The COVID-19 pandemic has not just exposed the cracks in our global health systems but demonstrated how much health matters for our economies. Many developing economies are at risk of being hit hard by dual health and economic shocks with forecasts suggesting a cost of up to 8 percent in global GDP in 2020. Show
Yet what is less well known is the chronic economic drag from poor health each year—about 15 percent lower GDP from premature death and lost productivity. For example, in low-income countries, infectious diseases such as tuberculosis (TB) present the largest losses to labor supply and household income. This means that globally, of the estimated 60 million deaths in 2020, 25 million people will die before they reach their 65th birthday. Or think of the 70 million children today who are malnourished, significantly curtailing their physical and cognitive development and reducing their productive potential. So consider for a moment what would happen if avoidable health conditions were successfully addressed. Of course we know there would be immense benefits to individuals and societies. But what would the economic benefits be? We analyzed almost 200 countries over the coming two decades to 2040 to identify the different health challenges and opportunities facing each. We determined what it would take to improve the health of the population and sized the benefits. The results were aggregated by regional and global levels and by levels of economic development and published in our new report “Prioritizing Health: A prescription for prosperity.” While developing countries have made significant progress in the last two decades in improving health outcomes, they still lag significantly behind high-income countries. Our research shows that if we were to better use known interventions at more aspirational yet realistic rates of adoption, the economic payoff could be substantial. We estimated a $4.4 trillion boost across all developing countries, or a 7 percent increase in GDP in 2040. The relative boost to GDP in 2040 varies between 7 and 11 percent among the different income archetypes. We also found an economic return of between $2 to $4 across developing countries for every $1 invested in health (Figure 1). Healthier children would benefit more from education and grow up to healthier adults with higher earnings potential, encouraging investment in education and productive capacity. Prioritizing health can be a catalyst for a broader virtuous cycle of growth. Figure 1A larger and healthier labor force translates into substantial economic benefits across all countries. Yet underlying differences in the health outcomes and labor market structure shape the opportunities individual countries have to capture those economic benefits (Figure 2). Highlights from two regions include:
Figure 2Prevention is better than cure, and about three-quarters of the untapped opportunity to improve health occurs from preventive measures such as vaccinations, better nutrition, and broader access to care for infectious and other treatable conditions. For developing countries, the cost of interventions is relatively low. More than half of the total health improvement opportunity identified in lower-middle-income countries could be delivered through interventions with incremental costs of less than $100 per year of healthy life gained. For example, midwife-assisted safe childbirth and childhood immunizations could deliver 1 percent of the total addressable disease burden for 0.1 percent of the total additional costs. In upper-middle-income countries in turn, prevention of cardiovascular disease with polypill and supported behavior change could be the highest impact intervention to improve health delivered at a relatively low incremental cost. The pandemic has made investment in health even more urgent in low-income economies. The virus and its aftermath have led to disruptions in hugely important programs, such as child immunization, where at least 80 million children under 1 are at risk because of disruptions in vaccination efforts. Investing in health will also be key in building resilience toward other health risks from future pandemics, climate change, and antimicrobial resistance. So how can these benefits be achieved? We identify a number of priorities:
As developing countries navigate and eventually emerge from the COVID-19 crisis, we have a once-in-a-generation opportunity to rethink the role of health in a post-pandemic future. Making health a priority and shifting focus to areas with highest return can improve resilience, reduce health inequity, and promote greater individual, social, and economic well-being. Future Development The Future Development blog informs and stimulates debate on key sustainable development issues within and across all countries. Now hosted by the Center for Sustainable Development, this blog was originally launched in September 2013 by the World Bank and the Brookings Institution in an effort to hold governments more accountable to poor people and offer solutions to the most prominent development challenges. Continuing this goal, Future Development was re-launched in January 2015 at brookings.edu. In the ensuing years, the blog’s scope evolved in parallel with ongoing international policy debates and was formally updated in November 2022 to focus on broader challenges of sustainable development around the world. For archived content, visit worldbank.org »
What impact does health have on the economy?There is a compelling case that health systems both improve population health and have direct and indirect effects, which positively support national economic objectives. These include macroeconomic growth, employment, antipoverty efforts and societal wellbeing.
What impact would the health status of a country have on the likelihood that people will invest in the economic activity of that country quizlet?What impact would the health status of a country have on the likelihood that people will invest in economic activity in that country? People are less likely to invest in a country with poor health status because of the likelihood of illness. If employees are going to be sick then companies will not make money.
Why the health status of a country plays an important role in its economic status?Healthier workers are more likely to show up for work, be more productive when at work, are in better physical and mental health and are more likely to engage in education and skills training. Further, a strong economy means better jobs, better benefits like health insurance and higher pay.
How does health contribute to economic development?A direct consequence of a nation's poor health on its economy is through the adverse impact on its human capital. Studies have demonstrated a strong case for improvements in health and nutrition, concluding that health capital contributes more to wealth than other dimensions.
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