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The long-run economic costs of AIDS - World Bank Report
World Bank Study.
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"The Long-run Economic Costs of AIDS: Theory and an Application to South Africa" is a report presented by the World Bank. Most existing estimates of the macro-economic costs of AIDS, as measured by the reduction in the growth rate of GDP, are modest.
For Africa - the continent where the epidemic has hit the hardest - they range between 0.3 and 1.5 percent annually. The reason that these estimates are based on an underlying assumption that the main effect of increased mortality is to relieve pressure on existing land and physical capital, so that output per head is little affected. We argue that this emphasis is misplaced and that, with a more plausible view of how the economy fucntions over the long run, the economic costs of AIDS are certain to be much higher. Not only does AIDS destroy human capital, but by killing most young adults, it also weakens the mechanism through which knowledge and abilities are transmitted from one generation to the next - for the children of AIDS victims will be left without one or both parents to love, raise and educate them.
The full report - "The Long-run Economic Costs of AIDS" can be downloaded on the righthand side of this page |
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