Business Incentives and HIV/AIDS: Are There Any Solutions?

Barnett and Whiteside Ch. 11 Development and Economic Growth

My immediate reaction to this chapter was utter frustration. "Poverty assists the spread of HIV and AIDS pushes people into poverty"--it's an unending cycle! Numerous economists come up with various economic models to measure the economic impacts of HIV/AIDS, but many carry the big flaw--their quantitative analyses do not capture the qualitative loss caused by HIV/AIDS. Yet, when economists do try to come up with models that include qualitative analysis, such as QALYS, they are also deemed inappropriate due to their complexity. Are there any economic models appropriate for the measurement of economic impacts of HIV/AIDS? Can numbers capture the devastating effects of this epidemic? However, beyond these doubts surrounding numeric representations of the effects of HIV/AIDS on economies of countries, such quantitative analyses are needed for policy making and fund approvals. Donors must base their decisions on some measurable data, even if the data is unable to capture the whole picture. Can we ever capture the whole picture?

My other frustration with the readings on economic impacts and business decisions in regards to HIV/AIDS (Ch. 10 Private Sector Impact) was issue brought up in the concluding sentence of Ch. 11, that the effort to increase economic growth by battling the HIV/AIDS epidemic will most likely have to be carried on by the government alone. "Consistency and sustainability" are key elements in effective measurements against HIV/AIDS, and the authors claim NGOs lack these characteristics. The private sector are profit-driven entities, and these elements cannot be guaranteed in the possible profits they may make through anti-HIV/AIDS investments. Yet, can government, "with all its imperfections and limitations," carry all the burden alone? (Barnett and Whiteside, 314) Can NGOs streamline their policy-making? Can the private-sector find incentives to invest in long term anti-HIV/AIDS projects that outweigh the risks and costs involved?

I would like to be hopeful in the potential of private-sector involvement for personal reasons . I am going into the private banking sector after I graduate. I chose that path because I want to be able to help move money in the world economy in a way that can benefit both the investors and the invested. Impacts of HIV/AIDS on the private sector listed in Ch. 10 included depletion of markets and decrease in labor productivity. These are factors that not only affect domestic economies but also the global economy. When African nations can recover from the devastating effects of HIV/AIDS, the purchasing powers of these nations will go up, which means attractive markets, and increase in productivity will make positive returns on investments. Private sectors in wealthy nations certainly have incentives to join the global fight against HIV/AIDS, and they can make a difference.