WORLD HEALTH ORGANIZATION - TOBACCO FREE INITIATIVE
Directions in Development - Curbing the epidemic
Governments and the Economics of Tobacco Control
The World Bank
Summary
Smoking already kills one in 10 adults worldwide. By 2030, perhaps a little sooner, the proportion will be one in six, or 10 million deaths per year—more than any other single cause. Whereas until recently this epidemic of chronic disease and premature death mainly affected the rich countries, it is now rapidly shifting to the developing world. By 2020, seven of every 10 people killed by smoking will be in low- and middle-income nations.
Why this report?
Few people now dispute that smoking is damaging human health on a global scale. However, many governments have avoided taking action to control smoking—such as higher taxes, comprehensive bans on advertising and promotion, or restrictions on smoking in public places—because of concerns that their interventions might have harmful economic consequences. For example, some policymakers fear that reduced sales of cigarettes would mean the permanent loss of thousands of jobs; that higher tobacco taxes would result in lower government revenues; and that higher prices would encourage massive levels of cigarette smuggling.
This report examines the economic questions that policymakers must address when contemplating tobacco control. It asks whether smokers know the risks and bear the costs of their consumption choices, and explores the options for governments if they decide that intervention is justified. The report assesses the expected consequences of tobacco control for health, for economies, and for individuals. It demonstrates that the economic fears that have deterred policymakers from taking action are largely unfounded. Policies that reduce the demand for tobacco, such as a decision to increase tobacco taxes, would not cause long-term job losses in the vast majority of countries. Nor would higher tobacco taxes reduce tax revenues; rather, revenues would climb in the medium term. Such policies could, in sum, bring unprecedented health benefits without harming economies.
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To read the full report on the WHO Tobacco Free Initiative website, click here.
To go to the Home Page for the WHO Tobacco Free Initiative website, click here.
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