macroeconomics and aids (trevor neilson, brian brink)
TRANSCRIPT
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Business and HIV/AIDS:Economic Impact and
Business Rationale
Trevor NeilsonExecutive Director,Global Business Coalition onHIV/AIDSJuly 8, 2004
Bangkok, Thailand
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The Global AIDS Crisis The worst health crisis in all of
human history
30 million people have died
40 million are currently infected
Infections are not slowing
Next wave countries: Russia,India, China
Limited access to treatment
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ew n ect ons n :million, over 13, 000 a
day More than 50% are women
About 50% are in the agebracket between 15-24 years
Almost 2000 are in childrenunder the age of 15
More than 95% are in low andmiddle income countries
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g an ow s ma es oCurrent and Future HIV/AIDS-Infected Adults in Next-Wave
Countries, 2002 and 2010
25
20
15
10
5
0
Millions
2002 2010
High
Low
Nigeria Ethiopia Russia India China
HighLow
2002 2010 2002 2010 2002 2010 2002 2010
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AIDS DecimatesEconomies
Growth Impact of HIV (1990-97) (80 developing countries)
-1.6
-1.4
-1.2
-1
-0.8
-0.6
-0.4
-0.2
0
0 5 10 15 20 25 30 35
HIV Prevalence Rate (%)
Reduction in growth rate GDP
per capita (%, per ye ar)
Source: R. Bonnel (2000) Economic Analysis ofHIV/AIDS, ADF2000 Background paper, World Bank.Slide adapted from UNAIDS: Socio-Economic Impact of HIV/AIDS in Africa, presented by AnitaAlban and Lorna Guiness, ADF 2000.
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Impact on EconomicDevelopment
Business Increased Cost, decreased revenue Decreased productivity, depleting skills and distorting labor market
Markets Reduced Consumer spending
Society
Health consumes more of government budget, leaving less for socialinvestment Families spend down savings, reducing capital Tax revenues fall Skilled workers & professionals die or may flee: brain drain Foreign investment and tourism decline Mass orphaning
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Security Threats of HIV/AIDS
Civil and international conflicts contribute to the spread of HIV/AIDS:
AIDS does not cause wars but it magnifies the impact of conflict
AIDS destabilizes governments
AIDS is increasing the risk profile for corporate and internationalinvestment
Some African armies have prevalence rates of 40-60%
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The Impact on
Businesses Employees in their most productive years are affected Increased cost for health care, burials, training and
recruitment of replacement employees
Decreased revenues as a result of absenteeism due toillness or attendance at funerals, as well as time spenton training
Labor turnover and loss of skilled workers can lead to
a less productive work force
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IncreasingVulnerability
Looking solely at direct costs underestimates thefull impact of HIV/AIDS In addition to measurable savings of $20K-200K for each
new infection prevented, DaimlerChrysler concludedthat prevention of a new infection averted a far greaterloss of human capital
Small and medium enterprises Potentially more vulnerable than MNCs Capture majority of the population
Limited resources and lack of awareness and access tohealth services Will require massive mobilization and support
Source: South African Business Coalition on HIV/AIDS and Bureaufor Economic research, 2003.
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What Can Business Do? The workplace is one of the best mechanisms to educate the
adult population and their communities about HIV Businesses can give resources or in-kind contributions and
use their products in innovative ways
Workplace health systems can be important for expandingaccess to treatment and prevention services
Business people can play leadership roles in theircommunities and urge governments to take action
Businesses can provide management expertise to HIV/AIDSorganizations
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Global Business Coalitionon HIV/AIDS
Over 150 Member Companies Richard Holbrooke, President and CEO Mark Moody-Stuart, Chairman Business AIDS Methodology Benefits of Membership Issue-based campaigns
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What do GBC
companies do? Use their products, people andreputation to fight AIDS Adopt AIDS policies and prevent and
treat within their workforce Every companies approach is different Examples: Anglo American, Viacom,
MAC, Getty Images
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Source: Adapted from WHO/UNAIDS Statistics, & HIV/AIDS Surveillance in
Europe, End- year report 2001, No. 66, CESES
2.5
2.0
1.5
1.0
0.5
0.0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001Yearly D
e aths as a Proport ion of 19 95 Values
HAART
AIDS deaths in Africa
AIDS deaths in Western Europe
Life
The widening gap between North andSouth
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Business, AIDS andPublic Policy
Accelerating Access to Testing 6 million people need ARVs only 400,000
have access to medicines
To fulfill WHO 3 by 5 goal5,000 people need to be brought onto treatmentevery day, which means500,000 people need to be tested every day
(assuming that 50,000 test positive and 10% of
those will need immediate access to treatment)Policy Shift on HIV/AIDS Testing
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Overcoming AIDS WhatMust Happen
Business is only one small piece of the pie:
In hard hit regions, national governments creatingeffective programs for their countrys HIV response iscritically important
In donor nations, mobilization of resources globally towardHIV prevention testing and treatment must be sustained
The general public must be educated about the need fornew resources
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The impact of AIDS on business and
Economic prosperity cannot be ignored.Our customers in many parts of the world and our own staff are threatened by theepidemic the day to day operations of
business could be compromised, we have tosolve this problem.
-- Mervyn Davies, Group Chief Executive,Standard Chartered Bank