Wednesday, May 16, 2007

Under-investment in health costs lives and money

http://www2.irna.ir/en/news/view/menu-239/0705165393150433.htm

The article discusses the lack of government spending upon health care services for midst of Asia-Pacific countries. Many lives that could be easily saved are thrown away in some of these countries due to a lack of basic health care. The article also claims that government spending on health care is in fact an investment instead of an expenditure. Infact, it is the best investments a country can make. The level of "investment" on health care determines the level of development a country have.
I find the arguement about government spending on health care extremely interesting. After all, better health care will lead to better health for the citizens of the country. This will lead to a better quality in the over all labour force, the major source of resource. As both government expenditure and both government investment are determinants of GDP, it is quite hard to determine whether the increase in GDP is caused by an "investment" or expenditure. However in the long run, better health care services I think does play a major role in changing the quality of the entire labour force. Thus should be considered as an investment.

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