Page 101 - GHES-3-3

Global Health Economics and
Sustainability
Pandemic effects on economy and public health management

human history into three distinct phases, each exhibiting increase for individuals and governments during
distinctive mortality and fertility patterns. The first phase pandemics. Indirect expenses such as caring-related
was characterized by widespread famine and devastating obligations and loss of pay resulting from prolonged illness
plagues, the occurrence of pandemics decreased in the must particularly affect working individuals in their prime.
second phase, and the third and current phase is marked Any ailment that causes premature mortality or irreversible
by the predominance of degenerative diseases (Omran, incapacitation inevitably inflicts financial repercussions
1971). We have previously experienced the fury of diseases, on concerned households. The magnitude of such effects
as manifested through four influenza pandemics in the last escalates significantly during pandemics. Lockdowns
200 years: the Spanish flu of 1918 (Gavrilova & Gavrilov, and closures induce mass panic, disrupt social life, and
2020), the Asian flu of 1957 (Agrawal et al., 2021), the Hong impact the efficiency of manufacturing industries. Migrant
Kong flu of 1968 (Au et al., 2022), and the swine flu of laborers are frequently subjected to social exclusion and
2009 (Carvalho et al., 2020). The 1918 influenza pandemic discrimination during pandemics. Historical and present
significantly affected almost 500 million people across the accounts mention instances of dramatic reverse migrations
globe. It resulted in the unfortunate loss of 50 million lives, caused by pandemics. An estimated 380,000 individuals
which accounted for approximately 2.1% of the world’s are said to have evacuated Bombay, a city with 850,000
population at that time. This impact became more evident residents, during the pandemic of 1896 (Arnold, 2020).
due to the combined effects of the First World War. The 1957 The closure of educational institutions and nonessential
pandemic in India caused approximately 4.5 million cases companies significantly detrimentally impacts the
of illness and more than 1,000 deaths (Viboud et al., 2016). economic conditions of families and governments. A fall
The global population suffered significant losses in production could cause inflation to increase while
during the period spanning from the early 18 to the early decreasing demand would result in partial price reductions.
th
19 centuries, due to outbreaks of cholera and plague, in The purchasing power of a substantial portion of the
th
addition to influenza. The task of tracing the origins of our population would decline due to diminished employment
current understanding of pandemics is challenging because opportunities and business prospects. The 1918 influenza
it predates the scientific elucidation of microbes, germ pandemic resulted in a 0.8% decline in the gross domestic
theory, and diagnostics. Further, the recording of crucial product (GDP) of the United States, equaling around
information such as deaths and why they occurred was US$330 billion. In contrast, the impact on several poor
not as meticulous or efficiently organized several thousand countries was considerably more pronounced: their GDP
years ago as now. These factors impede our understanding decreased by up to 50%. The populous city of Bombay
of the behaviors of past pandemics. However, most medical experienced a significant economic downturn during the
records document the occurrence of the three bubonic 1896 pandemic: the incurred loss amounted to around
plague pandemics. The Mediterranean states, Africa, and 12.6% of the worldwide GDP.
Europe were severely affected in the fifth century by the According to economists, the 1918 influenza pandemic
Justinian Plague. The concept of pandemics transformed wielded a greater impact on GDP than the First World War
in modernity due to scientific progress and the increasing and equivalently influenced climate change (Barro & Ursía,
interconnectedness of the world, and India functioned 2008; Fan et al., 2018). The enduring economic impact of
pivotally in this evolution. India endured significant the epidemic remained evident for 20 – 40 years, even in
hardships during the British Raj: For instance, frequent highly industrialized nations such as France, Germany,
occurrences and widespread outbreaks of cholera t resulted Italy, and the United Kingdom (Jordà et al., 2021).
in the loss of 2 million people in 1896. In addition, India However, certain sectors attained financial gains
accounted for almost 90% of the global fatalities during the resulting from the most recent pandemic. The recent
black plague (Kumar, 2022).
COVID-19 pandemic financially boosted certain
2. Effects of pandemics on the worldwide businesses, for instance, computer hardware and software
economy companies, large-scale grocery delivery services such
as Amazon, and cottage industries as well as large-scale
Pandemics exert far-reaching spatial and temporal manufacturers of pharmaceutical products. Ayurveda is
effects encompassing social, political, and economic currently undergoing a revival in India. Reports about
consequences. Unlike conflicts, the effects of pandemics earlier pandemics also indicate that the 1918 influenza
often persist for long periods. The identifiable data on pandemic resulted in a scarcity of labor, thereby causing
the effects of previous pandemics exist only in the form an increase in salaries in comparison to before and after
of approximations. Presumably, the costs of healthcare pandemic.

Volume 3 Issue 3 (2025) 93 https://doi.org/10.36922/ghes.4531