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The paper provides an analysis of the impact of HIV/AIDS on the health sector, public education, the supply of labor and the returns to training in nine Southern African countries. Drawing on the preceding sections, it assesses the impact of HIV/AIDS on per capita income in a neoclassical growth framework. HIV/AIDS affects per capita income mainly through its impact of human capital, as measured by the supply of experienced workers. Other factors include the impact on capital accumulation, on education, and on total factor productivity.

Macroeconomics --- Diseases: AIDS and HIV --- Health Policy --- Demography --- National Government Expenditures and Health --- National Government Expenditures and Education --- Social Security and Public Pensions --- Health: General --- Education: General --- Health Behavior --- Analysis of Health Care Markets --- Labor Economics: General --- Demographic Economics: General --- HIV/AIDS --- Health economics --- Health systems & services --- Education --- Labour --- income economics --- Population & demography --- HIV and AIDS --- Health --- Health care --- Labor --- Population and demographics --- HIV --- Viruses --- Medical care --- Labor economics --- Population --- South Africa --- Hiv and AIDS --- Hiv --- Hiv/AIDS --- Income economics

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This Selected Issues paper and Statistical Appendix provides medium-term estimates of the cost of the government’s current anti-HTV/AIDS policies and programs in Botswana. The paper throws light on the policy challenges that Botswana authorities face in combating the crisis. The findings suggest that the cost of treating HIV/AIDS patients is likely to be high, about 10 percent of GDP, by 2010 (using the baseline estimates). The paper also analyzes Botswana’s approach to medium-term fiscal management.

Budgeting --- Foreign Exchange --- Macroeconomics --- Public Finance --- Diseases: AIDS and HIV --- Health Behavior --- General Financial Markets: General (includes Measurement and Data) --- Price Level --- Inflation --- Deflation --- National Government Expenditures and Related Policies: General --- Currency --- Foreign exchange --- Budgeting & financial management --- HIV/AIDS --- Finance --- HIV and AIDS --- Stock markets --- Asset prices --- Budget planning and preparation --- Exchange rates --- Health --- Prices --- Financial markets --- Public financial management (PFM) --- Budget --- HIV --- Viruses --- Stock exchanges --- Botswana --- Hiv and AIDS --- Hiv --- Hiv/AIDS

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This paper focuses on overcoming the challenges of globalization. The paper highlights that globalization has the potential to make all individuals better off. However, there is no assurance that all individuals will be better off or that all changes will be positive. The studies that show that, on average, poverty declines with economic growth are encouraging. But averages hide the negative impact on individual countries and on certain groups. In addition, there are important questions about the relationships between economic policies and outcomes, especially the impact of macroeconomic and structural reform policies on poverty.

International finance --- Globalization --- International monetary system --- International money --- Finance --- International economic relations --- Economic aspects --- E-books --- Finance: General --- Macroeconomics --- Diseases: AIDS and HIV --- Social Services and Welfare --- Government Policy --- Provision and Effects of Welfare Program --- Education: General --- Health Behavior --- Globalization: General --- General Financial Markets: General (includes Measurement and Data) --- Social welfare & social services --- Education --- HIV/AIDS --- HIV and AIDS --- Poverty reduction --- Poverty reduction strategy --- Health --- Poverty --- HIV --- Viruses --- Financial services industry --- United States --- Hiv and AIDS --- Hiv --- Hiv/AIDS

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The paper addresses the impact of HIV/AIDS on per capita output and income, with particular emphasis on the role of labor mobility between the formal and informal sectors, and the impact of the epidemic on investment decisions. The study finds that HIV/AIDS affects both the supply of labor and the demand for labor in the formal sector. Only if there is a significant rise in the capital-labor ratio, will there be an increase in formal sector employment. However, this is associated with a decline in the rate of return to capital. To the extent that companies respond to this by reducing investment, conventional models underestimate the adverse impact on employment, per capita output, and income. The analysis of the impact of HIV/AIDS on output is complemented by an assessment of the impact on income.

Labor --- Macroeconomics --- Production and Operations Management --- Diseases: AIDS and HIV --- Health: General --- Economic Growth and Aggregate Productivity: General --- One, Two, and Multisector Growth Models --- Economywide Country Studies: Africa --- Health Behavior --- Personal Income, Wealth, and Their Distributions --- Professional Labor Markets --- Occupational Licensing --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Unemployment: Models, Duration, Incidence, and Job Search --- HIV/AIDS --- Labour --- income economics --- HIV and AIDS --- Personal income --- Unskilled labor --- Capital productivity --- Health --- National accounts --- Production --- HIV --- Viruses --- Income --- Labor market --- South Africa --- Hiv and AIDS --- Hiv --- Hiv/AIDS --- Income economics