Heads of the International Monetary Fund (IMF), World Bank Group (WB), World Health Organization (WHO) and the World Trade Organization (WTO) have issue an extraordinary call urging government leaders to urgently finance a new US$50 billion roadmap to accelerate end to the COVID-19 pandemic.
This roadmap will help accelerate the equitable distribution of health tools to end the pandemic and also set the foundations for a global recovery, as well as enhanced health security.
Moreover, the joint statement cautioned that governments must act without further delay or risk continued waves and explosive outbreaks of COVID-19. Failure to act swiftly also increase the chances for more transmissible and deadly virus variants undermining the global recovery.
“By now it has become abundantly clear there will be no broad-based recovery without an end to the health crisis. Access to vaccination is key to both”.
Recent IMF Staff Analysis
Meanwhile, the statement draws on a recent IMF staff analysis, which stated that US$50 billion in new investment is needed to increase manufacturing capacity and trade flows. According to the IMF, this would accelerate the equitable distribution of diagnostics, oxygen, treatments, medical supplies and vaccines. This injection would also give a major boost to economic growth around the world.
“At an estimated US$50 billion, it will bring the pandemic to an end faster in the developing world; generate some US$9 trillion in additional global output by 2025”.
According to the joint leadership, this will also help “reduce infections and loss of lives” and “accelerate the economic recovery”.
At least 30% vaccination target in 2021
Moreover, the call echoes economic analysis by the International Chamber of Commerce and the Eurasia Group. The duo makes the case for a relatively modest investment by governments in comparison to the trillions spent on national stimulus plans. This investment will also compensate for the lost trillions in foregone economic output.
But the critical element of this is that it effectively spurs global vaccination and bridges the equity gap.
“WHO and its COVAX partners have set a goal of vaccinating approximately 30% of the population in all countries by the end of 2021. But this can reach even 40% through other agreements and surge investment; at least 60 percent by the first half of 2022”.
Need to act on the investment opportunity
Furthermore, the leaders advised Governments to act on the investment opportunity to boost supplies of vaccines, oxygen, tests and treatment. The IMF, WBG, WHO and WTO leaders issued their joint statement as the World Health Assembly drew to a conclusion. Meanwhile, a round of G7 meetings will start, beginning with a Finance Ministers convening later this week.
Also, the four leaders said “to urgently get more shots in arms, doses need to be donated immediately to developing countries”. They added that this must correspond with national vaccine deployment plans, including through COVAX.
Moreover, they leaders indicated that “cooperation on trade is also needed to ensure free cross-border flows”. They believe this will also help to increase “supplies of raw materials and finished vaccines”
The IMF, WBG, WHO and WTO leaders participated in a joint press conference on Tuesday, June 1 to outline the new joint roadmap. This will contribute to ending the pandemic and driving a truly global and fast recovery.
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