Thursday, June 18, 2020

Covid-19 Ruminations


Although the pandemic is not over yet, it is not too early to draw some conclusions.

Preparation
It became apparent very soon that most countries, including the richest, were not prepared for a pandemic.  France had no stocks of PPEs.  Worse, it had disposed of old stocks from the 2010 H1N1 infection and never replaced them.  The US, both at the federal and states level, didn’t fare any better, neither did the UK, Italy or Spain.  Germany, on the other hand, had a plan from 2012 and implemented it with the results we know.

Response
It is ironic that the effectiveness of the governments’ response was often inversely proportional to their economic, financial and medical capabilities.  The richest countries did worse than the poorer ones.  The following table summarizes the mortality rates as measured against the patient and total populations[1].

Country
Cases
Deaths
Death/Cases
Deaths/100k pop
USA
2,137,731
116,963
5.5%
35.8
UK
299,600
42,054
14%
63.2
France
194,347
29,550
15.2%
44.1
Germany
188,252
8,820
4.7%
10.6
S. Korea
12,198
279
2.3%
0.5
Morocco
8,931
212
2.4%
0.6
Senegal
5,247
70
1.3%
0.4
Greece
3,148
185
5.9%
1.7
Taiwan
445
7
1.6%
0.03
Vietnam
335
0
0%
0

Western countries argued that, as democracies, they couldn’t enforce the kind of measures that autocratic regimes did.  China and Vietnam reacted more forcefully than the US or the UK could have, that is true; however, China’s response was also tardy and as a result excessive; both China’s[2] and Russia’s preliminary reports don’t seem to jive with their latest results; on the other hand, such democracies as Germany, South Korea and Taiwan did very well. 

More galling, why did Greece and Senegal incur far less casualties than Italy and the US?  More generally, why did emerging countries do better than highly developed ones?

Extenuating circumstances?
We have some.  Vietnam, Korea, Taiwan, Japan live in a tough neighborhood, one from which many pandemics have originated; thus, they tend to take such threats more seriously, gear up faster, and follow sanitary directives such as wearing masks better.

In the US, we have a population which is shockingly unhealthy; 46% of adults suffer from high blood pressure and only half of them take treatment for it, 40% are obese, 13% have diabetes.  This probably goes a long way to explain why our mortality rate was so high.

Emerging countries have younger populations; these are often exposed to more infectious threats which help them develop better immune responses (although at a cost).  Finally, one shouldn’t discard the argument that richer countries probably count their infection cases more comprehensively and therefore show truer but worse results.

Attributes that the winners share
Quick and strong response: for varying reasons, the winners launched quick and forceful action plans.  Such quickness was sometimes due to a familiarity with the kind of damage Cover-19 could bring (in “tough neighborhood” countries) or the imperative to stop the virus very early (in poor countries where their sparse hospital infrastructures wouldn’t cope with a massive influx of patients).

Testing: those that built a large and early testing capacity secured for themselves more and better policy options; in particular, they could isolate the patients and treat them.  This contrasted with those that couldn’t identity asymptomatic patients or let the infection expand so widely that severe and massive lockdowns became unavoidable.  Such lockdowns extracted very high human (think of uncontrolled confinement in retirement homes) and economic costs.

Flexibility: such flexibility was displayed in enrolling a broad range of actors to fight the infection, in resisting excessive centralization of decision, minimizing slow bureaucratic responses, and in considering a variety of treatments.

Bootstrapping: either at the clinical unit, regional or state level, the winners did not wait for solutions to be handed down but actively and creatively sought ways to secure what they needed.  Thus, the Marseilles IHU found early that veterinary laboratories had the kind of reagents that they needed to make covid-19 test kits; Senegal adapted its dengue fever test kits to the same end and not only produced enough kits for their own use but also for export.

Looking forward
This Covid-19 pandemic turned into a brutal and revealing stress test.  Here, in the US and New York, we barely passed.  Adjusted for all the assets that we enjoy, we failed; the American people saw that, and the world did too.  For our own sake, we cannot accept such a failure and do nothing.  There is a domestic and international cost for public failure; unless we learn from it, it will be high.  We have a lot of work to do:

Healthcare: it is evident that our health insurance system does not work well enough.  Healthcare insurance must be available to all.  Too many people are not screened and treated for widespread morbidities.  Some, like obesity and heart disease can be treated at only a moderate to low cost.  But it is even more evident that better lifestyle strategies are needed.  Healthier and more widespread food programs in schools, national dietary education are needed; incentives to be healthier, such as steeper premiums for smokers or couch potatoes do work (see Singapore) and should be considered.

Capacity vs. Efficiency: some decades ago, Chile had a very effective electricity dispatch system that guaranteed that the cheapest electricity would be dispatched first; most of it was generated by hydroelectric plants.  When snowfalls in the Andes hit a rare but pronounced low[3], the country got into big trouble.  Their system incentivized generators to be very efficient but deterred them from building adequate excess capacity for the bad days.  Eventually, the system was changed, and generators were also paid for providing sufficient standby capacity.  We just faced similar problems in healthcare; hospitals, states and the federal governments need to build and maintain capacity and strategic stocks.  In a $20 trillion economy, there is no excuse not to.

A new spirit: this crisis has shown that people could show extraordinary courage and dedication.  It also highlighted that we had lost some of the spirit which made this country great.  We went through months waiting for test kits while Senegal found a way to solve the same problem quickly; that is hard to swallow.  The federal government couldn’t come up with a timely and effective strategy, waffling on the advisability of activating the War Powers Act or wearing masks or other protection.  State themselves performed very unevenly, with Washington and California near the top and New York at the bottom.

Efficiency, excellence, as presently defined and encouraged, provide a razor thin path to outperformance as measured monthly or quarterly.  Just-in-time supply chains, “optimum” corporate capital structures, but also litigiousness and diminishing accountability have steered the US into dangerous waters

We have been drifting away, and for a long time, from JFK’s appeal, that we “ask not what the country can do for you, ask what you can do for the country”. 

There is a cost to pay for greater solidarity, greater focus on the essentials of life, stronger structures, better safeguards; but the cost is even greater to look the other way, as Covid-19 showed all of us.




[1]  As of June 16, 2020.
[2]  In Wuhan.
[3]  This rare blow from nature was compounded by Argentina having reneged earlier on gas exports due to distortions that its policies had created in both its own demand and supply.