Relationship between Economic Growth and Nation’s Health

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Table of Contents

Introduction
Positive Impact of Economic Growth on Health Outcomes
Negative Impacts of Economic Growth on Health
Discussion
Conclusion
Works Cited

Introduction

Economic growth is deemed a positive attribute and it is one of the major aspirations of all nations. This growth results in prosperity for the nation as citizens the per-capita income rises and individuals gain a higher purchasing power.

In addition to this, other positive outcomes such as improved standards of living, better education opportunities, and better health care are attributed to economic growth. Researchers suggest that good health and economic growth influence each other in profound ways and each has major consequences on the other (Guillem et al. 240).

Ascertaining the influence of economic growth in health care is necessary for policy makers since such an intimate understanding of the relationship between economic growth and population health will enable them to formulate astute policies that will foster economic growth and enhance population health. This paper will argue that there is a clear relationship between economic growth and the nation’s health with greater economic growth resulting in better health outcomes for the general population.

Positive Impact of Economic Growth on Health Outcomes

There is a strong correlation between economic growth and better environmental protection measures. Panayotou reveals that as a country’s economy becomes stronger, greater environmental protection measures are adopted therefore countering the negative impacts that increased industrial activity might have on the environment (45).

Growth in economic activity results in an increase in business expenditures on pollution abatement costs. Researchers demonstrate that as countries increase their industrial activity in order to fuel economic growth, the amount of money dedicated to reducing the emission of pollutants increases (Guillem et al. 250). Data from the OECD reveals that expenditures by the government and private establishments to reduce pollution increased with the increase in income per capita.

The pollution abatement costs in the Netherlands rose from 1.6% in 1990 to 2.0% of GDP in 1998. This increase in abatement costs is the norm in industrialized countries reflecting the desire by governments and private entities to reduce pollution with the increase in economic growth. Economic growth therefore drives nations to take action to protect the environment and therefore improve the health outcomes of the population by ensuring that they are not subjected to high levels of pollution.

A growing economy is by itself an indication of a healthy population since economic growth is fostered by good health among society members. Guillem, Rivera and Luis reveal that good health raises levels of human capital and this has a positive effect on economic growth rates (3). Healthier populations generally exhibit higher productivity further boosting economic growth.

Healthier workers will exhibit higher work productivity since they will have reduced incapacity, and absent days from work therefore raising performance. The UN and ESCAP state that Good health increases the physical capacities of workers thereby enhancing their productivity (6). Economic growth will only be experienced if there is good health among individuals in the population. This growth is therefore an indicator of thriving health outcomes among individuals in the nation.

Economic growth results in an improvement in the standards of living and nutrition for the general population. Guillem et al observes that these outcomes of economic growth result in better health for individuals (242). Poor economic conditions are characterized by lower standards of living where sanitation levels are low therefore exposing people do diseases. A poor economy is further on characterized by low incomes by individuals, which makes it impossible for them to enjoy a good nutrition.

High standards of living ensure that people are able to observe good hygiene and avoid opportunistic infections. The UN and ESCAP states that diseases such as typhoid and diarrhoea are caused by poor sanitation and such illnesses are confined to areas where standards of living are low (7). Economic growth will therefore ensure that people are not prone to diseases that are exacerbated by poor standards of living.

Economic growth has been fuelled by technological advances made by humans over the centuries. With new technological progress, the economic growth of a nation is elevated. Guillem et al documents that this technological progress is reflected in improvements in medicine and medical technology (242). These improvements mean that better cures are obtained for illnesses that typically afflict people and the mortality rate is therefore reduced.

Research supports this assertion with studies showing that life expectancy is a significant predictor of income levels and also of future economic growth (Guillem et al. 242). Improvements in health outcomes in the last century were attributed to the technical progresses made. UN and ESCAP document that mortality declined by about 50% from 1960 to 1990 because of technical advances, which can be directly linked to economic development (8).

This assertion is corroborated by Swint et al. who elaborate that new technologies developed because of economic growth have increased health knowledge and this has led to tremendous declines in childhood mortality rates and contributed to human longevity (78).

Economic growth enables the government and individuals to invest in health. The successful economy will result in surplus capital that will enable people to access better health. The UN and ESCAP document that lack of financial investment in health is the critical factor behind underdeveloped health systems in many countries (7).

This underdevelopment in health care facilities makes it impossible for governments to provide access to universal health care for their citizens. Financial constraints also affect the quality of services in the available health care facilities that contributes to the prevalence of ill health in many poor countries. Sustained economic growth will create wealth that will enable the government and private actors to invest in the health sector.

Investment by the private sector is encouraged by economic growth since the investors are assured of getting returns on their investment since the population will be able to afford health care. This premise is confirmed by Guillem et al note that economic growth leads to greater consumption and investments in health care: a fact that has led many economists to admit that improvements in economic growth and health are mutually reinforcing (250).

Data indicates that the environment is improving in developed countries and these improvements are credited to the growth in the economy. Aguayo-Rico observes that cities in the US are cleaner than they were in the past and there have been some cases of dramatic improvements in environmental quality as the emission of health threatening toxics is reduced to marginal levels (5).

A review of air pollutant emissions in the US since 1940 demonstrates that the levels of emissions decrease as the income per capita increases. Data from 1940 to 1998 shows that emissions of sulphur, nitrogen oxides, and carbon monoxide all decreased by an average of 98%, 60%, and 88% respectively during this period (Aguayo-Rico 6). Economic growth will result in significant reduction in pollution levels and therefore lead to a decline in the number of diseases caused by pollutants.

Economic growth may directly lead to less pollution by driving nations away from the pollution intensive industries. Swint et al argue that countries are likely to shift to less pollution intensive industries as their economy grows and this will lead to better health outcomes since pollution levels will be lowered (96).

This argument is supported by the realities in the United States where the manufacturing industry has experienced a slow but steady shift towards less pollution intensive industries and therefore significantly reduced the pollution levels in the country. Economic growth has made it possible for the country to do away with some of its most pollution intensive industries over time with positive health outcomes being realized by the population.

Negative Impacts of Economic Growth on Health

Economic activity is often accompanied by industrial activity that results in environmental pollution. Davis reveals that economic activity affects the levels of air pollution and by extension human health (1951). The level of air pollution is influenced by the economic activity with high levels of economic growth translating to higher industrial action and therefore higher air pollution levels. Air pollution is a health risk and it results in marked increases in mortality rates.

Aguayo-Rico asserts, “The levels of particulate matter in the air are associated with the risk of death from all causes and of cardiovascular and respiratory diseases” (5). Economic growth leads to the emission of chemicals that cause “severe health effects such as cancer, damage to the immune system” to name but a few. Economic growth often results in the emission of unwanted by-products, which have to be disposed of.

Nature is expected to act as a sink to these harmful pollutants and when a country lacks good waste management practices, environmental quality falls. It is therefore probable that declining economic growth would increase the health outcomes of the population since it would be characterized by lower industrial activities and environmental pollution.

Economic growth in most countries is characterized by a growing margin between the rich and the poor. This statement holds true for most developed countries as well as developing countries such as India and China. The income inequality fuelled by economic growth does not foster the development of public health since there is inequitable access to health care opportunities.

Aguayo-Rico argues that people in highly industrialized regions such as cities are forced to spend more on health care since they are exposed to higher risks due to pollution (5). However, only the richest portion of the urban population can afford to indulge in these expensive health care services.

Orme et al. argues that societies that are more egalitarian are healthier and more socially cohesive (216). The authors further argue that good health outcomes in a society are not just the by-product of economic growth but rather a product of domestic social policies that promote equitable health care opportunities. Economic growth is therefore not necessary for progress to be made in public health and the health outcomes of the population

Economic growth poses an emerging public health risk for many societies. Orme et al. explain that as a nation experiences economic growth, it experiences an increase in its urban-based population, a transition that brings new public health risks (217).

The effect of communicable diseases such as the recent outbreak of the Severed Acute Respiratory Syndrome in urban populations is major due to the dense population in these areas. Non-communicable diseases such as coronary heart disease and cancers are also on the increase due to economic growth and development.

Coronary diseases are mostly caused by the lifestyle choices of the individual. As the economy advances, people have more money to use on The World Health Organization reveals that, there is a link between economic growth in the developing world and tobacco-related diseases (Orme et al. 217). Increase in tobacco-related morbidity and disease is therefore directly linked to economic growth.

Economic growth has caused global environmental changes. Researchers agree that key global environmental changes have been brought about by the intensity of modern consumer driven economies (Orme 220). These changes to the earth’s climate have long-term risks to the health outcomes of the population.

The WHO illustrates that fluctuations in climate variables have been responsible for the spread of infectious diseases (Orme 220). As the economic growth accelerates, the rate of environmental changes will increase therefore exposing the population to more infectious diseases. Economic growth will therefore contribute to the negative health outcomes of the population.

Discussion

While the link between health and economic development is straightforward, the link between economic development and health is complicated with some researchers arguing that economic growth is detrimental to a nation’s health care while others declare that it is beneficial to the health outcomes of the nation. This paper has demonstrated that economic growth will cause both positive and negative impacts on the health of the population. However, research demonstrates that the negative impacts are only temporary in nature.

The Environmental Kuznets Curve that proposes that the environmental first worsens as economic growth begins and then improves at higher economic growth levels can be used to explain the impacts of economic growth on health.

From this theory, economic growth will at the beginning result in poorer health outcomes as the environment is intensely degraded to cater for the demands of the economic activity. However, the environmental impacts will be reversed when the levels of development are sufficiently high since the economy will move to technology that is more efficient, raise the levels of environmental quality, and therefore decrease environmental degradation.

Conclusion

This paper set out to argue that there is a positive link between economic growth and the health of the population. The paper has demonstrated that health and economic outcomes are mutually reinforcing in all the developed nations in the world. The spill over effects of economic growth result in higher health outcomes for individuals in the society and economic growth leads populations to live better lives and enjoy better health outcomes.

Even so, it has been documented that economic progress does not automatically lead to better health and it may in fact be responsible for adverse impacts on the health of the population. Addressing the pollution effects of economic growth is integral to ensuring that economic growth and development do not impede the population’s health.

From the discussions presented in this paper, it can be projected that economic growth will continue to be an important goal of economic policy in our country since it has mostly positive impacts on the health and well being of the nation’s citizenry. However, this positive impact will only be achieved if humans make use of the technological advances to make improvements in air quality and provide sanitation and proper waste management.

Works Cited

Aguayo-Rico, Andres. “Empirical Evidence of the Impact of Health on Economic Growth.” Issues in Political Economy 14.1 (2005): 1-17. Web.

Davis, Mary. “Recessions and Health: The Impact of Economic Trends on Air Pollution in California.” American Journal of Public Health 102.10 (2012): 1951-1956. Print.

Guillem, Lopez, Rivera Berta and Luis Currais. Health and Economic Growth: Findings and Policy Implications. Massachusetts: MIT Press, 2005. Print.

Organization for Economic Cooperation and Development (OECD). Pollution Abatement and Control Expenditures in OECD Countries?. Paris: OECD Secretariat, 2003. Print.

Orme, Judy, Powell Jane, Pat Taylor, and Grey Melanie. Public Health for the 21st Century. NY: McGraw-Hill International, 2007. Print.

Panayotou, Theodore. “Economic growth and the environment.” Economic Survey of Europe 5.2 (2003): 45-72. Web.

Swint, Michael, Luisa Franzini, Chika Honda, Yuki Murakami, and Rafia Rasu. “Relationships between Economic Growth and Population Health in Low and Middle Income Countries.” Osaka Economic Papers 58.2 (2008): 74-106. Print.

United Nations (UN) and Economic and Social Commission for Asia and the Pacific (ESCAP). Development of Health Systems in the Context of Enhancing Economic Growth towards Achieving the Millennium Development Goals in Asia and the Pacific. Paris: United Nations Publications, 2007. Print.

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