HIV/AIDS has become an important phenomenon in the world today.

It is the fourth

major cause of death and it threatens to wipe out a large proportion of the adult population that

constitute the potential labor force particularly in the most affected developing countries. The

decimation of the potential labor force has far reached implications on the productivity and

economic growth of the affected countries with a potential of reversing many years of their

economic achievements. Facts from the United Nations HIV/ AIDS Agency (UNAIDS) show

that 20 million people have died as a result of the epidemic 42 million are living with the virus

with an estimated 5 million being added to this number every year. A total of 14 million children

have been orphaned, and life expectancy has fallen dramatically in the last ten years. The

Southern African region has the highest prevalence rates ranging from 13 percent in Malawi to

32 percent in the case of Botswana. Zambia's estimates show a prevalence of 21.5 percent

(HIV/AIDS, UNAIDS 2000).

Social-Economic Impacts of HIV/AIDS on Zambia as a Country

The epidemic has complicated development agenda of reducing poverty and improving

the standard of living of the people in Zambia. In the last two decades Zambia has experienced

rising poverty levels and economic growth has been low. The epidemic threatens to lower the

growth rate even further for a number of countries in the next two decades. Early World Bank

simulations indicated that the effects of an HIV/AIDS epidemic on savings and productivity

would slow per capita income by an average of 0.6 percent in the country by 2027 (World Bank

1993). Recent predictions have put these estimates at even a much higher rate particularly in

Zambia (Arndt and Lewis, 2000).

The fact that the economy of Zambia is already experiencing the effects of the epidemic

especially in the areas of education and health has become a major concern for the country. The
burden brought about by the epidemic is likely to worsen among the population in rural and

urban informal sectors where the majority of the unemployed and poor are engaged. The impact

in the two sectors will continue to affect productivity, incomes and savings in the long run.

Furthermore, the death of bread winners in the families has become a major factor that is pushing

more families into the poverty bracket and adding to the number of the poor. To this end,

HIV/AIDS has become a major cause of poverty in households where death has occurred both in

urban and rural areas (Namposya 2000).

But the effect on the household is not just economic. The death of an adult in the family

is changing the very structure of the household. Grandparents, aunts, uncles and even children

take new responsibilities. With fewer households' resources and less available time, children

receive less attention and less health care, and become more vulnerable to malnutrition.

Communities are affected by such losses because of the increase in numbers of orphans and

fewer productive adults. In many communities, there may be few formal social services or

government assistance. It is for this reason support through volunteer organizations and informal

financial institutions exist, mobilizing of resources and advocacy for needed changes to the

operations of the institutions is of a necessity.

One such channel are the micro credit schemes that can be used for delivering resources

to the poor and encouraging savings among the poor segment of the population. Where micro

credit schemes exist, they have provided means for saving among the poor and operated as a tool

for rural development. However, even this instrument is being rendered ineffective in instances

where the labor force that is important to the use of these resources is being lost. Alternative

ways of dealing with such losses has not yet been established and the impact of HIV/AIDS on

poor household's savings has not been fully investigated.

Recommendations

Policy recommendations are that first, Government check the high rate of attrition in the

potential labor force and the declining life expectancy. Promote growth by investing in

infrastructure that supports agriculture, health and education. Encourage participation of women

in production process and promote education policies that improve literacy and create awareness

among the population. Second, Communities adopt strategies to address hunger, poverty and

household security. Third, Donor agencies provide support to build capacity in national

governments and communities to combat HIV/AIDS. Fourth, Research strengthens information

gathering.

Conclusions

In summary, the major impact of HIV/AIDS is on labor force which has consequently

affected life expectancy, the life expectancy has led to the deterioration in the health conditions

and therefore the effects on all other aspects of life. Because of deteriorating conditions at

household level, dependency show the changes that are taking place in households, which affects

economic growth as most of the people are left either too weak to contribute to the economy or

his able to make decisions as heads of households. Low savings at household level poses security

risk to communities and a continued decline will lead to increase of poverty at household level

unless steps are taken to improve agriculture production and savings in the informal sector.

Therefore, there is need to intensify existing base of the knowledge and awareness about the

risks of HIV/AIDS, so as to ensure the reduction in levels of infection and promote policies that

encourage positive life styles.