India has authorized the use of two Covid-19 vaccines, highlighting its huge vaccine manufacturing capacity. Much of the rich world can have something valuable to learn.
The Serum Institute of India is the world’s largest manufacturer of volume vaccines, founded more than 50 years ago by the now billionaire Cyrus Poonawalla. It will likely provide not only almost all vaccines administered in India, but also many other parts of the world, once exports are allowed later in the year.
Fitch Solutions ’research describes three groups of Asian economies this year: those that can plausibly vaccinate most people in priority groups such as health workers and the elderly by June, those who can do so by September and those that will take longer. India is by far the lowest-income country in the top group of economies, which includes Hong Kong, China, Singapore and Malaysia. Wealthier South Korea and Thailand will take longer.
The work of the Serum Institute requires a reliable and comprehensive domestic supply of vials in which vaccines are sealed and transported, secured by companies such as Schott Kaisha and Piramal Glass. The existence of the world’s largest vaccine manufacturer helps lay the groundwork for a national network of suppliers.
Global supply chains and international trade have held up very well in extreme circumstances over the past year. There is no need to restore huge amounts of manufacturing capacity, and any attempt to reach half of the autarky will make all parties involved (importers and exporters) less prosperous.
But countries could pull a leaf out of India’s book when it comes to making crucial items that could find massive rises in demand and where national priorities stand out. Doing so is unrealistic for all small and medium-sized countries, 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 its limited vaccine production means most countries have a long wait ahead.
Workers at the Serum Institute of India in Pune.
Photo:
/ Associated press
This company does not have to be a government company. As noted, the Serum Institute was founded as a private enterprise and remains a private enterprise, although it works closely with the government. Establishing a similar capacity could be achieved through cooperation in health regulation to create large regional markets and adequate financial incentives. The principle applies as clearly to personal protective equipment as to vaccines.
Many much richer countries have worried about the shortage of these vital components because they are usually imported and now supplies are uncertain with high demand. Given the painfully slow pace at which European vaccines are being implemented, the Indian program may end up being a model for the world.
Write to Mike Bird to [email protected]
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