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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Role of fiscal policy in tackling the HIV/AIDS epidemic in southern Africa
Authors:Anyanwu, John C.ISNI
Siliadin, Yaovi Gassesse
Okonkwo, Ejikeme
Periodical:African Development Review (ISSN 1467-8268)
Geographic terms:Botswana
Swaziland - Eswatini
fiscal policy
External link:https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8268.2013.12028.x/pdf
Abstract:Three countries in southern Africa have the highest adult HIV prevalence in the world: Swaziland (25.9 per cent), Botswana (24.8 per cent), and Lesotho (23.6 per cent). Fiscal policy is crucial for addressing this HIV/AIDS crisis. Utilizing a calibrated model, this paper investigates the impact of fiscal policy on reducing the HIV/AIDS incidence rates in these countries. The authors studied the welfare impact of different taxation and debt paths on reducing the HIV/AIDS prevalence rates. Their findings show that optimal fiscal intervention has not only a positive societal welfare effect but also positive fiscal effects. Botswana, Lesotho and Swaziland should not wait for foreign aid, but use their tax revenues to increase their spending on combating the epidemics. The fiscal tool, if optimally used during the next decade, will alleviate the debt burden for Lesotho, Botswana and Swaziland by around 1 per cent, 5 per cent and 13 per cent of the GDP, respectively. The authors conclude that at a time of fiscal crisis in developed countries and dwindling international HIV/AIDS resources, the future of effective and efficient HIV/AIDS intervention in Africa is clearly domestic. Bibliogr., notes, ref., sum. [Journal abstract, edited]