Public Health and National Economy - Daily Current Affair Article for UPSC, IAS, Civil Services and State PCS Examinations

Public Health and National Economy - Daily Current Affair Article for UPSC, IAS, Civil Services and State PCS Examinations


The statement issued by the IMF that "the crisis in Kovid-19 is most effective after the Great Global Recession." It concludes that the reduction in public health negatively affects the national economy. Therefore, it becomes necessary to observe the relation of Indian economy and public health.

Indian Economy and Corona Crisis: -

  • According to World Bank and other credit rating agencies standards India's growth rate will reach the lowest figures in 2021((post liberalization). The former Chief Economic Advisor to the Government of India has indicated to India a state of negative growth in 2021. However, the 1.9% increase proposed by IMF for India is the highest among the entire G-20 countries.
  • Unemployment rate increased from 6.7% to 26% in the first month of the lockdown as a result of corona effect . As a result, the income of about 45% of the households in the country has shown a decline as compared to the previous year.
  • During the complete lockdown (Lockdown 1.0) less than 25% of Indian economic activities were employed, resulting in economic losses to the country. The migrant labor class was the most vulnerable in India, while the status of peasants also became uncertain. Various businesses, such as hotels and airlines, are cutting salaries and retrenching employees.
  • It is therefore concluded that the decline in public health causes severe damage to the national economy.

Effects of declining public health: -

Direct effect :-

  • To understand the correlation between health and economic growth, firstly it is necessary to understand the broad prospective of health. Health is not just the absence of diseases, but it is an indicator of a person's internal capacity, so that he can continuously increase his ability. Hence it is proven that the role of health becomes important for realizing the demographic benefit by India.
  • Along with this, a large part of the present economy of India is dependent on the working class and the farmer, along with it, better health is also needed to strengthen the service sector. All these have a direct impact on the tax economy.
  • The results of historical studies suggest a very strong relationship between health and economic growth. Robert W. Fogel concluded that one-third of England's economic growth over the last 200 years is due to improvements in the population's food consumption.

Indirect effect: -

  • The vicious cycle of poverty: - The decline in health reduces the income of families. Which reduces the demand for other important aspects of life which again reduces the rate of economic growth.
  • Impact on education: - With the family income moving to the health sector, spending in education is reduced which again negatively impacts human resource development.
  • Giving birth to inequality: - Expenditure in health leads to economic inequality. Which is against the relevant principles.

Overview of the need for expenditure on public health: -

  • Evidence of the fact that investment in public health and first aid provides rich economic dividends. In addition to the WHO Commission on Macroeconomics and Health (2001), two other economist-led reports Investing in Health (1993, 2013) concluded that investment in population health would reap the rich benefits of economic growth. The 2013 report estimated that low- and middle-income countries would receive 9 to 20 times return on investment in health, respectively.
  • In 2016, a United Nations High Level Commission chaired by Presidents of France and South Africa reported that investment to increase the size and skills of health workers leads to economic growth through improved population health and productivity,
  • India's investment in the health sector leads India to greater demographic benefits. Demographically the productivity carried by the younger population can be preserved. Education and skills of diverse health workers can uplift health services for health protection at both the population and individual levels. India has the potential that after fulfilling domestic health needs, India can strengthen its global image by providing expanded global healthcare.
  • These principles have led to public financing for the health sector. Now it is possible to question how to spend on public health in times of economic recession? History teaches us that such investment is particularly useful in times of economic adversity.
  • Southeast Asian countries invested in health and universal health coverage during and immediately after the Asian financial crisis of the 1990s. The United Kingdom accepted universal health coverage soon after World War II.
  • Japan implemented it in the early 1960s to recover from the economic injuries affected by the defeat in that war. They all believed that more investment in health is useful for economic development. India will also have to follow this path to boost its economic growth trajectory.

General Studies Paper- III

  • Economics

Mains Question:-

  • Discuss the need of investement in public health ? How it enhancing the national income

Click Here to Download Article in PDF


<< Go Back to Main Page

Print Friendly and PDF