The Role of Pre-Pandemic Investments in the Health Sector, Additional Fiscal Measures and Anti-Epidemic Policies in the Suppression of COVID-19: The Case of 15 Developed Countries

Abstract

The paper seeks to identify the causes of the significant differences in the efficiency of the response to the COVID-19 pandemic between 15 developed countries. Geographic location, pre-pandemic investment in healthcare system capacity for preventing and managing the epidemic suppression process, and additional fiscal spending (which, in addition to public health investment, includes support measures for the economy) did not significantly affect the coronavirus mortality rate. In order to obtain a more accurate answer regarding the link between additional fiscal spending and the coronavirus mortality rate, we have specifically analyzed the role of the vaccination rate in the entire population because vaccine production is significantly funded through additional fiscal spending, while vaccine distribution is entirely funded through additional fiscal spending. We conclude that the overall vaccination rate has a significant impact on the COVID-19 mortality rate, i.e. that there is a negative correlation between the two. Moreover, countries that responded efficiently to the pandemic timely implemented anti-epidemic measures following the recommendations of the World Health Organization; they were characterized by a high level of public confidence in government measures and had clear and transparent communication with their citizens. With regard to economic activity, we also definitely conclude that countries with a below average mortality rate, which timely implemented strict anti-epidemic measures following WHO recommendations and had clear and transparent communication with their citizens, experienced without exception a milder decline in GDP in 2020 than average, which suggests that the best way to preserve economic activity is to preserve human lives. Regarding the relationship between additional fiscal spending and unemployment trends, we conclude that most countries with a below average mortality rate had additional fiscal spending below average and a minority of countries above average, but also that all countries, with the exception of Australia, had a below average rise in the unemployment rate.