World Bank AIDS assessment criticised

A recent World Bank assessment of the impact of HIV/AIDS on South Africa's economy has drawn criticism from some of the country's economists, local newspaper The Star reported on Monday. Using decades of South African data as a basis, the Bank warned that if "nothing was done [to avert HIV/AIDS] ... a complete economic collapse could occur within three generations". However, Standard Bank chief economist, Iraj Abedian, expressed concern that the report, which he said grossly exaggerated the disease's impact on the economy, could discourage investors. Abedian argued that while there would definitely be an economic cost associated with the spread of HIV/AIDS, the World Bank was wrong in assuming the only driver of economic growth was human capital or skills. He said the Bank's research did not work in an open economy, where skills lost to the disease could be replaced from abroad.