A report by The Economist Intelligence Unit (EIU) revealed this week that Failure to quickly vaccinate the world’s population will cost the global economy $ 2.3 trillion by 2025In addition, a slow vaccination campaign will harm the poorest people the most.
The United States, the European Union and China will likely achieve widespread vaccination by the end of the year, while developing countries are lagging behind, the EIU noted. Like it shows, only 1% of the world’s poorest populations has received at least one dose of a Covid-19 vaccine, and lower-income economies likely won’t reach mass vaccination until 2023.
While poorer countries grapple with the Delta wave, advanced economies are already working on domestic booster injections.
Economically there is also an abysmal ditch, while North American and Western European countries face less damage from the delay in vaccination (no drop in GDP due to slower implementation, according to the EIU), developing economies would bear almost two thirds of the fall in GDP.
The strongest impact would be in the Asia-Pacific region, where it is expected that economic activity falls by 73% between 2022 and 2025.
For the EIU, mass vaccination faces several obstacles:
– Advanced economies are not doing what they promised. The U.S. Congress assigned $ 16 billion for the White House to ship vaccines to countries in need, but the Biden administration only spent $ 145 million to expand vaccine production.
– Rich countries are shifting their priorities to national booster injections and that shift points to “Aggravate the shortage of raw materials” and intensify bottlenecks.
– Patent laws have also blocked widespread distribution. The U.S. gave up patents for Covid vaccines in May, but it was nothing more than a symbolic act, because an actual massive effort would require technology transfer and increased production, said Brink Lindsey, vice president of the libertarian think tank. Niskanen Center.
– Countries with developing economies struggle with vaccine skepticism. On Ukraine, Vietnam and India, the population shows “high levels of distrust towards vaccines,” the EIU said.
Beyond ethics and public health, the calculations support that it is worth paying for accelerated vaccination in the world, the same as would cost approximately $ 70 billion, según un informe de Oxfam, Fight Inequality Alliance, Institute for Policy Studies y Patriotic Millionaires.
Failure to do so could spell trillions of dollars in spending for the world economy, in a span of just a few years.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.