity budgets and associated program cutbacks in areas crucial to addressing the inequitable distribution of social determinants of health, including social assistance, housing, and education; and the qualitative transformation of labor markets, with precarious forms of employment expanding rapidly in the aftermath of the global financial crisis. Preliminary evidence suggests that these tendencies will lead to a further deepening of existing health inequities, unless counter-acted through a change in policy direction.ConclusionsThis article documents some of the effects of financial crisis and severe economic decline on health equity in Canada. However, more research is necessary to study policy choices that could mitigate this effect. Since the policy response to a similar set of economic shocks has globally varied and led to differential health and health equity outcomes, comparative studies are now possible to assess the successes and failures of specific policy responses. This raises the question of what types of public policy can mitigate against the negative health equity effects of severe economic recessions.

Highlights

  • It is widely acknowledged that austerity measures in the wake of the global financial crisis are starting to undermine population health results

  • Neither has much attention been given to the health consequences of the fiscal austerity regime that quickly followed a brief period of counter-cyclical government spending for bank bailouts and economic stimulus reports [11,12]

  • The article is based on three main avenues of research: A series of semi-structured interviews in Ottawa and Toronto, with key informants selected on the basis of their expertise on various policy areas related to social determinants of health (SDH) (n = 12) and comprising active senior government officials, academic researchers and community members with ties to non-governmental organizations (NGOs) and unions; an analysis of recent (2012) Canadian and Ontario budgetary impacts on key SDH that documents macroeconomic and budgetary changes; and documentation of trend data on key SDH pre- and post the financial crisis, including affordable housing, usage of food banks, poverty rate, income trends and employment characteristics

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Summary

Introduction

It is widely acknowledged that austerity measures in the wake of the global financial crisis are starting to undermine population health results. Few research studies have focused on the ways in which the financial crisis and the ensuing ‘Great Recession’ have affected health equity, especially through their impact on social determinants of health; neither has much attention been given to the health consequences of the fiscal austerity regime that quickly followed a brief period of counter-cyclical government spending for bank bailouts and economic stimulus. The Ontario government recognizes health equity as a policy priority and, notionally, is committed to reducing health inequities through an explicit poverty reduction strategy adopted in 2008 [14], and the introduction of health equity impact (HEIA) assessment tools at the provincial level [15] Despite these ostensible commitments to reducing health inequities, this article documents how a number of SDH are being negatively affected by the financial crisis’s social and economic impacts and the austerity-driven policy response of the Ontario provincial, and the Canadian federal, governmentsb

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