Poor health leads to significant costs to business, as sick workers are often absent or operate at lower levels of efficiency. In addition to health, this pillar takes into account the quantity and quality of the basic education received by the population. Basic education increases the efficiency of each worker. The impact of HIV/AIDS on competitiveness depends not only on the incidence but also on how costly it is for businesses. In order to estimate the impact, we combine its incidence rate with the survey question on its perceived cost to businesses. To combine these data we first take the ratio of each country’s disease incidence rate relative to the highest incidence rate in the whole sample. The inverse of this ratio is then multiplied by each country’s score on the related survey question. This product is then normalized to a 1 to 7 scale. Note that countries with zero reported incidence receive a 7, regardless of their scores on the related question.

    Source: World Economic Forum