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Health and Development Nexus Lecture II, Date: 25-01-2012 What is Health?

The current WHO definition of health, formulated in 1948. WHO describes health as a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.

Fig2: Health as an input and an outcome of Development Process

Influencing factors: 1. Economic 2. Political 3. Social 4. Demography

Public health spending Economic Development

Health status of population

Health is an asset that nature has endowed to human being. Health has a significant economic value because of its role in the individuals welfare and also for economic development (WHO, 1999). Also Grossman (1972) and Bloom and Canning (2000) explained that healthy individuals are more efficient and therefore highly productive because they are better able to seek knowledge and skills. The relation between health and income is spiral and running both ways. The channels that explains effects of health on income are: i) ii) iii) iv) labor productivity (Strauss and Thomas, 1998) Educational attainment and better skills, Investment in physical capital, Demographic transition with change from high population growth to low population growth, low infant mortality and reduced fertility (WHO, 1999 and Bloom and Williamson, 1998) Less dependency and therefore more welfare or less poverty in income terms Better utilization of scarce resources like water and sanitation and also health care services.

v) vi)

It is argued that more public health services could enhance life expectancy levels (Lichtenberg, 2004). An increase in government spending not only leads towards long life and hence faster economic growth as reinforced by that long life implies a larger work force, which can also drive faster growth (Aisa Pueyo, 2004). For broad based economic growth, developing countries, has to draw attention towards human capital formation by investing in health.

Health Status, Health expenditures and Development Lecture III, Date: 30-01-2012 Does higher Public health spending is worthwhile? Studies revealed that a healthy person not only works efficiently and hence devote more time to productive activities. Studies have shown that health improvements accounts for one third increase in GDP growth (Bloom and Sevilla, 2004). Growing evidence showed that investing in health brings economic growth and prevent slippage into poverty by avoiding income or consumption shocks. In Colombia, the public and private investments in health are related to future earnings of individual as one more day of disability decreased male rural earnings by 33% and 13% for female (Ribero and Nunez, 1999).

Ill health means reduced productivity, shortened working lives, and increased numbers of days lost to illness. Thus, imposes a higher risk on the poor than on people with more assets. Spending that reduces the incidence of disease can produce big savings in treatment costs. Economic Development can be explained partly by the control of diseases, especially if new regions are opened up for settlement and development. In Brazil, for example, improvements in transportation and the control of malaria in various regions triggered a rapid increase in economic growth (Sorkin, 1984). Economic Development can be explained partly by the control of diseases, especially if new regions are opened up for settlement and development. In Brazil, for example, improvements in transportation and the control of malaria in various regions triggered a rapid increase in economic growth (Sorkin, 1984). How Health is Measured?

South Asian Health Indicators

Some Caveats Bangladesh Independence War (1970-71) Data Series missing (New Data Series generation) Extrapolation of Time series where data is unavailable Any other Reason You might deem fit here !!!!

Lets Build a model a). Determinants of Public Health Expenditures

PCHE= f(? ? ?) b). Determinants of Mortality

HS = f( ? ? ?) Please get the data of the choice of your country with two variables and try to build a scatter plot, line plot and bivariate regression using STATA.

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