India has authorized two Covid-19 vaccines for use, putting its massive vaccine-making capacity in the spotlight. Large parts of the rich world may have something valuable to learn.
The Serum Institute of India is the world’s largest vaccine manufacturer by volume, founded more than 50 years ago by the now multibillionaire Cyrus Poonawalla. Not only will it likely supply nearly all of the vaccines administered in India, but many elsewhere in the world, once exports are allowed later in the year.
Research by Fitch Solutions this year outlines three groups of Asian economies: those who can plausibly vaccinate most people in priority groups such as health workers and the elderly by June, those who can do so in September, and those who need more time. India is by some distance the lowest-income country in the first group of economies, which includes Hong Kong, China, Singapore and Malaysia. The richer South Korea and Thailand takes longer.
The work of the Serum Institute requires reliable and large domestic delivery of the vials in which the vaccines are sealed and transported, insured by companies such as Schott Kaisha and Piramal Glass. The existence of the world’s largest vaccine manufacturer helps to lay the foundation for a domestic network of suppliers.
In fact, global supply chains and international trade have held up remarkably well under extreme conditions over the past year. There is no need to rebuild massive amounts of production capacity, and any attempt at even halfway self-sufficiency will make all parties involved – importers and exporters – less prosperous.
But countries could take a leaf out of India’s book when it comes to crafting critical items that could face massive increases in demand and where national priorities emerge. That is unrealistic for any small and medium-sized country, but production could be organized at the level of regional blocs such as the Association of Southeast Asian Nations. The pandemic hit Latin America harder than many other parts of the world, but limited vaccine production means that most countries there will have to wait a long time.
Employees at the Serum Institute of India in Pune.
Photo:
/ Associated Press
Such a company does not have to be a public company. As noted, the Serum Institute was established and remains a private company, although it works closely with the government. Similar capacity could be achieved through health regulation cooperation to create large regional markets and through appropriate financial incentives. The principle applies just as clearly to personal protective equipment as to vaccines.
Many much wealthier countries have been concerned about shortages of such vital components as they are mostly imported, and supplies are now uncertain with sky-high demand. Given the painfully slow pace at which European vaccines are being rolled out, the Indian program could well become a model for the world.
Write to Mike Bird at [email protected]
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