New Report Funded by Bloomberg Philanthropies Details Macro-Economic Benefits of Reducing Road Traffic Crashes
Cutting road traffic deaths and injuries by half could boost the economy and result in substantial long-term income gains in developing countries -- potentially adding 7 to 22 percent to GDP per capita over 24 years in some – as well as greatly improve social welfare benefits. Those are the main findings of a new report released on Tuesday by the World Bank and funded by Bloomberg Philanthropies.
The report, “The High Toll of Traffic Injuries: Unacceptable and Preventable,” which calculated the economic impact of road safety in China, India, the Philippines, Tanzania and Thailand, quantifies how investments in road safety are also investments in human capital. The report indicated that countries that do not invest in road safety could miss out on potential economic boost. The cost of inaction, it said, “is diminished productivity and reduced growth prospects.”
Globally, road traffic fatalities disproportionately affect low- and middle-income countries, where about 90 percent of deaths occur, according to the World Health Organization. Rising incomes in many developing countries have led to rapid motorization, but road safety management and regulations have not kept pace. Death rates from traffic injuries in 2015 reached 34 per 100,000 in the five countries studied compared to an average of 8 deaths per 100,000 for the 35 member countries of the Organization for Economic Cooperation and Development (OECD), according to the report. In many low- and middle-income countries, the largest percentage of death and long-term disability from crashes affect prime working age people between 15 and 64 years old. The result is often reduced work force productivity and ultimately, a weaker economy...