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Economic Analysis of SARS in China Introduction: The SARS virus, a new strain of the coronavirus group, is believed to have leapt from animals to humans in China's far southern Guangdong province, a hot, humid place where huge numbers of people and animals live cheek-by-snout. Most of the world's influenza viruses are believed to have originated there. The economic costs of SARS in China are growing by billions of dollars, threatening to shake the government of the world's most populous nation if it can't contain the epidemic quickly. Already an estimated $ 30 billion has been shaved off the economies of countries affected by SARS because of stalled tourism, less consumer spending and disruption in trade and investment, according to the World Health Organization. China, the epicenter of the epidemic, is likely to bear the brunt of its global impact. One should also remember that SARS already has cost several Communist Party officials their jobs and has created a crisis of confidence for China's recently installed new generation of leaders, who are under mounting domestic and international pressure to contain the epidemic.
Their initial cover-up of the disease's spread has made many Chinese distrust official information on the disease (web 0, 10627, 932308, 00. html). SARS was first detected in southern China in November 2002. Five months later on 28 April 2003, after spreading to 28 countries, the World Health Organization (WHO) announced its containment in Vietnam, and the encouraging news that the outbreak may have peaked in the high risk areas of Toronto, Hong Kong and Singapore (web BNPFeaturesItem/ 0, 3483, 98965, 00.
html). I believe that the SARS crisis of confidence could quickly evolve into a c
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