Differences in healthcare

Economic Development – Differences in Healthcare Between Countries

1. Why Healthcare is Central to Economic Development

Good health improves the quality and quantity of labour, reduces absenteeism and increases productivity.

Consequently, countries with better healthcare outcomes tend to have higher per‑capita incomes and faster economic growth.

2. Key Indicators Used to Compare Healthcare

• Life expectancy at birth (years)
• Infant mortality rate (deaths per 1,000 live births)
• Health expenditure per capita (US$)
• Doctors per 1,000 population
• Access to safe drinking water (% of population)
• Prevalence of major diseases (e.g., HIV, malaria)

3. Comparative Table of Selected Countries

4. Reasons for the Differences

1. National Income: Higher GDP per capita provides more resources for health infrastructure, staff salaries and medicines.
2. Government Priorities & Policy: Universal health coverage, preventive programmes and regulation affect outcomes.
3. Infrastructure: Availability of hospitals, clinics, clean water and sanitation facilities.
4. Education & Awareness: Educated populations adopt healthier lifestyles and utilise services effectively.
5. Disease Burden: Endemic diseases (e.g., malaria, HIV) increase mortality and strain health budgets.
6. Urbanisation: Concentrated urban populations can benefit from economies of scale in service delivery, but may also face overcrowding.

5. Impact on Economic Performance

Improved health leads to:

• Higher labour productivity – healthier workers can work longer hours with fewer sick days.
• Greater human capital – children who survive infancy and receive nutrition perform better in school, enhancing future earnings.
• Reduced health‑related poverty – lower out‑of‑pocket expenses keep households from falling into poverty.

Conversely, poor health can depress growth by increasing the dependency ratio and diverting resources from investment to treatment.

6. Simple Economic Relationship

The relationship between health expenditure and life expectancy can be expressed in a basic form:

\$\Delta LE = \alpha + \beta \times \ln(HE) + \varepsilon\$

where \$LE\$ is life expectancy, \$HE\$ is health expenditure per capita, \$\alpha\$ and \$\beta\$ are parameters, and \$\varepsilon\$ is the error term.

7. Case Study Summary: Japan vs Nigeria

Japan enjoys a life expectancy of 84.5 years, low infant mortality, and universal health coverage funded by a high‑income economy. The health system emphasises preventive care and has a dense network of hospitals.

Nigeria faces a life expectancy of 55 years and high infant mortality. Limited fiscal capacity, inadequate infrastructure, and a high burden of communicable diseases constrain health outcomes.

These contrasting examples illustrate how income, policy choices and disease environments shape healthcare performance and, consequently, economic development.