The Macroeconomic Impact Of Hiv And Aids Economics Essay

HIV and AIDS deceases occur chiefly among workers in their most productive old ages. Experienced workers die and their companies have to replace them by less experient workers. Consequently, these increase the enlisting and preparation costs. ( World Bank.2000:12 ) .

Disrupt production and undermine productiveness

Increased absenteeism due to HIV/AIDS consequences in a diminution in labour productiveness. Workers may be absent because they are ill, because a member of their household is ill, or because they are go toing a funeral.

Harmonizing to Morris, D.R. Burdge, and E.J. John cheevers 2001, ( as quoted by IAEN. 2002:31 ) in a sugar factory in South Africa, 26 % of all tried workers were infected with HIV. They province that infected workers incurred, on norm, 55 extra yearss of ill leave during the last two old ages of their life.

It is stated in a study on the impact of HIV and AIDS on selected concern in South Africa ( SABCOHA & A ; BER, 2004: two ) that 30 % of the mines and 18 % of the makers surveyed foresee naming excess employees to counterbalance for the impact of HIV/AIDS on labour productiveness, absenteeism and mortality.

23 % of the mines and 17 % of the makers surveyed reported that they were puting in machinery or equipment to cut down their dependance on labor, ( SABCOHA & A ; BER 2004: three )

Changes in family ingestion forms

The consequence of HIV and AIDS pandemic on the households is by and large a loss of income and increased outgo on medical attention and funeral costs. As a effect, nest eggs are used, assets are sold and money may be borrowed. ( World Bank 2000:9 )

Increased poorness

As big members of the household become ill they give up their occupations and household income falls. Outgo on nutrient comes under force per unit area therefore malnutrition consequences. Access to other basic demands such as wellness attention, shelter and sanitation besides comes under menace. This acts to further cut down the opposition of household members ( peculiarly those who may be HIV positive ) to timeserving infections.

Reduce profitableness

AIDS reduces the profitableness of concerns by both increasing the cost of production and diminishing the productiveness of workers.

Harmonizing to SABCOHA & A ; BER ( 2004 ) , HIV and AIDS epidemic has already reduced labour productiveness and led to higher employee benefit costs in more than 60 % of the mines and approximately 50 % of the makers. ( SABCOHA & A ; BER2004: two )

Collapse of wellness attention bringing systems

HIV and AIDS increases the figure of people seeking wellness attention and wellness attention for AIDS patients is more expensive than for most other conditions.

Collapse of educational and preparation system

With the HIV and AIDS pandemic the supply of experient instructors will be reduced. Children may be kept out of school to care for ill household members or to work for household income. Children may besides drop out of school if their households can non afford school fees due to decreased income as a consequence of HIV and AIDS. ( World Bank 2000:13 ) .

Section Bacilluss:


Harmonizing to Wehrwein, the cost of antiretroviral therapy is estimated between $ 10,000 and $ 20,000 per twelvemonth per individual. This same sum of money would cover the one-year wellness attention expenditures for 200 people in Zimbabwe.

A household in Africa might pass between $ 600 and $ 1,500 to care for a individual populating with AIDS.A Whiteside studies that up to 50 per centum of the beds in South Africa ‘s big provincial infirmaries are occupied by people with AIDS. ( Wehrwein, P.2000 )


Barnett, T & A ; Whiteside, A. 2002:275 argue that HIV and AIDS affect about all Millennium Development Goals:

Eradicate utmost poorness and hungriness.

HIV and AIDS deepen family poorness and decelerate economic growing.

In rural countries with high HIV prevalence, the epidemic degrades agricultural sectors and exacerbates nutrient insecurity.

Achieve cosmopolitan primary instruction.

International societal development ends include cosmopolitan primary instruction by 2015. This end is difficult to accomplish in AIDS – affected states.

HIV and AIDS cut down the supply of instructors and increases child labor as kids are kept out of school to care for ill household members and /or to work for household incomes ( World Bank 2000:13 ) Children besides drop out of school because their households can non afford school fees due to cut down household income. ( World Bank 2000: 3 ) As a consequence, they do non have proper attention and counsel, and easy fall victim to all sorts of development.

Promote gender equality and empower adult females.

Womans are extremely vulnerable to HIV and AIDS for both biological and cultural grounds. When their hubbies become earnestly sick or die adult females have to take attention of kids. The decease or serious unwellness of a hubby consequence in adult females seeking other beginnings of income taking them into all sorts of sexual development ( World Bank.2000:1 )

Reduce kid mortality.

Most of HIV positive kids do non make 5years. In add-on, some female parents of HIV negative kids dice of AIDS, and grounds shows that orphans have higher mortality rates. ( Barnett, T & A ; Whiteside, A. 2002:173 )

Access through the primary wellness attention system to reproductive wellness services for all persons of appropriate ages and no subsequently than 2015


Access to wellness attention is more hard due to increased demand and decreased supply. HIV and AIDS put force per unit area on the public wellness attention system, extra homo and fiscal resources required

Combat HIV/AIDS and other diseases.

HIV and AIDS undermine attempts to command TB. HIV and AIDS is an of import contributing factor in the continued spread of TB.

Section C:


UNAIDS.2009 proposes a set of specific results.

Model in covering with HIV and AIDS in nine precedence countries which are: cut down sexual transmittal of HIV, prevent female parents from deceasing and babes from going infected with HIV, guarantee that people populating with HIV receive intervention, prevent people populating with HIV from deceasing of TB, protect drug users from going infected with HIV, take punitory Torahs, policies, patterns, stigma and favoritism that block effectual responses to AIDS, halt force against adult females and misss, authorise immature people to protect themselves from HIV and heighten societal protection for people affected by HIV. ( UNAIDS. 2009: 9 )


Regular HIV and AIDS Surveillance could supply precise quantitative and qualitative information about the epidemic and its impact.

The findings of studies must be used as inputs for the design of problem-solving, action-oriented intercessions including development of equal preparation programmes.

At the company degree, Companies need to carry on regular surveillance of HIV and AIDS prevalence in their work forces in order to project the future impact of the epidemic on variable and issues such as medical strategies, pension financess, industrial dealingss, and productiveness. ( Roux, A. 2010:8 )


The most effectual response in covering with the impact of HIV and AIDS is to cut down new infections. Our response should include information, instruction and communications ; voluntary guidance and testing ; condom publicity and handiness ; intervention of sexually transmitted diseases ; and attempts to protect human rights and cut down stigma and favoritism.

Many immature people still lack complete information on how to avoid exposure to the virus. School provides an indispensable locale for HIV bar instruction for these immature people, and cut down misss ‘ exposure to HIV. Reduced school fees can assist kids from hapless households and AIDS orphans stay in school thirster.


Success in reacting to the HIV epidemic requires sustained advancement in turn toing human rights misdemeanors, gender inequality, stigma, and favoritism.

All generative wellness programmes should specifically include a HIV/AIDS bar scheme. The scheme should be designed to progressively turn to work forces alternatively of aiming lone adult females. The state should guarantee strict enforcement of anti-discrimination steps to protect people populating with HIV.

Social protection programmes that provide hard currency aid to HIV-affected families should be brought to graduated table.

The epidemic is holding peculiarly rough effects on adult females, and scaled-up steps to increase adult females ‘s independent income-generating potency should be implemented.

Policy Adjustments

Development policy in the state must get down to see the turning labour restraints associated with HIV/AIDS and the possible widespread break to the economic system and societal construction. Policy must now take into history the impact of HIV/AIDS on labor and income, spelling out realistic ends, aims and execution schemes.


Antiretroviral intervention programmes are critical to extenuating the epidemic ‘s impact.

Intensified action is needed to guarantee timely bringing of HIV intervention to kids, who are significantly less likely than grownups to have antiretroviral drugs.

Harmonizing Roux, A 2010:8, anti-retroviral therapy can protract labour force engagement and heighten labour productiveness. He states that the longer-term benefits of therapy seem to outweigh the costs.


The impacts of AIDS on families can be reduced to some extent by publically funded plans to turn to the most terrible jobs. Such plans have included place attention for people with HIV/AIDS, support for the basic demands of the families get bying with AIDS, Foster attention for AIDS orphans, nutrient plans for kids and support for educational disbursals.

Such plans can assist households and peculiarly kids survive some of the effects of an grownup AIDS decease that occur when households are hapless or become hapless as a consequence of the costs of AIDS.