Pdf the impact of hiv and aids on africas economic. The economic impact of hiv aids in southern africa. The macroeconomic effects of hiv aids in africa are substantial, and policies for dealing with them may be controversialone is whether expensive antiretroviral drugs should be targeted at economically productive groups of people. Rather than estimate the various macroeconomic impacts of the hiv aids epidemic, broomberg et al. Poverty and hiv united nations development programme. South africa hdr 2003 indicates the magnitude and farreaching consequences of the hivaids pandemic, stressing that the disease is no. Assessment of the hivaids impact on the nigerian economy. Nevertheless we need to understand these broader economic effects to form effective policy responses. Economic impact of hivaids in south africa figure 1 gives a graphic and structural view of how the macroeconomy is affected by the hiv pandemic. By the late 1990s a growing number of studies reported on the economic impacts of hiv aids, primarily on households and businesses. While the impact of hiv aids on people has been well documented, it has been much more difficult to observe the pandemics effects on the african economy as a whole or to assess how it might affect africa s future development.
The impact of hiv on economic development abstract this paper estimates the impact of the hiv epidemic on the economic development taking place around the world. In nigeria for instance, it affects sectors like labour productivity force, agricultural production, productivity in general or national economy. But what now are the impacts that hiv aids is having on families in south africa and what we are doing about it. Section 2 describes the main economic impact channels of the hiv aids epidemic as described in these four macroeconomic models, whilst section 3 and 4 respectively focus on an overview of the assumptions input and projected impacts on economic growth, investment, employment, and poverty outputs of these four models. Hiv aids affects economic growth by reducing the availability of human capital. As a key result we prove that the epidemic has a significant negative effect on the growth rate of per capita gdp in sub. Pdf the macroeconomic effects of hivaids in africa are substantial, and policies for dealing with them may be controversial one is whether.
The impact of hiv and aids on africas economic development ncbi. Impact of hivaids on african agriculture and the role of the. The macroeconomic effects of hiv aids in africa are substantial, and policies fill. The impact of hivaids on the zimbabwe education sector. The spread of aids hiv and in africa, and the resulting death toll, varies between african countries. Poverty and hiv infection coping with hiv and aids intergenerational impacts of hiv conclusions poverty and hiv aids in subsaharan africa there are two bicausal relationships which need to be understood by those involved in policy and programme development. Access to antiretroviral treatment for people living with hiv is disparagingly low in most developing countries.
Hivaids is affecting the global human development of african countries through its devastating impact on health and demographic indicators such as life expectancy at birth, healthcare assistance, age and sex distribution, economic indicators like income, work force, and economic growth, education and knowledge acquisition and other indicators like governance, gender inequality and human rights. It is stressed that the amount of resources for the fight against hiv aids will increase. The percentage rises up to 15% 20% of adults in namibia, south africa. Impact of hivaids on economic growth and development in. Hiv aids in many cases results in loss of income of the breadwinners and increase in expenditures as a result of caring for the infected. The effects of hiv aids on families in south africa and how we are addressing these impa cts high levels of child headed households as parents are dying. The paper explores the different channels through which hiv aids affects economic growth in a lowincome. The economic impact of hiv aids in southern africa 3 work schedules are disrupted when organizations replace workers and managers who are ill or have died. The impact of hiv and aids on africas economic development the. Socio economic and demographic impact learning objectives. The impact of hiv and aids on africas economic development core.
The findings show that hiv aids prevalence is widely spreading and rapidly rising and has a negative impact on real gdp growth in nigeria. Socioeconomic impact of hivaids on people living with. Levels of knowledge about hiv aids and behaviour change remain too low to produce anything approaching an aids free generation. Pdf though subsaharan africa only has 10% of the worlds total population, it holds 69% of all the hiv aids patients.
The study argues that the fight against hiv aids in africa must come at the top of national and international agendas mainly because aids is now the biggest killer in africa and hits the most productive segment of the population. Overview of the impact of hivaids on the health workforce this paper addresses one of the key global health challenges today, especially in the poorest countries. The focus is put on the world bank measurements taken of various countries and other significant populations in. First, we provide an overview of the impact of hivaids on health systems and how this influences demand and supply. Tips the impact of hivaids on the south african economy. At the end of the session, the learners will be able to. Socioeconomic effects of hivaids in african countries. Malcom mcpherson, erica barksruggles, and tsetsele fantan saturday, september 1, 2001 facebook. Pdf the impact of hiv and aids on africas economic development. Hiv aids is affecting the global human development of african countries through its devastating impact on health and demographic indicators such as life expectancy at birth, healthcare assistance, age and sex distribution, economic indicators like income, work force, and economic growth, education and knowledge acquisition and other. It is estimated that the annual per capita growth in half the countries of subsaharan africa is falling by 0. However, the impacts of hiv aids on key macroeconomic indicators, such as economic growth and income per capita, have been modest so far. Besides the human cost, hiv aids is having profound effects on africa s economic development and hence its ability to. While the impact of hiv aids on people has been well documented, it has been much more difficult to observe the pandemics effects on the.
Since the first cases of hiv aids were reported twenty years ago, nearly 58 million people have been infected and 22 million have died. Without proper prevention, nutrition, health care and medicine that is available in developing countries, large numbers of people are falling victim to aids people living with hiv aids will not only be unable to work, but will also require significant medical care. This report sets a new milestone in the fight against hiv and aids in kenya by providing for the first time a relatively comprehensive information package on. Effect of hivaids on economic growth in subsaharan africa. Hiv aids on the growth of gdp per capita at the present time, the impact of hiv aids on the economy and development is likely to intensify in the near future. The impact of hiv aids on saving behaviour in south africa. Economic research helps to estimate the effects of hivaids on the african economy and the cost effectiveness of prevention. The impact of hiv aids is on every facet of the economy, in fact, not only on productivity even the impact boils down to economic growth. A world bank study of the economic impacts of aids in africa concluded that the. Hiv aids is fast eroding the health benefits, which kenya gained in the first two decades of independence. The impact of hiv and aids on africas economic development. The economic impact of hivaids in southern africa alan whiteside, dr.
Somalia and senegal is the least affected with only 1% of the adult population suffering from hiv. Understand the impact of hiv and aids on socio economic and demographic aspects of the country. Many children and elderly people now head rural households. The impact of hivaids on human development in african countries. Simon dixon, lecturer in health economics, scott mcdonald, senior lecturer, and jennifer roberts. The longerterm economic effects resulting from lower investment in human capital especially the education, health and nutrition of future workers may be severe.
Paper presented at the international aids economic network symposium on economics of hiv aids in developing countries, barcelona, july. A development issue june 2006 background economic impact labour market impact. Economic research helps to estimate the effects of hiv aids on the african economy and the cost effectiveness of prevention and treatment programmes. The economic impact of hiv is greatly felt by the individual and their families. Conceptual framework for the impact of hiv aids on economic growth the impact of the hiv aids epidemic on the economy has been a concern since the beginning of. Southern africa would be the continental powerhouse for economic development. This framework also represents theoretical analysis that this paper will follow to get a better understanding of the impact of the disease on the south african economy. Much of the impact of hiv aids afflicts children and women, the primary focus of unicef programmes. The impact of hivaids on the south african economy. Hiv aids impacts on fertility are expected to slow the growth in the number of children. As south africa looks to continue its pursuit of sustainable development, it faces the difficult task of not only reducing its tremendous hiv aids burden, but also forging a path forward for equitable economic growth and opportunity. An assessment of the impact of hivaids on economic growth.
Families affected by hiv deplete their savings and assets in order to cope with increased expenditure and income shocks. Also, recurrent health expenditure does not appear to be growth augmenting during the period hiv aids was also found to adversely affect savings and standard of living of infected persons. Hiv aids pandemic in africa has been closely associated with adverse economic effects, and could thwart the success of poverty reduction initiatives. The impact of the hivaids epidemic on macroeconomy and. A third or more of the investment in education will be lost if hiv aids infection rates continue at current levels. As a new millennium dawns, the hiv aids pandemic continues to ravage the eastern and southern africa region esar. The impact of hivaids on human development in african. Children are becoming the head of the household in many families. Aids has a profound impact on growth, income and poverty. In the present paper, we consider the impact of hiv aids on human development in african countries, showing that, beyond health issues, this disease should and must be seen as a global development concern, affecting education and knowledge acquisition, income and social status, productivity and economic growth, and other direct and indirect components of human development. The social and economic impact of hiv aids on farming systems and livelihoods in rural africa. Reviews the evidence for the economic impacts of aids in africa and considers how economic theory can contribute to an effective response to the pandemic. Besides the human cost, hiv aids is having profound effects on africas economic development and hence its ability to cope with the pandemic.
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