The joint statement is based on a recent analysis by the International Monetary Fund

COVID-19: New $50 billion initiative to end the pandemic and ensure global recovery

photo_camera UNICEF/Nahom Tesfaye - A doctor receiving the COVID-19 vaccine at the Eka Kotebe Hospital in Ethiopia

The heads of the International Monetary Fund (IMF), the World Bank, the World Health Organization (WHO) and the World Trade Organization (WTO) called for a $50 billion investment from the donor community that would generate $9 trillion in global economic benefits by 2025 and boost health commodity manufacturing and supply capacity.

The joint statement builds on recent analysis by the International Monetary Fund that this amount is needed for new investments in health supplies to increase their manufacturing capacity, supply, commercial circuits and delivery, accelerating the equitable distribution of diagnostics, oxygen, treatments, medical supplies and vaccines.

The financial injection is also intended to provide a major boost to global growth, the agencies said in a statement published in newspapers in many countries.

The quartet of leaders said governments must act without further delay or risk continued surges and sudden outbreaks of COVID-19, as well as other more transmissible and deadly variants of the virus, undermining global recovery.

"It is estimated that $50 billion will more quickly end the pandemic in developing countries, reduce infections and loss of life, accelerate economic recovery and generate an additional $9 trillion in global output by 2025," said the initiative's members.

The proposal is in line with economic analyses by the International Chamber of Commerce and the Eurasia Group, which argue for a relatively modest investment by governments compared to the trillions spent on national stimulus plans and the trillions lost in economic output. The essential element of the project is that it encourages global vaccination and bridges the inequality gap.

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Achieve 60% vaccination coverage by mid-2022

The heads of the four agencies stressed that there is a need to raise aspirations and vaccinate more people more quickly. "WHO and its COVAX partners have set a target of vaccinating approximately 30% of the population in all countries by the end of 2021"; however, they indicated that "this target can even reach 40% through other agreements and increased investment, and at least 60% by the first half of 2022".

They urged governments to seize investment opportunities to boost the supply of vaccines, oxygen tanks, tests and treatments.

The joint statement coincides with the close of the World Health Assembly yesterday, and the start of a series of G7 meetings, starting with a meeting of finance ministers later this week, and followed by a World Health Summit co-hosted by the European Union and Italy, which chairs the G20.

"To achieve the urgent supply of more vaccines, immediate donation, coordination with national plans for distribution of doses to developing countries, including through COVAX, is needed," the senior officials said. "Cooperation on trade issues is also needed to ensure free cross-border flows and increased supplies of raw materials and finished vaccines.

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The world needs between 10 and 15 billion vaccines

During the press conference following the launch, the IMF managing director stressed the need to intensify "multifaceted and coordinated action" to fight the pandemic in parts of the world that are lagging behind, particularly due to the unequal distribution of vaccines between richer and poorer countries.

Kristalina Georgieva then posed the question: why is the IMF concerned about vaccines?

"We are very concerned that an increasingly two-speed pandemic is causing a two-speed recovery with negative consequences for everyone," said Georgieva, adding that "our data show that, in the short term, vaccinating the world is the most effective way to strengthen global production. In other words, vaccine policy is economic policy".

For her part, World Trade Organisation Director-General Dr Ngozi Okonjo-Iweala warned of vaccine manufacturing capacity constraints.

"The world normally has the capacity to manufacture about 5 billion doses of vaccines, but now we need between 10 and 15 billion doses, depending on whether we need booster doses," she said.

Okonjo-Iweala noted that there has been under-investment in manufacturing capacity and that she is currently working with manufacturers, the World Health Organisation and the Vaccine Alliance, Gavi, among others, to try to rectify this situation.

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Latina Mortality rate remains very high in Latin America

With regard to the evolution of the coronavirus in Latin America, Dr Mike Ryan, Director of Emergencies at the World Health Organisation, explained that the situation in Latin America continues to be of great concern.

"Eight of the ten countries with the highest mortality rates per population in the last week are in the Americas region, particularly in South America," he warned.

He warned of an increase in mortality in some countries, particularly in Paraguay and Bolivia where an increase of more than 20 per cent was recorded in the last week.

"When you look at mortality rates in South America, they are generally higher than in many parts of the rest of the world, ranging from 3-5%, and again this may reflect the severity of the disease, but it also reflects the access to adequate healthcare and the pressure that the system has been under in many South American countries for a long time, despite the magnificent efforts of health workers and health systems to achieve this," he reflected.

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WHO approves new coronavirus vaccine, CoronaVac

Separately, WHO today approved the emergency use of the COVID-19 vaccine, CoronaVac, produced by Beijing-based pharmaceutical company Sinovac.

"The world desperately needs multiple COVID-19 vaccines to address the huge inequity in access across the globe," said Dr Mariângela Simão, WHO Assistant Director-General for Access to Health Products.

"We urge manufacturers to participate in the COVAX mechanism, to share their knowledge and data, and to contribute to controlling the pandemic," she added.

The WHO Emergency Use List is a prerequisite for COVAX Mechanism vaccine supply and international procurement. It also allows countries to fast-track their own regulatory approval to import and administer COVID-19 vaccines.

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