The emergence of new contagious diseases such as HIV and AIDS around the world has made a substantial impact on the development of the Third World countries. South Africa represents one of those countries. This region accounted for 30% of all HIV cases. In this country, which only has 2% of the world population, this epidemic has significantly impacted social-economic development process and has altered the future of this nation. Moreover in South Africa there is still lack of academic consensus on how this pandemic spread and how it should be treated. Therefore there are also significant political differences in the development of this pandemic that will determine political policies adopted by the government in order to soften severity of potential consequences from these pandemics. The debate on how this pandemic should be approached between social oriented policy makers and technocratic policy makers is continuing. Therefore projections affecting social-economic development of the country are constantly changing.
Furthermore is important to note that social and economic consequences are inter related and effect each other, they do not develop separately. Nevertheless expected economic consequences from HIV and AIDS pandemic include: sustained high unemployment, decreased economic growth rates, lower savings and poverty. Social consequences from HIV and AIDS pandemic include: development of orphan hood, decline of the educational system and skewed demographic development. .
Also there are new emerging global economic challenges such as increasing energy and food prices that undermine economic development of countries around the world, including South Africa. Increasing food and energy prices could potentially intensify negative social, economic and political consequences that have resulted because of AIDS and HIV pandemics. Therefore global economic development also alters negative projections from this pandemic.