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Financing vaccine equity: funding for day-zero of the next pandemic

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  • Ruchir Agarwal
  • Tristan Reed

Abstract

A lack of timely financing for purchases of vaccines and other health products impeded the global response to the Covid-19 pandemic. Based on analysis of contract signature and delivery dates in Covid-19 vaccine advance purchase agreements, this paper finds that 60–75 per cent of the delay in vaccine deliveries to low- and middle-income countries is attributable to their signing purchase agreements later than high-income countries, which placed them further behind in the delivery line. A pandemic Advance Commitment Facility with access to a credit line on day-zero of the next pandemic could allow low- and middle-income countries to secure orders earlier, ensuring a much faster and equitable global response than during Covid-19. The paper outlines four options for a financier to absorb some or all of the risk associated with the credit line and discusses how the credit would complement other proposals to strengthen the financing architecture for pandemic preparedness, prevention, and response.

Suggested Citation

  • Ruchir Agarwal & Tristan Reed, 2022. "Financing vaccine equity: funding for day-zero of the next pandemic," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(4), pages 833-850.
    • Handle: RePEc:oup:oxford:v:38:y:2022:i:4:p:833-850.
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    File URL: http://hdl.handle.net/10.1093/oxrep/grac032
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    1. Michael Kremer & Jonathan Levin & Christopher M. Snyder, 2022. "Designing Advance Market Commitments for New Vaccines," Management Science, INFORMS, vol. 68(7), pages 4786-4814, July.
    2. Agarwal, Ruchir & Gaule, Patrick, 2022. "What drives innovation? Lessons from COVID-19 R&D," Journal of Health Economics, Elsevier, vol. 82(C).
    3. Agarwal,Ruchir & Reed,Tristan, 2021. "How to End the COVID-19 Pandemic by March 2022," Policy Research Working Paper Series 9632, The World Bank.
    4. Demombynes,Gabriel, 2020. "COVID-19 Age-Mortality Curves Are Flatter in Developing Countries," Policy Research Working Paper Series 9313, The World Bank.
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    Cited by:

    1. Susan Athey & Juan Camilo Castillo & Esha Chaudhuri & Michael Kremer & Alexandre Simoes Gomes & Christopher M Snyder, 2022. "Expanding capacity for vaccines against Covid-19 and future pandemics: a review of economic issues," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(4), pages 742-770.
    2. Scott Duke Kominers & Alex Tabarrok, 2022. "Vaccines and the Covid-19 pandemic: lessons from failure and success," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(4), pages 719-741.

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