NEFPORT ISSUE 46 – SEPTEMBER 2021
INTERNATIONAL ECONOMY INTERNATIONAL ECONOMY Transmission of the highly contagious Delta variant has frustrated the recovery efforts of many emerging economies, consequently lowering their growth projections for this year. The disparity in the recovery path between the well-off nations and their less well-off counterparts has largely to do with the prevailing vaccine inequality across countries. With the COVAX scheme coming up short of its target to bring about global vaccine equity, Pan American Health Organization (PAHO), an organization that is a part of the World Health Organization (WHO), has announced its plan to supply COVID-19 vaccines across Latin America and the Caribbean. The world has seen natural calamities taking place one after the next in these past few months, and along with the recent publication of the Intergovernmental Panel on Climate Change (IPCC) climate assessment report, this has encouraged solemn discourses on climate change. GLOBAL EVENTS UPDATES Vaccine distribution under a new initiative: Upon accepting the
inadequacy of the COVAX scheme in vaccinating the global population, the Pan American Health Organization (PAHO) has decided to distribute coronavirus vaccines across Latin America and the Caribbean, and it has announced its plan of purchasing millions of vaccine doses and start supplying them in October 2021. Twenty countries have stated their interest in being a part of the program until now. So far, 20% of the population in Latin America and the Caribbean has been fully immunized and some nations have a vaccination rate of less than 5%.19 While the COVAX program is still short of reaching its initial target of inoculating at least 20% of the population in the world’s
poor countries, it has been evident the scheme on its own will not suffice especially given the recent proliferation of Delta variant. Although the initiative by PAHO will certainly supplement the effort of COVAX, it is not yet clear how the organization will attain its target. Unlike COVAX that provides doses for free to poorer nations, PAHO plans to sell them to countries.20 IPCC’s dismal assessment of the climate: On August 9, 2021,
the IPCC published a new report shedding light on the rapid rise in temperatures as a result of human activities. The sixth assessment report warns about extreme weather as well as unprecedented rates of warming atmosphere and seas. Some damages are irreversible, and scientists have indicated that the only way out of the imminent climate crisis is a drastic reduction in greenhouse gas emissions
within this decade.21 The urgency of climate action as suggested by the IPCC report will potentially affect the global fossil fuel industry as investment into this sector begins to ebb. Fossil fuel is the primary source of carbon dioxide and curbing its consumption is absolutely necessary to reduce carbon footprints. Countries dependent on export revenue from oil and gas, namely Venezuela, Angola, Nigeria, Saudi Arabia, and Iraq,22 will be hit hard as the world gets compelled to switch to alternative, cleaner sources of energy. This will not only put a massive strain on these nations’ public finances but also will put countless people out of employment. Hence, they should consider diverting investments towards non-oil economic sectors, which Saudi Arabia has already begun practicing.
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