This report was initiated as an exerciseto assist policy makers in Swaziland in their effort toincorporate HIV/AIDS into the planning process on a regularbasis, and provides an overview of selected, likelydevelopment impacts of the epidemic for the country. Throughconventional demographic, and economic models, it analyzesthe HIV/AIDS impacts on the economy, and illustrates howthese impacts can be incorporated in the regular planningprocesses - including annual budgeting - in the finance, anddevelopment ministries of Government. It also points at theneed for monitoring the progression of the epidemic, throughfurther research, and improvements in existing instruments.Chapter I reviews the status of HIV/AIDS, and the factorsexacerbating the spread of the epidemic, and Chapter IIexamines the demographic impact, and its effect on labor,and human resource development, for unlike populationcontrol programs, AIDS epidemic damages the economy byreducing the size of the economically active population, andimposes a "shock" on the socioeconomic status ofthe household. Chapter III analyzes the impact of thedisease on the public service, and Chapter IV reviews policyoptions. Recommendations suggest reducing HIV transmission,and AIDS morbidity, and, proposes initiating programs forskills replacement to mitigate the negative economic impactof AIDS, outlining key areas of preventive action.