The Economics of Health and Well-Being

IMF Blog, December 2, 2021

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Publication title: The Economics of Health and Well-Being
Author/Editor: Gita Bhatt (GITA BHATT, editor-in-chief)
Date: December 2, 2021
Framing: Finance & Development issue focused on global health and well-being, motivated by lessons from the COVID-19 pandemic.

The COVID-19 pandemic revealed the inextricable link between human health (mental and physical) and economic health, with the pandemic causing "the deepest economic contraction in generations" and slowing progress on education, poverty eradication, and inclusive development.
Overcoming the pandemic is presented as a prerequisite to restoring jobs, livelihoods, and economic growth; it is characterized as critical for global economic and financial stability and thus of fundamental importance to the IMF.
The edition explores:
- Future global health threats and countries’ vulnerabilities to them.
- Gaps in health care capacities within nations and in the global health security system.
- The role of prudent public policy and responsible politics in health care.

Ngozi Okonjo-Iweala, Tharman Shanmugaratnam, and Larry Summers call for rethinking international collaboration and additional investments of at least $15 billion a year to avert future pandemics, arguing such support should be treated as a strategic investment benefiting every nation.
Tedros Adhanom Ghebreyesus (World Health Organization head) emphasizes that public financing is the core of universal health coverage and that health and finance authorities must work together to bolster health systems and economies in a mutually reinforcing way.
Michael Kremer and coauthors propose ideas to speed vaccinations in the next pandemic, including investments in manufacturing capacity, supply chains, and research that deliver widespread societal benefits.

A special feature by Miles Kimball and colleagues discusses measuring prosperity beyond GDP, suggesting alternative measures of well-being.
Three country case studies illustrate different pathways to health and happiness:
- Costa Rica: effectively delivering services at the community level.
- Denmark: cultivating social trust.
- New Zealand: accounting for well-being at the highest policy level.

The pandemic’s depth and lessons may spur countries and the international community to treat health as a public policy priority to create happier and more productive societies.
Closing quotation: “Health is the real wealth…” — Mahatma Gandhi

Source: The Economics of Health and Well-Being, Gita Bhatt, December 2, 2021.