Communicable and related diseases account for a substantial share of the disease burden in developing countries. Given the ?public? nature of these diseases, the allocation of resources in this sphere is prone to market failure. This paper argues the case for directing international aid flows to combat communicable diseases as a matter of priority, and discusses how such aid is best spent. In doing so, the paper proposes criteria to guide policy makers in making decisions about how to allocate aid resources among different diseases and different measures to deal with them, namely, prevention, treatment, and R&D. Special attention is paid to the effect of communicable diseases on the preservation of existing human capital and the formation of new human capital.
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Clive Bell & Maureen Lewis, 2004.
"The Economic Implications of Epidemics Old and New,"
World Economics,
World Economics, Economic & Financial Publishing, PO Box 69, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 1GB, vol. 5(4), pages 137-174, October.
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