Wednesday, October 28, 2020

COVID-19 vaccine nationalism could cost world up to $1.2 trillion: New RAND Europe study


https://www.eurekalert.org/pub_releases/2020-10/rc-cvn102720.php

 

News Release 28-Oct-2020
Study shows global access to COVID-19 vaccines is best for world's health and wealth
RAND Corporation

 

Nationalistic behaviour by governments may exclude some countries from gaining access to COVID-19 vaccines and cost the global economy up to $1.2 trillion a year in GDP, according to a new study from the not-for-profit research organisation RAND Europe.

If countries demonstrate 'vaccine nationalism' - prioritising their own citizens and insisting on first access to vaccines by signing deals directly with pharmaceutical companies and hoarding supplies - this could mean that, by initially immunising only their own populations, they incur economic penalties for themselves as well as the wider global population.

The study's macroeconomic analysis shows that, as long as the virus is not under control in all regions of the world, there will continue to be a global cost associated with COVID-19 and its prolonged negative impact on certain economic sectors.

Even if only the lowest-income countries were denied equal access to a vaccine and all other countries managed to immunise their populations against the virus, it could still cost the global economy $153 billion a year in GDP terms. The US would lose $16 billion a year, the EU $40 billion a year, the UK $5 billion a year, China $14 billion a year, and other high-income countries collectively $39 billion a year.

The study also notes that there are economic incentives to providing global access to vaccines. Based on previous estimates, it would cost $25 billion to supply lower-income countries with vaccines. The US, UK, EU and other high-income countries combined could lose about $119 billion a year if the poorest countries are denied a supply. If these high-income countries paid for the supply of vaccines, there could be a benefit-to-cost ratio of 4.8 to 1. For every $1 spent, high-income countries would get back about $4.8.


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