Economy and Health - Research Paper Example

There is also a general bust in the infrastructural development with efficient resource allocation to the active macroeconomic sectors (Rodrick & Rosenzweig, 2009). Health sector on the other hand is a key component of any existing economy. Any existing economy stands because of the number of individuals that it supports. This population supports the given economy. Population has to exist for an economy to realize economic development and growth. The existing population must be managed well to facilitate the above objectives (Layard, 1986).

Health ensures that a country operates with a healthy population in the process of striving to achieve economic growth to compete other nations. Other sectors that can be compared to the health sector include the education sector, agricultural sector and many others. The fundamental states or proves beyond reasonable doubt that at no point any of the above can survives if health does not exist because the all depend on a healthy population. From the definition of economics, therefore we can easily define health economics as the study of scarce resource allocation to the health industry (Culyer, 2000). . It is also the duty of any government in the contemporary world to ensure the health of its citizens at all costs.

Health economics sees on how the few resources can be allocated to ensure that provision of health benefits is maximized (Rodrick & Rosenzweig, 2009). The optimization point is the point when the marginal cost of providing health is equal to the marginal benefits of the healthy provision itself. In trying to analyze the cost allocation of the various resources to be allocated to the healthy sector a thorough cost analysis has to be done and then a cost effectiveness statement be developed (Wise, 2004).

Several research works have been undertaken relating to wealth and health. The researches have been conducted in both developing countries and developed countries as well. In the developed countries, it is found out that senior citizens can comfortably afford healthcare and in fact, the most appropriate care since they have the wealth and since they keep increasing their level of disposable income as they age (Culyer, 2000). The developing countries it is the reverse since majority of citizens in such countries are extremely poor.

Only a few rich individuals can afford the health care services in such states hence a great burden on the government. Millennium development goals advocate for six major pillars as follows; that the world will be in the position of providing adequate healthcare, that food will be in abundance, industrial and technological advancement will be at the peak, that the level of education will allow people to be able to perform or engage themselves in basic reading (Henderson, 2011). In addition, it advocates for international peace through peaceful coexistence among nations,