Economics 172 Issues in African Economic Development

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Economics 172Issues in African Economic
Development

• Lecture 9
• February 13, 2006

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• Outline
• The Economics of HIV/AIDS in Africa
• Labor productivity impacts (Fox et al 2004)

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The Economics of HIV/AIDS in Africa

• Of the 42 million people worldwide thought to be
  infected with HIV, it is estimated that 25
  million (!) are in Sub-Saharan Africa

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The Economics of HIV/AIDS in Africa

• Of the 42 million people worldwide thought to be
  infected with HIV, it is estimated that 25
  million (!) are in Sub-Saharan Africa
• In some countries in southern Africa (e.g.
  Botswana, Swaziland), it is claimed that over 35
  are HIV

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Counting HIV people in Kenya

• Based on antenatal clinic survey data, the
  official UNAIDS estimate of HIV adults in Kenya
  by late 2001 was 15.0

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Counting HIV people in Kenya

• Based on antenatal clinic survey data, the
  official UNAIDS estimate of HIV adults in Kenya
  by late 2001 was 15.0
• The 2003 Kenya Demographic and Health Survey
  (DHS) tried to survey a representative subsample
  of population. 73.4 agreed to be tested

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Counting HIV people in Kenya

• Based on antenatal clinic survey data, the
  official UNAIDS estimate of HIV adults in Kenya
  by late 2001 was 15.0
• The 2003 Kenya Demographic and Health Survey
  (DHS) tried to survey a representative subsample
  of population. 73.4 agreed to be tested
• This data indicates that only 6.7 of Kenyan
  15-49 year olds tested are HIV!

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Counting HIV people in Kenya

• Based on antenatal clinic survey data, the
  official UNAIDS estimate of HIV adults in Kenya
  by late 2001 was 15.0
• The 2003 Kenya Demographic and Health Survey
  (DHS) tried to survey a representative subsample
  of population. 73.4 agreed to be tested
• This data indicates that only 6.7 of Kenyan
  15-49 year olds tested are HIV!
• Which of the two numbers is better?

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Key questions in the study of HIV/AIDS
(0) Characterizing the extent of the problem
(today) (1) What impact does HIV/AIDS have on
economic development in Africa?
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Key questions in the study of HIV/AIDS
(0) Characterizing the extent of the problem
(today) (1) What impact does HIV/AIDS have on
economic development in Africa? (2) Why does
HIV/AIDS continue to spread in Africa?
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Key questions in the study of HIV/AIDS
(0) Characterizing the extent of the problem
(today) (1) What impact does HIV/AIDS have on
economic development in Africa? (2) Why does
HIV/AIDS continue to spread in Africa? (3) What
can / should public policy do about HIV/AIDS?
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HIV/AIDS and labor productivity in Kenya

• Fox et al (2004) study the impact of HIV/AIDS
  illness on labor productivity on tea plantations
  in Kenya, 1997-2002

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HIV/AIDS and labor productivity in Kenya

• Fox et al (2004) study the impact of HIV/AIDS
  illness on labor productivity on tea plantations
  in Kenya, 1997-2002
• They compare the labor productivity the
  kilograms of tea leaves picked per day of
  workers who became sick with HIV/AIDS during the
  study period to workers who remained healthy
• The total sample is 271 workers. 54 died or
  retired due to HIV/AIDS

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Whiteboard 1
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Whiteboard 2
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Whiteboard 3
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Whiteboard 4
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Whiteboard 5
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Map of Africa