Healthy workforce key to economic growth

Country lags behind international indicators, dire need for reforms

KARACHI: There is no denying that human capital plays a key role in economic growth. Economic literature points to clear gains not only at the individual level but collectively at the societal level achieved through investment in human capital.

This investment is made through expenditure on improving education and health conditions of a nation. Both education and health are key aspects of human welfare without which it is impossible for a nation to tread on the path of economic development.





The importance of improving human welfare through improved health conditions can be recognised by the fact that when the United Nations was formed in 1948, all countries decided in setting foundations for a global health organisation which came into being in the form of the World Health Organization (WHO) on April 7, 1948.

Pakistan’s health indicators

Pakistan is way off the mark in achieving many health related millennium development goals such as infant mortality, under 5 mortality rate and maternal mortality rates. Moreover, the performance of the country remains dismal when compared to other countries in the region.



Some of the factors responsible for abysmal health outcomes remain poor education and awareness, inadequate nutrition and poor financial allocation on improving health.

In developing countries, expenditure on health remains low, Pakistan is no exception. Public spending on health as budgeted for 2015-16 stands at Rs11 billion which forms a meager share of less than 1% of GDP.

Taking a historical account of this expenditure reveals that one of the first budgetary allocations of the health department stood at 0.1% of GDP which even after 63 years stands at 0.6% of GDP.



This is evidence of the priority given to improving health outcomes by the country’s policymakers. This situation is further exacerbated by the fact that Pakistan has one of the fastest population growth rates of 1.92% in the region. Yet, health expenditure is not commensurate with this phenomenon.



Public health

Poor health indictors of the Pakistani populace are clearly a consequence of a lack of successive government priorities in improving public health. Where doctors are required to treat the disease, public health practitioners are required to prevent its occurrence.

Public health has been defined as the science and art of preventing disease, prolonging life and promoting health through organised efforts and informed choices of society.

Public health, however, receives very little attention by the government and in the current budget only 3.8% is allocated to be spent on public health services with the majority 83% allocated to be spent on hospital services.



The need for public health practitioners in Pakistan remains dire. Year after year Pakistan has been afflicted by calamities which have arisen due to the adverse effects of climate change. The recent heat wave in Karachi killing more than a thousand people, annual floods and vector borne diseases such as dengue fever all testament to that.

Yet, public health surveillance is virtually absent from Pakistan. There is no institution which is responsible for the systematic collection and analysis of health related data which can present its findings at the national level to be used for the planning, implementation and prevention of public health emergencies.

The time to give priority on public health is now. There should be an immediate realisation that without achieving improved health outcomes, human capital cannot grow and economic development of the nation cannot be achieved.

The writer is an economist and ex-central banker

Published in The Express Tribune, November 16^th, 2015.

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