You could have already guessed, it is much easier to argue that economic development is necessary for health than to argue the reverse that 'health is wealth'. As a result, a number of developing countries are hesitant to invest in health and view it as a 'drain' preferring to invest n activities that appear more lucrative for their struggling economies.
There was a debate that resulted following a publication by Acemoglu J et al which suggested that health improvements over the last century did not lead to changes in GDP. A number of economists did not agree with this perspective and published articles to show the basis for their arguments. I found it easy to agree with Cervellati and Sunde (2011) who showed that increase in life expectancy leads to a decrease in GDP until the fertility rates begin to drop.
I also think that if development is viewed broadly beyond it being a mere increase in income per capita, but as a process of improving quality of life-capabilities and freedoms, it is easy to see health as a necessary requirement for its attainment.
Other thoughts:
This is a summary of the Uganda budget 2012/2013:
 |
| http://www.independent.co.ug/images/stories/issue218/budget.jpg |
Notice only 7.7% spent on health with almost twice the amount spent on Energy & Mineral development(seemingly lucrative). I am glad though about the investment in education. However, I still find it hard to conceive an 'economic' argument for health investment in a densely populated developing country(e.g Uganda) with high fertility rates and high death rates. Especially if:
- Death appears to be 'stabilizing' the population growth
- Those who die are clearly being quickly replaced
- Existing jobs are already inadequate for the existing workforce population
- An increase in life expectancy would eventually yield a large elderly population that the country does not have structure to support.
Hopefully, this shall be clarified as we progress in the course.
No comments:
Post a Comment