Behavioral Economics Economics of Pandemics Global Crises Globalization Health Economics Health risks

Risk-Sharing and the Corona Pandemic

How can risk-sharing help resolve the Corona Pandemic? Corona Pandemic is a global health risk that all economies face together. However, the more each country seeks to solve the COVID19 crisis independently, the more all countries seem to lose control of the situation at society’s global, national, and local levels.

The Corona Pandemic is a Global Health Shock

The Corona Pandemic is a global health shock with a globally differentiated local impact that hit every corner of this earth. We can describe the impact of COVID-19 as an asymmetric shock on households, firms, and sectors within and across the world. That means that the impact of the pandemic will hit economic agents in a differentiated manner. Those capable of socially distancing have access to more resources than those who can adequately social distance. Therefore, the battle is on two fronts; solving poverty and increasing health security globally via risk-sharing networks.

Perception, Belief, Self-interest and Risk Behavior

Forces such as perception, belief, self-interest, and behavior towards risks influence how we cope with the Corona Pandemic. Several generations have seen it spread worldwide since January 2020, apart from the anti-corona movements. Some have paid the bitter price of mortality or survived with long-COVID as a side-effect of COVID19. Others will randomly and luckily say that COVID19 has not infected them. Probably they never even noticed whether they had the disease and recovered from it. Such diverging experiences amplified by political opportunism have resulted in global selfishness in the name of self-interest. We have ignored norms such as altruism and reciprocity, which would help us mitigate risk through risk-sharing during the Corona Pandemic.

On the one hand, most of the world population perceives the economic and health risks associated with COVID19. On the other hand, a minority of the world population, including prominent leaders, even doubts the existence of the Coronavirus. From the least developed to the most developed nation in this world, no country can claim that it never felt the pinch of the health crisis. Amid such chaotic controversies, one question remains unanswered. How should the world deal with a global health shock? We should learn to coordinate and minimize risk through risk-sharing behavior during the Corona Pandemic in a globalized world.

Risk-Sharing and the Ebola Pandemics in Africa

Ebola Pandemics have been grazing in Africa for decades but the affected countries and the global community resolved in Africa. Between February 2021 and June 2021, the Republic of Guinea managed an Ebola Outbreak with the help of the WHO. How did Guniea manage two Pandemics at the same time? Scholars estimate the case mortality rate of Ebola between 40

Guinea and other affected countries undertook measures to eradicate Ebola. Coordination between the WHO and other international stakeholders seems to have successfully reduced the risk of Ebola. Why are countries hesitant about coordinating the eradication of COVID19?

COVID-19 Vaccine Distribution

The distribution of COVID19 vaccines is a global game of self-interested nations competing to win a globally spread virus with a national strategy. Consequently, the losers of this game are the least developed countries. The developed world has denied Africa adequate access to COVID19 vaccines. The Fact is that about 53.