ECONOMIC EFFECTS OF HIV

ECONOMIC EFFECTS OF HIV/AIDS
HIV and AIDS affects economic growth by reducing the availability of human capital. This is due to low esteem on individuals infected by the virus. Some lack importance of working since they see their lives worthless.
 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. The forecast is that this will probably cause a collapse of babies and societies in countries with a significant AIDS population.
 In some heavily infected areas, the epidemic has left behind many orphans cared for by elderly grandparents. This affects the elderly in that they got little energy left for them to take care of themselves and a burden of orphans is left on their shoulders
The increased mortality will result in a smaller skilled population and labor force. This smaller labor will be predominantly young people, with reduced knowledge and work experience leading to reduced productivity. An increase in workers’ time off to look after sick family members or for sick leave will also lower productivity.
 Increased mortality will also weaken the mechanisms that generate human capital and investment in people, through loss of income and the death of parents. As the epidemic progresses, the age profile of those infected will increase, though the peak is expected to stay within the working age population. HIV disproportionately infects and impacts on women, so those sectors employing large numbers of women e.g. education, may be disproportionately economically impacted by HIV.
Nelson Njenga

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