The economic burden of the global trade in tobacco

Abstract

It is well known that tobacco is bad for health. In fact, every ton of tobacco consumed results in approximately one death. What is not so well known is that tobacco is, globally, a net economic disas ter as well. There are some benefits to consumers and producers in the form of immediate pleasure and profits that can be estimated from market data, but these market benefits are dwarfed by the cost of sickness and death caused by tobacco use. Fortunately, there are highly cost effective policies available to use against tobacco. These policies include taxes, anti-tobacco legislation, information and education, and advertising bans. Cost analysis shows that these policies cost only a fraction per year of life saved compared to the treatment of tobacco caused disease. The World Bank has concluded that it does not make good economic sense to lend money for tobacco projects but it does make good sense to lend for anti tobacco activities in health projects. Min isters of finance should take these econ omic facts into account and should sup port strong measures to control tobacco use in their countries. (Tobacco Control 1994; 3: 358-361)