Alcohol policy catalyzes sustainable development
The alcohol policy best buys are cost-effective, high-impact and evidence-based population-level solutions to the heavy burden of alcohol harm. Alcohol taxation, availability regulations and alcohol advertising bans are formidable catalysts for the SDGs.
According to the World Health Organization (WHO) and the United Nations Development Program (UNDP), action is needed to reduce the burden of alcohol-related harm in low-, middle- and high-income countries. Alcohol control essential for development.
The alcohol policy best buys are significant catalysts for the SDGs.
Implementation of the three alcohol policy best buys would result in a return on investment of $8 for every $1 invested.
However, recent modelling forecasts that global targets to alcohol use and related harm will not be met. For example, in Africa, 32% of the adult population currently consumes alcohol. Without action, Africa is facing an increasing in both the absolute number as well as in the proportion of people using alcohol, the per capita amount of alcohol consumed and in heavy episodic alcohol use.
South-East Asia is already affected by such a trend, with a 29% increase of alcohol consumption since 2010.
Alcohol taxation is pro-poor, pro social inclusion, and pro equality
Raising taxes on alcohol to 40% of the retail price could have [a big] impact. Estimates for 12 low-income countries show that [alcohol] consumption levels would fall by more than 10%, while tax revenues would more than triple to a level amounting to 38% of total health spending in those countries. Even if only a portion of the proceeds were allocated to health, access to services would be greatly enhanced.”
World Health Report 2010 (WHO)
A disproportionate share of the health and economic costs of alcohol falls on poorer households. But they are more responsive to increased prices than richer households. Therefore, alcohol taxes disproportionately benefit the poor through reducing alcohol use and related harm, such as having fewer sick days, longer and more productive working lives, and spending less on health care.
Increased resources from alcohol taxes can be invested in programs that favor the poor, in this way further strengthening the benefits.
- Increasing alcohol taxes will avert 9 (20% increase) to 22 (50% increase) million premature deaths over a 50 year period.
- Over 50 years, a tax that increases alcohol prices by 20% over current levels could generate almost US$9 trillion in additional revenues; for a 50% increase, the gain could be almost US$17 trillion in additional revenues.
Alcohol taxation: Key tool to tackle alcohol as obstacle to the SDGs
Employing evidence-based alcohol taxation reaps significant benefits across 10 of 17 SDGs. There is strong evidence that raising alcohol taxes is an effective strategy for reducing alcohol consumption and related harms.
Alcohol taxation is a triple win measure:
- It reduces the burden of alcohol as obstacle to health and development for all.
- It helps raise domestic resources.
- It promotes social justice and health equity.
Countries like Kenya, India and South Africa illustrate the massive obstacle alcohol poses to reaching the SDGs. The costs of the alcohol burden are massive.
Countries like Thailand, Philippines and Lithuania show how alcohol taxation can be used in an evidence-based, cost-effective way to achieve key SDG targets.
Report: Alcohol Taxation – A Win-Win Measure For Financing Development
A landmark report by Movendi International and the East African Alcohol Policy Alliance (EAAPA) details the benefits of alcohol taxation for development.
With state-of-the-art science this report examines the effects of alcohol taxes, and outlines the mechanisms of alcohol taxation and its consequences for fiscal space, health promotion and sustainable development.
In a novel approach, the report highlights how alcohol taxation, if employed in an evidence-based manner, reaps benefits for a number of Sustainable Development Goals and what the potential of for helping finance development.
The report finds that 10 out of the 17 new Sustainable Development Goals – such as eradication of poverty and hunger, gender equality, good health and well being, quality education, or economic growth – are positively impacted by alcohol taxation measures.
The report concludes: Alcohol taxation is a win-win measure for increasing fiscal space, boosting health promotion and financing sustainable development.