impact of aids on economics

8/8/2019 Impact of AIDS on Economics

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AIDS????

AIDS (Acquired Immune Deficiency

Syndrome)

Caused by HIV (Human ImmunodeficiencyVirus)

Recognized in 1980 by CDC&P USA

No cure but Antiretroviral Treatment AIDS Day: 1st December



Pakistan

People living with AIDS:74,000. Ranking: 53

Prevalence Rate Ranking:134



Impact

Labor Force:

Loss of young adults in their most productive

years. Complete overhauling of the development

strategy and process thinking.

10%-15% of the labor loss per decade.

Africa: Labor Force Losses Due To HIV/AIDS (%)

By 2005 By 2020

Botswana -17.2 -30.8

Lesotho -4.8 -10.6

Malawi -10.7 -16.0

Mozambique -9.0 -24.9

Namibia -12.8 -35.1

South Africa -10.8 -24.9

Tanzania -9.1 -14.6

Zimbabwe -19.7 -29.4



Impact

Increased Costs:

Direct Costs: Medical care, drugs and funeral

expenses. Indirect Costs: Lost time, recruitment and

training, replacement and care for orphans.

Reduction in investment, reduction ineconomic growth.



Impact

Household:

Loss of the breadwinner.

Increased medical expenditure. Family members might sacrifice their school

or work for the sick person.

Increased number of orphans.

1998: 100,000 orphans in South Africa

2010: 70,000-80,000 in KwaZulu-Natal



Impact

Agriculture:

Decrease in labor supply

Remittance of income Food scarcity

In Namibia, agricultural extension workers

spend a tenth of their time attending funerals.



Impact

Health:

Increased number of people seeking health

services. Health care for AIDS patients is more

expensive than for most other conditions.

Government can face prioritizing issues.

53%

26%

21%

Treatment

No Treatment

Limited Treatment

Adequate Treatment



Impact

Education:

Reducing supply of teachers.

Children might miss school.

School fees might be unaffordable.

In Central Africa 85% of the teachers who

died, were because of AIDS from 1996-2005.



Impact

Mining:

Difficult and costly to replace skillful workers.

2005: About 25% of the total miners wereinfected with AIDS.

2010: 12,000-14,000



Impact

Reduction in the number of workers, less experiencedworkers replace these experienced workers, workerproductivity is reduced.

Higher wages Higher domestic production costs . South Africa: Mortality: 99.5/1000

Without AIDS: Mortality: 48.5/1000

Swaziland: Loss of 6.3 million people 20% decrease in

GDP.South Africa: 17% Decrease 22 billion.

Decrease of 2% in GDP per year.



Remedies

Preventing New Infections

Designing Major Development Projects With

Proper Planning Addressing Specific Problems

Mitigating Poverty

AIDS, not just a health issue but a Socio-Economic Problem

impact of aids on economics

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