Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Sunday, March 20, 2022

Relationship between life expectancy and economic growth


Introduction

Notably, the rise of life expectancy at the end of the 20th century results in a myriad of economic consequences worldwide that led to many of the scholars indicating a positive correlation between economic growth and life expectancy (Szreter, 1997). To support the literature, Aghion et al. (2010) created a theoretical model premised at indicating growth of most economies is dependent on the level and growth rate of life expectancy. Subsequently, the link between health and economic growth is explained in the human capital theory. The theory predicts that higher life expectancy is salient in promoting earning skills and improves the performance of labour (Oster et al., 2013). In contrast, for the longest time, the processes of rapid economic growth appear to be well entrenched with the enhancements in the prosperity and health within the communities. In other words, it pinpoints that economic growth is a prerequisite for development. The impact of economic growth on life expectancy is deduced by income inequality. According to Wilkinson and Pickett (2006) cited in Dorling (2014), a higher level of income inequality is detrimental to the health sector. The unprecedented inequality is evident in the contemporary world and it unravels unjustly. In particular high-income inequality curtails the freedom of individuals on the lower end of the pyramid. Fundamentally, healthy individuals can purchase better medical care, foodstuff and justice while the under-privileged are struggling to get basic needs much less unalienated lives. Elongated life expectancy is linked with investment in public expenditure on health care and successfully reduction of the income inequalities. Therefore, income inequalities form the basis of health inequalities. By definition health inequalities “is the difference of the care that people receive and the opportunity they have to lead healthy lives, both of which can contribute to their health status” (world health organization, 2018). This essay argues that economic growth produces critical challenges and threats to the health and the general welfare of the individuals in the community, thus vital in addressing life expectancy.

 Health programs

 A fundamental health program is a salient determinant of life expectancy. According to Kabir (2008), there is a positive relationship between primary health care expenditure and general health status. On the same depth, research conducted by World Bank (2004) shows a positive correlation between life expectancy and per capita income for the upcoming economies countries. Many of the developing countries have low national income hence forced to spend low on public expenditure on health. Based upon the European empirics, an increment in the health input results in an increase in the health outcomes that are vital in shaping life expectancy (Wilkinson, 2008). However, once the threshold level of the per capita income, the correlation between life expectancy and social well-being becomes insignificant. In other words, a further rise in income is disintegrated to life expectancy gains. Furthermore, though there is a direct correlation between health and income of individuals at the threshold level, they are lack consistency. In the case of Canada, Cemieux's research found out that lower health expenditure is related to low life expectancy and also an increase in the infant mortality rate (Cemieux et al 1999). In the same measures, urbanization seems to be a core indicator of life expectancy for both emerged and developing economies. Since there is a tendency for high economic growth in the urban areas, the public health spending is higher eventually making the population in the urban areas have better medical care. Also, urban areas are enjoying improved socio-economic infrastructure, central to the health system.  Based on the empirical data from Africa and Asia, study outcomes indicate areas, mostly urban areas where they are easy accessibility of safe drinking water, life expectancy is higher and lower in areas with scarce safe water for drinking.

Improvement of health sector and economic development  

There is growing consensus that improving the health sector can indirectly relate to the improvement in economical development. For instance, the fight against malaria in the sub-African Sahara has balloon the per capita growth rate by at least 20% annually (Gallup et al 2000).  Marital mortality is vital in the health inequality. Its health indicators reveal wide gaps between the rich and under-privileged people in the societies. Emerging economies nations contribute to 99% of the early childhood and maternal deaths across the globe. In comparative study, women in Chad have a risk of maternity death at that ratio of 1:16 while women in Sweden have ration of 1:10,000. According to study be WHO (2018) “in today’s world, poor health has particularly pernicious effects on economic development in sub-Saharan Africa, South Asia, and pockets of high disease and intense poverty elsewhere” (p. 24) and “...extending the coverage of crucial health services... to the world’s poor could save millions of lives each year, reduce poverty, spur economic development and promote global security” (p. i)[1].

Although the evidence supporting this range may not be conclusive, they are numerous macro studies that indicate dealing with diseases has collaboration with increased economic growth. Arguably, life expectancy is amongst the core factors that measure population health conditions and rate of the economic growth. A holistic view of the world indicates that developed countries have higher life expectancy compared to developing countries.  In effect, it is indicated by the country fixed effects. Therefore, countries with greater declines in mortality which results in a higher life expectancy have a slight decrease in the GDP per capita (Acemoglu et al 2007). With improved health sector, where there is experience of improved infrastructure most of the people tend to be productive and participate in the economic activities. For instance, there has been an increase in income level and positive changes in life expectancy in Bangladesh (Ahmed et al 2020).  Though there is not a conclusive analogy on the difference in life expectancy, some of the reasons include but are not limited to an increase in the labor force, an increase of spending on public health and an increase in the elementary school enrolment rate. In a nutshell, healthy people will tend to increase their income level by being more productive, physically more energetic and being more mentally. Also, the aspect of increasing economic development is through savings as people are living long life they have a tendency of investing more compared to those with short lifespan. For instance, a 10-year rise in longevity is shown as the rise in 4.5% in savings (Bloom et al 2008).  Finally, with a reduced level of mortality hence an increase in life expectancy, there is an increase in the education level. Fundamentally, healthy people prefer to invest more in the approaches to improve their skills to improve their earnings than those who are not healthy. Furthermore, healthier children can attend schools and participate more in learning and have higher cognition than non-healthier one.

 Unequal societies

Poor health that is connected with low social status is prevalent in unequal societies. In other words, it can be supported by the high homicide and mortality rates. Countries which are having high and increasing income inequalities do not experience a similar rate in life expectancy (Dorling 2015). These countries eventually record lower rankings when the international ranking comparisons are created. For instance, due to adverse 2008 economic meltdown, some nations such as Iceland have experienced economic shock that led to unprecedented unemployment rates. Therefore, the unprecedented event has revealed how the high rates of economic inequalities have a severely damaging impact on society and in the long run on life expectancy.  Contrary, to the situation in Iceland, in Denmark the income inequalities are very low and this will bridge the gap of wealth inequalities which in return will impact positively on the health inequalities (Pickett et al 2015).  With a more equitable income, many people can have healthier behavior and a better plan for society is extensive. Thus, the existence of large structural mortality is a prerequisite to the reduction of the mortality rate.  With Denmark becoming more income equitable, many of its citizens are not falling victim to health inequalities (Nowatzki, 2012). Notably, the mortality rate reacts faster to social change than the reaction of the overall life expectancy (Bluehler et al 2012). According to Pickett and Wilkinson (2015), although some of the studies have indicated the existence of the relationship between economic inequality and poor health, few of the studies have failed. Therefore, this study is best indicated using the geographical area of study; like in the case of Denmark, in comparing the inequalities within the states in the USA, health is worse in the most unequal parts of the city in comparison to more equal wards.  The use of the hypothesis is vital since it advocates for a correct prediction since uses the available data to rank the performance of various countries based on inequalities.  The inequalities hypothesis dreams for its predictions to be proved correct and help in the ranking of countries in case they are a fall or rise in inequalities.  In a nutshell, greater economic equality help in the elevation of the social capital vital for a better managed and run healthy service.

McKeon theoretical explanation

Life expectancy is an important measure of the individual’s health status and it is closely related to their socio-economic situations. For instance, in the UK, there is a systematic relationship between deprivation and life expectancy. Also known as social gradient in the health realm, it indicates that men residing in the least deprived areas as from the birth time are expected to increase their lives by at least 9 years (Williams et al 2020). The inequalities are not constant and they tend to increase from time to time. According to McKeon on the theoretical explanation, the population growth rate in the 1770 period was attributed to the decline in the mortality rate that was mainly from infectious diseases (Cogrove 2002 & Mckeown et al 1962).  On the other hand, the decline was attributed to the improved economic conditions connected to the industrial revolution that forms the ground for the rising living standards. The concept improved the nutritional conditions and boosted the resistance to diseases in effects increasing life expectancy. Fast forward, the gap in life expectancy in Britain is increasing. Between 2012-14 and 2015-17, the gap has risen by 0.3 yrs for men and 0.5 yrs for ladies (Williams et al 2020). In the same regard, the life expectancy for females in the most deprived areas has reduced to close to 100 days during that research period. The life expectancy at birth is heavily affected by the mortality rate. With most of the countries improving their health system, improving economic activities and raise in the standard of living, there is a decline in the mortality rate.

Social determinant

Doctor’s action in social determinant indicates that poor people have poor health, a key factor to curtail life expectancy.  The social gradient initiative in England implies that action to improve health and minimize inequalities has to occur at the social level and is not relatable to individual adjustments (Marmot 2017). In the classification of people in degrees of affluence and deprivation, poor health also varies depending on the position. It illustrates that health inequalities vary from one country to another. Precisely, the country with people with a university education has smaller differences in life expectancy than the country with little university education (Marmot 2013).  It is since most of the university graduates tend to get quality jobs with decent salaries, enabler to the improvement of the standard of living. Therefore, the following are the action on social determinants of general health.  To begin with, children should be given the best start in life. Since there is a correlation between life expectancy and economic growth, well-off families will tend to provide their children with the best medical care that will impede them from falling sick to many diseases. Secondly, is the aspect of education where university education imparts the learners with the uttermost skills prerequisite to get a good-paying job. Thus, the subject should be in a position to improve their lifestyle and provide for them better medical care (WHO, 2008). It is the reason that the mortality rate in an advanced economy is insignificant while in the developing countries the rate is still at unprecedented levels. Thirdly, there should be the provision of the minimum wage. Minimum wage helps in mitigating the problem of income inequalities that leads to health inequalities. When there is a huge gap between the top and lower earners, it creates inequitable societies.  Eventually, it forms the basis of the creation of unequal wards within cities (Siegrist et al 2009). Finally, economic prosperity leads to healthy living and good working conditions. With financial power, an individual can spend on a good place to live that ensures his or her good health is central to life expectancy. Therefore, social determinists indicate the significant factors that should be encouraged and practiced by everyone in society.

 Conclusion

 In a nutshell, income inequalities play a vital role in health inequalities.  Most of the developing countries with a sizable economic and are unable to invest heavly in the health sector leading to a weak and obsolete system to cope with the ever-changing dynamic of diseases and other health complications. Therefore, health inequalities lead to the fall of life expectancy. Life expectancy cannot be directly being linked with economic activities but to some extent, it has indicated a strong correlation.  One of the key aspects that determine life expectancy is the primary health program. The aspects are linked with the expenditure on the system and how effective it will tend to be hence poor health correlates with inequitable societies. The inequalities in income as the result of factors such as the high rate of unemployment makes some areas develop negative behaviors that are impeder for an elongated life expectancy.  Society in effect is marred with a high mortality rate that reduces the life expectancy at birth. The variables are well decided using the European and developing countries metric that indicates how industrialization is integral for the well-being of the health sector.  In a nutshell,  the patterns and trend of economic development may not be well entrenched in explaining life expectancy, but the use of MCkewon's theoretical explanation aid in exposition how industrialization led to the decline in the mortality rate and increase in the population. In a nutshell, the social determinates of life in one way or another will impact positively an individual life. They include but are not limited to granting children the best start of life, provision of quality education to improve skills, provision of quality education and creation of the minim income to reduce the aspect of income inequalities.



[1] World health organization (2014)

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