Economic+Impact+of+AIDS-+SP11

__**Economic Impact of AIDS**__ HIV and AIDS severely impacts the economic standpoint of African countries. To begin with, the labor supply is depleted. This is because there are many losses of adults in their younger life, which is during their most productive years. As the number of available workers goes down, there is less economic output. Also, there are many costs on the government and citizens. This includes, but is not limited to, medical care, drugs, and funeral expenses. Additionally, the government must cover lost time due to illness, recruitment and training costs to replace workers, and care of orphans. This is funneled from the foreign investments and from those that do pay taxes. Going into more detail within a normal household, the economic impact includes loss of income of the patient, household expenditures (medical expenses), other members missing work to care for the ill person, and death leading to permanent loss of a salary. AIDS leads to agricultural loss because the loss of the labor supply creates a smaller harvest. AIDS also leads to a loss of revenue in firms because of increased health care costs, burial fees, training and recruitment costs, absenteeism, and lack of productive workers.



In South Africa, loss of well trained employees has been the effect of AIDS. Corporations have profited since AIDS coverage has been added to an employee’s benefits. The cost of benefits raised 12% for the costs of covering AIDS to be met. This would lead to around a double or triple cost increase in the benefit costs. Although coverage for AIDS is essential, it is declining within the productivity. The net impact on profits could be affected. The prices increasing for benefits will make a more significance for smaller firms, for the loss of a few employees will have a greater negative impact than it would for a larger firm. South Africa being a key sector in mining will suffer loss of their key export due to less highly trained mining engineers, which are difficult to replace. AIDS has been seriously threatening mine prodution.
 * __Economic Impact of AIDS in South Africa __**

In Uganda the leading economic impact of deaths is HIV related. Many people suffer as households spend their savings to pay off the health care and funeral expenses due to HIV. Studies have shown that agricultural tasks productions go down when a household member is ill with AIDS-related sickness. This is for the women are taking care of the ill and this leads to less production. A specific production line that is suffering a loss of employees due to AIDS is the Uganda Railway Corporation. They have on average 15% if their employees lost in recent years. Due to this, there are not as many experienced workers, limiting the railway's ability to grow.
 * __Economic Impact of AIDS in Uganda __**