MENTAL HEALTH IMPACT ON THE ECONOMY

 EVALUATING THE IMPACT OF MENTAL HEALTH CHALLENGES ON THE ECONOMY OUTLOOK OF A SOCIETY OR NATION.

Functional impairment is a direct impact of mental health discomfort and these have consequences on productivity and quality of work. 

The consequences of mental ill-health are not limited to just the individual and their immediate social environment like family…it impacts the entire social and national fabric. 

They affect the social/national fabric through what I describe as the "unit effect" or one that is better understood as the 'cost per head.'

It is however difficult to measure the aggregate or estimated cost of mental burdens because of variables in mental health, incomplete definitions, and lack of data to aid proper analysis. 

My Thoughts 

I believe that mental health accounts for more economic loss on the economy's growth than chronic diseases like diabetes, cancer etc. I'll prove it. 

According to the World Economic Forum, WEF, there are different ways to measure the burden of disease on an economy apart from the implications of direct cost like consultation fees, medication costs among others. 

To study the real economic burden of disease, we have to capture every aspect of HEALTH. Health - Physical and Mental. 

Both have direct implications on the economy and we must take such a holistic approach to our study if we are looking to establish the truth that the burden of mental ill-health on an economy is far more than what we envisage or are willing to acknowledge. 

Here's a simple breakdown. 

Direct Cost (Visible Cost). These ones are in respect to diagnostic treatments from a medical center. 

• Consultation fee
• Cost of medication
• Hospitalization fee
• Psychotherapy sessions 

Invisible Cost

The best way to define invisible cost is "cost per head/unit." An example of these cost would be:

• Lost productivity as a result of suicide
• Inefficiency/disability as a result of anxiety or chronic depression
• Mortality

We need to study the interaction between the direct and indirect costs of mental ill-health on economic strength. 

To do this, there are two angles appropriate to look at it from. First is the epidemiological outlook and the second is the economic outlook. I'll explain here:

Epidemiological outlook: This is more like we're talking about community health. Epidemiological data helps us to look at:

1. Prevalence of the disease: This means the spread of the disease using statistics. The number of people affected by the disease in a given environment. For example, if 4 out of every 6 people have a heart condition, then it might be safe to say that it has a high prevalence and has become a risk. 

2. Consequences: consequences capture the effect of the disease like mortality and disability.

Economic Cost: This refers to cost per head. This is usually arrived at by the routine calculations or statistics. An example of this is to study the cost of treating the disease.

So, Covid-19 happened….

 It was a global pandemic. Some areas suffered great immense economic impact. How do we know? Epidemiological and economic cost. 

Let's use a sample: 

Let's assume that Glovoski is the name of a city and according to reports, this city is still suffering greatly from the 'impact' of Covid-19. 

How do we measure this impact? 

1. First, by studying the prevalence. If they had a 1000 population and 700 were affected by Covid-19, then that's a high prevalence. 

2. Secondly, by measuring the consequences. If by 700 persons being affected, 100 more are at risk of infection because of interaction, then that's a type of consequence and it's a damaging risk. 

If out of 700, 500 are rendered disabled, dead or unable to recover. Then that's a consequence. 

3. The next thing to do would be to look at the cost per head. How? 

What did it cost to evacuate, properly isolate and treat 700 persons? That's the economic cost. 

People died, money was spent, there is no labor to generate the loss incurred. To this kind of situation, we say the economy has taken a hit and it'll take a while to recover. 

Why? This isn't necessarily because people are sick but because there is now a shortage or unavailability of labor. 

If it was simply direct costs like the cost of drugs and treatment, it wouldn't be much of a problem because it can be generated again. 

But…the real impact on the economy is because of the per unit cost. People have become disabled, unable to effectively fit into systems and pour in creative resources.

This brings me back to the statement I started this article with.

"Functional impairment is twice as damaging to the economy of a nation than the  direct diagnostic burden of disease. "

Data from 2010 shows that the global direct and indirect economic costs of mental disorders was estimated at US$2.5 trillion. The indirect costs were valued at (US$1.7 trillion) while the direct costs were estimated at (US$0.8 trillion).

Isn't that huge?

The big deal is that it is going to double in 2030. 

When it comes to the impact on an economy, we can appraise this by looking at economic input and output. You know? Studying the projected impact of mental disorders on our GDP as a nation using the tools I mentioned earlier in the article. 

The general idea is that economic growth doesn't depend on capital alone…labour is twice as important. Labor in this case means "humans," and humans can be hampered by diseases. Whether mental or physical. 

Speaking of capital and labor, capital will always be affected by expenses (expenditure) while labor will be impeded by disability. Expenditure here can be likened to healthcare direct costs. Since both mental and physical health have an intertwined relationship, an attack on one affects the other. 

An example of this is how data shows that people suffering from chronic physical health challenges like diabetes or cancer consequently suffer chronic mental discomfort like depression. The same thing also applies to how severe mental health discomfort can trigger serious physical reactions like back ache, body pain among others. 

I will add an image to buttress my analysis but here's something to look at:

"Imagine that we have a population of 10, 000 people and the mortality rate is low with data showing that the deaths are that of aged ones, what would our labor input be like? Especially if it is a largely functional and integrated population. That's how you measure the impact of mental and physical health on a country's GDP. "

 

Making the comparison using a counterfactual sketch and that of reality. 

We can calculate our losses and the impact on GDP by estimating the direct and indirect costs of these disease using the tools above and measuring it against what it would have been like if there were no such losses. 

Does Mental Health affect the economy of Nigeria and Africa at large? Yes. 

Do we have data to quantify the losses? We have incomplete data and striving for accuracy would be a stretch in this case. 

It's true that communities are only willing to spend on somatic/physical health challenges with complete disregard for mental health but it's a double crisis in our third world nation. 

We are lagging far behind in our prevention and maintenance because our healthcare system is struggling. 

No doubt, America and some European countries are witnessing a surge in mental health crisis but two things are noteworthy. 

First, there is data to trace the level of damage and increase. 

Secondly, the data informs their decisions and policies with other nations. 

While they may not be able to completely nip in the bud the cause of their mental health challenges and stop it from rising, they are taking on preventive measures to IMPORT labor to keep their economy in the balance. 

This however is costing a sort of strain on their economies and cultures because of the necessary influx of labor. (It's a different kind of problem however. One that will not be addressed in this article.)

If Africans/Nigerians are emigrating because of their mental health or poor living conditions, it's a huge cost to our economy. Both direct and indirect. 

In a case where emigration isn't possible, we have the larger number of the population suffering functional impairment. Look at our systems, the quality of work and mediocrity plaguing every faction of our societal and national fabric. 

This is a State of emergency.

The edges of our walls are being chipped at and the walls are cracking from within. Are we still going to have a safe place for future generations? 

This is why Emotional Healing is critical to the recovery of the world's economy.