Skip to main content

The Economic Impact of HIV/AIDS in Developing Countries: An End to Systematic Under-estimation

  • Chapter
HIV, Resurgent Infections and Population Change in Africa

Part of the book series: International Studies in Population ((ISIP,volume 6))

Public health experts and economists share a common dissatisfaction towards previous economic analyses of the impacts of HIV/AIDS. A growing body of evidence now allows a better understanding of the full economic and societal dimensions of the epidemic. It is now certain that poverty contributes to HIV/AIDS epidemics and that AIDS contributes to poverty, although we still do not know enough about the complex pathways of this relationship. To illustrate this idea, an “endogenous” growth model- which takes into account the evolution of society’s human capital-is used in order to re-assess the macroeconomic impact of HIV/AIDS. A fairly wide range of epidemic effects modify the economy’s long-term growth regime, creating the risk of what we might call an epidemic or “regressive trap” of rapidly falling GDP. Government action should be designed in view of this risk, with health and educational interventions.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. World Bank (1999). Intensifying action against HIV/AIDS in Africa: responding to a development crisis. (Washington: World Bank)

    Google Scholar 

  2. Wehrwein, P. (2000). The economic impact of AIDS in Africa. Harvard AIDS Review, (Winter Issue), 12–14

    Google Scholar 

  3. Sachs, J. D. (Ed.) (2001). Macroeconomics and health: Investing in health for economic development. Report of the Commission on Macroeconomics and Health (CMH) of the World Health Organization. (Geneva, WHO)

    Google Scholar 

  4. Barnett, T. & Whiteside, A. (2002). AIDS in the twenty-first century. Disease and globalization. (New York: Palgrave Macmillan)

    Google Scholar 

  5. Smith, J., Nalagoda, F., Wawer, M. J., et al. (1999). Education attainment as a predictor of HIV risk in rural Uganda: Results from a population-based study. International Journal of STD & AIDS, 10, 452–459

    Article  Google Scholar 

  6. Bloom, S. S., Urassa, M., Isingo, R., Ng’weshemi, J. & Boerma, J. T. (2002). Community effects on the risk of HIV infection in rural Tanzania. Sexually Transmitted Infections, 78, 261–266

    Article  Google Scholar 

  7. Hargreaves, J. R. & Glynn, J. R. (2002). Educational attainment and HIV-1 infection in developing countries: A systematic review. Tropical Medicine and International Health, 7, 489–498

    Article  Google Scholar 

  8. Stillwaggon, E. (2000). HIV transmission in Latin America: Comparison with Africa and policy implications. Journal South African Ecology, 68, 985–1011

    Google Scholar 

  9. Loewenson, R. & Whiteside, A. (2001). HIV/AIDS implications for poverty reduction. United Nations Development Programme background paper for the UN General Assembly Special Session on HIV/AIDS, New York, June 25–27

    Google Scholar 

  10. Haddad, L. & Gillespie, S. (2001). Effective food and nutrition policy responses to HIV/AIDS: What we know and what we need to know. Journal of International Development, 13, 487–511

    Article  Google Scholar 

  11. Lambrechts, K. & Barry, G. (2003). Why is Southern Africa hungry? The roots of Southern Africa’s food crisis. A Christian Aid Policy Briefing, London, June

    Google Scholar 

  12. Murray, C. J. L. & Lopez, A. D. (1997). Mortality by cause in eight regions of the world: Global burden of disease study. The Lancet, 349, 1269–1276

    Article  Google Scholar 

  13. Frieden, T. R., Sterling, T. R., Munsiff, S. S., Watt, C. J. & Dye, C. (2003). Tuberculosis. The Lancet, 362, 887–899

    Article  Google Scholar 

  14. Davies, P. D.O. (2003). The world-wide increase in tuberculosis: How demographic changes, HIV infection and increasing numbers in poverty are increasing tuberculosis. Annals of Medicine, 35, 235–243

    Article  Google Scholar 

  15. Jamison, D. T. & Mosley, W. H. (1991). Disease control priorities in developing countries: Health policy responses to epidemiological change. American Journal of Public Health, 81, 15–22

    Article  Google Scholar 

  16. Caraël, M., Schwartländer, B. & Zewdie, D. (1998). Demographic impact of AIDS. Introduction. AIDS, 12, S1–S2

    Article  Google Scholar 

  17. Boerma, J. T., Nunn, A. J. & Whitworth, J. A. (1998). Mortality impact of the AIDS epidemic: Evidence from community studies in less developed countries. AIDS, 12, S3–S14

    Google Scholar 

  18. Sewankambo, N. K., Gray, R. H, Ahmad, S., et al. (2000). Mortality associated with HIV infection in rural Rakai District, Uganda. AIDS, 14, 2391–2400

    Article  Google Scholar 

  19. Bradshaw, D., Schneider, M., Dorrington, R., Bourne, D. E. & Laubscher, R. (2002). South African cause-of-death profile in transition–1996 and future trends. South African Medical Journal, 92, 618–623

    Google Scholar 

  20. Walker, N., Schwartländer, B. & Bryce, J. (2002). Meeting international goals in child survival and HIV/AIDS. The Lancet, 360, 284–289

    Article  Google Scholar 

  21. United Nations Development Programme (2003). Human Development Report 2003. (Oxford: Oxford University Press)

    Google Scholar 

  22. US Bureau of the Census (2000). World population profile 2000. Washington, DC

    Google Scholar 

  23. Stover, J. (2003). Modelling the demographic impact of AIDS. Journal of Hleath Population and Nutrition, 20, 102–103

    Google Scholar 

  24. Heuveline, P. (2003). HIV and population dynamics: A general model and maximum-likelihood standards for East Africa. Demography, 40, 217–245

    Article  Google Scholar 

  25. US Bureau of the Census (2000). Monitoring the AIDS Pandemic Network. The Status and Trends of the HIV/AIDS Epidemics in the World, 2000. Washington, DC

    Google Scholar 

  26. Mekonnen, Y., Jegou, R., Coutinho, R. A, Nokes, J. & Fontanet, A. (2002). Demographic impact of AIDS in a low-fertility urban African setting: Projection for Addis Ababa, Ethiopia. Journal of Health Population and Nutrition, 20, 120–129

    Google Scholar 

  27. Whiteside, A. (2001). Demography and economics of HIV/AIDS. British Medical Bulletin, 58, 73–88

    Article  Google Scholar 

  28. Booysen, F. le R. & Arntz, T. (2003). The methodology of HIV/AIDS impact studies: A review of current practices. Social Science and Medicine, 56, 2391–2405

    Article  Google Scholar 

  29. Mutangadura, G., Mukurazita, D. & Jackson, H. (2000). A review of household and community responses to the HIV/AIDS epidemic in the rural areas of sub-Saharan Africa. (Geneva: UNAIDS)

    Google Scholar 

  30. Over, M. (1998). Coping with the impact of AIDS. Finance and Development, (March), 22–24

    Google Scholar 

  31. Steinberg, M., Johnson, S., Schierhout, G., et al. (2002). Hitting home: How households cope with the impact of the HIV/AIDS epidemic. A survey of households affected by HIV/AIDS in South Africa. (Washington, DC: The Henry J. Kaiser Family Foundation)

    Google Scholar 

  32. Ngalula, J., Urassa, M., Mwaluko, G., Isingo, R. & Boerma, T. J. (2002). Health service use and household expenditure during terminal illness due to AIDS in rural Tanzania. Tropical Medicine and International Health, 7, 873–877

    Article  Google Scholar 

  33. Msellati, P., Juillet-Amar, A., Prudhomme, J., et al. (2003). Socio-economic and health characteristics of HIV-infected patients seeking care in relation to access to the drug access initiative and to antiretroviral treatment in Côte d’Ivoire. AIDS, 17, S63–S68

    Article  Google Scholar 

  34. Grassly, N. C., Desai, K., Pegurri, E. et al. (2003). The economic impact of HIV/AIDS on the education sector in Zambia. AIDS, 17, 1039–1044

    Article  Google Scholar 

  35. UNICEF (2003). Africa’s orphaned generations. Report issued in November 2003, New York

    Google Scholar 

  36. Forsythe, S. (2002). How does HIV/AIDS affect African businesses? In Forsythe, S. (Ed.), State of the art: AIDS and economics (pp. 30–37). (Washington, DC: International AIDS and Economics Network (IAEN)). Retrieved from: www.iaen.org

  37. Rosen, S., Simon, J., Vincent, J. R., MacLeod, W., Fox, M., Thea, D. M. (2003). AIDS is your business. Harvard Business Review, 81, 80–87

    Google Scholar 

  38. Kingdom of Swaziland. Ministry of Health and Social Welfare (2000). Accelerating access to HIV/AIDS care in Swaziland. A partnership between the Kingdom of Swaziland, the United Nations System, and the Private sector. Project Document, September 2000

    Google Scholar 

  39. Gilks, C. F., Floyd, K., Otieno, L. S., Adam, A. M., Bhatt, S. M. & Warrell, D. A. (1998). Some effects of the rising case load of adult HIV-related disease on a hospital in Nairobi. Journal of Acquired Immune Deficiency Syndromes, 18, 234–240

    Google Scholar 

  40. Aventin, L. & Huard, P. (2000). The cost of AIDS to three manufacturing firms in Cote d’Ivoire. Journal of African Ecology, 9, 161–188

    Article  Google Scholar 

  41. Touzé, V. & Ventelou, B. (2002). AIDS and development, a global challenge. Revue de L’OFCE, 0, S153–S174

    Article  Google Scholar 

  42. Anand, K., Pandav, C. S. & Nath, L. M. (1999). Impact of HIV/AIDS on the national economy of India. Health Policy, 47, 195–205

    Article  Google Scholar 

  43. Bloom, D. & Canning, D. (2003). Health as human capital and its impact on economic performance. Geneva Papers on Risk and Insurance, 28, 304–315

    Article  Google Scholar 

  44. Cantor, N. F. (2001). In the wake of the plague: The Black Death and the world it made. (New York: The Free Press)

    Google Scholar 

  45. Lucas, R. E. Jr. (2000). Some macroeconomics for the 21st century. Journal of Economic Perspectives, 14, 159–168

    Article  Google Scholar 

  46. Lloyd-Ellis, H. & Roberts, J. (2002). Twin engines of growth: Skills and technology as equal partners in balanced growth. Journal of Economic Growth, 7, 87–115

    Article  Google Scholar 

  47. Bloom, D. E., Canning, D. & Malaney, P. N. (2000). Demographic change and economic growth in Asia. Population and Development Review, 26, S257–S290

    Google Scholar 

  48. Bronfman, M. N., Leyva, R., Negroni, M. J. & Rueda, C. M. (2002). Mobile populations and HIV/AIDS in Central America and Mexico: Research for action. AIDS, 16, S42–S49

    Article  Google Scholar 

  49. Deininger, K., Garcia, M. & Subbarao, K. (2003). AIDS-induced orphanhood as a systemic shock: Magnitude, impact, and program interventions in Africa. World Development, 31, 1201–1220

    Article  Google Scholar 

  50. Nyambedha, E. O., Wandibba, S. & Aagaard-Hansen, J. (2003). Changing patterns of orphan care due to the HIV epidemic in western Kenya. Social Science and Medicine, 57, 301–311

    Article  Google Scholar 

  51. Bicego, G., Rutstein, S. & Johnson, K. (2003). Dimensions of the emerging orphan crisis in sub-Saharan Africa. Social Science and Medicine, 56, 1235–1247

    Article  Google Scholar 

  52. Case, A., Paxson, P. & Ableidinger, J. (2003). Orphans in Africa. (Paper presented at the UNAIDS Reference Group on Economics Meeting, World Bank, Washington DC, April 22–23)

    Google Scholar 

  53. Gertler, P., Levine, D. & Martinez, S. (2003). The presence and presents of parents: Do parents matter for more than money? (Paper presented at the UNAIDS Reference Group on Economics Meeting, World Bank, Washington, DC, April 22–23)

    Google Scholar 

  54. Freire, S. (2002). The impact of HIV/AIDS on saving behaviour in South Africa. (Paper presented at the International AIDS Economic Network Symposium on Economics of HIV/AIDS in developing countries, Barcelona, July). Retrieved from www.iaen.org

  55. Eberstadt, N. (2002). The future of AIDS: Grim toll in Russia, China, and India. Foreign Affairs, 81, 22–45

    Google Scholar 

  56. Forsythe, S. (1999). HIV/AIDS and tourism. AIDS Analysis Africa, 9, 4–6

    Google Scholar 

  57. Hemrich, G. & Topouzis, D. (2000). Multi-sectoral responses to HIV/AIDS: Constraints and opportunities for technical co-operation. Journal of International Development, 12, 85–99

    Article  Google Scholar 

  58. Easterly, W. & Levine, R. (1997). Africa’s growth tragedy: Policies ad ethnic divisions. Quarterly Journal of Economics, 112, 1203–1250

    Article  Google Scholar 

  59. Bell, C., Devarajan, S. & Gersbach, H. (2003). The long-run economic costs of AIDS: Theory and an application to South Africa. (Paper presented at the UNAIDS Reference Group on Economics Meeting, World Bank, Washington, DC, April 22–23). Retreived from www.iaen.org

  60. Couderc, N. & Ventelou, B. (2005). AIDS, economic growth and epidemic trap in Africa. Oxford Development Studies, 33, 417–426

    Article  Google Scholar 

  61. Cooper, R. (2000). Coordination games, complementarities and macroeconomics. (Cambridge: Cambridge University Press)

    Google Scholar 

  62. Gui, B. (2000). Beyond transactions: On the interpersonal dimension of economic reality. Annals of Public and Cooperative Economy, 71, 139–169

    Article  Google Scholar 

  63. Bruni, L. & Sugden, R. (2000). Moral canals: Trust and social capital in the work of Hume, Smith and Genovesi. Ecology and Philosophy, 16, 21–45

    Article  Google Scholar 

  64. Sen, A. (1999). Development as freedom. (New York: Albert Knopf)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2007 Springer

About this chapter

Cite this chapter

Moatti, JP., Ventelou, B. (2007). The Economic Impact of HIV/AIDS in Developing Countries: An End to Systematic Under-estimation. In: Caraël, M., Glynn, J.R. (eds) HIV, Resurgent Infections and Population Change in Africa. International Studies in Population, vol 6. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-6174-5_13

Download citation

  • DOI: https://doi.org/10.1007/978-1-4020-6174-5_13

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-1-4020-6172-1

  • Online ISBN: 978-1-4020-6174-5

  • eBook Packages: MedicineMedicine (R0)

Publish with us

Policies and ethics