Economic impact of tropical diseases

Main

Neglected tropical diseases (NTDs) are a diverse group of communicable diseases that prevail in tropical and subtropical conditions and disproportionately affect the world's poorest people. NTDs lead to significant economic burden through:

1. Direct costs: Expenses incurred due to NTDs, including costs of diagnosis, treatment, and transportation to health facilities.

2. Indirect costs: Economic losses resulting from reduced work productivity, lower educational attainment, and lost income due to NTD-related disability or premature death.

3. Out-of-pocket expenditure: Payments made directly by individuals to healthcare providers for services not covered by insurance, which can lead to catastrophic health expenditure and impoverishment.

4. Societal costs: Long-term consequences like stigma, social exclusion, and reduced quality of life that hinder economic development in affected regions.

The direct and indirect costs of NTDs are estimated at $35.9 billion globally each year. Individuals in Africa alone could have averted over $342 billion in health expenditure and lost productivity from 2015-2030 if NTDs were eliminated.

Terms

• Neglected tropical diseases (NTDs): A diverse group of communicable diseases that prevail in tropical and subtropical conditions and affect over 1 billion people globally. Examples include dengue fever, malaria, Zika virus, chikungunya fever, leprosy, lymphatic filariasis, schistosomiasis, and onchocerciasis.

• Direct costs: Expenses incurred due to NTDs, including costs of diagnosis, treatment, and transportation to health facilities.

• Indirect costs: Economic losses resulting from reduced work productivity, lower educational attainment, and lost income due to NTD-related disability or premature death.

• Out-of-pocket expenditure: Payments made directly by individuals to healthcare providers for services not covered by insurance.

Analogy

The economic impact of NTDs is like a hidden tax on the poor. Just as a tax siphons money away, NTDs siphon the financial resources of affected individuals and communities. Over time, this "NTD tax" keeps families trapped in a cycle of poverty and holds back the economic development of entire regions, much like how high taxes can stifle economic growth.

Misconception

Many people believe that the costs of NTDs are primarily borne by the health sector. In reality, NTDs place a tremendous economic burden on households, communities and countries beyond just healthcare expenditures. Lost productivity and income due to NTD-related disability and early death have far-reaching economic consequences. Additionally, many assume that public health insurance schemes cover NTD treatment costs. However, gaps in coverage often force patients to pay out-of-pocket, creating financial barriers to care.

History

1. Pre-2000s: Limited recognition of the collective economic burden of NTDs

2. Early 2000s: Initial studies began quantifying the economic costs and productivity losses associated with specific NTDs

3. Late 2000s: Researchers started estimating the global economic impact of NTDs, finding annual losses in the billions of dollars

4. 2010s: Increased focus on the cost-effectiveness of NTD interventions and their potential return on investment for economic development

5. 2020s: Growing recognition of the links between NTDs, poverty, and the economic benefits of tackling them alongside other development efforts

How to use it

1. Health economists can conduct studies on the direct and indirect costs of NTDs in different settings to build the investment case for NTD control and encourage domestic financing.

2. Policymakers can use estimates of productivity losses and economic burden to advocate for including NTD services in universal health coverage and social protection schemes.

3. Business leaders can factor in the economic impact of NTDs when making decisions about investing in endemic countries and consider supporting NTD programs as part of corporate social responsibility efforts.

Facts

• The direct and indirect costs of NTDs are estimated at $35.9 billion globally each year.

• NTDs are estimated to cause $4.2 billion in lost productivity annually in Africa alone.

• Individuals in Africa could have averted over $342 billion in health expenditure and lost productivity from 2015-2030 if NTDs were eliminated.

• Every $1 invested in NTD control is estimated to yield $25-$30 in economic benefits.

• Achieving the WHO NTD 2030 targets could avert over $1 trillion in economic losses between 2021-2030.