Investing in health

This article analyses the relationship between health and development. It provides a theoretical foundation of the empirical finding that health and development are positively correlated. Empirical data and recent studies on the relation between health and development are analysed. The theory of development traps is enhanced to explain the feedback loop between these elements. There is a strong empirical correlation between health and development. The higher the gross national product, the higher the life expectancy and the lower the mortality and morbidity. This relation is true for developing as well as for developed countries. It is obvious that economic resources have an impact on the availability of health care resources and consequently on health, but at the same time the health of a population is of strong importance for their economic capability. Thus, health and development are elements of an autocatalytic process. Investments in health care will start a positive spiral of development and health. However, not every investment will yield fruits. They must be efficient and effective, must follow the value system of a society and must invest in the ability of decision makers to deal with complexity and dynamics.