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USD 38 billion needed to help developing nations fight Covid-19

WHO expects to require $38 billion to fund Covid-19 vaccines for low and middle income countries

by Antara Adhikari
October 3, 2020
in Covid-19, Health, Insights, News, Reports, World
Reading Time: 2 mins read
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  • World Health Organization expected to require $38 billion
  • This funding is needed by the end of 2020

THD NewsDesk, MUMBAI: The ACT Accelerator of the World Health Organization is expected to require $38 billion to fund Covid-19 vaccines, therapeutics, diagnostics, and health systems of low- and middle-income countries, as per data released on 2nd October. According to the organization, amply financing this initiative to help shorten the crisis’s duration would pay back this venture in less than 36 hours, once global movement and trade are restored. 

The ACT (Access to Covid-19 Tools) Accelerator is an end-to-end toolbox to fight Covid-19 that has organizations such as the Bill and Melinda Gates Foundation, World Bank, FIND, GAVI Alliance, and the WHO as members. This group’s objective is to guarantee that vaccines, treatments, diagnostics, and critical equipment delivery are distributed equitably to low- and middle-income countries. Estimates suggest that the vaccine pillar would need immediate funding of $7 billion, while therapeutics would require $4 billion, diagnostics $2 billion, and health systems another $2 billion. This funding is needed by the end of 2020. 

Since March, the cumulative commitments made towards the ACT Accelerator by philanthropic groups, developed countries, and corporates are $2 billion, or just 7% of the $38 billion required.

An estimated $5 billion is needed for vaccines to ensure manufacturing and upfront payments for advance purchase agreements (APA). According to the document released this week, the upfront payment on APAs with manufacturers required is $3.8 billion to acquire raw materials and build inventory at scale pre-approval.

The Covid-19 has not only surfaced as a global health emergency but has had economic implications that have shaken the world. The costs of all steps involved in the eradication of this pandemic have produced pressing economic backlashes. Overcoming the COVID-19 backlash is going to be a painstaking process. It is for the world to witness how economic normalcy will return. 

Source: Economic Times 
Antara Adhikari

Antara Adhikari

Antara is a women's rights activist and a Master of Social Work student at the Tata Institute of Social Sciences, Mumbai. She has always been intrigued by society's socio-cultural and economic intersections and its bearing on people's lives. To advocate for the excluded and bring forth the million feeble voices through her writing remains at the centre of her heart. Along with being an avid music enthusiast, she relishes reading and writing poetry.

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