Home |  Elder Rights |  Health |  Pension Watch |  Rural Aging |  Armed Conflict |  Aging Watch at the UN  

  SEARCH SUBSCRIBE  
 

Mission  |  Contact Us  |  Internships  |    

 



back

 

 

 Tobacco: Philip Morris Report Claims Benefits Of Smokers' Deaths

By: Unknown
United Nations Foundation, July 18, 2001

 

A controversial study commissioned by Philip Morris to examine the financial costs of smoking includes findings that premature smokers' deaths have economic benefits, after researchers concluded that the Czech government saved $30 million in 1999 by not having to support, house and care for smokers who perished prematurely from tobacco-related illnesses. Because of the tobacco industry, the report found that the Czech Republic was better off in 1999.

Conducted by research company Arthur D. Little International, the report found that financial benefits to the Czech government from cigarette duties, income tax for tobacco businesses and customs duty already outweigh the costs of health care, lost working days and fires triggered by cigarettes. The study also noted "indirect positive effects" of early death savings on health care, pensions and welfare, as well as on providing housing for the elderly.

Remi Calvet, director of communications for Philip Morris, said the report is a "classical economic study," although anti-tobacco campaigners charged that the report is unfounded, unethical and suggests that retired people have no societal value.

"Is it rational or ethical for a society or a government to consider the premature death of its population as preferable? We certainly don't think so," said Douglas Bettcher, coordinator of the World Health Organization's negotiations on a tobacco control treaty.

But Calvet said, "It is just another report aimed at providing data as part of the ongoing debate on tobacco revenues and taxes. We deeply regret any impression that premature death of smokers could represent a benefit for society" (Naomi Koppel, Associated Press, 17 Jul). Calvet did acknowledge, however, that the way the report is presented "could appear rather shocking" (Agence France-Presse/European Internet Network, 17 Jul).

Bettcher said it remains debatable whether cigarettes benefit the economy. A World Bank report last year concluded that it is fairly simple to quantify the economic benefits of smoking, but much more difficult to measure the costs.

Meanwhile, the Campaign for Tobacco-Free Kids in Washington said the study showed the true nature of Philip Morris. "This report is powerful evidence that the kinder, gentler Philip Morris depicted in the company's US ads is just a wolf in sheep's clothing. It's a wolf that has the gall to tell a government that the early deaths that result from their products are a good thing," said the group's president, Matthew Myers (Koppel, AP).

"I think it's pretty egregious," said Richard Daynard, chair of the Tobacco Products Liability Project. "You don't see other companies doing it ... this is not the normal way we think about the lives of citizens" (BBC Online, 17 Jul).

Earth Times reports that Philip Morris is said to produce 80% of all cigarettes sold in the Czech Republic, and adds that the tobacco giant released the report to Prague authorities in response to concerns raised by the government that the high number of smokers in the country who became sick imposed an unnecessary and unfair burden on national medical and hospital services (Michael Littlejohns, Earth Times, 17 Jul).

Patti Lynn, associate campaign director for the corporate watchdog group Infact, questioned the marketing policy of Philip Morris. "Even if it were true that smokers dying young would save money for the economy, it's a real scary logic on which to base policy," she said.

Anti-smoking organizations also are questioning the report's validity, saying that it assumes that once cigarette sales have stopped, smokers would not spend their money on other items (BBC Online).