Cost-benefit analysis and immunization programmes in developing countries.

Abstract

Cost-benefit analysis can provide strong evidence of the viability of immunization programs. This form of analysis involves the identification, valuation, and summation of the costs and benefits in each year of the program. The main components of immunization program costs are the wages of the immunizing and supervisory staff, transport costs, and the cost of the vaccine. Major benefits include savings in treatment costs following reduced incidence of disease, reductions in mortality and morbidity, avoidance of suffering to children and their families, and spillover benefits. Although cost-benefit analyses tend to underestimate the benefits of immunization, there is evidence of very high rates of return on investments in this area. This benefit would become even more evident if the benefits derived from a rural infant's immunization were weighted higher than those associated with immunization of urban infants. Moreover, this approach would bring the welfare function in cost-benefit analysis more in line with the aims of policy makers to address inequity in access to health care. Also needing to be addressed are the inadequacies of the human capital approach of life valuation, especially in rural areas of developing countries.