In many ways, Australia handled the COVID pandemic as well as any country in the world – but what did we get very wrong?
Economically, Australia handled the COVID pandemic as well as any country in the world – and dramatically better than most. Was this inevitable? Was it luck? Was it the product of great institutions? Or the product of a few talented individuals? Conversely, Australia's public health response was decidedly more mixed. Grave failings meant we escaped the pandemic many months after we should have and were plunged into unnecessary lockdowns. Failings that led to loss of life and economic and human damage.
In Australia's Pandemic Exceptionalism, internationally acclaimed economists Steven Hamilton and Richard Holden explore the public health and economic responses to the pandemic. By analysing the many successes – and startling failures – of Australia's pandemic response Australia's Pandemic Exceptionalism provides crucial lessons for future crises.
‘In many ways, Australia handled the COVID pandemic as well as any country in the world – but what did we get very wrong?
Economically, Australia handled the COVID pandemic as well as any country in the world – and dramatically better than most. Was this inevitable? Was it luck? Was it the product of great institutions? Or the product of a few talented individuals? Conversely, Australia's public health response was decidedly more mixed. Grave failings meant we escaped the pandemic many months after we should have and were plunged into unnecessary lockdowns. Failings that led to loss of life and economic and human damage.
In Australia's Pandemic Exceptionalism, internationally acclaimed economists Steven Hamilton and Richard Holden explore the public health and economic responses to the pandemic. By analysing the many successes – and startling failures – of Australia's pandemic response Australia's Pandemic Exceptionalism provides crucial lessons for future crises.’
Yes, the pandemic was scary. In my part of Australia, the pandemic followed the catastrophic 2019/2020 bushfire season. Elderly Australian friends caught the virus on the Ruby Princess, while an elderly American friend was one of those who died. We focussed on survival, of trying to make sense of government decisions. We adapted and adjusted and now that the COVID-19 pandemic is behind us (yes, I am aware that COVID-19 itself is now part of the viral landscape) it is useful to consider how Australia handled the pandemic and what lessons can be learned for the next pandemic.
In this book, economists Steven Hamilton and Richard Holden praise Australia’s fiscal response, and criticise the government’s approach to vaccine procurement. In terms of Australia’s early response to the crisis, there can be no doubt that closing the international border, increasing intensive care hospital capacity and limiting the movement of people within Australia helped reduce the spread of the virus. But …
‘On every dimension that mattered for vaccine procurement, Australia got the cost-benefit analysis badly wrong.’
The authors argue that Australia should have tried to ensure a large supply of all possible vaccines, instead of gambling on (mainly) two. The vaccine purchasing strategy failed, and we didn’t have agreements in place to purchase the most effective vaccines until 13 May 2021. It follows that a more effective vaccine strategy would have reduced the length of time spent in lockdowns.
‘The chief fault behind our vaccine debacle was the failure to apply basic economic thinking to the problem.’
Two other points I found particularly interesting and important. Firstly, our reliance on PCR testing as the ‘gold-standard’ after Rapid Antigen Tests (RATs) became available was a missed opportunity. Why? Partly because PCR tests cost more and took longer to process. A ready supply of RATs would have enabled quicker responses to positive tests. Secondly, the characterisation of the Single Touch Payroll (STP). The 'STP is the ATO’s system requiring and facilitating every employer in the country to report salaries and wages, tax withholding, and superannuation liabilities every time they process a pay run.’
The STP was critical to the design and implementation of JobKeeper. The authors refer to STP as ‘the pandemic’s unsung hero’.
I found this book informative, and I hope that at least some of the points made are considered as lessons learned when planning for Australia’s next pandemic response.
Australia’s Pandemic Exceptionalism: How we crushed the curve but lost the race. (2025) by Richard Holden and Steven Hamilton looks at how Australia handled the COVID 19 Pandemic. Holden is a professor of economics at UNSW and Hamilton is an assistant professor at GWU. Both are Australians.
The book provides an excellent overview of Australia’s pandemic response. Broadly the authors argue that Australia did well overall with some areas for real improvement. They argue that Australia’s initial response of closing the borders and locking down was very well done. They say that Australia’s economic interventions were very good. The authors write that in procuring vaccines Australia did not do well. Nor did it do well in approving new forms of COVID tests and rolling them out.
Holden and Hamilton praise in particular the Australian Tax Office (ATO) and their Single Touch Payroll (STP) program. This enabled Australia’s Jobkeeper program to be rolled out in the pandemic. They compare this to the US systems of payments used in the pandemic and show that it worked better.
The book concludes by comparing Australia’s COVID performance with other countries. Holden and Hamilton show that Australia did very well in terms of the death toll. They also show that Australia performed very well economically.
The authors interviewed Australia’s treasurer during the pandemic Josh Frydenberg. They also spoke to former treasury secretary Ken Henry. Both have quotes throughout the book.
The book makes a number of references to how Australia handled the Global Financial Crisis (GFC). Hamilton and Holden write how that was also handled well by the Australian government. They state that the Australian state has high capacity and is capable.
Australia’s Pandemic Exceptionalism is a very good book. It’s well written and easy to read. It’s also about a really important subject. The authors make their case strongly that Australia handled COVID 19 well.
At first glance it might feel needless to turn the pages on a story we all lived, or perhaps even trauma inducing. The Covid years now feel like a distant memory with repressed words that were once our own lexicon - RATs, the curve, quarantine. But Hamilton and Holden’s work is essential reading for anyone who cares about how our country is governed and performs during the most intense of crisis.
The overwhelming message here is the pride we should all have in the strong state capacity of Australian public service administration. Yet it is not one without faults - the same government systems that can create single touch payroll can also botch the ordering of vaccines. This book dives in with a clear eyed analysis of the core public policy challenges that faced governments and assesses their success.
Economists - the authors remind us - get a tough beat in public memory for a let it rip attitude. This book proves that memory to be false. With punchy data and insights the authors make the case that Australia landed the goals of virus suppression, public heath and economic recovery through a system of intentional shut down with targeted economic support while waiting for vaccines to turn up.
The book is vital in the literature for those building the case for greater investments in our state capacity for the next wave of crisis always at our door.