Pandenomics: COVID-19 - ICN INDIA

Pandenomics: COVID-19

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By: Prof Santosh Kumar, NIDM

NEW DELHI: I had published an article almost on 24th February on the coronavirus when the number of countries reported hit by coronavirus was 29. Today, if we take the global status the number has gone up to 85 almost 200 per cent increase. It is getting doubled almost every week. As per the economist over 95000 cases and 3200 deaths have been recorded. Now it has started pinching economy globally. It has also said that global economic growth in the year 2020 will not be more than 2.9 % due to Covid 92. This week, The World Bank has made US $ 12 billion and the IMF $50 billion for Covid-19. America Congress is allocating $8.3 billion funding for fighting covid-19. Many advisories are coming from across the globe such as the closure of big gathering and avoidance of mass congregation. Travel cut, Flights are getting grounded, people are avoiding going to malls, market, restaurants, closure of workshops and seminars, closure of import/export will have a multiplier effect and it would create a serious impact on the economy. China could contain the outbreak by strict enforcement of preventive care. If the citizen has been advised to wear mask they do not have any choice but follow the direction given by the state. WHO team visited and reviewed the implementation. The top-down approach of the implementation of stringent measures taken has worked well. Iran is totally opposite in controlling or taking stringent measures as the number of affected are increasing on a daily basis.

India has a large number of poor population. Economics of prevention is not in their favour. Poorest of the poor are highly exposed and they cannot afford prevention. One that they are bound to go out every day for earning their livelihood hence voluntary confinement will not work. Secondly, suggested preventive measure N95 mask cost is INR 500-2500 in the market. Sanitizer now scarce in the market is costing more than INR 200. If we assume, average family size is 5 then the preventive cost of an individual family will be more than INR 6-8 thousand per week. Hence the probability of getting affected, in the absence of quarantine, is very high. Ministry of Health guidelines released last week also does not provide any strategy for providing a preventive financial support system to the weaker sections. So, if it breaks out it would be difficult to stop. Better etter economics is needed. Hence disaster preparedness measures should focus on them who have a high probability of getting affected. State exchequer should also be planned to be spent more on quarantining them and their surroundings as they also do not have enough money or resources. Sensex, market, trade-in India has already started crashing. Thailand, Singapore, South and North Korea have stopped the export of mask, sanitizers. China, seeing the need has doubled the production of items leading to prevention. On the other hand, India is facing shortages of each item. The needs of the service providers (doctors, nurse, health workers) are the first to be provided all these items. Govt can encourage start-ups to produce these along with the medicine under the make in India project of the Hon’ble PM.

Currently, as per the NITI AYOG Report 2019, the majority of the health expenditure is going in the hands of the private health care system which is expensive and unaffordable to the poor people. Poor people will land up in a debt trap or in poverty. 

Govt of India is taking initiative for strengthening the health system by taking a comprehensive view. Under the National Health Mission (NHM), the recent roll-out of Ayushman Bharat — with its twin components of the Health and Wellness Centres to provide comprehensive primary and preventive care at the community level; and the PM Jan Arogya Yojana (PM-JAY) with its Rupee 5 lakh health cover to the bottom 40 per cent of the population for secondary and tertiary care against 1350 odd disease conditions — has laid down a solid foundation on which good health the system can be crafted. This could be very effective in fighting both preventive as well as post corona impact on the poor. Health insurance has been taken by not more than 35% of the population.

So, we need to look at some innovative way and financial mechanism of quarantine the poor. If it is neglected or overlooked, the result could be devastating. China enforcement for contacting the pandemic worked well. Same as Singapore who could plug it. Whereas the US and Iran and other affected countries are not adequately equipped and stringent enforcement. The economist, quote China has given a new curriculum to the World that a pandemic could be prevented.

In September 2017 Mexico’s was hit by a severe earthquake killing large no of people and damaged huge property. The quake also affected the “catastrophe bond” holders issued by the World Bank almost a month before the quake. The money was paid to the government of Mexico to help to rebuild after it got established as a catastrophic earthquake. Similar attempts could also be tried in case of pandemic too. The World Bank sold $320 million worth pandemic bonds on behalf of the 77 poor countries that it serves.

The other issue of funding corona disaster response in case of prevention and its outbreak. As US Govt has activated its disaster relief funds and allocated billion as its contingent liability, Govt of India and the state government may think of activating it for the prevention. The economics of prevention will be much benefitting than waiting for the response. National Disaster Response Fund and State Disaster Response Force (now NDRMF & SDRMF) could also be activated for supporting and enforcing prevention to avoid the catastrophic situation. Hon’ble Prime Minister is himself monitoring the situation on a daily basis. Such high-level intervention is the need of the hr for building the confidence of the people in governance and also preventing the outbreak.  Prevention is better economics than responding to post-pandemic outbreak.

To conclude, I would like to underline the following points. First India’s efforts should be applauded that all precautions have been taken for contacting the spread. Secondly, it is being monitored at the highest level (PMO) on a daily basis. Thirdly, despite being complacent, India should enforce stringent measures for preventing the pandemic. fourthly, Protection of poor people should be kept on the priority as they are highly exposed to the open environment. Fifthly, avoidance or complete ban for at least one month from now of mass congregation – Temple, Mosque, Gurudwara, churches etc., workshops, seminars.  Sixthly, preference should be given for work from home or paid leave-in the affected areas. Seventh, activation of disaster response funds for preventing a pandemic. Eighth, maintaining supply chain to avoid scarcity of items helping prevention to treat manpower and citizens ninth is to making citizen aware about the voluntary confinement and quarantine and lastly, for the future, Insurance products could also be thought of as a risk transfer the mechanism for pandemic too as it is being done in the case of agriculture and earthquake etc.


Pandemics, disaster, preparedness, catastrophe, coronavirus, PMO, NDMA, NIDM, economic, slow down, poverty, china, The US, Iran, MHA

NDRF, SDRF, Funding, World Bank, ADB, Prime Minister, Poor, Govt of India, The Economist, supply chain

All views expressed in this article are personal. 

Prof.Santosh Kumar,Ph.D
Professor & Head
Governance, Policy Planning & Inclusive DRR
National Institute of Disaster Management
Ministry of Home Affairs, Govt. of India & Sr. Consulting Editor-ICN (Hony.)
Director, SAARC Disaster Management Centre,
Executive Director, (I/C) NIDM, MHA, Govt of India
Disaster Management Specialist, The World Bank
Professor & Head, Centre for Disaster Management, HCM RIPA, Jaipur
Deputy Director, Research, UP Academy of Administration, Nainital


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