Framework for thinking about workplace interventions in response to HIV/AIDS in southern Africa

Labour force participation is high in Sub-Saharan Africa and most people are actively employed in some form of production. Economic losses incurred from HIV and AIDS are substantial but difficult to quantify. For example, an individual’s economic behaviour can be expected to pay less heed to a long run that the person may not live to see. Likely results are decreased work effort and savings. Moreover, with life expectancy declining because of AIDS, investment in education becomes a far less attractive proposition in Sub-Saharan Africa, both for individuals and for governments and other sponsoring bodies.

This paper from the Harvard Institute for International Development emphasises why skills are still needed to operate public and private enterprises and institutions. Ways must be found to keep productive enterprises working after key employees become incapacitated or die. The author argues that the most important form of adjustment to shortened life expectancy would be to invest smaller amounts in skill formation for larger numbers of people. Education and training are key elements in any solution because formal sector employers must find ways to replace the skills lost to AIDS if they are to maintain current production levels, let alone bring about economic growth. [adapted from author]