We reviewed empirical studies that have attempted to quantify the macroeconomic effects of the HIV/AIDS pandemic. Health lays the foundation for vibrant and productive communities, stronger economies, safer nations and a better world. The long period of illness associated with AIDS reduces labour productivity. 22 June 2021 The authors review the evidence and consider how economic theory can contribute to our response to the pandemic. AIDS and economic growth in Africa: a panel data analysis. Soderlund N, Lavis J, Broomberg J, Mills A. We assume that Demoland has a population of 14. National economies may also be affected through the illness and death of producers and the diversion of resources from savings (and eventually, investment) to health care. Current and projected age profiles of workers in a typical South African mine, This photograph and those on pp227 and 230 are by Gideon Mendel and are from A Broken LandscapeHIV and AIDS in Africa, published by Network Photographers in association with Actionaid. Of this total, South Africa produced $131.1 billion, over one third. The COVID-19 pandemic has brought a new challenge for those living with HIV/AIDS, and these two viruses must be jointly addressed. You can unsubscribe at any time. The result has been rising unemployment. In the South African healthcare sector 20% of student nurses are HIV positive.2. In 2009, the H1N1 disease spread all over the world in a few months. AIDS has affected the economy of Sub-Saharan Africa by reducing the available work force. As a result, more people become infected with HIV/AIDS. Health lays the foundation for vibrant and productive communities, stronger economies, safer nations and a better world. Type Chapter Information The continent has also strived to involve HIV-positive people in service delivery, responding to the needs of the stigmatized population. However, if economic conditions aren't good, a person with HIV/AIDS may decide to become a sex trade worker to earn more money. Additionally, 1.7 million children between the ages of 0-14 years are currently living with the virus. Beyond the immediate testing, treatment, and preventative measures, a number of additional challenges remain, including: Africa has a long way to go in winning the fight against HIV/AIDS, but it is possible with proper coordination. official website and that any information you provide is encrypted This costs the US an estimated $10.4bn a year in medical expenses and an additional $16.3bn in lost earnings. This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Geneva: Commission on Macroeconomics and Health; 2001. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. COVIDs Aftershocks: Could we have prevented this? Are you sure? Despite progress being achieved in localized settings, the alarming statistics . The effects of HIV on women, especially in Africa, are highly underestimated. On the level of the household AIDS results in both the loss of income and increased spending on healthcare by the household . HIV/Aids is becoming the most devastating disease humankind has ever faced. Increased mortality will also weaken the mechanisms that generate human capital and investment in people, through loss of income and the death of parents. Does the AIDS epidemic threaten economic growth? Specifically, they generally assume that people can move easily from one type of job to another. This could cause defaults on debt repayments and require economic assistance from the international community. The income effects of this led to spending reduction as well as a substitution effect away from education and towards healthcare and funeral spending. What time does normal church end on Sunday? In South Africa, for example, around 60% of the mining workforce is aged between 30 and 44 years; in 15 years this is predicted to fall to 10% (R Elias, University of Botswana, personal communication, 2000) (figure). Ten countries in Africa with recent population projections were selected for Figures 1 and 2. Elisheba Roimen Cuddington JT. Such numbers are astronomical compared with most of the world. This assumption is likely to underestimate the impact of the pandemic on production, because the replacement of skilled labour is a slow and expensive task, and labour cannot be shifted simply from one sector to another (agriculture to health care, for example) in response to shortages in skills. Our literature search identified 11 studies that attempted to quantify the effect of HIV/AIDS on GDP per capita (table (table2).2). Unfortunately there have been few studies of the macroeconomic implications of the HIV pandemic and few economic evaluations of interventions to combat the disease. Underfunding is a problem in all areas of HIV prevention when compared to even conservative estimates of the problems. Answer 5.0 /5 3 BluffRanger2496 Economic research helps to estimate the effects of HIV/AIDS on the African economy and the cost effectiveness of prevention and treatment programmes Economic theory predicts that HIV/AIDS reduces labour supply and productivity, reduces exports, and increases imports How one pandemic affects another Worldwide, there are an estimated 38 million people living with HIV. This high number of infections on the continent is largely attributed to poor access to healthcare, unsafe sexual practices, and high mother-to-child transmission. HIV infection rates range from around 6 percent in Uganda to 39 percent in Swaziland. Why CASE tools are not normally able to control Software crises? One review reported that the annual costs associated with sickness and reduced productivity as a result of HIV/AIDS ranged from $17 (12; 19) per employee in a Kenyan car manufacturing firm to $300 in the Ugandan Railway Corporation.3 These costs reduce competitiveness and profits. However, government budgets are already stretched and funds are still needed for HIV/AIDS prevention. People living with HIV/AIDS will not only be unable to work, but will also require significant medical care. 1). The more recent studies show greater effects; and the most recent estimates indicate that the pandemic has reduced average national growth rates by 2-4% a year across Africa.4, Summary of studies of the macroeconomic impact of HIV/AIDS in Africa. The average sub-Saharan African per capita annual income is $490 while in . The HIV/AIDS pandemic has impacted the populations of many African countries. [6] Continue Learning about Movies & Television. [] In 2001 30% of pregnant women attending Free State government antenatal clinics were infected with HIV compared to 25% for all South . A study in Cte d'Ivoire showed that households with an HIV/AIDS patient spent twice as much on medical expenses as other households. Prevention and treatment programmes and economic measures such as targeted training in skills needed in key industries will . Our literature search found three applications of computable general equilibrium modelling to HIV/AIDS and African economies. To simplify the measurement of economic performance, economists have tended to focus on one measure: average income, or gross domestic product (GDP), per capita. In Kenya, for instance, the government recently tried to introduce a tax on ARVs that were coming into the country as donations. What are the advantages and disadvantages of traverse surveying? describe the effects of aids in south africa. Which ion is responsible for the colour that is observed in the CuCl2 solution? Government income also declines, as tax revenues fall and governments are pressured to increase their spending to deal . long-term economic growth in South Africa would decline 0.4 percent per year due to HIV/AIDS. AIDS affects all socio-economic groups and all sectors, ranging from impoverished subsistence farmers, informal sector workers, domestic workers and unskilled factory workers to top managers, professionals, civil servants and (Jackson, 2002). Access this article for 1 day for:30 / $37 / 33 (excludes VAT). Nevertheless we need to understand these broader economic effects to form effective policy responses. Governments arent doing enough to make antiretroviral (ARV) drugs available to their citizens. A study in South Africa among rural and urban household showed a 40% to 50% decreased in income in HIV/AIDS affected households in comparison to not affected household (Rau B. 2 See answers Advertisement hannahjoyrau13 Answer: The biggest increase in deaths has been among adults aged between 20 and 49 years in Africa and also since the first cases of hiv or aids were reported twenty years ago, nearly 58 million people have been infected and 22 million have died. The HIV/AIDS pandemic in South Africa: sectoral impacts and unemployment. The pandemic has already reduced average national economic growth rates by 2.4% a year across Africa. Further results on the macroeconomic effects of AIDS: the dualistic, labour-surplus economy. Another class of modelstermed computable general equilibrium modelsallow the differential effects of the pandemic across sectors to be estimated. Federal government websites often end in .gov or .mil. The United Nations reports that between 2001 and 2009, new infections decreased in sub-Saharan Africa from 2.2 million to 1.8 million. A social perspective, www.unaids.org/epidemic_update/report_dec01/index.html, Growth rates reduced by 2-4%; large variation across countries, in line with prevalence of HIV, Average rate of growth of GDP in 1991-2015 will be 1.5% lower a year, Average rate of growth of GDP in 1991-2015 will be 1.1% lower a year, Average rate of growth of GDP in 1986-2015 will be 0.8% lower a year, Rate of growth of GDP per capita reduced by 0.7% a year in the 1990s, Average rate of GDP growth over next 15 years will be 0.3-0.4% lower a year, Average rate of growth of GDP in 2000-2010 reduced by 1.5% a year, Average rate of growth of GDP in 1985-2010 reduced by up to 0.3%, Per capita GDP in 1985-2010 up to 10% smaller, Rate of growth of GDP per capita in 1990-2025 reduced by 0.15% (0.6% in 10 worst affected countries). [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. a recent world bank paper suggests that the long-term economic costs of aids in south africa are almost certain to be very much higher than predicted to date and could even be devastating. Before What lessons can we learn from the HIV/AIDS epidemic during COVID-19. 9 this is because human capital is transmitted across generations, making an 'overlapping generations' model more appropriate for understanding how aids will Since the beginning of the epidemic 14.8 million children have lost one or both parents to HIV/AIDS. In its June 2020 regional economic outlook for the region, the International Monetary Fund (IMF) projects that the region's economy will shrink by 3.2 percent in 2020 before recovering to growth of 3.4 percent in 2021. The site is secure. What logo is a black R with a star on a gold background? Considering the information on the map, how might the H1N1 virus have spread so quickly . Who were the siblings in Fred Claus' Siblings Anonymous group besides Roger Clinton Stephen Baldwin and Frank Stallone? AIDS has affected the economy of Sub-Saharan Africa by reducing [2] As the epidemic progresses, the age profile of those infected will increase, though the peak is expected to stay within the working age population. Between 2000 and 2050, life anticipation will be 27 % to 41 % lower than it would hold . about navigating our updated article layout. The Spread Aids Africa Affect The Economies That Continent January 31, 2022 Admin Table ContentsHow could the spread AIDS Africa affect economics the continent How has AIDS affected economy What. Workers in key sectors of the economy such as mining and healthcare have been particularly affected. Amongst those who are able to work, productivity is likely to decline as a result of HIV-related illness. This is because teenage children are especially vulnerable to HIV infection. 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. HIV/AIDS affects economic growth by reducing the availability of human capital. Kambou G, Devarajan S, Over M. The economic impact of AIDS in an African country: simulations with a computable general equilibrium model of Cameroon. Despite contributing only a minute amount of global greenhouse gas emissions, the African continent suffers the deleterious effects of climate change to a disproportionate degree. Those living with HIV are also more prone to contracting a severe case COVID-19. Somalia and Senegal is the least affected with only 1% of the adult population suffering from HIV. Since the population is already vulnerable, the epidemic will have a particularly strong affect on these countries and the poorer households are likely to be relatively worse affected by HIV/AIDS. Additionally, 1.7 million children between the ages of 0-14 years are currently living with the virus. Lower domestic productivity reduces exports while imports of expensive healthcare goods may increase. 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. answered How had aids affected the economies of Africa? If you select 'Yes' we can let you know how you can make a difference. 9 around 1.3 million people died from AIDS in sub-Saharan Africa and 1.8 million people became infected with HIV. Nearly half of all adults living with HIV around the world are women, and women between the ages of 10 and 24 years old are more likely to be infected than males in the same age group. The decline in export earnings will be severe if strategic sectors of the economy are affected such as mining in South Africa. Many people with AIDS either. Of the global total of 34 million women and men living with HIV today, the vast majorityan estimated 23.5 million or 69 percentlive in Sub-Saharan Africa. The degree of impact depended on assumptions about the extent to which illness would be funded by savings and who would be infected. For example, in the US, roughly 5% to 20% of the population contracts flu each year, resulting in thousands of hospitalisations and deaths. Lower domestic productivity reduces exports, while imports of expensive healthcare goods may increase. Bethesda, MD 20894, Web Policies Since then, more than 52 . However, very . What they fail to consider How has AIDS affect the economy of sub- Saharan Africa? education, may be disproportionately economically impacted by HIV[3], By killing off mainly young adults, AIDS seriously weakens the taxable population, reducing the resources available for public expenditures such as education and health services not related to AIDS resulting in increasing pressure for the state's finances and slower growth of the economy. Our work touches lives around the world every day - often in invisible ways. While the impact of HIV/AIDS on people has been well documented, it has been much more difficult to observe the pandemic's effects on the African economy as a whole or to assess how it might affect Africa's future development. "The most obvious effect of this crisis has been illness and death, but the impact of the epidemic has certainly not been confined to the health sector; households, schools, workplaces and economies have also been badly affected" ("The impact of HIV & AIDS on Africa", 2010, para. The prevalence rate for those ages 15 to 49 similarly fell from 5.9% in 2001 to 5% in 2009. Recent research explores a number of dimensions of the HIV/AIDS epidemic in Africa: the relationship between poverty . In the same UN report on 2007 (UN 2008 Global Report on the HIV and AIDS Epidemic) around 5.7 million South Africans were estimated as having HIV or Aids, including 300 . These policies will inevitably include the introduction of treatment and prevention programmes but may also include economic measures, such as targeted training of skills needed in key industries. Economic models help us develop and maintain the economic environments within which sustainable medical programmes can be implemented. An important step in limiting the economic effects of the pandemic is to develop comprehensive policies tailored to the needs of the economies of individual countries. The spread of AIDS/ HIV and in Africa, and the resulting death toll, varies between African countries. [10] It reported that 1.1 million people have been newly infected with HIV in 2018. [1] Without proper prevention, nutrition, health care and medicine that is available in developing countries, large numbers of people are developing AIDS. [1] Without proper prevention, nutrition, health care and medicine that is available in developing countries, large numbers of people are developing AIDS. The authors review the evidence and consider how economic theory can contribute to our response to the pandemic. B. The regression models which were developed in this paper illustrated that variables which measure the historical context of . Rather than further quantifying . Do you want to stay informed about how you can help fight against extreme poverty? The https:// ensures that you are connecting to the The manufacturing sector, transport, mining, construction, tourism and the financial sector will be hit in various ways. Almost 70% of the 36 million people with HIV/AIDS live in Africa -that's roughly 25 million people - making Africa the epicenter of the disease. Taking into account the macroeconomic effects of interventions may provoke a number of ethically and politically sensitive dilemmas. 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. 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. Due to multiple constraints experienced by households that seem to be disproportionally affected, families generally seek assistance from the community and external economic support. The effects of HIV on women, especially in Africa, are highly underestimated. According to avert.org, the majority of people living with HIV in . HHS Vulnerability Disclosure, Help Today, the prevalent rate is 3.6%. If you are unable to import citations, please contact After integrating all the aforementioned factors, the consequence of HIV/AIDS on the South African economic system is, and will go on to be major. The AIDS epidemic in Namibia will most likely aggravate poverty and increase levels of social inequity. [2], The increased mortality in this region will result in a smaller skilled population and labor force. The picture in the rest of sub-Saharan Africa is nearly as dire. Stigma against HIV/AIDS increases secrecy and denial, which can also lead to increased HIV transmission and prevent the delivery of effective medical care. In this group average out-of-pocket expenditures for the disease amounted to more than 15% of annual household income while incomes were reduced by 5 % due to illness-related effects. People living with HIV/AIDS will not only be unable to work, but will also require significant medical care. It has caused nations to devote most of their budgets to finding a cure. The estimated costs to the ministry and its donor programme of HIV/AIDS on the supply of primary education are US$1.3-3.1 million in 1999, and $10.6-41.3 million over the period 1999-2010. In addition, the overwhelming majority92 percent . The highest priority was assigned to implementing new measures to prevent the spread of HIV and AIDS. Additionally, educating children about HIV/AIDS and teaching them how to protect themselves remains a challenge. It has meant the loss of many potentially productive members of society. 8 million people in 2000, the starting year of the simulation. Copyright 2022 BMJ Publishing Group Ltd, The impact of HIV and AIDS on Africa's economic development, Tees, Esk and Wear Valleys NHS Foundation Trust: Recruitment Open Day 2022, Beckington Family Practice: Salaried GP - Beckington Family Practice, North Curry Health Centre: GP Partner - North Curry Health Centre, St James Medical Centre (Taunton): Salaried GPs - St James Medical Centre, St James Medical Centre (Taunton): Salaried GP (Up to 8 sessions) - St James Medical Centre, Womens, childrens & adolescents health. Third, the economic cost of HIV/AIDS to an individual, household, community, or economy provides a useful baseline from which to assess the economic savings of a prevention or care programme. Indeed, since 1992 predictions that AIDS would slow economic growth in these countries have been published. Altenroxel L. Aids taking a toll on student nurses. This is because teenage children are especially vulnerable to HIV infection. The demographic and economic characteristics of Demoland are similar to those that prevail in some countries in sub-Saharan Africa, the world region worst affected by HIV/AIDS. In fact, regular flu outbreaks still manage to cost economies billions. The consensus from these studies is that the net effect on the growth of GDP per capita will be negative and substantial. PMC legacy view Approximately 7 out of 10 deaths for 2008 were in Sub-Saharan Africa, a region that also has over two-thirds of adult HIV cases and over 90% of new HIV infections amongst children. Between 2000 and 2050, life expectancy will be 27% to 41 . In this model, there are three types of effects of a health shock like HIV/AIDS on economic growth: The labour supply L grows more slowly, mainly as a consequence of increased mortality. Recent studies of African countries looking at key determinants of long-term growth indicate considerable reductions in the growth rate of GDP per capita as a result of the AIDS pandemic. [2] This smaller labor force will be predominantly young people, with reduced knowledge and work experience leading to reduced productivity. How has AIDS affected economy? AIDS affects different segments of society in different ways. A joint report by UNICEF and UNAIDS showed accelerated adolescent HIV rates during the pandemic, due to reduced access to prevention services as a result of COVID-19 containment measures. [4], With economic stimulus from the government, however, HIV/AIDS can be fought through the economy. In 1992 Kambou et al assessed the impact on Cameroon's economy of changes in the skill composition of the labour force resulting from the HIV/AIDS epidemic.5 They concluded that reduced availability of skilled labour would reduce growth rates by about 50% and investment by 75%, that imports of food and other basic products would increase, and that exports of manufactured and other products would decline. For example, in 1992, aid accounted for 12.4% of gross national product (GNP), over 70% of gross domestic savings and investments in Sub-Saharan Africa and over 50% of all imports. [] The Free State province, in which this study was conducted, has a population of 2.7 million, and is fairly average among South African provinces with regard to general health and economic status. You can unsubscribe at any time. As the lead health authority within the United Nations (UN) system, we help ensure the safety of the air we . This means . Please note: your email address is provided to the journal, which may use this information for marketing purposes. Indirectly there are also important implications on the supply chain. According to Garbus (2003:61-62) the International Labour Organization projects that; South Africa will lose 10.8% of its labour force by 2005 and 24.9% by 2020. AIDS, together with these problems, have pooled to exacerbate the already volatile situation.
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