Dr. Arvind Kumar*
Health systems are the backbone of any nation’s ability to respond to pandemics and other public health emergencies. As per WHO the health sector is essential in determining the economic performance and stability of a country. It has a positive impact on the economic performance of other sectors in the national economy, through the jobs it generates and from the purchase of goods and services. However, in many parts of the world, these systems are fragile, underfunded, and poorly equipped. When a health crisis strikes, these weaknesses are exposed, leading to catastrophic consequences not just for the affected countries but for the global economy as a whole. Low-income countries are particularly vulnerable due to their limited financial resources and infrastructure. These nations often struggle with basic healthcare provision even in normal times, and a pandemic can overwhelm their systems entirely. The economic fallout is severe: businesses close, supply chains are disrupted, and international trade slows down. For countries heavily reliant on tourism, agriculture, or remittances, a pandemic can decimate their economies, leading to widespread poverty and instability. Also, the climate crisis exacerbates health challenges, further complicating global economic resilience. World Bank says in 2024-25, economic growth is set to underperform its 2010s average in nearly 60 percent of economies, comprising over 80 percent of the global population.
As we face the prospect of new diseases emerging, are we prepared for another pandemic?
Have we learnt from the corona catastrophe the world battled?
Moreover, with pandemics not typically covered by insurance, the need for sustainable insurance practices and comprehensive social security systems has become more pressing. As the world becomes more interconnected, the risk of new diseases emerging and spreading rapidly increases. Zoonotic diseases, which jump from animals to humans, are particularly concerning. The monkeypox, Nipah virus, avian influenza, and other emerging diseases are stark reminders that COVID-19 is not an isolated event. Climate change, deforestation, and urbanization are contributing to the increased likelihood of such diseases emerging. The global community’s readiness to face these new threats remains questionable. While some progress has been made in strengthening health systems and improving disease surveillance, significant gaps remain. Many countries, particularly in the developing world, are still unprepared for a large-scale health crisis. Without a coordinated global effort to address these vulnerabilities, the world remains at risk of another pandemic that could be even more devastating than COVID-19.
Sustainable Health infrastructures
In densely populated countries like India, the challenges are magnified. High population density makes it difficult to enforce social distancing, and the sheer number of people needing care can quickly overwhelm hospitals and clinics. During the COVID-19 pandemic, India’s healthcare system was stretched to its limits, leading to a tragic loss of life and a significant economic slowdown. The interconnected nature of the global economy means that such disruptions do not remain localized; they ripple outward, affecting markets, supply chains, and economies worldwide. The corona pandemic was a wake-up call for the world. It exposed the weaknesses in global health systems and highlighted the need for better preparedness. However, the response has been uneven, and many countries remain ill-prepared for the next pandemic.
One of the critical lessons were the importance of early detection and rapid response. Countries that were able to quickly identify and contain the virus, such as South Korea and New Zealand, fared much better economically than those that were slow to act. Global cooperation is also essential; pandemics do not respect borders, and a coordinated international response is crucial for minimizing the impact. Another lesson is the importance of public trust and communication. During the pandemic, misinformation and mistrust in government institutions hampered efforts to control the virus. Building and maintaining public trust through transparent communication and effective public health messaging is crucial for future pandemic preparedness. The possibility of another lockdown is a daunting prospect, particularly given the economic and social costs associated with such measures. However, in the face of a highly contagious and deadly disease, lockdowns may be the only effective means of preventing widespread transmission. Governments also need to build public trust and communicate transparently about the reasons for and duration of lockdowns.
Need for Sustainable Insurance Practices and Social Security
One of the significant challenges exposed by the pandemic is the inadequacy of current insurance practices in covering the economic losses caused by pandemics. Traditional health insurance policies typically do not cover pandemics, leaving individuals, businesses, and entire economies vulnerable. The economic fallout from the pandemic has shown that we need more sustainable insurance practices that account for the unique risks posed by global health emergencies. Moreover, the pandemic highlighted the importance of robust social security systems, especially in countries with large informal workforces. In many poor and developing nations, workers in the informal economy were left without any safety net during lockdowns, leading to widespread economic distress. To mitigate the impact of future pandemics, it is crucial to establish social security systems that provide financial protection to all workers, regardless of their employment status. This would not only help individuals and families weather the economic storm during a pandemic but also support the broader economy by maintaining consumer spending and economic stability.
The intersection of climate change, health, and economic stability is a growing concern. Climate change is not only a threat to the environment but also to human health. Rising temperatures, changing precipitation patterns, and extreme weather events can lead to the spread of vector-borne diseases, food and water insecurity, and respiratory illnesses. These health impacts, in turn, affect economic productivity and stability. The heatwaves can reduce labor productivity, while floods and storms can destroy infrastructure and disrupt supply chains. The economic costs of these events are significant and are likely to increase as the effects of climate change become more pronounced. Furthermore, climate change can exacerbate health inequalities, disproportionately affecting poor and vulnerable populations who have the least capacity to adapt.
Way Forward
We need a holistic approach that integrates climate action with health and economic policies. Investing in sustainable infrastructure, promoting clean energy, and strengthening health systems are essential steps in building resilience to the impacts of climate change. Additionally, global cooperation is needed to address the root causes of climate change and to support vulnerable countries in adapting to its effects. The world must take urgent action to strengthen health systems, promote resilience, and ensure economic stability. Countries have to take steps like investing in healthcare infrastructure, expanding testing and vaccination capabilities, and improving disease surveillance. The intersection of health, economy, and climate change is a complex and intertwined challenge that requires a coordinated global response. By addressing these issues together, we can build a more resilient and sustainable future for all. The time to act is now, before the next pandemic or climate crisis forces us into another costly and disruptive lockdown.
*Editor, Focus Global Reporter
