IMF proposes $50 billion to vaccinate everyone by mid-2022; $9 trillion for global economy

In a pursuit to ramp up the inoculation drive across the world, the International Monetary Fund (IMF) on Friday unveiled a $50 billion plan to end the COVID-19 pandemic setting a target of vaccinating at least 40 percent of the world's population by the end of 2021 and the remaining 60% by the first half of 2022. IMF Managing Director Kristalina Georgieva during the Global Health Summit, organized by the European Commission and Italy, as chair of the G20 also announced that the IMF will provide additional upfront grants to the COVAX. 

"First, vaccinating at least 40 percent of the population in all countries by end-2021 and at least 60 percent by the first half of 2022. To do so requires additional upfront grants to COVAX, donating surplus doses, and free cross-border flows of raw materials and finished vaccines," said IMF MD Kristalina Georgieva.

The detailed research proposal has been prepared by the IMF Chief Economist Gita Gopinath and staff economist Ruchir Agarwal also says that it would inject the equivalent of $9 trillion into the global economy by 2025 due to a faster resumption of economic activity, with rich countries potentially benefiting the most. International Monetary Fund MD Kristalina was quoted by IMF official website who said, "We have been stressing, a faster end to the pandemic not only saves lives but also could inject the equivalent of $9 trillion into the global economy by 2025 due to a faster resumption of economic activity. And advanced economies—asked to contribute most to this effort—would likely see the highest return on public investment in modern history, capturing 40 percent of the GDP gains and roughly $1 trillion in additional tax revenues."

No end to the economic crisis without an end to the health crisis- IMF

The research-based plan prepared by Gita Gopinath and staff economist Ruchir Agarwal also outlines that how there can't be an end to economic crisis with an end to the health crisis and countries around the world need to come together to bring the virus under control.  

"IMF economic projections and policy recommendations for the global economy rely crucially on the relative success of the race against the virus. To make this assessment, this paper analyzes multiple dimensions of the fight against the pandemic including projecting global and cross-country vaccination rates under alternative scenarios. The projections point to highly unequal health prospects well into 2022, which poses severe risks for the world. To contain the rising global costs of the COVID-19 pandemic, urgent steps are needed to bring the virus under control in every corner of the world," the proposal says. 

Our great sympathies with India- IMF

The IMF on Thursday extended its support to India and expressed that the International Monetary Fund stands ready to scale up its technical collaboration with India. "Our great sympathies and support to the people of India, and what is happening there relative to the pandemic, to those who have lost their lives and are suffering as a result of the COVID-19 crisis," said Gerry Rice, who is the director of the communications department at the International Monetary Fund (IMF) told reporters during a news conference. 

Responding to a question during the press conference, Gerry Rice said that the IMF continues to engage closely with the Indian authorities."We stand ready to strengthen our dialogue and scale-up our technical collaboration. The human tragedy in India is a stark reminder that the pandemic continues to be a grave threat globally. At the IMF we are redoubling our effort to foster global collaboration," Rice said.

(Image Credits: AP/PTI)