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International Monetary Fund

This Selected Issues paper for Botswana highlights the macroeconomic impact of an effectively implemented National Strategic Framework (NSF) program. The NSF is anchored on the goals of prevention, care, and support; management of the national response; economic impact mitigation; and provision of a strengthened legal and ethical environment. The treatment of the pandemic focuses on the administration of antiretroviral drugs to the infected, the effect of which would be to prolong their lifespan, as well as increase the average level of productivity.

Mr. Markus Haacker

When an IMF mission visited Swaziland for the annual Article IV consultation in April 2000, it discussed with the authorities the economic and social implications of the HIV/AIDS epidemic that the country is experiencing. This article highlights some of the issues that emerged during the visit, such as the scale of the demographic impact, the impact on the public and private sectors, and government strategies to combat the epidemic.

International Monetary Fund. External Relations Dept.

Southern Africa is the region of the world hardest hit by HIV/AIDS, with HIV prevalence rates ranging from about 15 percent to 35 percent of the adult population. Addressing an area in which little research has been done and few data are available, Economist Markus Haacker of the IMF’s African Department studied the economic consequences of HIV/AIDS in nine southern African countries, including the effects on the health sector, public education, and the labor supply. He recently spoke to the IMF Survey about his study.

Mr. Markus Haacker and Mr. N. F. R. Crafts
The paper evaluates the impact of HIV/AIDS on welfare in several countries affected by the HIV/AIDS epidemic. Unlike studies focusing on the impact of HIV/AIDS on GDP per capita, we evaluate the impact of increased mortality using estimates of the value of statistical life. Our results illustrate the catastrophic impact of HIV/AIDS in the worst-affected countries and suggest that studies focusing on GDP and income per capita capture only a very small proportion of the welfare impact of HIV/AIDS.
Patrick Salyer and David E. Bloom

The September 2007 issue of F&D looks at the growth of cities and the trend toward urbanization. Within the next year, for the first time in history, more than 50 percent of the world's population will be living in urban rather than rural areas. What are the economic implications of this urban revolution? Economists generally agree that urbanization, if handled well, holds great promise for higher growth and a better quality of life. But as the lead article tells us, the flip side is also true: if handled poorly, urbanization could not only impede development but also give rise to slums. Other articles in this series look at poverty as an urban phenomenon in the developing world and the development of megacities and what this means for governance, funding, and the provision of services. Another group of articles discusses the challenge of rebalancing growth in China. 'People in Economics' profiles Harvard economist Robert Barro; 'Country Focus' looks at the challenges facing Mexico, and 'Back to Basics' takes a look at real exchange rates.

Mr. Sanjeev Gupta, Mr. Alex Segura-Ubiergo, and Enrique Flores

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.