The report aims at providing an overviewof selected, likely development impact of HIV/AIDS in thelight of existing data. It was initiated as an exercise toassist policy makers in Namibia, in their effort toincorporate HIV/AIDS into the planning process on a regularbasis. However, due to data limitations, the review at thisstage does not provide detailed costing of the impact ofHIV/AIDS on various sectors of the economy, thus, subsequentanalysis should focus on detailed costing, and policy designalternatives. It analyzes the nature of the epidemic, andits likely impact, by examining the demographic consequencesas a first step in making a comprehensive assessment,through spectrum models with comparative reference to theresults generated by other studies. Conclusions imply thatthe primary impact of the epidemic could be in the reductionof life expectancy at birth, for although AIDS reduces thepopulation growth, it does so in perverse ways, affectingthe labor force in the form of skill shortages for thecountry. Moreover from the macroeconomic perspective, theepidemic is likely to affect the savings/investmentrelation, to the extent that the lack of skilled labor, andprofitability in the private sector, will adversely impacteconomic growth. Responding to the epidemic requires ongoingpublic, donor, and private activities to mitigate itsimpact, and, suggestions include political will, societalopenness to fight against the stigma, social policy reformto reduce vulnerability, and multi-sectoral action atvarious levels.
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