Research to develop a safe, effective, and widely available COVID-19 vaccine is advancing rapidly. But when it will happen is not clear. Much depends on how we govern the production and distribution of new drugs. While the World Health Organization’s COVID-19 Technology Access Pool promises to foster accessibility, the actual availability of vaccines and treatments also will hinge on local manufacturing capacity, which in many countries has been eroded by deindustrialisation.
Moreover, while universal testing remains a feasible, cost-effective, and immediately available method of managing the pandemic until a vaccine arrives, this approach also requires manufacturing capacity and sound governance in the public interest. Yet even in advanced economies, over-reliance on the private sector may prevent governments from maximizing test production and deployment. For example, the British government has proposed a “moon shot” testing program, yet its actual strategy needs clarification.
Such a mission-oriented approach requires a holistic, systems-level perspective, particularly when it comes to “wicked problems” like public-health crises and climate change, which involve a wide range of complex socioeconomic and technological issues. Implementing universal testing will require contributions from a sprawling network of actors and institutions. To be truly effective, any such program must be designed to generate systemic resilience and public value.
As has been demonstrated by the Nobel laureate economist Paul Romer, the epidemiologist Michael Mina, a recent IMF working paper, and many others, a properly designed universal testing program could bring the pandemic to an end within just a few months. The missing ingredients are industrial policies and other government measures to coordinate and steer production, in order to eliminate the bottlenecks that the private sector faces.
The necessary testing technology of rapid immunodiagnostic tests – such as saliva-based antigen tests that are similar to home pregnancy tests and cost less than $5 – already exists. Although these tests are sub-optimal in sensitivity compared with the standard polymerase chain reaction (PCR) tests, they are specific enough to detect infections at scale in settings disease prevalence is high; and, crucially, they do not require centralized laboratory facilities.
Therefore, with a purposeful program design that carefully considers the functionality and limitations of the technology deployed, rapid tests can enable decentralized universal testing programs at the community level. For example, tests could be made available free of charge at local pharmacies, with the expectation that everyone test themselves on a regular basis and self-isolate if positive. The same kits could be used as “infection-free” passports for admission to public spaces such as schools and workplaces. In this case, a new market would likely emerge as airlines, malls, restaurants, and cafés start purchasing cheap, rapid tests so that they can get back to business.
Rapid testing can help to expand and complement the universal testing strategy already being rolled out locally (such as the free mandatory testing at MIT and Georgetown University in the United States, weekly testing of employees at German workplaces, and the population-wide testing campaign in Wuhan), which currently rely on PCR tests.
Similar strategies need to be launched at the national level, especially in low- and middle-income countries where the affordability and scalability of molecular testing is low. Many countries have the capacity to produce a sufficient supply of tests at a cost that would pale in comparison to those inflicted by the pandemic. The number of tests needed globally over a year to supply a weekly testing regimen would be equivalent to less than half the number of cans of soda consumed annually. Moreover, scaling up production of antigen tests could be done relatively quickly, and would be a minor effort compared to the US mobilization for World War II.
While billions of dollars are being funneled toward vaccine development and production, additional funding also must be directed toward strengthening our testing infrastructure. At $5 per unit, the cost of testing the world’s population every week would come to around US$2 trillion. That is far less than the pandemic-related loss of global income during this period (as measured by the difference between pre- and post-pandemic growth forecasts) and fiscal stimulus so far this year, an estimated total of US$20 trillion. And these comparisons don’t account for the costs of lost lives or the potential benefits of achieving new economies of scale in test production – a spillover that could enable the eradication of the seasonal flu.
There are potentially steep challenges beyond production, of course. As practical as universal testing is, any such effort could still come under pressure if governments believe they must choose between different production needs for vaccines, anti-viral drugs, personal protective equipment, and expanded medical facilities.
But universal testing must not be viewed as a separate item on a larger list of priorities. The point of a mission-oriented approach is to create dynamic public-sector capabilities and strengthen the entire health system at once. New testing capacity should be integrated with national and local health systems as part of a broader program design, so that each leg of the strategy supports the others.
More broadly, COVID-19 has underscored the need for a more resilient and responsive industrial ecosystem that can increase production of essential items quickly. Even under current conditions, increasing the production of tests and implementing a universal testing strategy is feasible, and could end the pandemic by year’s end, while also creating the infrastructure needed to ward off future pandemics.
All countries need to adopt a longer-term vision and shore up their manufacturing capabilities. By leading on this issue, governments can strengthen local productive capacities and create a new kind of economic commons. The same mission-oriented approach could then be applied to science policy and industrial strategy, laying the groundwork for more cross-sectoral innovations and the type of resilient manufacturing that will be needed to tackle other highly complex global challenges. The days when we could pin all our hopes on technological fixes are over.
Reda Cherif is Senior Economist at the International Monetary Fund. Fuad Hasanov is Senior Economist at the International Monetary Fund and Adjunct Professor of Economics at Georgetown University. Mariana Mazzucato is Professor in the Economics of Innovation and Public Value and Founding Director of the UCL Institute for Innovation and Public Purpose (IIPP). Copyright: Project Syndicate, 2020, and published here with permission.
23 Comments
"All countries need to adopt a longer-term vision and shore up their manufacturing capabilities."
Maybe, but there are many alternative and good points to consider. For instance:
We are in a depression—not a recession, but a depression. And I think the dynamics of a depression are different than they are in a recession because depressions invoke a secular change in behaviour. Classic business cycle recessions are forgotten about within a year after they end—the scars from this one will take years to heal........Add our aging population and other demographic challenges, and there’s no reason to expect substantially higher GDP growth....
There will be a recovery. Those hundreds of thousands of entrepreneurs who have closed their businesses? They’ll open new ones. But not in six months. Where will they get capital? It’s one thing to bail out airlines with multiple billions of dollars. What about the local bakery with 15 employees? Where do they get the capital to reopen when the time is right? And you can repeat that story a million (or more) times.Which brings us back to my conclusion: That which can’t go on, won’t. We can’t keep piling on debt at this rate forever, and we can’t repay what we have.
https://ggc-mauldin-images.s3.amazonaws.com/uploads/pdf/TFTF_Oct_02_202…
Right. I was discussing this y'day. And particularly the relationship between SMEs and housing as the backstop for the business. Not sure why people and the media don't really take this seriously yet. Maybe they're aware, but don't want to talk about it.
As for entrepreneurship, I believe that tokenization of investment and ownership will go so some way towards backing the next wave of entrepreneurship. Digital securitization through smart contracts might be the way. Similar developments are already happening through blockchain.
https://decrypt.co/42199/overstocks-tzero-claims-record-month-for-secur…
We are indeed in the crest of a breaking wave. The cascade part always happens fast and I can't help thinking that the 'now' thinkers are going to be somewhat bewildered. The writers are aware of what is looming, but still looking at it with immediate-past eyes.
In the mix are social-media manipulation, lobbying, MSM avoidance, polarisation and rising angst. Buckle up.
It's hard to disagree, as this option could have avoided lockdowns, with better health and economic outcomes until a vaccine is available, and would have put New Zealand second in line for every vaccine in development, as written about extensively in March/April, which became an online book.
Let’s Do This One Thing to Combat Covid-19, Globally
https://medium.com/illumination/open-letters-to-prime-ministers-ardern-…
Covid19: The Book - A story of our times - of leadership, and outcomes
https://medium.com/@ronald.pol/covid-19-the-book-2b449352eb4b
It has a death rate same as seasonal flu. I don't get flu vaccines and I don't intent to start.
False positives
https://drmalcolmkendrick.org/2020/09/28/false-positive-tests/
They were Maori, who along with Pacific people are especially vulnerable. (And together make up almost 20% of the population).
Along with over 65's, those with diabetes or hypertension, the immuno-compromised and obese people who are also at high risk, half the population is going to have to be locked away with your plan.
But the outbreak in Sth Auckland apart from these two men in their 50's, appeared to have very minor symptoms. Fear is a great way to control masses but they really wasted it on Covid.
Even in places like India where it is obviously very widespread death rates are not that unlike a seasonal flu outbreak. I bet there are millions in India with or who have had covid.
When this is over it will take years to build trust again.
This seems contradictory to your earlier statement that covid has the same death rate as flu. 0.7% chance of a 60 year old dying is not insignificant, and of course it rises very quickly with increasing age.
The CDC estimates the case fatality rate of flu at around 0.1-0.2%, even very conservative estimates put Covid at around 0.5%. That is a significant difference in my book - 250-500% higher. You can argue about whether that is high enough to concern you, but it's not true to say covid is no more dangerous than flu.
Incidentally, I get the flu vaccine every year - I don't like getting ill and consider each vaccine I get as a tiny super power. I'm in my mid 30s so not particular concerned about serious illness, but why subject myself to the chance of feeling rubbish for a week when I can potentially avoid it with a quick jab and a lollypop?
whom knows what the real numbers are, some countries have massively under reported deaths, and some countries have done the same with infections. some OCED counties are ranging from 5% down to 2 %.
then you also have the long term health effects, we wont know those for another ten years, but at this stage it looks like even for young people it is now looking like it may effect them to
https://www.cdc.gov/coronavirus/2019-ncov/long-term-effects.html#:~:tex….
That's a darn good article that Andrewj posted. The only counter argument i can think of is one on conditional probability. Ie chance of true positive, given that the first test was positive. The counter-counter argument is "yes but they're virus fragments being detected, look the bloody test subject isn't even sick!" I've said this before that we might as well dump gold bricks in the Mariana Trench, because thats how economically destructive and pointless all this testing, border closure, and quarantining is.
"That is far less than the pandemic-related loss of global income during this period (as measured by the difference between pre- and post-pandemic growth forecasts) and fiscal stimulus so far this year, an estimated total of US$20 trillion"
This is incorrect, lockdowns globally have cost this amount. Not the pandemic
we need to be very careful with a travel bubble with australia, two states still have community transmission and if we want to enjoy level one across the whole country we dont need to fall for Australian internal politics
Of the five individuals who tested positive, one from Australia arriving on 30 September.
i wonder what results our wastewater testing is getting, there is no news now
No new COVID-19 cases in Qld, despite 'mysterious' wastewater test results
"For example, tests could be made available free of charge at local pharmacies, with the expectation that everyone test themselves on a regular basis and self-isolate if positive."
You don't have to look too far back in the headlines to see that self-isolation must be Government run for it to work.
Classic moves, when $ concern to be save - long ago NZ already shifted our productions capacity off shore with regard to this essential manufacturing ability, PPE gears, testing kit, immediate availability of massive testing result processing etc. - Yes, no one foresee this Covid visit - but hey, plenty of warning been given about this since SARS & MERS breakout. About When Not If etc - but what do we expect from our dear leaders?
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