-
CENTRES
Progammes & Centres
Location
The COVID-19 pandemic has mutated into a global political economy crisis, with new fault lines emerging along market shares and intellectual property regimes.
This article is part of the series — Raisina Files 2021.
The COVID-19 pandemic is undoubtedly the worst global health disaster of the twenty-first century. It has ravaged economies, destroyed livelihoods, devastated families and curtailed civil liberties in many parts of the world. But not all countries have been affected equally. Rich countries, such as the US and those in Europe, suffered a higher number of cases (see Figure 1) and casualties (see Figure 2), necessitating a larger response from the developed world in the search for a vaccine.
This is not the first global pandemic to destroy lives and nations. For instance, the Spanish flu in the early twentieth century, when medical science was not as advanced as in recent times, was far more lethal. Importantly, the Spanish flu struck during the First World War when press freedom was severely curtailed in most parts of the world, but in Spain, which was neutral during the war, the press could freely report on cases and fatalities, ultimately giving the pandemic its name. COVID-19 has not been subjected to such restrictions and therefore captured the attention of political leaders worldwide from the early stages of the outbreak. Governments responded by locking down countries and imposing other restrictions, but the only permanent solution to the pandemic was the discovery of a vaccine.
Figure 1: COVID Case Rate Per Million Population, as of 24 March 2021
Source: 2019 Novel Coronavirus COVID-19 (2019-nCoV) Data Repository by Johns Hopkins CSSE Data update for India: 2021-03-25 05:27:00 (UTC); Population is based on UN estimates for 2020.
Figure 2: COVID Death Rate Per Million Population, as of 24 March 2021
Source: 2019 Novel Coronavirus COVID-19 (2019-nCoV) Data Repository by Johns Hopkins CSSE Data update for India: 2021-03-25 05:27:00 (UTC); Population is based on UN estimates for 2020.
Typically, vaccines can take years to be developed and go through clinical trials before being released for public use. But the COVID-19 vaccine was developed and released in less than a year since the outbreak was declared a pandemic. The World Health Organisation (WHO) issued an emergency use listing (ELU) for the Pfizer–BioNTech COVID-19 vaccine on 31 December 2020 and granted ELUs to two versions of the Oxford–AstraZeneca vaccine manufactured by the Serum Institute of India (SII) and SKBio on 15 February 2021. Currently, 82 vaccine candidates are under clinical development and 182 vaccine candidates are in the pre-clinical development phase,
With the discovery of the vaccine, COVID-19 has ceased to be a global humanitarian issue and has metamorphosed into a traditional political economy problem of inequality in access between the rich and the poor countries. In several countries, this has also emerged as a problem of unequal access across regions and demographics. Globally, the number of vaccine doses administered per 100 people is 6.5 (as of 25 March 2021), but there are significant variations across countries and continents. Israel has achieved 115 doses per 100 people, while the US has administered over 35 doses per 100 people and the European Union has achieved 15 doses per 100 people. Meanwhile Asian countries have achieved a modest 4.5 doses per 100 people, mostly on the back of India and China’s significant manufacturing capacities. For most African countries, however, there is either no data available or they have yet to achieve even a single dose per 100 people (see Figure 3).
Figure 3: Vaccine Doses Per 100 Population
Source: Official data collated by Our World in Data, accessed on 25 March 2021.
The rich countries have used their economic and political muscle to corner as many vaccine doses as possible, while most poor nations rely on the COVID-19 Vaccines Global Access — or COVAX — initiative by UNICEF, GAVI (vaccine alliance) and WHO to promote equitable access to the vaccines.
There are now increasing concerns of ‘vaccine apartheid’
Several observers have made comparisons between the emerging situation and the HIV/AIDS epidemic of the 1990s.
The main threat to global cooperation on vaccination is the growing vaccine nationalism across major manufacturing nations. Vaccine nationalism typically occurs when governments sign agreements with pharmaceutical manufacturers to pre-order vaccines, blocking the availability to other countries in the process. Other ways of practicing vaccine nationalism include when governments enter tacit or explicit agreements with local manufacturers to promote and protect global market shares for their vaccines. For instance, China recently announced a new visa policy for travellers, contingent on them taking the Chinese-made Sinovac vaccine. This is likely to have widespread repercussions since the WHO is yet to approve any of the Chinese vaccines.
Wealthy countries reportedly ordered over two million doses of the vaccine even as they were in trials,
The WHO has expressed concern over vaccine nationalism and rich countries cornering massive resources at the expense of global access. Even pharmaceutical firms appear concerned by vaccine nationalism. SII chief executive officer Adar Poonawalla has said that vaccine nationalism could derail WHO efforts to deliver two billion doses to poor and middle-income countries.
Countries are restricting supply of materials needed to make more vaccines which is leading to long delays and missed timelines across global manufacturers. For instance, the Biden administration invoked the Defence Production Act to block export of raw materials, and SII has already announced that the move will lead to delays in the production of Novavax vaccines for global supply.
Vaccines are also emerging as a means to expand global influence. Russia and China got an early foothold in Eastern Europe and Latin America with their indigenously developed vaccines.
There have also been concerns regarding price discrimination practices followed by manufacturers across different markets.
More recently, the optics of vaccine nationalism has hit centre stage with several European countries suspending the use of the Oxford-AstraZeneca vaccine over concerns of patients developing blood clots. This decision will have far reaching consequences as the vaccination drive has been slow in most European countries and there is mounting domestic pressure. The WHO and drug regulators have cautioned against the hasty suspension of the vaccine citing no evidence that links it to developing blood clots,
Amid evolving global tensions over the vaccines, India has emerged as a key player. It remains the only major COVID-19 vaccine-manufacturing country to actively supply to the global community while scaling up its domestic vaccination drive, leveraging its position as a leading pharmaceutical and vaccine manufacturing country. According to a submission to the Rajya Sabha by Ashwini Kumar Choubey, the minister of state for health, on 16 March, India had supplied nearly 60 million doses to over 71 countries, including neighbouring nations. By July 2021, India plans to vaccinate 300 million people across the country, and has rapidly scaled its vaccination drive since it began in January (see Figure 4). India has also benefited from local administrative capabilities that have developed through the experience of previous vaccination drives, such as those for polio and smallpox.
Figure 4: Total Vaccinations in India (as of 25 March 2021)
Source: Official data collated by Our World in Data, accessed on 25 March 2021.
India is currently mass producing two COVID-19 vaccines — Covaxin, indigenously developed by Bharat Biotech in collaboration with the Indian Council of Medical Research and National Institute of Virology; and Covishield, as the Oxford-AstraZeneca vaccine manufactured by SII is known locally. Covishield, one of only two vaccines approved for ELU by the WHO, is among the most widely administered COVID-19 vaccines globally.
India is not only supplying vaccines to other countries but is also participating in several initiatives to share clinical research and knowhow regarding mass vaccinations; the government is holding a series of training camps for partner countries like Bangladesh, Brazil, Bhutan, Myanmar, Oman and Nepal.
Amid escalating vaccine nationalism, is there any hope for global cooperation? The COVID-19 pandemic has mutated into a global political economy crisis, with new fault lines emerging along market shares and intellectual property regimes. Although the scientific knowhow and technology solutions have been developed in time through collaboration between governments and business entities across countries, the new constraints to the equitable access of vaccines arises from trade protectionism and limits to technology sharing due to existing intellectual property regimes. The uncertainty of the virus is being overshadowed by the growing uncertainty from vaccine nationalism. The challenge now is to expand vaccine production capacity and improve market access, which cannot be left to voluntary cooperation alone and must be resolved through global leadership to urgently transcend existing fractures. Global cooperation needs compulsory and explicit action. India has shown the way by becoming a major global vaccine supplier while simultaneously scaling up its domestic vaccination drive. Will wealthier nations follow this example?
Center for Systems Science and Engineering, Novel Coronavirus COVIP-19 (2019-nCOV) Data Repository, Johns Hopkins University, 2019.
The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.
Dr. Shamika Ravi is currently a member of the Economic Advisory Council to the Prime Minister, and Secretary to Government of India. Previously, Dr. Ravi ...
Read More +