Question

Question 3.

The outbreak of the HIV/AIDS epidemic in sub-Saharan Africa (SSA) in the 1990s has influenced many aspects of people's life in the region. How do you think the HIV/AIDS epidemic will affect the process of demographic transition for SSA countries that are severely infected? Explain (Note: It is more important for you to provide economic reasoning for any possible effects rather than giving a conclusive answer)

Answer 1

HIV/AIDS affects economic growth by reducing the availability of human capital. Without proper prevention, nutrition, health care and medicine that is available in developing countries, large numbers of people are falling victim to AIDS.
The increased mortality in this region will result in a smaller skilled population and labor force.This smaller labor force will be predominantly young people, with reduced knowledge and work experience leading to reduced productivity. An increase in workers’ time off to look after sick family members or for sick leave will also lower productivity. Increased mortality will also weaken the mechanisms that generate human capital and investment in people, through loss of income and the death of parents.As the epidemic progresses, the age profile of those infected will increase, though the peak is expected to stay within the working age population. HIV disproportionately infects and impacts on women, so those sectors employing large numbers of women e.g. education, may be disproportionately economically impacted by HIV.