New $50 billion health, trade and finance roadmap to end COVID-19 and secure global recovery

IMF, WB, WHO and WTO principals call for $50 billion investment to generate $9 trillion in global economic returns by 2025 and boost manufacturing capacity, supply, trade flows and equitable distribution of diagnostics, oxygen, treatments, medical supplies and vaccines

The heads of the world’s pre-dominant global financing, health and trade agencies have united to urge government leaders to urgently finance a new $50 billion roadmap to accelerate the equitable distribution of health tools to help end COVID-19 pandemic that has devastated lives and livelihoods for 18 months and also set foundations for a global recovery, as well as enhanced health security.

In a statement, the leaders of the International Monetary Fund (IMF), World Bank (WB) group, World Health Organization (WHO) and World Trade Organization (WTO) said that governments must act without further delay or risk continued waves and explosive outbreaks of COVID-19 as well as more transmissible and deadly virus variants undermining the global recovery.

Leaders said, “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.”

The joint statement draws on a recent IMF staff analysis, which stated that $50 billion in new investment is needed to increase manufacturing capacity, supply, trade flows and delivery, which 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 $50 billion, it will bring the pandemic to an end faster in the developing world, reduce infections and loss of lives, accelerate the economic recovery, and generate some $9 trillion in additional global output by 2025,” said the leadership.

It echoes economic analysis by the International Chamber of Commerce; and the Eurasia Group – both of which make the case for a relatively modest investment by governments in comparison to the trillions spent on national stimulus plans and lost trillions in foregone economic output. However, the critical element of this is that it effectively spurs global vaccination and bridges the equity gap.

Further, WHO and its COVAX partners have set a goal of vaccinating approximately 30 per cent of the population in all countries by the end of 2021, but this can reach even 40 per cent through other agreements and surge investment, and at least 60 per cent by the first half of 2022, said the four leaders.

“To urgently get more shots in arms, doses need to be donated immediately to developing countries synchronised with national vaccine deployment plans, including through COVAX. Cooperation on trade is also needed to ensure free cross-border flows and increasing supplies of raw materials and finished vaccines,” they said.