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Journal of Economic Perspectives: Vol. 20 No. 3 (Summer 2006)

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The Economics of HIV/AIDS in Low-Income Countries: The Case for Prevention

Article Citation

Canning, David. 2006. "The Economics of HIV/AIDS in Low-Income Countries: The Case for Prevention." Journal of Economic Perspectives, 20(3): 121-142.

DOI: 10.1257/jep.20.3.121

Abstract

There are two approaches to reducing the burden of sickness and death associated with the human immunodeficiency virus (HIV), which leads to acquired immunodeficiency syndrome (AIDS): treatment and prevention. Despite large international aid flows for HIV/AIDS, the needs for prevention and treatment in low- and middle-income countries outstrip the resources available. Thus, it becomes necessary to set priorities. With limited resources, should the focus of efforts to combat HIV/AIDS be on prevention or treatment? I discuss the range of prevention and treatment alternatives and examine their cost effectiveness. I consider various arguments that have been raised against the use of cost-effectiveness analysis in setting public policy priorities for the response to HIV/AIDS in developing countries. I conclude that promoting AIDS treatment using antiretrovirals in resource-constrained countries comes at a huge cost in terms of avoidable deaths that could be prevented through interventions that would substantially lower the scale of the epidemic.

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Canning, David

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