Economics Immersion (Batch 2021-23)

Topic 2: Importance of Health Infra

Topic 4: Domestic Business Environment
Khanindra Ch. Das
Assistant Professor (Economics)
Birla Institute of Management Technology
khanindra.das@bimtech.ac.in
@ChKhanindra

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Slow Elevator Problem

• In the mean time…

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Answer a couple of questions
• Go to sli.do
• Slido event code #786999

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Macro economist and Trade economist

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Corporate Economist

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Development economists

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Topic 2: Importance of Health Infrastructure
for the economy

• Land
• Labour
• Capital
• Organization (Entrepreneurship)

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Capital
Types of capital Example Role in the economy?
Physical capital Road, railway, port, airport Logistics
Plant, factory
Real estate, building
Human capital Higher life expectancy, lower Participation in economic activity,
maternal mortality productivity
Social capital Family, friend, network Asking for help/giving help
co-operative,
Social safety, social insurance,
Natural capital Forest, wildlife, marine life Raw material,
livelihood of millions

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Today’s topic:

• What is the importance of health infrastructure for the economy?

• Context: we live in a developing country, (call it an emerging

economy!)

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Topic 2: Importance of Health Infrastructure
for the economy
• Health is important to be engaged in economic activity productively
• Poor health can lead to vicious circle of poverty
• Models of economic growth

• Quality of health infrastructure impacts the development outcomes of a

country
• Life expectancy
• Infant mortality
• Maternal mortality
• ..
• Human development: Human development index (any link with previous
slide?)

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Life expectancy at birth, total (years)

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 Life expectancy at birth 2019
90

85

Norway

80
US
China
75

Bangladesh

70 India

65

60

55 Sierra Leone

50
-10000 0 10000 20000 30000 40000 50000 60000 70000 80000

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Malnutrition
• 71. Children under 5 years who are stunted (height-for-age)
• 72. Children under 5 years who are wasted (weight-for-height)
• 74. Children under 5 years who are underweight (weight-for-age)

• 79. Children age 6-59 months who are anemic (<11.0 g/dl)
• 82. All women age 15-49 years who are anemic (<13.0 g/dl)

• Any idea about the malnutrition figures?

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Malnutrition
• 71. Children under 5 years who are stunted (height-for-age): 38.4%
• 72. Children under 5 years who are wasted (weight-for-height): 21.0%
• 74. Children under 5 years who are underweight (weight-for-age): 35.8%

• 79. Children age 6-59 months who are anemic (<11.0 g/dl): 58.6%
• 82. All women age 15-49 years who are anemic (<13.0 g/dl): 53.1%

• Source: Fact Sheet, NFHS-4 (2015-16), MoHFW

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• Dependency ratio: the ratio of dependents--people younger than 15
or older than 64--to the working-age population--those ages 15-64.
Data are shown as the proportion of dependents per 100 working-age
population.

• Demographic dividend

• Population pyramid
• High base
• Low base

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Demand

• India has one of the highest level of out-of-pocket-expenditure (OPPE) on

health contributing directly to the high incidence of catastrophic
expenditures and poverty.
• OOPE: medical expenditure that is private
• OPPE 65% of overall healthcare spending
• Increase in public spending on health from 1% to 3% of GDP can decrease
OOPE from 65% to 30% of overall healthcare spending.
• Out of pocket health expenditure coming down?

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Reported
21.06.2021

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COVID-19
• You already have an idea!

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Should vaccine be given free of cost?
Vaccine and externality
• Types of good in economics
• Normal, inferior, Giffen, luxury (Managerial economics)
• Conspicuous consumption
• Public good, private good, club good, CPRs

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Vaccine (dual) pricing strategy
issues..
• Center (150 per dose), State, Private

• https://youtu.be/H0oh4ddp6YI (Global Vaccine Supply Chain and Its

Distribution: India and China)

• US 99% vaccines consumed domestically

• China 54% consumed domestically, rest exported
• At least 20% population vaccinated in the OECD countries
• 62 countries are able to provide 1st dose at least to 5% of population

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https://www.news18.com/news/india/brics-supports-proposal-by-india-s-africa-to-
temporarily-waive-patents-on-covid-19-vaccines-3800516.html

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COVAX
• What is it?

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• G7: commitment of 1 billion doses to low income countries under
COVAX

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Leveraging global supply chains to fight
COVID-19
• https://www.ideasforindia.in/topics/trade/leveraging-global-supply-
chains-to-fight-covid-
19.html?fbclid=IwAR3occaRwDUqIWIP_Ti2hi07sR9vVnFR4bFfzj_2i0bK
vPlo9XFJZqgROJs

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Economic cost of 2nd Wave
• https://youtu.be/muHLXzrajDY India Development Debate

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Risk factors to recovery
• Vaccination
• Inflation
• Financial instability triggered by inflation
• Debt

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Before we conclude.. FYI
• UN has declared 2021 as the International Year of Creative Economy
for Sustainable Development

• Creative goods
• Design
• Audio Visuals
• Art Crafts
• Visual Arts
• Publishing
• Performing Arts
• New Media

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What are some of the takeaways from this
class?

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Glossary
• Life expectancy: Life expectancy at birth indicates the number of years a
newborn infant would live if prevailing patterns of mortality at the time of
its birth were to stay the same throughout its life.
• Out of Pocket: Share of out-of-pocket payments of total current health
expenditures. Out-of-pocket payments are spending on health directly out-
of-pocket by households.
• Dependency ratio: the ratio of dependents--people younger than 15 or
older than 64--to the working-age population--those ages 15-64. Data are
shown as the proportion of dependents per 100 working-age population.
• Total fertility rate: Total fertility rate represents the number of children
that would be born to a woman if she were to live to the end of her
childbearing years and bear children in accordance with age-specific
fertility rates of the specified year.

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