Giving Compass' Take:

• As COVID-19 continues its global reign, an article at Brookings outlines the importance of investing in health for countries with developing economies.

• Why is it difficult for countries with developing economies to access health investments? How can we make it easier for developing economies to invest in their health and remain in-tact throughout the pandemic?

• Find funds to help support communities during COVID-19.

The COVID-19 pandemic has not just exposed the cracks in our global health systems but demonstrated how much health matters for our economies. Many developing economies are at risk of being hit hard by dual health and economic shocks with forecasts suggesting a cost of up to 8 percent in global GDP in 2020.

Yet what is less well known is the chronic economic drag from poor health each year—about 15 percent lower GDP from premature death and lost productivity.

So consider for a moment what would happen if avoidable health conditions were successfully addressed. Of course we know there would be immense benefits to individuals and societies. But what would the economic benefits be?

We estimated a $4.4 trillion boost across all developing countries, or a 7 percent increase in GDP in 2040. The relative boost to GDP in 2040 varies between 7 and 11 percent among the different income archetypes. We also found an economic return of between $2 to $4 across developing countries for every $1 invested in health. Healthier children would benefit more from education and grow up to healthier adults with higher earnings potential, encouraging investment in education and productive capacity. Prioritizing health can be a catalyst for a broader virtuous cycle of growth.

A larger and healthier labor force translates into substantial economic benefits across all countries. Yet underlying differences in the health outcomes and labor market structure shape the opportunities individual countries have to capture those economic benefits.

The pandemic has made investment in health even more urgent in low-income economies. The virus and its aftermath have led to disruptions in hugely important programs, such as child immunization. Investing in health will also be key in building resilience toward other health risks from future pandemics, climate change, and antimicrobial resistance.

Read the full article about the importance of health in developing economies at Brookings.