Authors Name: 
Shelby Challis
University of Toronto
Social Sciences
Highly commended

The Macroeconomic and Socioeconomic Impact of the HIV/AIDS Epidemic in South Africa

My focus will be on the HIV/AIDS epidemic in South Africa and the impact it has had on the economic vitality of the country. The epidemic will be treated as both a determinant of health outcomes and as a determinant of economic outcomes more generally. My research question will run as follows: why have the macroeconomic implications of the HIV/AIDS epidemic in South Africa been arguably modest, in spite of its multifaceted socioeconomic impact? What we are referring to as the “impact” are a set of multiple potential consequences that are generated by the high prevalence of HIV. These consequences include adverse health and economic outcomes. We will discuss and measure these impacts by looking at how they operate on a number of different societal levels: starting with a demographic impact assessment, and then turning to the epidemic’s impact on the government, business community and households. I find that the reason is that, because the socioeconomic impact is unequally felt, the severity of the impact does not get captured at the macro level. The adverse socioeconomic impacts of the epidemic are mainly harbored by the poor and those who do not have access to formal employment and networks. Therefore, the HIV/AIDS epidemic does produce a serious economic shock on South African society, a shock that hits hardest the most economically vulnerable segments of the population.