CHRISTOPHER DYE Is wealth good for your health? CHRISTOPHER DYE Is wealth good for your health? CHRISTOPHER DYE Is wealth good for your health? CHRISTOPHER DYE Is wealth good for your health? CHRISTOPHER DYE Is wealth good for your health? CHRISTOPHER DYE Is wealth good for your health? Employment Education £$¥ Technology Environment CHRISTOPHER DYE Is wealth good for your health? Revolutions in England since 1500: industrial, health, economic 25000 80 20000 70 60 15000 50 10000 40 5000 30 20 1500 0 1600 1700 1800 1900 2000 GDP/capita (1990 I$) Life expectancy at birth (yr) 90 The Preston curve (1975) Samuel H Preston University of Pennsylvania The Millennium Preston Curve Spain 80 France Italy Japan Mexico China UK Germany USA Korea life expectancy, 2000 70 Brazil India Argentina Russia Indonesia 60 Pakistan Bangladesh Gabon 50 Equatorial Guinea Nigeria Namibia 40 South Africa Botswana 0 10,000 20,000 30,000 gdp per capita, 2000, current PPP $ Source: Deaton, 2006 40,000 HANS ROSLING Karolinska Institut, Stockholm GAPMINDER FOUNDATION "Bring me my sword!" "The grievous truth is that… the bottom billion will not—and cannot—be freed from poverty in our lifetimes." Wealth is good for health? "Wealthier is healthier" Pritchett & Summers 1993 58 countries with GDP/capita <$6000, 1960-85 5% increase in income 1% reduction in infant mortality Africa: +1.5% growth in 1980s saves 0.5m lives in 1990 Public spending on health $$ x 1000 = U5M/10 Under 5 mortality 1000 100 10 1 1 10 100 1000 Total $$ spent on health per person 10000 Health is good for wealth? WHO Commission on Macroeconomics and Health REDUCES ABSENTEEISM BY ONE QUARTER IN KENYA treatment periods School participation (comparative) 0.12 0.08 0.04 0 -0.04 -0.08 0 5 10 15 Months of treatment 20 25 "Demographic dividends" and "economic miracles" From health to wealth? Share population of working age 0.75 education economics governance public health family planning 0.7 East Asia 0.65 One third economic growth from "demographic gift" 0.6 0.55 Sub-Saharan Africa 0.5 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 Africa awaits the economic miracle 60 % living on <$1 per day 1990 2008 2015 50 40 30 20 10 0 East Asia Sub-Saharan Africa Ireland, the Celtic tiger …growing workforce Falling fertility... Working/non-working population Children/woman 4.5 Ireland 3.5 UK 2.5 1.5 1960 1980 2000 Asia 2.2 UK 1.7 Ireland 1.2 1950 2000 2050 Growth GDP/capita (%/yr) And the Irish get wealthier... 7 6 5 4 3 2 1 0 -1 -2 -3 1950 1960 1970 1980 1990 HIV/AIDS cuts the productivity of tea pickers in Kenya 46 44 HIV- 40 38 36 34 HIV+ 32 30 3 2 1 Years before death 0 Kgs plucked daily 42 "To your health" More than a toast to economists D Malakoff (Science 2000) Price tag on productivity in USA, 1970-90 A year of life gained for 35-44 year-olds worth: Men $170,000 Women $120,000 Fiscal health: saving for retirement Wealth is bad for health? USA: wealthier but not healthier GDP #7 Life expectancy #42 17 46 16 44 15 42 40 14 38 13 36 12 34 11 32 30 1986 10 1991 1996 2001 2006 Percent uninsured Number uninsured (m) 48 Health in a sweeter world Health in a sweeter world Kcal sugar/person/day 500 400 1962 2000 300 200 100 0 poorest 1 2 3 4 GDP/person -- country groups richest 5 S w Ja itz pa er n la nd Ita Fr ly an A ce us Sw tria ed H en ol D lan en d m a Fi r k nl an Ic d el an Sp d ai C n ze C ch an ad a A N us Z tr al ia U K U SA Percent obese Rising obesity in rich countries serial surveys OECD, 1980-2002 35 30 25 20 15 10 5 0 Falling wealth, failing health? Cycles: virtuous vicious sickness health poverty wealth Infant mortality One million “excess” deaths in developing world since 1980 due to contractions in economies One million “excess” deaths in developing world since 1980 due to contractions in economies Children die when GDP falls Relative risks higher for vulnerable children born: To low-education mothers Young/old mothers In rural areas If boys +68% +23% +72% +11% Wealth is mostly good for health, but… Microeconomics • Money buys health, and 1o health is cheap • Money buys health directly (medicines) and indirectly (education for prevention and cure) • Health underpins prosperity -- individual, family, business Macroeconomics • Health is linked to wealth across countries and generations… • The cause? Social? Cultural? Educational? Technological? All? A minimum set? Buying health • Microeconomic argument often enough?