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The Covid-19 Vaccine Production Club : Will Value Chains Temper Nationalism?

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  • Evenett,Simon J.
  • Hoekman,Bernard M.
  • Rocha,Nadia
  • Ruta,Michele

Abstract

In the first two months of 2021, the production of COVID-19 vaccines has suffered setbacks delaying the implementation of national inoculation strategies. These delays have revealed the concentration of vaccine manufacture in a small club of producer nations, which in turn has implications for the degree to which cross-border value chains can deter more aggressive forms of Vaccine Nationalism, such as export curbs. This paper documents the existence of this club, taking account of not just the production of final vaccines but also the ingredients of and items needed to manufacture and distribute COVID-19 vaccines. During 2017–19, vaccine producing nations sourced 88 percent of their key vaccine ingredients from other vaccine producing trading partners. Combined with the growing number of mutations of COVID-19 and the realization that this coronavirus is likely to become a permanent endemic global health threat, this finding calls for a rethink of the policy calculus towards ramping up the production and distribution of COVID-19 vaccines, its ingredients, and the various items needed to deliver them. The more approved vaccines that are safely produced, the smaller will be the temptation to succumb to zero-sum Vaccine Nationalism.

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  • Evenett,Simon J. & Hoekman,Bernard M. & Rocha,Nadia & Ruta,Michele, 2021. "The Covid-19 Vaccine Production Club : Will Value Chains Temper Nationalism?," Policy Research Working Paper Series 9565, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9565
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    Cited by:

    1. Egger, Peter H. & Masllorens, Gerard & Rocha, Nadia & Ruta, Michele, 2023. "Scarcity nationalism during COVID-19: Identifying the impact on trade costs," Economics Letters, Elsevier, vol. 223(C).
    2. M. Chatib Basri & Lili Yan Ing & Günther G. Schulze, 2022. "Economic Recovery Requires Global Efforts," Chapters, in: Lili Yan Ing & Dani Rodrik (ed.), New Normal, New Technologies, New Financing, chapter 2, pages 8-21, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. Postigo, Antonio, 2023. "The Economics and Actors in Vaccine Research and Development," EconStor Open Access Book Chapters, in: From Lab to Jab: Improving Asia and the Pacific’s Readiness to Produce and Deliver Vaccines, pages 17-42, ZBW - Leibniz Information Centre for Economics.
    4. Michele Boldrin & David K Levine, 2021. "Reforming Patent Law: The Case of Covid‐​19," Levine's Working Paper Archive 786969000000001782, David K. Levine.

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