The International Monetary Fund (IMF) has put forth an USD 50 Billion proposal to end the COVID-19 Pandemic, it has set a target of vaccinating at least 40% of the world’s population by end of 2021 & remaining 60% by first half of 2022.
- The proposal was drafted by IMF Chief Economist Gita Gopinath and Staff Economist Ruchir Agarwal.
- It states that vaccinating the entire global population would inject the equivalent of USD 9 trillion into the global economy by 2025 due to fast resumption of economic activity.
- The proposal was elaborated by the IMF during the Global Health Summit 2021 hosted by Italy (G20 2021 Presidency) & European Commission, held virtually from Rome, Italy on May 21, 2021.
Proposal Plan to end COVID-19
i.The USD 50 Billion proposal has 3 broad elements,
- Vaccinating at least 40% of the population in all countries by end-2021 and at least 60% by the first half of 2022.
- Insuring against downside risks such as new variants of COVID-19 that may call for additional booster shots (extra administration of a vaccine after an earlier dose).
- Managing the interim period where vaccine supply is limited.
ii.Out of USD 50 billion, at least USD 35 billion will be paid for by grants from rich countries, private and multilateral donors, and the remaining USD 15 billion will be funded by the National governments using Concessional financing available from multilateral development banks.
iii.The proposal states that the advanced economies which have been asked to contribute the largest to the USD 50 Billion proposal, will benefit the most out of it.
- They will see the highest return on public investment in modern history, capturing 40% of the global GDP gains and roughly USD 1 trillion in additional tax revenues.
iv.The IMF stated that by the end of April, 2021, less than 2% of the population of Africa had been vaccinated. In the US, 40% of the population were vaccinated & over 20% in Europe had received at least one dose of vaccine against COVID-19.
v.It also states that based on the current trend, vaccine coverage in India will remain under 35% by December 2021.
Recent Related News:
On January 29, 2021, IMF projected Global public debt to touch 98% of GDP at the end of 2020 due to severe challenges imposed on public finances amid COVID-19. It was 84% before COVID-19.
About International Monetary Fund (IMF)
Managing Director – Kristalina Georgieva
Headquarters – Washington, D.C., United States
Member Countries– 190