Economic strengthening

Anis Alfredo, 76, with some of her 22 grandchilren that she cares for, Mozambique. © 2004 Gideon Mendel for International HIV/AIDS Alliance

This section looks at ways in which the economic position of orphans and other vulnerable children, their families and households can be strengthened. Details of specific responses are presented in another section. Children and young people are extremely resilient. They are able to cope with a wide range of difficult circumstances. However, in some situations, these efforts to cope may produce problems. Some of the problems which may occur as a result of efforts to cope with the economic impact of HIV/AIDS are considered in another section.

The key point underlying the need for responses focused on economic strengthening of orphans and other vulnerable children is that HIV/AIDS increases poverty. It does this at several levels:

National and regional
Community
Private sector
Family and household

National

HIV/AIDS increases poverty at national level. This is seen in falling gross domestic product (GDP) and slower rises in human development index (HDI).

Community

HIV/AIDS fuels community poverty in different ways. It increases community expenses, for example on contributing to funeral costs. These and other community mechanisms which support families at times of difficulty can be called 'community safety nets' or 'community coping mechanisms'. These are being placed under strain by HIV/AIDS. HIV/AIDS is also causing other social changes. For example, illness and death of teachers and health workers is reducing access to these services and the quality of those services. In addition, HIV/AIDS may be reducing the number of people who are available for wage labour. HIV/AIDS may also reduce the number of employers looking for this kind of worker.

Private Sector

HIV/AIDS is affecting private companies in a number of ways. It is increasing their costs and reducing their profitability. An example of increased costs includes the amount paid for funeral costs and health insurance. The rate of absenteeism is high. Costs of training new staff have increased overall costs.

Family and Household

HIV/AIDS affects the economic situation of children and young people in many ways. These ways include:

Reducing income - households affected by HIV/AIDS spend more time on health care. Therefore they have less time for economic activities, such as farming and trading.
Increasing family size. As the extended family absorbs more orphans and other vulnerable children, the size of family increases. This increases the financial burden on the family.
Increasing costs, for example of medicines and funerals.
Sale and loss of property that the family/household owns.

There are three general ways in which families try to respond to the economic trauma of death of a parent. First, they seek to respond in a way which is purely reversible. Secondly, they use methods which are more difficult to reverse, for example sale of assets. Finally, their actions become irreversible. This is termed destitution.

The Importance of Economic Strengthening Activities

This section has shown how HIV/AIDS is contributing to poverty at many levels. The global strategic framework introduced in 2004 identifies strengthening the capacity of families to protect and care for children as one of five key strategies. Economic strengthening activities are seen as an important part of that strategy.

Resources

Uniting Economic and Community Strengthening. The Frontline in Securing the Future for Vulnerable Children (Eng)

This document focuses on the impact of HIV/AIDS on children and the ways to reduce this impact both both through economic stenegthening and a community centred approach.
African Bureau of USAID, 2004, PDF, 14 pages, 497 kb

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Building Blocks: Asia: Livelihoods and economic strengthening (Eng)

This is one in a series of seven 'Building Blocks: Asia' publications which explores the effects that HIV has directly and indirectly on children's livelihoods and economic strengthening in Asia.
International HIV/AIDS Alliance, 2006, PDF, 24 pages, 497 kb

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A Framework for the Protection, Care and Support of Orphans and Vulnerable Children Living in a World with HIV/AIDS (Eng)

This framework is based on lessons learned over many years. It considers families and communities as the foundation of an effective, scaled-up response.
UNICEF, 2004, PDF, 23 pages, 397 kb.

Building Blocks: Africa-wide Briefing Notes: Economic Strengthening (Eng)

This is one in a series of six 'Building Blocks' publications. It seeks to explore ways in which the economic situation of orphans and other vulnerable children can be strengthened.
International HIV/AIDS Alliance, 2003, PDF, 20 pages, 379 kb.

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Building Blocks: Africa-wide Briefing Notes: Economic Strengthening (Fre)

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Building Blocks: Africa-wide Briefing Notes: Economic Strengthening (Por)

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Community-based Economic Support for Households Affected by HIV/AIDS (Eng)

This paper starts by reviewing the economic impact of HIV/AIDS at household level and explores mechanisms whereby households reduce vulnerability to economic risk and cope with loss.
Donahue, J., USAID, 1998, PDF, 38 pages, 84 kb.

Economic Strengthening of Household and Community Safety Nets to Mitigate the Impacts of AIDS: Annex 3: Economic Coping Strategies (Eng)

This is a brief presentation that was made at a meeting in Washington in November 2000. It tackles the question as to what connection there is between HIV/AIDS and microfinance, and urges examination of this issue from a household perspective, with particular focus on economic strategies to cope in times of 'stress'.
Donahue, J., 2000, PDF, 6 pages, 164 kb.

Assessment of the impact of HIV/AIDS on household economy, Arua District, Northern Uganda, Interim Report (Eng)

This is a report of a study conducted in Uganda which aimed to test a new way of assessing household level economics.
Petty, C., Seaman, J., Acidiri, J. and Knox Peebles, C., SCF, 2001, PDF, 57 pages, 659 kb.

Children, HIV and Poverty in Southern Africa. (Eng)

This PowerPoint presentation looks at experience of using two tools for assessing household livelihoods and food security.
Marsland, N. and Petty, C., SCF, PowerPoint, 43 pages, 474 kb.

The Impact of HIV/AIDS on Poor Urban Livelihoods in Gitega Town, Burundi (Eng)

This one year study by Save the Children UK in Burundi sought to examine the impact of HIV/AIDS on household livelihoods.
Roudy, G., Nkurikiye, W. and Niyongabo, C., Save the Children, 2001, PDF, 30 pages, 448 kb.

Economic Impact of HIV/AIDS (Eng)

This paper was prepared for a conference in 2002 and starts by sketching out economic impacts of HIV/AIDS.
Donahue, J., Catholic Relief Services, 2002, PDF, 11 pages, 165 kb.

AIDS, Public Policy and Child Wellbeing (Eng)

This is a major publication with more than 15 chapters which looks at the various impacts of HIV/AIDS on child well-being globally.
Cornia, G.A., UNICEF, 2002.

AIDS, Public Policy and Child Wellbeing: Chapter 10: The HIV/AIDS Impact on the Rural and Urban Economy (Eng)

This document is the tenth chapter of a major publication and looks at the impact of HIV on the economy, including a focus on GDP and particular economic sectors.
Cornia, G.A. and Zagonari, F., UNICEF, 2002, PDF, 37 pages, 301 kb.

AIDS, Public Policy and Child Wellbeing: Chapter 11: Poverty and HIV/AIDS: Impact, Coping and Mitigation Policy (Eng)

This document is the eleventh chapter of a major publication and looks at the relationship between HIV/AIDS and poverty.
Barnett, T. and Whiteside, A., UNICEF, 2002, PDF, 36 pages, 134 kb.

The Toolkit: Childhood Challenged (Eng)

This toolkit, by the South Africa Programme of Save the Children, is meant to help the corporate sector effectively engage in issues of children affected by HIV/AIDS.
Save the Children, 2002, 63 pages,3869 kb.

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Economic Strengthening at the Household and Community Levels to Benefit Vulnerable Children: Proposed Guidelines for Planning and Implementation (Eng)

This guide concerns the critically important role that economic circumstances play in children’s well being and, in each situation, how best to use the most appropriate approaches to improve their situation.
Dempsey, J., Displaced Children and Orphan's Fund USAID, 2003, PDF, 66 pages, 529 kb.

SCOPE and Family Health International Orphans and Vulnerable Children Baseline Survey, Psychosocial Interviews with Orphans and Vulnerable Children: Questionnaire for Guardians (Eng)

This is a questionnaire from the SCOPE programme in Zambia for use with children's guardians.
FHI/SCOPE/USAID, 2001, PDF, 9 pages, 443 kb.

Economic Strengthening to Improve the Well-Being of Orphans and Vulnerable Children

This is a report from a workshop designed to identify specific ways to improve programming and increase ongoing, collaborative action among organisations and specialists in the area of economic strenthening.

Miamidian, E., Sykes, A. & Bery, R., AED and USAID, 2004, PDF, 44 pages, 800kb.