PDF Health and Development: Why Investing in Health is Critical ...

Health and

Development

A compilation of articles from Finance & Development

International Monetary Fund Washington, DC December 2004

? 2004 International Monetary Fund Editor

Jeremy Clift Production: IMF Graphics Section Cover and design: Luisa Menjivar, Jorge Salazar Typesetting: Lai Oy Louie, Lijun Li

ISBN 1-58906-341-4 Published December 2004

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Preface

The past century has been marked by rapid advances in human welfare. People in most parts of the world are healthier and are living longer. While this trend is likely to continue, hopes are fading in some regions where progress slowed or stopped in the 1990s, primarily as a result of the AIDS epidemic.

This compilation of articles published over the past five years in the pages of F&D looks at the important links between health and economic progress. Articles range over a variety of topics, from the Millennium Development Goals and their health-related targets for 2015 to the economics of tobacco control. Several articles examine the impact of AIDS, while others look at debt and the intellectual property aspects of health care.

By publishing the articles together, we hope that they will form a useful starting point for those examining the economics of health in developing countries.

Laura Wallace Editor-in-Chief

Finance & Development December 2004

Health & Development iii

Contents

Preface

1

Getting There

How to accelerate progress toward the Millennium Development Goals

Mark Baird and Sudhir Shetty

8

Checking Up on Health

A chart-based description of the world's health trends

10

Health, Wealth, and Welfare

New evidence and a wider perspective suggest sizable economic returns to better health

David E. Bloom, David Canning, and Dean T. Jamison

16

Making Health Care Accountable

The new focus on performance-based funding of health services in developing countries

Robert Hecht, Amie Batson, and Logan Brenzel

20

New Antimalarial Drugs: Biology and Economics Meet

Ways to stop or slow the spread of drug-resistant strains of malaria

Kenneth J. Arrow

22

Medicines, Patents, and TRIPS

Has the intellectual property pact opened a Pandora's box for pharmaceuticals?

Arvind Subramanian

26

Debt Relief and Public Health Spending in Heavily Indebted Poor Countries

Sanjeev Gupta, Benedict Clements, Maria Teresa Guin-Siu, and Luc Leruth

30

Making Services Work for Poor People

Why the poor need more control over health care and other essential services

Shantayanan Devarajan and Ritva Reinikka

36

Confronting AIDS

Developing countries must face the realities of the epidemic

Lyn Squire

39

Coping with the Impact of AIDS

The strain on limited resources

Mead Over

43

Setting Government Priorities in Preventing HIV/AIDS

Public policy is an effective weapon

Martha Ainsworth

48

Making AIDS Part of the Global Development Agenda

AIDS is a development problem that must be addressed globally

Robert Hecht, Olusoji Adeyi, and Iris Semini

53

Death and Taxes: The Economics of Tobacco Control

Tobacco control can have big health benefits without harming the economy

Prabhat Jha, Joy de Beyer, and Peter S. Heller

Health & Development v

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