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Posted: October 31st, 2023
Economic Development and Healthcare in Third World Countries
Economic development and healthcare are closely intertwined, as health is both a driver and an outcome of economic growth. Improving the health of the population can boost productivity, income, and human capital, while reducing poverty, inequality, and social unrest. Conversely, economic growth can enable more investments in health systems, infrastructure, and innovation, as well as improve access to quality and affordable healthcare for all.
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However, many third world countries face significant challenges in achieving both economic development and health improvement. These challenges include:
- High burden of infectious diseases, such as tuberculosis, malaria, HIV/AIDS, and COVID-19, which cause premature deaths, disability, and lost productivity.
- High rates of malnutrition, especially among children and pregnant women, which impair physical and cognitive development, educational attainment, and future earning potential.
- Low coverage and quality of health services, due to inadequate financing, human resources, equipment, drugs, and governance.
- Lack of social protection and health insurance, which expose people to catastrophic health expenditures and push them into poverty.
- Weak health information systems, which limit the availability and use of data for decision-making, monitoring, and evaluation.
These challenges are exacerbated by factors such as climate change, environmental degradation, urbanization, population aging, conflict, and migration.
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To address these challenges, third world countries need to prioritize health as a strategic investment for economic development. This requires:
- Increasing domestic and external funding for health, while ensuring efficiency, equity, and accountability in resource allocation and utilization.
- Strengthening health systems to deliver essential health services to all people, especially the poor and marginalized groups.
- Promoting universal health coverage to ensure that everyone has access to quality and affordable health care without financial hardship.
- Enhancing multisectoral collaboration to address the social determinants of health, such as education, water, sanitation, nutrition, gender equality, and peace.
- Leveraging innovation and technology to improve health outcomes, reduce costs, and increase access.
- Building resilience and preparedness to cope with health emergencies and shocks.
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Several studies have shown that investing in health can have a significant economic payoff for developing countries. For example:
- A report by the World Economic Forum estimated that improving the health of the population could boost GDP by 7% in 2040 across all developing countries.
- A study by the Brookings Institution found that reducing avoidable deaths from chronic diseases could increase labor supply and household income by 15% in low-income countries.
- A paper by the World Health Organization showed that scaling up interventions for maternal and child health could generate returns of up to 20 times the cost.
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These examples illustrate that prioritizing health is not only a moral imperative but also a smart economic choice for third world countries.
Bibliography
: Global Health and Healthcare Strategic Outlook: Shared Vision for 2035. World Economic Forum. 2023. https://www3.weforum.org/docs/WEF_Global_Health_and_Healthcare_Strategic_Outlook_2023.pdf
: How investing in health has a significant economic payoff for developing economies. Brookings Institution. 2020. https://www.brookings.edu/articles/how-investing-in-health-has-a-significant-economic-payoff-for-developing-economies/
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: Health Promotion in Developing Countries. World Health Organization. 1991. https://apps.who.int/iris/bitstream/handle/10665/61377/WHO_HED_91.1_eng.pdf;sequence=1
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