Households affected by HIV/Aids are more likely to spiral into debt and spend less money on food — which, in the long run, will contribute to malnutrition and chronic poverty.
Research on 400 households in QwaQwa and Welkom was presented at a seminar on the impact of HIV/Aids on the economy and governance, held in Pretoria this week. The seminar was sponsored by the Joint Centre for Political and Economic Studies, USAid and a group of development agencies.
The intention behind the research was to provide decision-makers with quality information on the effects of HIV/Aids in all sectors. ”Glossy and negative statements that this epidemic is going to affect everyone are not good enough,” said USAid economist Neil Cohen. He told the Mail & Guardian that these workshops are intended to raise the standard of economic research provided to the government for planning intervention programmes.
The study was conducted over an 18-month period, and both HIV/Aids-affected and non-affected households were visited. ”The study provides a moving picture rather than a once- off snapshot of the socio-economic circumstances of HIV/Aids-affected households,” said Frikkie Booysen, a researcher and associate professor in the department of economics at the University of the Free State.
”The depth and severity of poverty was most pronounced among the HIV/Aids households,” said Booysen. ”As a result, policies aimed at poverty alleviation can be argued to be crucial in sustaining the livelihoods of HIV/Aids affected households.”
The study shows that people spend less on food when they have to support a family member with Aids. Most HIV/Aids-affected households are burdened with the high cost of funerals and medical treatment, and thus respond to financial crises by borrowing money, using their savings and selling their assets.
”More importantly,” said Booysen, ”the purpose for which households borrowed money suggests that the HIV/Aids epidemic does play a role in causing affected households to take on increasing levels of debt, and how the epidemic may push households deeper into poverty by means of rising indebtedness.”
The study also found that more than half these households sheltered more than one orphaned child. ”The extended family plays a crucial role in coping with these crises. The evidence shows that the epidemic impacts entire communities rather than affected households per se, particularly in the context of the rising orphan crisis,” said Booysen.
But, he says, this research can assist government in deciding on child support grants. ”The results show that children from HIV/Aids-affected households were likely not to attend school.” He said these results support the argument that HIV/Aids may cause children to be taken out of school to help households cope with the burden and their inability to pay school fees.
”This raises the question whether the government should implement a child-support grant administered at the school level, thus ensuring school attendance, rather than administering these grants at the household level, which does not always benefit the child in terms of education due to the control over this resource of the child’s caregiver.”
Complementing this study is one conducted in Soweto, investigating the impact of HIV/Aids on income-earning urban households. ”There is an increase in the take-up rates of grants in HIV/Aids-affected households,” said researcher Veni Naidu of the Economic Policy Research Institute. ”This finding is important for planning purposes. As households experience destitution, they turn to support from the government.”
Her study was aimed at developing a methodology to calculate the effects of HIV/Aids on households, especially in urban communities. The study was conducted in 125 households in Soweto, over a period of 12 months. It found that HIV/Aids-affected households are earning significantly less in salaries and wages, and that total household income is being made up through the receipt of grants.