New Books in Economics Susan Erikson, "Investable! When Pandemic Risk Meets Speculative Finance" (MIT Press, 2025)
Sep 20, 2025
Susan Erikson, a medical anthropologist and expert in health political economy, dives into her book, exploring the unsettling world of pandemic bonds. She reveals how international bankers turn health crises into lucrative investments, often prioritizing profit over public good. Erikson uncovers the design flaws and troubling triggers of these bonds that hinder timely responses to outbreaks. With insights gained from extensive global research, she extends her critique toward future financial risks, including environmental factors and AI modeling.
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Financializing Global Health Has Deep Roots
- Susan Erikson argues pandemic bonds exemplify decades-long financialization of global health.
- She found the bonds prioritized investor incentives over building healthcare systems needed for pandemics.
Models Were Built To Protect Investors
- The pandemic bonds had strict triggers that focused on investor loss probabilities rather than timely public health needs.
- Modeling choices privileged investor protection, shaping when and whether funds would be released.
Jim Yong Kim Drove The Bond's Creation
- Susan Erikson recounts Jim Yong Kim's central role in turning the idea into an institutional product at the World Bank.
- She notes many insiders believed the bonds would not have existed without his presidency.
