15 - The Impact and Investment Implications of HIV/Aids on Human Capital in Sub-Saharan Africa
Corresponding Author(s) : C. N. Mwikisa Seck
CODESRIA Bulletin,
No. 02-03-04 (2003): CODESRIA Bulletin, Nos 2, 3 & 4, 2003
Abstract
This paper addresses an aspect of the HIV/Aids crisis which, despite its importance, has not been adequately addressed:
the impact of HIV/Aids on investment in human capital in sub-Saharan Africa. To compete in world markets African
countries have to invest heavily in education and training. In the past, natural resources alone may have been sufficient,
but in today’s world the most important factor is technological know-how, or human capital. HIV/Aids makes investment
in human capital both more crucial and more difficult. HIV/Aids is undermining earlier achievements from investment
in education and training and at the same time making new investment more problematic.Human capital in Africa is
being heavily impacted by the HIV/Aids epidemic. While other resources are only affected indirectly by HIV/Aids,
human capital is the entry point of the epidemic into the production system. Thus, as the International Labour Organisation
(ILO) argues, Africa’s prospects for development are endangered more than anything else by the annihilation of
its labour force by HIV/Aids and the associated deterioration of education and training (Katsigeorgis 2002). This paper
first discusses the effects of HIV/Aids on human capital in sub-Saharan Africa and then argues that the current
strategies to mitigate these effects are not sufficient. Finally a research agenda to address the impact of HIV/Aids on
human capital in sub-Saharan Africa is outlined.
Keywords
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- African Development Bank, 1998, African Development Report 1998: Human Capital Development, Oxford: Oxford University Press.
- Appleton, S. and Teal, F., 1998, Human Capi- tal and Economic Development, Economic Research Paper No. 39, Abidjan: Africa Development Bank.
- Barks-Ruggles, E., Fantan, T., McPherson, M., and Whiteside, A., 2001, ‘The Economic Im- pact of HIV/Aids in Southern Africa’, Paper Presented at the Conference on Measuring the Costs of HIV/Aids, The Brookings Institute, The
- Council on Foreign Relations, and the U. S. Agent for International Development (USAID), June.
- Becker, G. S., 1964, Human Capital, New York: Columbia University Press.
- Becker, G. S., 1967, Human Capital and the Personal Distribution of Income: An Analyical Approach, Ann Arbor: University of Michigan.
- Ben-Porath, Y., 1967, ‘The Production of Human Capital and the Life Cycle of Earnings’, Journal of Political Economy, Vol. 75, pp. 353- 367 ECA, 1995, Human Development in Africa: 1995 Report, Addis Ababa: Economic Commis- sion for Africa.
- Grossman, M., 2000, ‘The Human Capital Model’, in Culyer A. J. and Newhouse, J. P., eds., Handbook of Health Economics, Volume 1A, Amsterdam: Elsevier, pp. 348 – 408.
- Kane, O., 2000, ‘Technological Innovation and Competitiveness of Basic Products in the African Agro-Food Sector: Problems and Elements of a Strategy’, Sall, A., ed., 2000, The Future Competitiveness of African Economies – Proceedings of the Dakar Forum, March 1999, pp. 267-295.
- Katsigeorgis, J., 2002, ‘Impact of HIV/Aids on African Development Underestimated’, in Uni- ted Nations Chronicle Online Edition, (http:// www.un.org/Pubs/chronicle/2002/issue3/ 071602_impact_of_hiv.html).
- Lindauer L. and Roemer M., 1994, Africa and Asia: Legacies and Opportunities in Development, San Francisco: Institute for Contemporary Studies.
- Mincer, J., 1964, Schooling, Experience and Earnings, New York: Columbia University Press.
- Okonmah, A. D., 2003, Social and Economic Impact of HIV/Aids in Africa, The Foundation for Democracy in Africa, (http://democracy- africa.org/hivaids.htm) Ray, D., 1998, Development Economics, Prin- ceton: Princeton University Press.
- Sall, A., ed., 2000, The Future Competitiveness of African Economies – Proceedings of the Dakar Forum, March 1999..
- Schultz, T. P., 1998), The Formation of Human Capital and the Economic Development of Africa: Returns to Health and Schooling Investments, Economic Research Paper No. 37, Abidjan: Africa Development Bank.
- Lall, S., 1990, Building Industrial Competitive in Developing Countries, Place?: Publisher?.
- Soludo, C., 2000, ‘Human Capital Development and Endogenisation of Geography as a Framework for Africa’s Competitiveness’, Sall, A., ed., 2000, The Future Competitiveness of
References
African Development Bank, 1998, African Development Report 1998: Human Capital Development, Oxford: Oxford University Press.
Appleton, S. and Teal, F., 1998, Human Capi- tal and Economic Development, Economic Research Paper No. 39, Abidjan: Africa Development Bank.
Barks-Ruggles, E., Fantan, T., McPherson, M., and Whiteside, A., 2001, ‘The Economic Im- pact of HIV/Aids in Southern Africa’, Paper Presented at the Conference on Measuring the Costs of HIV/Aids, The Brookings Institute, The
Council on Foreign Relations, and the U. S. Agent for International Development (USAID), June.
Becker, G. S., 1964, Human Capital, New York: Columbia University Press.
Becker, G. S., 1967, Human Capital and the Personal Distribution of Income: An Analyical Approach, Ann Arbor: University of Michigan.
Ben-Porath, Y., 1967, ‘The Production of Human Capital and the Life Cycle of Earnings’, Journal of Political Economy, Vol. 75, pp. 353- 367 ECA, 1995, Human Development in Africa: 1995 Report, Addis Ababa: Economic Commis- sion for Africa.
Grossman, M., 2000, ‘The Human Capital Model’, in Culyer A. J. and Newhouse, J. P., eds., Handbook of Health Economics, Volume 1A, Amsterdam: Elsevier, pp. 348 – 408.
Kane, O., 2000, ‘Technological Innovation and Competitiveness of Basic Products in the African Agro-Food Sector: Problems and Elements of a Strategy’, Sall, A., ed., 2000, The Future Competitiveness of African Economies – Proceedings of the Dakar Forum, March 1999, pp. 267-295.
Katsigeorgis, J., 2002, ‘Impact of HIV/Aids on African Development Underestimated’, in Uni- ted Nations Chronicle Online Edition, (http:// www.un.org/Pubs/chronicle/2002/issue3/ 071602_impact_of_hiv.html).
Lindauer L. and Roemer M., 1994, Africa and Asia: Legacies and Opportunities in Development, San Francisco: Institute for Contemporary Studies.
Mincer, J., 1964, Schooling, Experience and Earnings, New York: Columbia University Press.
Okonmah, A. D., 2003, Social and Economic Impact of HIV/Aids in Africa, The Foundation for Democracy in Africa, (http://democracy- africa.org/hivaids.htm) Ray, D., 1998, Development Economics, Prin- ceton: Princeton University Press.
Sall, A., ed., 2000, The Future Competitiveness of African Economies – Proceedings of the Dakar Forum, March 1999..
Schultz, T. P., 1998), The Formation of Human Capital and the Economic Development of Africa: Returns to Health and Schooling Investments, Economic Research Paper No. 37, Abidjan: Africa Development Bank.
Lall, S., 1990, Building Industrial Competitive in Developing Countries, Place?: Publisher?.
Soludo, C., 2000, ‘Human Capital Development and Endogenisation of Geography as a Framework for Africa’s Competitiveness’, Sall, A., ed., 2000, The Future Competitiveness of