As much as NCDs are a human problem, they are an economic one, too. Chronic diseases are expensive to manage and treat, for one, but they also pose an opportunity cost in the form of diminished worker productivity. According to a 2011 report by the World Economic Forum and the Harvard School of Public Health, "with respect to cardiovascular disease, chronic respiratory disease, cancer, diabetes and mental health, the macroeconomic simulations suggest a cumulative output loss of U.S. $47 trillion over the next two decades."4
If governments are to succeed in combating NCDs, it is essential that they consider the problem in economic terms. Though the cost of addressing these challenges will be high, the cost of inaction is even higher. A 2016 study from the University of Victoria, Australia, commissioned by the Global Initiative on Health and the Economy at the U.S. Chamber of Commerce sheds additional light on the total costs associated with NCDs.5 This report provides estimates of the economic cost across 18 countries caused by productivity losses arising from absenteeism, presenteeism (workers who are present but not fully productive), and early retirement due to poor health. The study finds that the cost in lost productivity is high for all countries examined (about 7.4% of GDP on average), and for almost all countries that cost is projected to increase. In the fall of 2020, the Global Initiative on Health and the Economy released a follow-on study to estimate the economic and social returns from investing in interventions to improve health outcomes of the working age population. The study uses a cost-benefit framework to estimate the costs of the interventions needed to treat the key illnesses which adversely affect people's ability to work, to determine the improved health outcomes of those interventions, and to place an economic value on their health benefits. The study found that "on average, countries may realize a return of $20 for every $1 invested in cardiovascular disease and diabetes interventions. Likewise, countries may realize a return of $22 for every $1 invested in for anxiety disorders and depression interventions."6
Furthermore, an economic understanding of the NCD issue will allow governments to identify opportunities for private-sector involvement, locate and capitalize on untapped value, and ultimately build a broader coalition of support within the private sector, while managing conflicts of interest.
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4Bloom D, Cafiero E, Jané-Llopis E, Abrahams-Gessel S, Bloom L, Fathima S. The global economic burden of non-communicable diseases . 2011. World Economic Forum, Geneva.
5Disclosure: As of December 11th, 2019, Susan Capps, Executive Director, International Policy at Amgen, was appointed Executive Chair of the GIHE Board. Since 2017, PPPI has worked periodically with the GIHE on PPP healthcare issues facing China and on PPP workshops for the Ministry of Health in Saudi Arabia.
6Rasmussen, Sweeny, Welsh, Kumnick, Reeve, & Dayal. Increasing Social and Economic Benefits Globally: Rates of Return on Health Investments. US Chamber of Commerce, Global Initiative on Health and the Economy and Victoria University, Melbourne. September 2020. https://www.uschamber.com/report/increasing-social-and-economic-benefits-globally-rates-of-return-health-investments