Economic impact of HIV/AIDS
HIV/AIDS affects economic growth by reducing the availability of human capital.[1] Without proper prevention, nutrition, health care and medicine that is available in developing countries, large numbers of people are developing AIDS.
People living with HIV/AIDS will not only be unable to work, but will also require significant medical care. The forecast is that this will probably cause a collapse of babies and societies in countries with a significant AIDS population. In some heavily infected areas, the epidemic has left behind many orphans, who are cared for by elderly grandparents.[2]
The increased mortality in this region will result in a
Effect on taxable population
By killing off mainly young adults, AIDS seriously weakens the
On the level of the household, AIDS results in both the loss of income and increased spending on healthcare by the household. The income effects of this led to spending reduction as well as a substitution effect away from education and towards healthcare and funeral spending. A study in
With economic stimulus from the government, however, HIV/AIDS can be fought through the economy. With some money, HIV/AIDS patients will have to worry less about getting enough food and shelter and more about fighting their disease. However, if economic conditions aren't good, a person with HIV/AIDS may decide to become a sex trade worker to earn more money. As a result, more people become infected with HIV/AIDS.[citation needed]
Relationship to GDP
UNAIDS, WHO and the
Conclusions reached from models of the growth trajectories of 30 sub-Saharan economies over the period 1990–2025 were that the economic growth rates of these countries would be between 0.56 and 1.47% lower. The impact on gross domestic product (GDP) per capita was less conclusive. However, in 2000, the rate of growth of Africa's per capita GDP was in fact reduced by 0.7% per year from 1990 to 1997 with a further 0.3% per year lower in countries also affected by malaria.[5] The forecast now is that the growth of GDP for these countries will undergo a further reduction of between 0.5 and 2.6% per annum.[2] However, these estimates may be an underestimate, as they do not look at the effects on output per capita.[1]
Response in sub-Saharan Africa
Many governments in sub-Saharan Africa denied that there was a problem for years, and are only now starting to work towards solutions. Underfunding is a problem in all areas of HIV prevention when compared to even conservative estimates of the problems.[citation needed]
Recent research by the Overseas Development Institute (ODI) has suggested that the private sector has begun to recognize the impact of HIV/AIDS on the bottom line, both directly and indirectly. It is estimated that a company can generate an average return of US$3 for every US$1 invested in employee health due to a reduced absenteeism, better productivity and reduction in employee turnover.[6] Indirectly there are also important implications on the supply chain. Many multi-national corporations (MNCs) have therefore gotten involved in HIV/AIDS initiatives of three main types: a community-based partnerships, supply chain support, and sector-based initiatives.[7]
The launching of the world's first official HIV/AIDS Toolkit in Zimbabwe on October 3, 2006, is a product of collaborative work between the International Federation of Red Cross and Red Crescent Societies, World Health Organization and the Southern Africa HIV/AIDS Information Dissemination Service. It is for the strengthening of people living with HIV/AIDS and nurses by minimal external support. The package, which is in form of eight modules focusing on basic facts about HIV and AIDS, was pre-tested in Zimbabwe in March 2006 to determine its adaptability. It disposes, among other things, categorized guidelines on clinical management, education and counseling of people with AIDS at community level.[8]
Copenhagen Consensus
The Copenhagen Consensus is a project that seeks to establish priorities for advancing global welfare using methodologies based on the theory of welfare economics. The participants are all economists, with the focus of the project a rational prioritization based on economic analysis. The project is based on the contention that, in spite of the billions of dollars spent on global challenges by the United Nations, the governments of wealthy nations, foundations, charities, and non-governmental organizations, the money spent on problems such as malnutrition and climate change is not sufficient to meet many internationally agreed targets. The highest priority was assigned to implementing new measures to prevent the spread of HIV and AIDS. The economists estimated that an investment of $27 billion could avert nearly 30 million new infections by 2010.[9]
See also
References
- ^ a b Bell C, Devarajan S, Gersbach H (June 2003). "The Long-run Economic Costs of AIDS: Theory and an Application to South Africa" (PDF). Policy Research Working Paper. Retrieved September 9, 2020.
- ^ a b c d e Greener R (2002). "AIDS a macroeconomic impact". In S, Forsyth (ed.). State of The Art: AIDS and Economics. IAEN. pp. 49–55.
- PMID 23173030.
- ^ a b Over M (June 1992). "The macroeconomic impact of AIDS in Sub-Saharan Africa" (PDF). Technical Working Paper No. 3. The World Bank. Retrieved September 9, 2020.
- .
- S2CID 31755809.
- ^ Fiona Samuels (November 2007). "AIDS and the private sector: The case of South Africa". Overseas Development Institute. Archived from the original on May 26, 2010. Retrieved July 21, 2010.
- ^ Mu Xuequan (October 4, 2006). "Zimbabwe launches world's first AIDS training package". xinhua. Retrieved October 3, 2006.
- ^ "$27 Billion Boost for HIV Prevention Programs Could Avert Majority of Projected HIV Infections Worldwide". kaisernetwork.org. July 7–12, 2002. Archived from the original on November 14, 2004. Retrieved March 10, 2008.