Road traffic accidents represent a major public health and economic challenge in developing countries, where rapid motorization is often not matched by improvements in infrastructure, enforcement, and healthcare systems. This study examines the economic costs associated with road accidents, including direct costs such as medical treatment, emergency services, and property damage, as well as indirect costs such as lost productivity, disability, and premature mortality. Using available national and international data, the analysis highlights that road accidents can account for a significant percentage of Gross Domestic Product (GDP), placing a substantial burden on already constrained economies.

The study also explores methodological approaches to costing, including the human capital approach and willingness-to-pay methods, and discusses their applicability in low- and middle-income contexts. Key findings indicate that underreporting of accidents and limited data availability often lead to underestimation of true costs. Furthermore, vulnerable road users—such as pedestrians, cyclists, and motorcyclists—bear a disproportionate share of the burden.

The paper concludes by emphasizing the need for improved data systems, stronger road safety policies, and targeted interventions to reduce both the human and economic impacts of road traffic accidents in developing countries. Investing in prevention strategies is shown to be not only socially beneficial but also economically cost-effective.

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