How Putin's Russia Bungled the Pandemic

(Bloomberg Opinion) -- It’s been an uncomfortably swift rise to the top of the coronavirus tables for President Vladimir Putin. From only a handful of Covid-19 cases in early March, Russia now has more than 290,000 of them and a rate of new infections that puts it second only to the U.S. — a country with more than twice as many people.

Few governments have made a success of managing the epidemic. Yet the rapid spread of the illness has exposed a Russian health system that’s suffering from poor funding, incomplete reforms that neglected much of the country, and a misguided attempt to replace imports of drugs and medical equipment with local production — at least until two ventilators caught fire and killed patients. An authoritarian regime that dislikes bad news and fuels disinformation hasn’t helped.

History matters here. During the Soviet period, health care was free for everyone, but it was never a priority. Quality was patchy; the service was inefficient and forever short of cash. Distorted incentives resulted in a proliferation of hospital beds and excessively long stays for patients. Doctors, most of them women, were severely underpaid and seen as low-status state employees.

With oil money gushing in, Putin did set about reforming the system. A series of programs over the years set out to streamline provision, add primary-care doctors, and improve pay and training. With Russia’s shrinking population starting to worry the nationalist Putin, there was a focus on improving neonatal health and on reducing early deaths, largely by tackling cardiovascular disease, alcohol abuse and smoking.

None of that was irrational, argues Judy Twigg, a professor at Virginia Commonwealth University who studies post-Soviet health reform. Mortality rates did improve. Unfortunately, as Twigg points out, many of the reforms weren’t executed as planned. While poor-quality clinics were removed and hospital numbers halved from 2000 to 2015, an alternative wasn’t always provided, and primary care remained weak. Meanwhile, better pay starved other causes, and the purchase of new technology allowed for corruption. According to a 2018 Bloomberg analysis, Russia still has one of the world’s most inefficient health systems. Only the U.S., Azerbaijan and Bulgaria are worse.

The coronavirus crisis is a reminder of the human cost of those past blunders.

Most obviously, Russia’s first line of defense fell short. The government was quick to see the international threat and rushed to close its border with China in January, but it was far slower to appreciate the domestic infection risk. It denied an obvious problem of escalating cases for too long — not least because doctors and local authorities were wary of passing on bad news. Moscow spread disinformation about other countries’ coronavirus efforts, but it paid too little concern to the home front. Being more attentive might have contained the problem, even taking into account the early Covid-19 tests that produced too many false negatives.