Q.2. “The social value of COVID-19 vaccine exceeds its market value”. Critically analyze the statement.
02,Oct 2024
Posted By : SPM Academy
0 Comments
APSC2023
GS2
The given statement emphasizes that the broader societal impact of vaccines—such as saving lives, preventing healthcare collapses, and enabling economic recovery—surpasses the purely financial returns that vaccines generate. While vaccines’ market value is substantial in terms of production costs, sales, and profits, their social value encompasses public health improvements, economic stabilization, global cooperation, and diplomatic advantages, which are far more critical, especially in a global crisis like COVID-19.
Social Value of COVID-19 Vaccines
A. Saving Lives and Reducing Disease Burden:
COVID-19 vaccines have played a pivotal role in reducing deaths, severe illness, and hospitalization rates. According to a study by The Lancet (2022), 14.4 million deaths were averted globally by COVID-19 vaccines in their first year of deployment.
In countries like India, which faced massive waves of infections, the vaccinationdrive helped drastically reduce the fatality rate. India’s aggressive vaccination program, with over 2.2 billion doses administered as of 2023, significantly reduced the pressure on the healthcare system during subsequent waves of the pandemic.
B. Economic Recovery:
Vaccines have enabled the reopening of economies worldwide. The International Monetary Fund (IMF) credits vaccines for the global economic rebound in 2021, where global GDP growth reached 5.9%, following a 3.1% contraction in 2020 due to lockdowns and disruptions.
In India, after an 8% economic contraction in 2020, the economy recovered, growing by 8.9% in FY 2021-22. The widespread vaccine rollout was a crucial factor in reducing restrictions, reopening industries, and stimulating growth.
C. Healthcare System Resilience:
COVID-19 vaccines reduced the burden on hospitals, ICUs, and healthcare workers by preventing severe cases. This not only saved lives but also preserved healthcare resources for non-COVID emergencies.
Example: In Brazil, where vaccination ramped up in mid-2021, hospitalization rates for severe COVID-19 cases dropped by 30% after widespread vaccine adoption, illustrating the social value of the vaccines in maintaining healthcare infrastructure.
D. Enhancing Global Health Equity:
Vaccines have a broader social impact by promoting herd immunity, which protects vulnerable populations such as the elderly, immunocompromised, and those unable to get vaccinated. This communal protection saves lives and keeps societies functional.
Data: In countries like Canada, with over 83% of the population fully vaccinated, the strain on healthcare systems decreased, and normal societal activities resumed faster than in countries with lower vaccination rates.
Market Value of COVID-19 Vaccines
A. Revenue Generation for Pharmaceutical Companies:
The market value of vaccines is significant, with pharmaceutical companies like Pfizer-BioNTech and Moderna generating record revenues. In 2021, Pfizer’s COVID-19 vaccine brought in over $36 billion, while Moderna earned over $18 billion.
Despite their high development costs, the financial returns for vaccine manufacturers have been enormous. However, these profits benefit a select few private companies and do not reflect the broader public good that vaccines provide.
B. Cost of Production and Distribution:
The pricing of vaccines varies based on agreements between governments and manufacturers. For instance, Pfizer-BioNTech’s vaccine was priced at $19.50 per dose for the U.S. government, while prices for other countries ranged from $10 to $37 per dose depending on bulk purchasing deals.
COVAX, the global initiative for equitable vaccine distribution, worked to make doses affordable for low-income countries, though it faced challenges in competing with high-income countries in securing early vaccine doses.
C. Global Inequities in Distribution:
Despite high market value, vaccine distribution was marred by inequities. Wealthy countries secured the majority of doses early on, leaving low-income nations behind. By mid-2021, high-income countries, which constitute 16% of the world’s population, had secured 60% of available vaccines.
Example: While the U.S. and EU countries administered over 80 doses per 100 people by mid-2021, many African nations, such as Nigeria and South Sudan, struggled to vaccinate even 5% of their populations, demonstrating the limitations of a market-driven approach to vaccine allocation.
International Relations Dimensions
A. Vaccine Diplomacy
COVID-19 vaccines became a key tool in international relations, often referred to as vaccine diplomacy. Countries like India, China, and Russia leveraged their vaccine production capacities to enhance their diplomatic influence by donating or selling vaccines to low- and middle-income countries.
India’s Role: Through its Vaccine Maitri initiative, India supplied over 235 million doses of vaccines to 98 countries by mid-2022, solidifying its role as the “pharmacy of the world.” India’s vaccine diplomacy not only helped other nations but also strengthened its geopolitical standing in regions like Africa, Southeast Asia, and the Indian Ocean Rim.
B. Global Health Cooperation:
The pandemic demonstrated the need for multilateral cooperation. The COVAX facility, spearheaded by the WHO, GAVI, and CEPI, aimed to provide equitable access to vaccines. Although COVAX faced challenges in securing early doses due to market competition, it eventually delivered over 1.5 billion doses to low- and middle-income countries by the end of 2021.
Vaccine diplomacy further showcased the importance of global solidarity in public health crises. Countries like China and Russia also used vaccine shipments to build diplomatic ties, particularly in Africa and Latin America.
C. Vaccine Nationalism vs. Global Equity:
Vaccine nationalism, where countries prioritized their populations for vaccination over global needs, exacerbated global inequities. For example, the U.S., EU, and UK pre-ordered billions of doses, leaving less available for the global south. This created geopolitical tensions, as developing nations struggled with vaccine access during the crucial early months of the pandemic.
Data: By mid-2021, G7 nations had secured enough doses to vaccinate their populations three times over, while low-income countries in Africa and Asia faced significant shortages.
D. India’s Global Leadership in Vaccine Production:
India, as one of the world’s largest vaccine manufacturers, played a central role in global vaccine distribution. The Serum Institute of India (SII), the largest vaccine producer globally, manufactured over 1.5 billion doses of the Covishield vaccine (AstraZeneca’s version). India’s production capacity enabled it to meet domestic demand while also supplying vaccines to over 150 countries.
Example: During the early phase of the pandemic, India’s rapid production and export of vaccines, particularly to neighboring countries in South Asia, enhanced its regional leadership and promoted South-South cooperation.
Critically Analyzing the Statement
Market Value vs. Global Need: While vaccines generated significant profits for manufacturers, the social value far exceeded the market value, particularly in saving lives, reducing healthcare costs, and restoring global economic stability. The limitations of market-driven distribution, such as vaccine nationalism, highlight the need for more equitable systems in global health crises.
Global Cooperation vs. Market Forces: The COVID-19 pandemic underscored the importance of multilateralism and global solidarity over pure market-driven approaches. Initiatives like COVAX attempted to address the disparity, but geopolitical realities and market competition delayed equitable distribution. This lag in delivery to low-income countries extended the pandemic, creating global instability and slowing economic recovery.
India’s Balancing Act: India’s role as a producer of vaccines for both domestic use and global supply through Vaccine Maitri showcased the potential of balancing market mechanisms with social responsibility. Despite domestic challenges during the second wave, India’s commitment to global health diplomacy underscored its leadership in global vaccine equity.
The social value of COVID-19 vaccines clearly exceeds their market value. While vaccines generated massive profits for pharmaceutical companies, their true worth lies in saving lives, restoring economies, and fostering global cooperation. From an international relations perspective, vaccines became tools of diplomacy and soft power, as seen with India’s Vaccine Maitri initiative. However, the unequal global distribution of vaccines highlights the need for reforming global health governance to prioritize social welfare over profit in future pandemics.
