25/05/2020 - S & T | Mainstorming

IAS Parliament 5 years

KEY POINTS

· The first country to have full immunity to the coronavirus will enjoy a tremendous economic and geopolitical advantage, a once-in-a-century window of opportunity till other countries catch up.

· China promised to declare the vaccine a “global public good" once it is available, hinting that China would share it with all countries. This posturing is understandable, given that Beijing is facing global criticism for having caused the pandemic.

· Being both excludable rivalrous, in economic terms, it is a private good. While universal, equitable and affordable access to one is highly desirable, it is inevitable that supply will, at least initially, be much lower than demand, and some way of allocating it will have to be found.

· India is a world leader in vaccine manufacturing, but lags in vaccine development. While it has six companies—or 30 “attempts"—in the race for a vaccine, the world’s current front runners are Chinese, US and European companies.

· Pure manufacturing partnerships are desirable, but won’t secure us. If Beijing or Washington demand that their populations be served first, New Delhi will be put in a position where it would have to decide whether to allow contract obligations to prevail or provoke a powerful foreign government.

· The implication of all this is clear: India must accelerate efforts to develop an indigenous vaccine. We should be prepared to manufacture sufficient doses for our own population and export large volumes to the rest of the world.

· Both the West and China are pouring billions of dollars into fast-tracking vaccines. India’s investment is minuscule in comparison—an Atma-nirbhar Bharat needs substantial public investment in research and development grants to both private biotech firms and government research laboratories.