COVID-19 COMPENDIUM
PANDEMICS ARE HERE TO STAY www.synergiafoundation.org
THELEGITIMACY OF OUR THINK TANK ISIN THE POWER OFOUR IDEAS
Synergia Foundation is an independent and strategic think tank whose purpose is to augment decision-making at a policy level while enriching individual discourse and public dialogue. With fact based insights, the Synergia Foundation provides impactful solutions that challenge the status quo, turning risks into opportunities.
Executive Summary
P
andemics have always been an
If pandemics come back in fresh avatars,
adjunct to human society since
our
counter-strategy
should
also
be
the viruses that cause them are as
much a part of nature as other species on
The post COVID-19 world is going to
earth. Therefore, humanity has to learn to
be one full of disruptions. The economy,
live under the shadow of the pestilence, as
geostrategic landscape, human security
one follows the next.
and the very concept of how we live and
If pandemics become the new normal
work will change. Frugality will be the new
in our lives, we must know them to defeat
norm for some time to come. The cyber
them. The lack of our understanding of
world will be under great stress and a host
the contagion is a serious limitation to
of new mitigating strategies to deal with each of these threats will be required.
combat them. An integrated national action plan, supported by the WHO and global data
Collaboration and not competition is the way
forward. The pandemic has
forced humankind to come together to
sharing is the need of the hour, as is the need for evolving a strategy against the
it as a divine signal and try to incorporate
threat in all its dimensions - medical,
the spirit of cooperation in all aspects of
social, economic, geopolitical, and cyber.
their transactions.
| COVID-19 COMPENDIUM |
www.synergiafoundation.org
INTELLIGENC IN E T |E ILNL TI G EE RN VC EN E T| I O I NNT E | RI M VE PN AT C ITO N | I M P A C T
Synergia Insights is a strategic affairs, foreign policy, science and technology magazine authored by experts at the Synergia Foundation. We provide nonpartisan and evidence-based analysis and assessment of geo political events based on real-time information. Insights is circulated amongst opinion leaders in government , corporates and academia around the world.
SEPTEMBER 2020 | EDITION SEPTEMBER III | WEEKLY 2020 | SEPTEMBER EDITION III |2020 WEEKLY | EDITION III | WEEKLY
SYNERGIA FOUNDATION SYNERGIA FOUNDATION SYNERGIA FOUNDATION
SYNERGIA FOUNDATION SYNERGIA FOUNDATION SYNERGIA FOUNDATION
SYNERGIA FOUNDATION SYNERGIA FOUNDATION SYNERGIA FOUNDATION
SEPTEMBER 2020 |SEPTEMBER EDITION IV 2020 | WEEKLY SEPTEMBER | EDITION IV 2020 | WEEKLY | EDITION IV | WEEKLY
SEPTEMBER 2020 |SEPTEMBER EDITION V |2020 WEEKLY SEPTEMBER | EDITION L V2020 | WEEKLY | EDITION L V | WEEKLY L
DEALING DEALING WITH DEALING WITHWITH THE THRE THE ATTHRE OF THE A AT THRE OFAT A OF A ‘NO DEAL ‘NO ’ BREXIT DEAL ‘NO’ BREXIT DEAL ’ BREXIT EXPERT INSIGHTS EXPERT INSIGHTS EXPERT INSIGHTS
ROBIN NIBLETT DIRECTOR AND CHIEF EXECUTIVE, CHATHAM HOUSE
ROBIN NIBLETT DIRECTOR AND CHIEF EXECUTIVE, CHATHAM HOUSE
ROBIN NIBLETT DIRECTOR AND CHIEF EXECUTIVE, CHATHAM HOUSE
CREON BUTLER DIRECTOR, GLOBAL ECONOMY AND FINANCE PROGRAMME CHATHAM HOUSE
CREON BUTLER DIRECTOR, GLOBAL ECONOMY AND FINANCE PROGRAMME CHATHAM HOUSE
CREON BUTLER DIRECTOR, GLOBAL ECONOMY AND FINANCE PROGRAMME CHATHAM HOUSE
SURVSURV IVALSURV IV LESSONS ALIV LESSONS ALFOR LESSONS FOR FOR FOR FOR FOR A DIGIT AA DIGIT LADARK DIGIT AL D AGE ARK ALEDAGE ARK E AGE E
US US POLLS US POLLS POLLS FILTERED FILTERED FILTERED IN IN IN A BUBBLE A BUBBLE A BUBBLE
THE ERODING CREDIBILIT THE ERODING Y CREDIBILIT THE ERODING Y CREDIBILIT Y OF ANELECTION OF ANELECTION OF ANELECTION SRI LANKA ’SPROVINCIAL SRI LANKA ’SPROV SR INCIAL I LANKA ’SPROVINCIAL COUNCILS HANGING COUNCILS BYA THREA HANGING D COUNCILS BYA THREA HANGING D BYA THREA D
EXPERT INPUTS
EXPER T INSIGHTS
MUST READ MUST READ MUST READ A TALE OF TWOAPARTIES: TALE OF TWO A TALE PARTIES: OF TWO PARTIES: ENDGAME THE WHITE ENDGAME HOUSE THEENDGAME WHITE HOUSE THE WHITE HOUSE
EXPERT INSIGHTS EXPERT INSIGHTS EXPERT INSIGHTS AROGYASWAMI PAULRAJ AROGYASWAMI PAULRAJ AROGYASWAMI PAULRAJ PROFESSOR EMERITUS, STANFORD PROFESSOR UNIVERSITY; EMERITUS, STANFORD PROFESSOR UNIVERSITY; EMERITUS, STANFORD UNIVERSITY; WINNER OF THE MARCONI PRIZE WINNER & OF THE MARCONIWINNER PRIZE & OF THE MARCONI PRIZE & IEEE ALEXANDER GRAHAM BELL IEEEMEDAL ALEXANDER GRAHAMIEEE BELL ALEXANDER MEDAL GRAHAM BELL MEDAL
INDIAN ELECTRONICS INDIAN ELECTRONICS INDUSTRY INDIAN– ELECTRONICS INDUSTRY – INDUSTRY – CHARTING A NEW CHARTING FUTUREA CHARTING NEW FUTURE A NEW FUTURE
HOW MUCH WILL HOW THEMUCH RIL WILL HOW THE MUCH RIL WILL THE RIL
EXPERT INSIGHTS EXPERT INSIGHTS EXPERT INSIGHTS POWERHOUSE UPSET POWERHOUSE THE POWERHOUSE UPSET THE UPSET THE CENTRE MUSTCENTRE HONOURMUST CENTRE HONOUR MUST HONOUR K.M.ABRAHAM K.M.ABRAHAM K.M.ABRAHAM RETAIL CART? RETAIL CART?RETAIL CART? FORMER CHIEF SECRETARY TO FORMER THE CHIEF SECRETARY FORMER TO THECHIEF SECRETARY TO THE COMPENSATION COMPENSATION PRINCIPLECOMPENSATION AND PRINCIPLE AND PRINCIPLE AND GOVERNMENT OF KERALA & FORMER GOVERNMENT OF KERALAGOVERNMENT & FORMER OF KERALA & FORMER SAFEGUARD FEDERALISM SAFEGUARD SAFEGUARD FEDERALISMFEDERALISM BOARD MEMBER OF SEBI BOARD MEMBER OF SEBI BOARDFACEBOOK MEMBER OF SEBI IN AFACEBOOK FACE-OFF IN FACEBOOK A FACE-OFFIN A FACE-OFF
EXPER T INSIGHTS
EXPER T INSIGHTS
VINTON RF GRAY CERF RS ForMemRS
VINTON RF GRAY CERF RS ForMemRS
VINTON RF GRAY CERF RS ForMemRS
AJAY PRAKASH SAWHNEYAJAY PATRICK PRAKASH NICOLET SAWHNEY AJAY PRAKASH PATRICK NICOLET SAWHNEY PATRICK NICOLET SECRETARY, MoIT SECRETARY, CHIEF TECHNOLOGY MoIT SECRETARY, CHIEFMoIT TECHNOLOGY CHIEF TECHNOLOGY GOVERNMENT OF INDIA GOVERNMENT OFFICER, Capgemini OF INDIA SE GOVERNMENT OFFICER,OF Capgemini INDIA SE OFFICER, Capgemini SE
MUSTREADMUSTREAD MUSTREAD ‘WHERE ’SPEACEWHE ‘WHERE N ’SPEACEWHE ‘WHERE N ’SPEACEWHEN HAVEPA PASSPORT SSPOR T,, HAVEPA PASSPORT SSPOR T,, HAVEPA PASSPORT SSPOR T,, NAGALANDIS HELD NA TO GALANDIS HELD NAGA TO LAND ISHAT HELD TORTING: WILL TR AV ?ING: NOTW WILL INHATTR ? NOT NOWILL T IN IN TR AV ? NOT NOT IN IN REPO RT ING:W ’S REPO WHAT TRA REPO ’S AVEL EL? RT NOT IN TRA ’S AV AVEL EL? TRA AVEL EL? INDIA’S SCORE ? INDIA’S SCORE ? INDIA’S SCORE ?
EXPER T INSIGHTS
ETHAN ZUCKERMAN
FORMER DIRECTOR OF THE CENTER FOR CIVIC MEDIA AT MIT, ASSOCIATE PROFESSOR OF PUBLIC POLICY, COMMUNICATION, AND INFORMATION AT THE UNIVERSITY OF MASSACHUSETTS
EXPER T INSIGHTS
EXPER T INSIGHTS
ETHAN ZUCKERMAN
ETHAN ZUCKERMAN
FORMER DIRECTOR OF FORMER DIRECTOR OF THE CENTER FOR CIVIC THE CENTER FOR CIVIC MEDIA AT MIT, MEDIA AT MIT, ASSOCIATE PROFESSOR ASSOCIATE PROFESSOR OF PUBLIC POLICY, OF PUBLIC POLICY, COMMUNICATION, COMMUNICATION, AND INFORMATION AND INFORMATION AT THE UNIVERSITY AT THE UNIVERSITY OF MASSACHUSETTS OF MASSACHUSETTS
GEORGE COOKE DEPUTY DIRECTOR OF BANDARANAIKE CENTRE FOR INTERNATIONAL STUDIES, SRI LANKA
EXPERT INPUTS
EXPERT INPUTS
COOKE RAO GEORGE COOKE VALSAN GEORGE VALSAN PRABHA PRABHA RAOVALSANI. RADHIKA PRABHA RAO I. RADHIKA DEPUTY FORMER VETHODYDEPUTY VETHODY VETHODY FORMER FORMER JOURNALIST JOURNALIST DIRECTOR IPS OF OFFICER AND FORMER DIRECTOR FORMERAND IPS OF OFFICER ANDFORMER IPS OFFICER AND AND BANDARANAIKE BANDARANAIKE SRI LANKAN SRI LANKAN DIRECTOR OF DIRECTOR OFSRI LANKAN DIRECTOR OF POLITICAL POLITICAL FOR ASIAN DIPLOMAT CENTRE FOR DIPLOMATCENTRE SOUTH SOUTH ASIANDIPLOMAT SOUTH ASIAN COMMENTATOR COMMENTATOR INTERNATIONAL INTERNATIONAL INSTITUTE FOR INSTITUTE FOR INSTITUTE FOR BASED OUT OF BASED OUT OF STUDIES, SRI LANKA STUDIES, LANKA STRATEGIC STRATEGIC STRATEGIC SRI LANKA SRI SRI LANKA AFFAIRS AFFAIRS AFFAIRS
PALESTINE:CRY MYPA BE LE LO ST VE INE: D CRY MY PALE BE ST LOINE: VEDCRY MY BE LOVED COUNT RY COUNT RY COUNT RY FALLOFPAULRUSEFA SALLOFPA BAGINAULRUSE FASA LLOFPA BAGINA ULRUSESABAGINA
I. RADHIKA JOURNALIST AND POLITICAL COMMENTATOR BASED OUT OF SRI LANKA
FORWARD BY
Pandemics are Here to Stay
H
umankind shares its space in the
magnitude of the disaster, and strengthen
biosphere with many life forms,
public health infrastructure for now and for
and viruses are chief among them.
the future.
Viruses have shaped human history, created
Synergia Foundation has four decades
pestilences, and remain formidable foes. Man may counter them with vaccines and drugs, yet they come back, deadlier than
nuclear, biological, and chemical (NBC)
before. It would be easier to mitigate their
warfare, and pandemics. With a close
devastating effects by an understanding of viruses and the forecasting of their patterns
foundation has been closely monitoring
of emergence.
the progress of the virus, right from its
Diverse groups of viruses with varying
inception.
We believe that pandemics
are here to stay. COVID-19 is only one in global virome. So far, the human race
the series of pandemics that humankind
has encountered only 1 per cent of the
is destined to face in the future. A deep
trillions of viruses. A lethal virus emerging
understanding of the contagion is critical to deal with the virus.
from the jungles of Africa, the
In
wet markets of Asia, or the
this
endeavor,
Synergia
rainforests of the Amazon is not a
is being helped by a network
distant threat in this era of global
of experts from public health,
interconnectedness. Viruses can
disaster and crisis management,
overcome species barriers, down
Nuclear, Biological, and Chemical
host
defences,
and
effectively
adapt to new species. Installing viral listening posts, enhancing
TOBBY SIMON Founder and President, Synergia foundation
global surveillance, and ensuring bio-security are some steps to deter the next viral emergence.
Warfare (NBC), a wide range of virologists, experts in infectious disease and, economists as well as social and political scientists, both
from India and abroad. COVID-19
took
world
leaders
and
Though pandemics have transformed
international organisations by surprise and
history since time immemorial, sadly, this
clearly demonstrated the deep divisions in the global political and economic
a new threat as no two viruses are the countries showed was not solidarity and vaccines developed to deal with one, may
coordinated action, but national egoism
not be applicable for the next. There is no all-
and a burning desire to husband medical
purpose universal vaccine for a pandemic
and other resources with no thought
of this proportion.
for those who were worst affected. We
However, COVID-19 has sent a powerful
hope better sense prevails and a more
message to humanity. Mankind must
collaborative approach is adopted to deal
understand the disease, estimate the
with the challenges of a post-COVID world.
| COVID-19 COMPENDIUM |
www.synergiafoundation.org
Acknowledgment The SYNERGIA FOUNDATION would like to express special thanks to the following dignitaries for their contribution.
Alex Thomas
Deng Hongping
Laurence Brahm
President, AHPI
Head of Vascular Surgery Department, Wuhan Renmin Hospital
Founding Director, Himalayan Consensus
F R Singhvi
Director of Cyber Security, Information System Authority of Estonia
Andrew Harris MD - Director Emergency Medical Department, Richland Hospital
Anthony Kalliath Haematologist & Oncologist Consultant Clearview Cancer Centre, Alabama
Arvind Gupta Director, VIF & Former Deputy NSA, GOI
Joint Managing Director Sansera Engineering Pvt Ltd
Fu-Kuo Liu Research Fellow at the Institute of International Relations (IIR), National Chengchi University
Gifty Immanuel, MD, PhD. Medical Director, Synergia Foundation
Arvind Kasturi Head Community Health Care, St Johns National Academy
Boon Hui Khoo Former President of INTERPOL
Chas Bountra
Gopi Hanumanthappa Managing Director ThyssenKrupp Aerospace India Pvt Ltd
Jacob Kalliath Physician Internal Medicine, Swedish Covenant Hospital
Pro-Vice-Chancellor – Innovations, Oxford University
Jake Moore
Ciaran Liam Martin
Emergency Medical Physician, Rush Oak Park Hospital, Chicago
CEO, National Cyber Security Centre, GCHQ United Kingdom
Deepansh Somani Graduate in Behavioural Economics
Devi Shetty Chairman, Narayana Health Care
www.synergiafoundation.org
Jayant Sinha Chairperson, Parliamentary Standing Committee for Finance, GOI
Kuni Miyake Former EA to the Prime Minister of Japan
Lauri Aasmann
M K Narayanan Former National Security Advisor, GOI and Governor to West Bengal
Mathew Kalliath Chief Surgical Resident University of Pennsylvania
Maxim Vilisov Associate Professor, Lomonosov Moscow State University, Russia
Michael Chertoff Former US Homeland Security Commissioner
Mukund Thattai NCBS -TIFR
Naresh Shetty President, M. S. Ramaiah Memorial Hospital
Nikita Konopaltsev Director at Russian Internet of Things Research and Consulting Center
| COVID-19 COMPENDIUM |
AUTHORS Maj Gen Ajay Sah (Retd) Chief Information Foundation
Maj Gen Moni Chandi (Retd) Synergia Foundation
Sambratha Shetty Chief Operating Synergia Foundation
Seher Dareen Research Associate, Synergia Foundation
TM Veeraraghav Consulting Editor, Synergia Foundation
Tobby Simon Founder and President, Synergia Foundation
Nirupama Rao
Sanjay Jaju, IAS
Former Foreign Secretary of India and Former Ambassador of India to China and the U.S.
Additional Secretary, Ministry of Defence, GOI
Pankaj Patel Chairman, Cadila Health Care & Chairman of IIM Udaipur
Patrick Mendis Former American Diplomat & Visiting Professor, National Chengchi University
Prasad Chandran Founder Chairman SEEGOS, Former CMD, BASF India Limited
PS Raghavan Chairman, National Security Advisory Board, GOI
Emergency Medical Physician, Mt. Sinai Hospital, New York
Sharad Tyagi MD Boehringer Ingelheim India Pvt Ltd & President OPPI
Sudhir Kapadia President, Bombay Chamber of Commerce & EY India National Leader – Tax
Sun Yuxi Former Chinese Ambassador to India
Tapan Singhel
R Balasubramaniam
Managing Director & CEO, Bajaj Allianz General Insurance Co. Ltd
Harvard School of Public Health and Founder, Swami Vivekananda Youth Movement and GRAAM
TM Vijay Bhaskar,
Lt Gen Rajesh Pant (Retd)
National Cyber Security Coordinator, Government of India
Rajesh Sundareshan Professor, IISc, Bangalore
Ranjit Shahani Former Managing Director & Vice Chairman, Novartis India Ltd.
Richard Fontaine CEO, Center for a New American Security
Richard Garcia Medical Director Ferry County Memorial Hospital, Washington
| COVID-19 COMPENDIUM |
Shameeke Taylor
IAS
Chief Secretary Government of Karnataka
Udayant Malhoutra CEO and Managing Director Dynamatic Technologies Ltd
K Vijay Raghavan Principal Sci Government of India, GOI
Ye Baixin Chief Medi Renmin Hospital, Wuhan University
Wang Feng Editor-in-Chief, Financial Times, China.
Wang Huiyao President, Centre for China and Globalisation, Beijing
www.synergiafoundation.org
C O N T E N T CHAPTER 1
CHAPTER 3
Understanding the Disease
Economics of a Post-Covid World
Page 2
Page 58
CHAPTER 2 Mitigating Strategies Page 11
CHAPTER 4
CHAPTER 5
Geopolitics in the Time of a Pandemic
Cyber Domination Post-Covid-19
Page 94
Page 122
www.synergiafoundation.org
|
COVID-19 COMPENDIUM
|
CHAPTER 1
UNDERSTANDING THE DISEASE Our lack of understanding of the contagion is a serious limitation to
Emerging Viruses Viruses are an enigma. They are a minuscule biomass of unique organisms that existed on Earth even before our arrival. Viruses have played a pivotal role in shaping our
INPUTS BY P S RAGHAVAN, CHAIRMAN, NATIONAL SECURITY ADVISORY BOARD, GOI
genomes. The annals of human history would be incomplete without a deeper discourse on viruses. Adapted to extreme
replicate their progeny. Viruses emerge
parasitism, viruses lack cellular organisation
and re-emerge from their habitats and
or machinery. They hijack the host cell to
reservoirs when conditions are favourable.
2 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Once Inside a Human Host, They Replicate
viruses. The SARS CoV-2 virus causing the
Nearly 70 per cent of infectious diseases in
previously unknown in bat coronaviruses.
Ebola, rabies, and HIV/AIDS. Our increased
Viral Evolution
contact with animals (wild as well as
Viruses have shorter replication times. In
viruses doing a species jump. Once inside
of proofreading is inherently error prone.
a human host they replicate and spread
Hence, a high number of mutants arises
as the naïve human host offers very little
due to the mistakes in copying. This results
immunological resistance to these invaders.
in the production of drug-resistant and
Same as in the case of SARS CoV-2 causing
vaccine-escape
COVID-19. This coronavirus is understood to
virus that jumps from an animal reservoir
be a descendant of an ancestor bat virus
and causes a pandemic in the human
that jumped into an intermediate host
population will generate more mutants.
like the pangolin (anteater) and then to
Such a pool of mutant viruses increases
animal vendors in the wet markets. Though
the odds of success against host defences.
cooking can thermally inactivate it, the
Under natural selection, viruses evolve
act of butchering and de-skinning these
faster than their hosts do. This makes it hard
animals in the wet markets poses a great
to treat or prevent a viral pandemic.
risk. Bats, pangolins, badgers, palm cats,
current pandemic exhibits such properties
mutants.
Therefore,
a
ferrets consumed as delicacies expose the
Viral Habitat & Ecology
human population to exotic viruses.
Viruses are incapable of living in isolation;
Virus Chimeras
they can only sustain life inside another living reservoir. Each virus is
host-
Different species of viruses are known to co-infect animal hosts like bats, palm cats etc. During such an event, two different viruses that infect the same target cell could swap
its
material
genetic through
predominantly
infects
only
chimps. However, in the absence of the original host or the abundance of
alternative
viruses a
hosts,
might
leap
over
take the
re-assortment.
species
barrier.
Such
Several
factors
of
a
process
recombination
between viruses can
aid in this kind of transfer. One is the
result in a chimera.
spatial proximity of
Such a chimerical or
a new host, human
recombined virion has properties
previously
unknown to the parent
www.synergiafoundation.org
infringement in a virus ecosystem, exotic animal foods, game meat, and
| COVID-19 COMPENDIUM | 3
contact with wild animals. A reservoir is a sanctuary for a virus to live and selfpropagate while the host itself might have adapted to co-exist with the virus as in the
Man-Made Viruses as Vectors of Warfare
case of bats and SARS CoV-2.
MAJ GEN AJAY SAH,
Virus-Host Interaction
GEOPOLITICAL AND STRATEGIC ANAYLST, SYNERGIA FOUNDATION
Humans share a very close relation with viruses. Our own cells make copies of the invading virus under the right genetic command. The interaction between a virus and its human host determines the outcome of the disease. In the case of
I
nfectious biological warfare uses biological toxins such as bacteria, viruses, insects, and
fungi, with the intent to kill or incapacitate
SARS CoV-2, it can create an abnormal host
humans, animals, or plants as an act of
immune response resulting in cytokine
war. An analysis of historical attempts at
markers. The delicate interaction between
in distinguishing between a naturally
the virus and the human immune system
occurring epidemic and one triggered by
determines the intensity of disease and
bio-warfare. This dilemma continues today
death.
as amply highlighted by the COVID-19
Virus Mediation Extinction
pandemic. As early as 600 BC, infectious
A virus is only focused on self-propagation; it
misery on the enemy and their population.
will endlessly replicate itself even if it means
When the American West was being
exhaustion and death of the human host.
opened to settlers, it is alleged that in 1763
The resultant extinction of the human host
Native Americans were “gifted” smallpox
is neither foreseen nor does it matter to a
infected blankets. Sir Jeffrey Amherst,
virus.
commanding the British forces in North
Antiviral and Vaccines
America, was able to generate fomites when smallpox broke out in Fort Pitt. These fomites were then used to infect blankets
brief history of vaccination, the smallpox
that were ‘gifted’ by one Captain Ecuyer to Native American tribes in the Ohio
vaccine discovered by Edward Jenner
River Valley. Confederate forces adopted
in 1798. Immunisation eventually led to
the same tactic in 1863 against the Union
the eradication of smallpox by 1979. Louis
soldiers during the American Civil War.
Pasteur developed a rabies vaccine by
Nineteenth century advancements in microbiology enabled the isolation and
synthesised around 1963. Till date, more than 100 antivirals have been produced.
In World War I, there were allegations that
Still, we are in need of a cure for many viral
Germany resorted to biological warfare
diseases.
by trying to spread cholera in Italy and
4 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
plague in Russia. Germany denied these allegations, and in 1924, a League of Nations panel absolved Germany. During
World
War
II,
Japan
and
Germany were accused of conducting
Estimate of casualties produced by a hypothetical biological attack* Agent
Downwind reach (km)
Number Number Killed incapacitated
Rift Valley fever
1
400
35,000
Tickhome encephalitis
1
9,500
35,000
Typhus
5
19,000
85,000
Brucellosis
10
500
125,000
Q-fever
>20
150
125,000
12 of his subordinates in 1949 for preparing
Tularemia
>20
30,000
125,000
and using biological weapons.
Anthrax
>20
95,000
125,000
intensive biological warfare research. The notorious Japanese ‘Unit 731’ was active in Manchuria. The Soviets tried Maj. Gen. Kawashima, the head of Unit 731, along with After the
calling the experiments “most regrettable from the viewpoint of humanity”. The Nazis
vector, in uninhabited islands off the coast
were not accused of a biological offensive
of Scotland, and these islands remained
though there were many instances of
contaminated until 1986.
German scientists infecting concentration
The U.S. War Reserve Service was
camp inmates with disease-producing
formed in 1942 to supervise the American
organisms.
bio-warfare
programme
in
Maryland.
The western allies were also not beyond
Today, it is known as the U.S. Army Medical
suspicion. Joseph Goebbels accused the
Research Institute of Infectious Diseases
British of spreading yellow fever from West Africa in India. The British were also known to be experimenting with Bacillus anthracis,
a
viable
www.synergiafoundation.org
biological
warfare
COVID-19. After the end of World War II, many other countries were reported to be pursuing
| COVID-19 COMPENDIUM | 5
active
biological
weapons
research,
including Canada, Britain, France, the Soviet Union, and later China. During the height of the Cold War, the Soviet bloc spread the
itself in the armoury of some nation or terrorist group.
International Safeguards The ‘Convention on the Prohibition of the
in 1957 were using biological weapons, while
Development, Production, and Stockpiling
the Chinese blamed the U.S. for the cholera
of Bacteriological (Biological) and Toxin
epidemic in Hong Kong in 1961.
Weapons
and
on
Their
Destruction’,
was signed by 103 countries in 1972. It
A Weapon of Choice
prohibits the development, production,
Two characteristics make bio-weapons
and stockpiling of pathogens or toxins in
an ideal choice for an aggressor — their invisibility and their delayed effect. They
prophylactic, protective or other peaceful
can infect the target population, escape
purposes.” Unfortunately, this treaty does
undetected,
not provide for inspections and coercive
and
leave
a
panicked
population and an administration, which is
measures
to
prevent
paralysed, in their wake. Sickness and death
adherence to protocol.
armament
and
is not the goal, but fear and uncertainty aimed to breakdown state authority.
A
good example is the so-called ‘anthrax
CONCLUSIONS
letters’ after the September 2001 attack,
Bio-warfare is no longer in the
which created a huge psychological impact
recognised and incorporated into
despite infecting very few people. Choices for bio-weapons are: anthrax, because
it
can
be
released
quietly;
smallpox, frozen stocks of which are still maintained by the U.S. and Russia;
To face the threat with calmness, the medical fraternity and the public must be educated in epidemiology
tularemia, known as rabbit fever; and botulism, which is caused by exposure to toxins made by C. botulinum — the most toxic substances known to humankind. It attacks the nerves
The COVID-19 pandemic has been the closest thing to a mass bio-attack, and it is clear that even advanced western nations are far
and can lead to respiratory failure.
6 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Post-Lockdown Expectations Synergia Foundation webinar on ‘Coping INPUTS BY T.M. VIJAY BHASKAR, IAS
Strategies for COVID-19’ held on April 22.
CHIEF SECRETARY, GOVERNMENT OF KARNATAKA
develop a strategic vision to combat the
“A
s Karnataka inches towards lifting of the lockdown on May 3, the government has a variety of plans
The objective of the webinar was to contagion and work on a calibrated postlockdown plan on the medical, social, and economic fronts. The Vijay
panellists Bhaskar of
comprised
(IAS-Chief
T.M.
Secretary,
on the table for an exit. Owing to differing
Government
Karnataka);
opinions by experts in both the medical and
Kasturi (Head Community Health Care,
Arvind
St. John’s National Academy); Naresh balance them, in a phased manner. While
Shetty (President, M.S. Ramaiah Memorial
all are focused on the pandemic from the
Hospital);
and
R.
medical standpoint, the government’s
(Founder
SVY.M
&
biggest concern at this point is the
along with the team at Synergia. T.M.
economic challenges”, said Karnataka’s
Veeraraghav
Chief Secretary T.M. Vijay Bhaskar, at the
former resident editor with The Hindu,
www.synergiafoundation.org
Balasubramaniam GRAAM,
(Independent
Mysuru), journalist,
| COVID-19 COMPENDIUM | 7
Prepare ourselves for some amount of
Sr. Editor CNN-News18) was the moderator.
human cost.
First to speak were the medical experts. Dr. Arvind Kasturi expressed caution
Dr. Balasubramaniam, was on the
moving forward and suggested a detailed
same page, saying the more there is for
step-by-step procedure.
people to learn about the virus, the better. His worry was over the ticking time bomb
The uninfected should remain so by
-- when migrant labourers stuck in urban following hygiene, avoiding gatherings,
India, go back to their native villages,
etc.
where the spread of the disease has been Medical
services
for
people
minimal.
with
Mr. Vijay Bhaskar too said that the
comorbidities and other illnesses should
immediate fallout of the post-lockdown
continue. Facilities should be set up for those who
would be migration of people to their
can’t be isolated at home due to space
homes. Further, people would want to
restrictions.
move around. The main concern then is how we ensure that this doesn’t cause
Put in place early-warning systems for
movement of infection also.
treatment using social media and other forms
of
communications,
to
Dr.
spread
Balasubramaniam
envisaged
that the Centre and the State could see a
awareness on the steps to take if one falls sick.
optimisation. He offered his strategies:
The pandemic should be tackled with a teacher-with-a-stick model. At the same
Set up a ‘real-time response body’ to allow
time, we must remember that migrant
for the “accumulative cross-pollination” of
workers are our people, and we have to
experiences from all over. This would give
be the ones to get the message across to
people a better idea on how to tackle the
them.
pandemic.
THE SIZE OF CORONAVIRUS LOCKDOWNS Number of people placed on enforced lockdown due to the coronavirus pandemic per country
1380
Ongoing
At height of outbreak * At least partly enforced Source: Media reports
760
(In Million people)
8 | COVID-19 COMPENDIUM |
45
A
rg e
nt
in a
n
47
Sp ai
om
bi a
51
C ol
A
fr ic a
al y
59
ut h
Fr an ce
60
It
65
So
68
K
pi n lip
us
si
P hi
R
es
a
100
U
142
h es
B an
gl
ad
at es St
na hi U
ni te d
C
In
di
a
165
*
297
www.synergiafoundation.org
Mobilise resources; ensure short-term liquidity for the poor and vulnerable; keep
New Normal On the strategic front, Maj. Gen. Moni Chandi (retd.) felt that the post-lockdown
economies (MSMEs and others); and
could have three outcomes: a professional
leverage global support in the short term.
win, where the containment is successful,
Smaller Lockdown?
and we restore economic activities and get a vaccine. Or, the situation could spiral out
Post-COVID will be a different way of living
of control and the pandemic would rage
altogether, said Dr. Naresh Shetty, and
through. Herd immunity would set in, but
there could be the possibility of a smaller lockdown after this one. He also wondered
result in living a new way of life altogether,
why we are so focused on COVID, when
where new measures are put in place, with
there are many other harmful diseases that
no vaccine available. He suggested a ways-
still exist. Is it because it is affecting the rich?
and-means path:
His pointer to the government:
Play for time and wait for either the virus to
Hospitals will have to cope with the
mutate until it dies, or delay the pandemic
possibility of spread of infection when
for as long as it is possible through social
patients, relatives, and non-COVID patients intermingle.
www.synergiafoundation.org
To work towards a controlled infection,
| COVID-19 COMPENDIUM | 9
which would give rise to herd immunity,
Corroborating Dr. Naresh Shetty’s view
allowing the lockdown to be lifted slowly
that the healthcare system has never been
while the most vulnerable (children and
at its best in India, and if it had at least 5%
elderly) stay at home.
of the defence budget, it would have been
Control the time and place of when we
a completely different story. Dr. Arvind
expose people to the virus, and marshal our
Kasturi pointed out that this pandemic
resources.
is a good lesson to improve the medical
Maj. Gen. Ajay Sah (retd.),
system from the grassroots
however, cautioned against
- both institutional care and
inculcating immunity, as there
general public hygiene. He
were cases of re-infection in
said the government spends
those who had recovered. He
just 1.4% to 1.5% of the GDP on
also highlighted the morbidity
healthcare, which is very low
and mortality aspect of the
compared to other countries.
disease. With the morbidity factor, it is important to keep
Here to Stay
in mind that COVID can be
All the speakers felt that
transmitted through a variety of ways. More importantly, he said we must be aware of
‘superspreaders’
--
the
spreading of the infection to many more through one person who is highly infected. Without a vaccine or a drug right now, there is only the option of herd immunity and controlled infection said Sambratha
Shetty,
Chief
outcome could result in living a new way of life altogether, where new measures are put in place, with no vaccine available
Foundation, adding that there
pandemics
were
here
to
stay and this would translate to a different way of living altogether. Looking forward, Dr. warned
Balasubramaniam of
increased
polarisation, an increase in the rural-urban split, and a change in our interconnected economies. He also said that if we don’t come up with a solution that addresses all of it, it would just be a band-aid and not a systemic solution.
are different factors to consider here -- the
In conclusion, Tobby Simon, Founder
density of a population (it would be harder
and President, Synergia Foundation, said
to control in metro cities), and hospital-bed
there was a need to look at overarching
capacity in the cities. A good way to also
issues of eating habits, especially the
ramp-up testing was through pool testing
wet markets in China. After SARS, it was
or antibody testing.
established that the disease was coming
But on the matter of controlled infection,
from bats. It is important that this be
Mr. Vijay Bhaskar stressed that medicines
controlled, else we would have more
for COVID could be found faster than the
outbreaks of SARS. After all, there are only
vaccine for it. Projections showed that it
two things that can end mankind -- nuclear
would happen within a few months.
war and pandemics.
10 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
CHAPTER 2
MITIGATING STRATEGIES
B
SYNERGIA FOUNDATION RESEARCH TEAM
Management of the crisis, to date, offers contrasting examples. The success stories of South Korea, Taiwan, and Singapore serve as
ill Gates, during his TED Talk in
a model for others. Within Europe, Germany
2015, said, “When I was a kid, the
offers a positive contrast to Italy and Spain,
disaster we worried about most was
who were slow to respond and hence
a nuclear war. Today, the greatest risk of
have many casualties. The U.S. response is
global catastrophe doesn’t look like this. If
widely acknowledged as eccentric and
anything kills over 10 million people in the
personality-driven.
next few decades, it’s most likely to be a
In the absence of a vaccine, containment
highly infectious virus rather than a war. Not
was the primary focus the world over. While
missiles, but microbes. Part of the reason for
we scramble to contain this pandemic,
this is that we’ve invested a huge amount in
the next one may be in the making. In the
nuclear deterrents. But we’ve invested very
tropical rainforests; in deep jungles; in wet
little in a system to stop an epidemic. We’re
markets trading exotic animals; and in a
not ready for the next epidemic.”
hunter’s bush meat, an unknown pathogen
Origins of the COVID-19 bear stark similarity to the SARS outbreak of 2003. SARS
originated
in
the
Guangdong
could be evolving. It is time we prepare for it.
Medical Coping Strategies
province of China, and COVID-19 from
Governments are recognising the frailty of
Wuhan in the Hubei province. Early cases
their healthcare systems. While the state
at the end of 2019 were concealed so that
of healthcare infrastructure in developing
the opportunity to localise the contagion
countries like India is severely wanting,
was lost.
developed countries such as the U.S. have
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 11
also been exposed. India needs to realign
Lessons from the Past
priorities so that healthcare infrastructure is
Taking into account the genetic similarities
enhanced and its reach extended.
between
Coming to GRIPS with the Enemy
SARS-Cov-2
and
COVID-19,
scientists are trying to rejig drugs that proved effective at the time. The biotech industry had made considerable progress in making drugs for SARS and MERS.
antibiotics, they are useless against viruses
Anti-viral drugs target the virus, its
as they hijack the metabolism of the host
enzymes and surface proteins, without
to create clones of themselves. According
damaging the host. It tries to weaken the virus, preventing its ingress into cells
and immunology at the Johns Hopkins
or stopping its replication.
Remdesivir,
produced by Gilead Sciences, worked with that target the virus, but don’t damage the
SARS Cov-2 and is being used against
cell as well.”
COVID-19. Protease inhibitors, like Lopiavir
The virus can remain inside the host and
and Ritonavair, HIV anti-virals which attack
continue to replicate itself and infect others,
the enzyme of the virus to make it inert, have
even when the host is asymptomatic. The
been found effective in some countries.
delay is due to the body taking time to create
Another
new antibodies to deal with the threat, and
researched is the creation of antibodies
defensive
mechanism
being
collected from engineered animals or recovered patients. By then, either the host would be on the
These antibodies strengthen the human
recovery curve, or if old and weakened by
immune system, enabling it to quickly
other ailments, it may be too late.
identify the threat and start generating its
BACTERIA VS VIRUS Are single celled
Acellular, meaning it has no cell structure
Around 1000 nm
Around 20-250nm
Reproduce asexually by division
Needs a host ot survive. They invade a cell and force the cell to reproduce the virus
Contains Peptidoglycan or Lipopolysaccharide cell wall
Contains no cell wall but a protein coat is present instead
cytoplasm
DNA or RNA enclosed inside a coat of protein
Most can be treated with antibiotics
No known cures but some can be prevented with vaccines
Fewer than 1% of bacteria cause diseases in humans Some famous bacteria include E.coli, Salmonella, Tuberculosis and Tetanus
virus Some famous viruses include the Zika virus, Ebola virus, HIV and smallpox
12 | COVID-19 COMPENDIUM |
own
antibodies
before
getting
overwhelmed. Interferons are drugs which help trigger the human immune system and have proved to be effective against persistent infections. The most effective vaccines are those that coach the human it can infect the cells.
AI to the Rescue Companies like Inovio have used the Chinese viral sequence through a machine learning system to generate a DNA-based vaccine called INO-4800, now in preclinical trials. Moderna Therapeutics also used AI to create a vaccine, also under clinical trials. It too used the genetic blueprint, posted online,
www.synergiafoundation.org
scientists are able to identify similarities in
trials on humans. The earliest a vaccine is
various viruses and their characteristics, machine-learning algorithms can detect
2021. Once the danger of COVID-19 was
correlations in the huge amount of available
fully revealed in January, researchers the
data, expediting the design of vaccines. Deep
world over had launched clinical trials to
learning is also being used to investigate the
test existing medications against the new
potential of available antiviral drugs for use
threat. So far, the data collected does not
against COVID-19.
give conclusive answers. Some treatments
The Prognosis
appear promising in individual cases, but not as a universal cure. Critically-ill volunteer
A new vaccine has to follow time-tested
patients are already receiving experimental
protocols: identifying its genetic structure;
drugs through the compassionate-use
ensuring against collateral damage; pre-
programme.
Failed Drugs, Fizzling Vaccine Every death is a failure of medicine GIFTY IMMANUEL, MD, PHD, MPH, FFPH MEDICAL DIRECTOR, SYNERGIA FOUNDATION
and adds to the downfall of science. This pandemic has brought to attention how unprepared we really are. Advancements in science, combined with leaps in technology has instilled a sense of invincibility in us. The
“W
templates we devised for the containment hen orthodox medicine and
of emergent diseases appear fallible, while
its great professors abandon you to the most horrible
novel virus. Science is repurposing old and fossilised drugs.
Vaccines
and
biologicals
long
a miserable virus despite their phenomenal
abandoned are being repackaged and
research budgets, how can you fail to go after
this reiterates our desperation. There is no
a last glimmer of hope no matter where, in hell if necessary.” Josef Stein
www.synergiafoundation.org
breakthrough biological in the horizon. It
| COVID-19 COMPENDIUM | 13
success are slim. These are drugs which were developed for some other disease and redirected to COVID-19 almost seems as though our arsenal against
redirected to COVID-19. This kind of disease-
SARS CoV-2 is redundant and antiquated.
hopping orphan antivirals dominate the
Recycling Old Therapies
COVID-19 scene. There is a sudden interest in anticancer drugs, particularly monoclonal antibodies
against COVID-19 was the old antimalarial
like (Tocilizumab and its analogs) to
hydroxychloroquine (a derivative of Quinine
target the cytokine storm, or increased
or Jesuit’s Bark- from a Peruvian tree).
cytokine levels, a major reason for fatality
Once hailed as an effective antimalarial,
in COVID-19. The second approach is to use
it has lost its ground due to resistance from
the convalescent plasma of a person who
the parasite. Further, hydroxychloroquine
has recovered from COVID-19. Though both
has
side-effects.
these experimental methods have shown
Unfortunately, it is still the core drug in
some anecdotal success, there are adverse
many guidelines around the world in the
reactions which are not well highlighted.
management of COVID-19. This dangerous
The cost factor makes it impossible for a
trend is continuing despite conclusive
large population.
serious
cardiac
evidence that hydroxychloroquine has no
India has the capacity to successfully mass produce antivirals and vaccines that
NEJM, Lancet). The sine qua non of medical
can heal the globe. Any vaccine or drug against COVID-19 designed anywhere in this
curious case of hydroxychloroquine, the
world must eventually be mass-produced
prevention and treatment seem to be
in India.
worse than the disease.
Hope was generated when Oxford’s
Orphan antiviral Remdesivir was touted
Jenner Institute projected an 80 per cent
as one that specially targets the viral
success rate for their Chimp Adeno Viral
multiplication. However, it failed with Ebola
Vector-based vaccine against COVID-19.
and Lassa virus infection. It was repurposed
Disappointingly, the primate study did
for the management of COVID-19. The drug
not yield protection against the aerosol
did not make the mark in early trials although
challenge.
a minimal reduction in the number of days to recovery was observed. Favipiravir another
A Trinity of Lethal Viruses There is no effective vaccine against SARS2003 and MERS-2012. Both viral diseases
of success are slim. These are drugs which
are caused by viruses similar to SARS CoV-
were developed for some other disease and
2 causing COVID-19. If there was a SARS
14 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
HERD IMMUNITY
ORPHAN ANTIVIRALS
Drugs developed for some other disease and redirected to COVID-19 Remdesivir-Minimal reduction in the number of days to recovery observed
Allowing natural infection in
70% population can be devastating in a disease like COVID-19
Without immune memory protection cannot be longlasting
RECYCLED CANCER DRUGS
Monoclonal antibodies such as Tocilizumab to target the cytokine storm
HYDROXYCHLOROQUINE
Convalescent plasma - high cost-factor
Lost ground due to resistance from the parasite. Has serious cardiac side-effects
large population
CoV-1 vaccine it could have been
vaccine that could only partially
rapidly deployed for COVID-19. It is
protect against tuberculosis. The
highly plausible that such a vaccine
polio vaccine is successful, but the
could have at least afforded partial
polio virus is unrelated to the SARS
immunity against SARS CoV-2. The
CoV-2 virus. Both these vaccines are
reason for not developing a SARS 2003 or
being phased out as polio is on its endgame and the resurgence of tuberculosis has led to the development of BCG-II. Both these
two things: a missed opportunity and
vaccines cannot protect anyone against
developing an effective vaccine against
COVID-19.
SARS viruses could be a daunting process. Proponents of the BCG and polio vaccine are shooting in the dark. BCG is a bacterial
www.synergiafoundation.org
Unheard Immunity Herd immunity is an interesting lecture
| COVID-19 COMPENDIUM | 15
FATALITIES DURING MAJOR PANDEMICS SINCE THE START OF 20TH CENTURY Spanish Flu 1918-1920
Asian Flu 1956-1958
HIV/AIDS 1981-present
SARS 2002-03
Swine Flu 2009-10
MERS 2012-present
Ebola 2014-2016
Covid-19 2019-Present
50 Million
1.1 Million
35 Million
770
2 lakh
850
11,300
228,872
topic at schools of medicine and science,
pandemic died a natural death without
but executing it can have unforeseen
much intervention. Are we expecting a
consequences. The archaic theory has
similar end?
attracted a lot of attention. If 70 per cent
In the absence of a drug or a vaccine,
immune
public health methods are the last resort
against a disease, it is likely the remaining
to save us. Simple, effective, and universally
30 per cent will be protected. However,
applicable, these methods were quickly
of
the
population
becomes
there are two routes to it. One is allowing 70 per cent people to acquire the infection
Lockdowns, isolation, quarantine, social
naturally and become immune to it. The
distancing, prevention of public gatherings
second is to use a vaccine to obtain the
have proven effective when strictly adhered
same endpoint. In both the approaches,
to. However, due to implications on the
allowing the natural infection route can be
economy and human mobility, they cannot
devastating in a disease like COVID-19. This was a strategic mistake the UK made in the beginning of the pandemic and had to regress its policy later. Similarly, proponents of innate immunity believe in bolstering it. Unfortunately, without immune memory,
| CONCLUSIONS AN EXTINCTION PATH? There are important lessons to be learnt
the protection cannot be longstanding.
certainly on a mass extinction path and death. Tweaking it should be done judiciously.
Spanish Flu 1981 and Covid 2019
pernicious cycle of infection and reinfection can eventually catch up with the majority of the global
The Spanish Flu pandemic of 1918 was by a similar pathogen, similar transmission dynamics and caused around 500 million infections and 50 million deaths.
health centres, surging cases and exhaustion of resources, we would
A
hundred years later we are in no better
is a testament of faith we look up to
position. With all our advances are we not expected to fare better? The 1918
16 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Potential Candidates WHO reported in the second week of July that there are 23 candidate vaccines in clinical evaluation and 137 candidate 23 are currently undergoing human trials, promising contenders so far, and looking to start human trials, are: Sinovac (Sinovac Biotech Ltd. in China) based on a SARS platform. Sinovac says its inactivated vaccine protected monkeys
The Race for a Vaccine
against the virus, using weakened forms of the COVID-19 virus.
no
ChAdOx1-S
(University
Adenovirus
Type
Biological
5
of
Vector
Inc./Beijing
Oxford/ (CanSi
Institute
of
Biotechnology in China) based on the Ebola SYNERGIA FOUNDATION RESEARCH TEAM
T
research. It has been approved for military use in China. LNP- encapsulated mRNA (Moderna/
here is a global race against time to
NIAID in the U.S.) based on RNA from the COVID-19 virus.
the coronavirus. While the urgency is
The U.S. government’s ‘Operation Warp
well appreciated, there is no way a vaccine
Speed’ programme is expected to name
for such a deadly virus can be fast tracked without going through the established and
billions of dollars in federal funding, even
time-proven protocols.
before there is proof that the vaccines work. This is aimed at fast tracking the whole
into three phases: phase 1 focuses on the safety of the vaccine on a small group of
process. In India, two vaccines are in the works for phase I/II trials: Covaxin by Bharat
determining the required dosage for an
Biotech and another by Ahmedabad-
effective immune response; and phase 3
based Zydus Cadila. According to Zydus,
puts the vaccine to the test on a larger scale,
the potential vaccine showed a “strong
across age and population groups.
immune response” in animal studies, and
Generally,
after
pre-clinical
studies,
the antibodies produced were able to completely neutralise the wild type virus.
to 18 months. Once proved to be safe
Different methods are being employed
and successful, licences are issued for
in making the vaccine for COVID-19.
commercial release.
Considering that there have been no
www.synergiafoundation.org
|
COVID-19 COMPENDIUM
| 17
vaccines for other coronaviruses such as
There is also the risk that accelerated
MERS or SARS, it is still largely an unknown
tests could lead to missing potential sideeffects. A vaccine for dengue fever, and one for SARS that never reached the market, were abandoned after some respondents
One of the methods is based on our immune system producing antibodies
were found to be more susceptible to severe forms of the diseases, not less. Vaccine making needs sophisticated
place, scientists realised that they did not
equipment.
Microsoft founder Bill Gates
need to inject the entire pathogen — just
has warned of a critical shortage of a vital
the fragment that triggers this reaction.
yet forgettable component: medical glass.
These are now used against hepatitis B
Without enough supplies of the glass, there
and shingles. Scientists can add a gene
will be too few vials to transport the doses that will be needed by billions.
making a viral vector, which then stimulates the immune system to make antibodies.
Big Player India
This is a method being employed with the
The recent announcement by the Indian
ChAdOx1-S.
Council of Medical Research that a vaccine
Some groups are injecting pure DNA
will be released by August 15 created a furore.
and RNA, which then is read by the cells protein-building factories, and they make a viral protein. The protein, in turn, comes out of the cell, where immune cells make Moderna in the U.S. has used.
Pitfalls of Accelerated Trials Writing in the journal Vaccines last month, vaccine developer Stanley A. Plotkin and Arthur L. Caplan, bioethicists at NYU Langone Medical Center, proposed starting challenge trials for the COVID-19 vaccine, which
involves
volunteers
with
infecting the
vaccinated
coronavirus.
The
procedure might cut months or years off the vaccine research, but would put test subjects at risk.
18 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
On July 2, the council’s Director-General Balram Bhargava told 12 institutions to
MIGHTY RUSH
“fast-track all approvals”. While some said the date paints a slightly nationalist agenda to the pandemic, others objected to the recently was simply in pre-clinical trials, when vaccines that had been under more advance phases had not yet announced an However, in an interview with Indian
159
in development
Express, Lokesh Sharma, a scientist with ICMR, said: “It is not to be interpreted as a deadline. This is our aim, which depends on the cooperation of institutes. If we are going to start work, we should do so with an aim, and it should be of success.”
02
in phase 2 trials (dose testing in humans)
Pharma sector
$ 100 billion by 2020
Medical devices
$ 25
billion by 2020
Soumya Swaminathan, Chief Scientist with the WHO, has expressed doubts about the vaccine being available by August 15 in an interview with India Today. “Most vaccine development projects take years
05
in phase 1 to 2 (safety and
Pharma exports
$ 19.14 billion by 2020
to complete. But since we are in the midst of a pandemic, we have shortened the timelines. A very optimistic estimate is that it will take about 12-18 months to develop a vaccine against Covid-19, from the time you start your vaccine development process.”
04
in phase 1
Pharma exports
$ 19.14 billion by 2020
The unlisted Indian vaccine maker Bharath
Biotech’s
Covaxin
received
regulatory approval to start human clinical
to have a head-start on manufacturing
trials for its experimental shot. It is lined
and to have enough doses available. The
up to be tested on over 1,100 people in two
distribution of the doses will only commence
phases from July.
once the trials are successful”.
Serum Institute of India (SII) has already
There are high expectations on India
started production of the vaccine candidate even
key players in the global vaccine industry.
though the drug has not been licensed yet.
SII is the worlds largest vaccine producer.
developed
at
Oxford
University,
Hyderabad-based Bharat Biotech has so far SII, told the German TV channel Deutsche
commercialised 16 vaccines, including one
Welle (DW-TV) that “the decision [to start
against H1N1, and sells products in over 65
production of the vaccine] was made solely
countries.
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 19
Accelerating the Development of Novel and Affordable Therapies BASED UPON VIRTUAL FORUM DISCUSSION PARTICIPATED BY
Chas Bountra,
K Vijay Raghavan,
Pankaj Patel,
Sharad Tyagi,
Pro Vice Chancellor at the University of Oxford
Advisor to Govt of India
Chairman of Cadila Pharmaceuticals
MD Boehringer Ingelheim India
T
he high cost of therapies is due to the
more effective therapy, rendering their
cumulative effect of research, cost
investment redundant.
of production, cost of raw products
Due to the all-pervasive sense of rivalry
and labour. While only 20 percent of the
in the industry, there is intense secrecy in
research cost is what is done
cutting edge research and
in laboratories and while 80
IPRs are jealously guarded.
percent is spent on clinical
As a result, there are multiple
trials, this makes the cost of
research
development prohibitive. To
conducted at any point in
make matters worse, over the
time by different agencies on
years the clinical trials have
the same drug and therapy,
gone haywire, requiring huge
which leads to duplication and
quantities of proving data
avoidable waste of resources
with many parameters to be
and time. Government
measured, a large number of biomarkers to be found out, that the cost of research has gone up exponentially in the last two decades. For the private industry investing in new drugs and therapies, there is no surety that the product will sell, no guarantee of an assured market, and the nagging fear, that someone else has beaten them to an even
20 | COVID-19 COMPENDIUM |
projects
Investing in new drugs and therapies, there is no surety that the product will sell, no guarantee of an assured market
governing
drug
being
regulations research
also have an inhibiting effect. Regulatory authorities across the world have created a maze of rules and regulations that create hurdles rather than be supportive of expeditious research. Is there a need to generate a huge volume of data to support new drug research if a reasonable amount of data can lead to equally effective
www.synergiafoundation.org
therapies? In the past, effective drugs have It is understood that there are concerns of
E X P E D I T E D TREATMENT FACTORS
patient safety and fear of side effects, but
Quality Infrastructure
been invented with much less data mining.
researchers and companies are sensitive to
Create and maintain quality infrastructure which would ensure that the tasks needed to be carried out are done
this. There is a need to focus more on data on the premise of “Must Have” rather than the present concept of “Good to Have.” The pandemic has exposed the state of the health care system in almost all countries across the divide between the
Policy framework Need for a policy framework that supports innovation as the top agenda of government across the world
rich and the poor. The health care system
Sound regulatory system
is crippled, facing a major challenge of
Authorities need to differentiate between the ‘must-have’ and the ‘good-to-have’ in the quantum of data generated before a novel therapy is accepted for mass usage
making two ends meet, despite working day and night. It is feared that many in the health care business will go bankrupt. Overall we need to invest in people, in innovations, creating therapies and in ensuring that ultimately the patient is cured- this is the most important part of the health care system.
Strong linkages Needs to be a strong link between academica, industry and governments. Research hubs where there is an interaction between people, industry and the tools for innovation,
Government Initiatives For accelerating therapies, we need an
expensive and has inherent risks of the entire investment coming to a nought. For
the University of Oxford.
greater risk-sharing, since funding cannot
The government has to take the lead in
be done solely by the pharma industry or
creating this environment. The environment
the government or by academia by itself, but all put together not only generate more
physical infrastructure within India, a holistic
resources but also spread the risk.
policy laying the framework to support
The government has to create hubs
innovation, putting innovation at the top of
for drug research where academia, govt
its agenda, creating an enabling regulatory
research labs and the pharma industry
system and last, but not the least, providing
come together and work in a conducive
a platform for strong linkage between the
environment in a spirit of togetherness.
academia, industry and the government, as
Here innovations will take place once clear
illustrated by Oxford University. The Oxford initiative pools resources to share the cost, working with nine large
Such an organised environment will have its
pharmaceutical companies, several patient
payback in motivated researchers working
organisations, funds from private trusts and, the UK Govt. Drug research is exorbitantly
www.synergiafoundation.org
timelines.
| COVID-19 COMPENDIUM | 21
10ml
VACCIN E
COVID-19
COVID-19
VACCINE 10ml
The Oxford initiative pools resources to share the cost, working with nine large pharmaceutical companies, several patient organisations, funds from private trusts and the UK Govt A word of caution; large scale drug
health care costs-insurance, reimbursement
manufacture can impact the delicate
by the government and, from own pocket.
environmental balance, and the regulatory
The situation is quite acute because it is the
authority has to be mindful of this. The
out of pocket model, where most patients
objective should be to ensure sustainable
end up paying themselves, that is used
growth without damaging the ecology and
largely. However, more than the cost is the
the environment.
access to healthcare. How do you get a
The government will have to play a
patient to be able to afford the medicine without having to shell it out of the
affordable. Many countries take on the
pocket? Insurance is one solution. Public
expenditure of high-cost therapies as in
private partnership with the government
the case of HIV. The prices can be further
supporting
brought down by encouraging multi-source
infra support and funding is another. The
supply for which collaboration will have
Ayushman Bharat model has great promise
to be intergovernmental to bear pressure
provided it is taken forward in an effective
the
private
industry
with
manner and has the medical health care government has to take a call whether
infrastructure to support its objectives.
to pay for all therapies for the poor or pay
The government must create a single
only for those which are very expensive.
regulatory authority for approval and
There are examples in India where private
a transparent procurement system. All
companies treat cancer patients from
countries have their individual regulations
below the poverty line with support of the
that act as barriers to worldwide usage
state government who bears the cost.
of drugs, thus adding to the overall cost
There are different models for paying the
22 | COVID-19 COMPENDIUM |
of the drug. If a drug has been proved
www.synergiafoundation.org
to be effective in one country, should it
Initiatives by the Industry
again undergo the scrutiny of multiple
The scientists in the industry must focus on
regulators and obtain approval multiple
processes which answer to the creation of
times before it can be introduced in the
new drugs and therapies that will not only
Indian market?
be state of the art but also due to reduced
Internationally, there has to be an agreement to streamline the regulatory process
for
doing
away
with
cost of research, more affordable across the globe.
the
The Oxford experience has shown
cumbersome, and expensive legal process,
that collaboration and not competition in
of seeking clearances in multiple countries once the same has been obtained in one
forward. The key lies in pooling resources to
nation under internationally accepted
share risk and focus only on entirely novel
norms. This will not only bring down the
ideas, as is being done in a study being
cost but will also ensure the new drugs
conducted in Oxford.
are made available to patients in low and
Every day scientists working at Oxford
middle-income group countries in the
are creating novel genes or proteins to
same time frame as their more developed
generate tools as starting points for drug
counterparts.
discovery,
for
producing
a
molecular
The supply chain of essential drugs
inhibitor or antibody etc. These very high-
must not be dependent on one company,
quality tools are being provided to nine
one country or even one region. Encourage
very large pharma companies thus driving
new entrants, reduce the risk, ensure the
innovation while keeping down the costs.
stability of policy and reward enterprises that create affordable medicare. Governments have to change the way they look at the progress made by their respective countries. The state of a community or a country should be measured by the health
Where people are most optimistic about the vaccine race % who agree that a Covid-19 vaccine will be available before the end of 2020 Agree
Disagree
China
87
13
India
economic practices. This will modify the way
74
26
Brazil
51
49
countries invest in health care; this should be
Russia
47
53
in a more holistic manner, not just through
France
pharmaceuticals or therapies but overall. They should ensure the entire humanity is
40
61
Spain
36
64
United States
34
66
South Korea
34
66
United Kingdom
31
69
COVID-19 showed the relevance of the
Canada
26
74
public health care system in the service
Germany
24
77
of its citizens. This sector demands the
Japan
22
78
getting healthier and is better cared for.
greatest attention from the government in terms of budgetary support, research, multidirectional approach and collaboration at an international scale.
www.synergiafoundation.org
Source: Ipsos MORI
|
COVID-19 COMPENDIUM
| 23
All these tools do not draw IPR; Oxford does not patent them. These are freely available and as a consequence are being used in over 300 academic labs all over the world, including India. This is the best example of crowd sourcing science. Crowd sourcing has the advantage of avoiding duplication. There is no need to conduct research in an area which is already being done somewhere else or which has already been done; this is just a waste of time. To sum up, the lessons emerging from Oxford University are; (a) Pool resources to
A group of highly talented persons have been working with the govt and the regulators and funders and with AstraZeneca to create a partnership to generate a billion sample of vaccine as quickly as possible
share risk (b) work in novel impossible areas to drive innovation, (c) make everything freely available to crowd source science, (d)
health data-based company. Technology
release everything to the world immediately
must also enable early diagnosis of the
to
waste.
disease akin to onboard diagnostic systems
Collaboration is the primary central theme
in highend cars. Scientists in the health
reduce
duplication
and
here. Why do we need a disaster to tell us about the importance of cooperation and to
indicators that will help in setting up such
make us work in a much better manner? It
an early warning system. This is greatly
should become the norm. Sharing data and
required for the treatment of cancer and
knowledge will reduce the cost of therapies.
rare diseases.
This collaborative effort being run by
The industry has to focus on major
Oxford University is called the “Moonshot
global problems and come out with
Programme”.
comprehensive solutions. Today there are
A group of highly talented
persons have been working with the government, the regulators, funders and,
dollar conglomerates such as Apple and
with AstraZeneca to create a partnership
Microsoft. These are all data tech companies.
to generate a billion samples of vaccine
Within the next decade, we shall witness
as quickly as possible. AstraZeneca will
the rise of trillion-dollar health care data
now give a licence to the Serum Research
companies. Today Johnson & Johnson is the
Institute in India to generate another billion
largest health care company but is worth
samples. The single goal is to generate a
only about US $ 400 B.
vaccine which is effective and safe and is
The
message
is
that
with
better
made as quickly and as cheaply as possible.
management and innovative application,
Technology has to be developed to
the health care industry will attract higher
have the health care equivalent of an early
investments and partnership across other
warning system in diagnostics; technology, which will ultimately create a trillion-dollar
24 | COVID-19 COMPENDIUM |
given a boost to this sentiment.
www.synergiafoundation.org
VACCIN E
VACCIN E
COVID-19
COVID-19 1 0m l
COVID-19
VACCINE 10 m l
lm01
E NICCAV
10 m l
91-DIVOC
1 0m l
VACCINE
lm01
E NICCAV
COVID-19
91-DIVOC
Charting the Path for Vaccine Rollout
As we stand at the cusp of another great event,10mthe rollout10m ofl COVID l VACCIN E VACCIN E COVID-19
COVID-19
will ensure a fair, safe, affordable and timely distribution for all.
looming ahead- manufacturing in scale, MAJ GEN AJAY SAH, GEOPOLITICAL AND STRATEGIC ANAYLST, SYNERGIA FOUNDATION
T
distribution in an ethical way, persuasion of wary citizens to take what has been an incredibly speedy process and develop and sustain trust in the process.
Multilateral cooperation o reach so rapidly, the coveted goal
The COVAX Facility forms a key part of
of inventing a vaccine for a deadly
the COVAX pillar (COVAX) of the Access to COVID-19 Tools (ACT) Accelerator, a ground-breaking global collaboration to
achievement. With three different sets of
accelerate the development, production,
clinical trials in the western world showing
and equitable access to COVID-19 tests,
surprisingly effective results, this affords the
treatments, and vaccines. This was created
perfect reason to assume that in a mere
almost overnight with over 180 countries
matter of months, vaccinations will begin.
now committing to it, covering over 90 per
Under normal circumstances, the average
cent of the world population with over 2
time to develop a vaccine is around 7 to 8
billion dollars allocated to subsidise some of
years.
the payments for the poorest countries.
However, the battle is far from over.
The coordination was started just a
The obstacles faced in its discovery pale
few weeks after the viral sequence was
in comparison with the humongous task
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 25
vaccine candidates are being developed with over 50 in clinical trials. These are based on all types of vaccine development
VACCINE HESITANCY: THE NEXT CHALLENGE IN THE
platforms ranging from the old inactivated
Concerns regarding COVID-19 Vaccine
virus technology to the latest.
340
Quality control Side effects
The Race Leaders
167 148
Associated COVID-19 illness Wait until tested by others
tweeted, “Covishield, a low-cost, logistically manageable & soon to be widely available,
in the other dosage regime.” Covisheild is
In India, vaccine research is being done by Dr. Reddy’s Labs (collaborating with
Gamaleya
Research
Institute
57
167
13%
Disease is mild
(133)
96
Other
(167)
11%
Concerns by category
CORNCERNS BY GROUPS Safety 70% General popultion
being developed by the University of Oxford, in collaboration with AstraZeneca.
(984)
76
Physiological immunity is better
COVID19 vaccine, will offer protection up to 90% in one type of dosage regime and 62%
76%
12
Pregnancy COVID-19 symptoms are mostly mild
Poonawalla, CEO of Serum Institute of India
Safety
53
Wait for next year
Covid 19 vaccines have reported around 95
264
Safety 70% 20% 10%
Disease is mild
19%
Doctors 11%
Disease is mild
Concerns among responders regarding potential COVID-19 vaccines. A list of concerns regarding potential COVID-19 vaccines. Venn diagrams combining the concerns into three main categories
of
Epidemiology and Microbiology, Russia) and Bharat Biotech (in collaboration with the University of Wisconsin, USA). Zydus Cadila India has its own vaccine ZyCovi-D,
The data is analysed from 1941 anonymous questionnaires completed by healthcare workers and members of the general Israeli population, regarding acceptance of a potential COVID-19 Vaccine
Panacea Biotec is in partnership with the U.S. company called Refana based in Ireland, Indian Immunological has an alliance with E in Hyderabad is partnering with Baylor College of Medicine, Texas.
Global Equitable Distribution Manufacture of vaccines is a complex
the vaccine will work, ensuring that several
process, needs know-how and technical
hundred million doses will be available
infrastructure and takes time – typically one
around the time the vaccines are formally approved.
scratch and 6 to 9 months if facilities are
The task of manufacture, distribution
already established. It takes time to scale
and application is so huge that it is amply
up production and that is why a group of
clear that all will not be delivered the vaccine
countries have commenced the production
even in 2021. To narrow this gap, the world
at their own risk without knowing whether
is looking up to India, the worlds vaccine
26 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
factory that produces 60% of vaccines for the
However, international organisations can
world– both from the angle of production
try to moderate both. Many
and delivery, India is important.
International delivery options
wealthy
and
middle-income
countries are doing what is rational and politically
understandable
under
the
circumstances – protecting the interests delivery of the vaccine from the factories to
of
their
citizens,
hoarding
economic
the homes of the citizens around the world.
resources and manufacturing capacities.
First is the “Free Market“ approach that
Some governments are hedging their bets
allows the companies to sell the vaccine to
- putting money on COVAX and also doing
the highest bidder. This is the normal course
side deals with a lot of vaccine candidate
of action, but these are not normal times.
companies.
Second is “Vaccine Nationalism” wherein
The volume left for a more rational, ethical
the inventor and producer vaccinate their
and public health-oriented distribution system through COVAX may ultimately be
free market in that the citizen of such a
too small to meet everyones needs even by the end of 2021 or beginning of 2022.
they themselves have been vaccinated. The third is adhering to the “COVAX partnership” which opposes a free market and vaccine nationalism.
It advocates
equitable distribution around the world and to members of COVAX, which includes low and medium-income countries. All countries will receive a proportional amount – initially 3 per cent and later 20 per cent of their population. Fourth is the “Fair Priority” model – distributing to those countries that need it the most as they are those with a massive outbreak. India, where younger people are dying, will have higher priority.
THE NATIONALITIES MOST EAGER % who agree/disagree they would take a Covid-19 vaccine if it was available* 97
China Brazil
88
12
India
87
13
Fifth, and last, is the “Open Licensing”
United Kingdom
model which will get rid of patents
South Korea
permitting anyone around the world to
Canada
76
24
Japan
75
25
produce the vaccine in quantity as a generic drug. India and Brazil will be major players if this is allowed.
approaches. It is impossible to overcome either free-market or vaccine nationalism.
www.synergiafoundation.org
84
Spain
72
15 16
28
United States
67
33
Germany
67
33
France
a combination of two or more of these
85
Russia
59 54
3
41 47
*May not add upto 100% due to rounding n=19,519 adults in 27 countries (Jul 27-Aug 07, 2020). Source: Ipsos MORI
| COVID-19 COMPENDIUM | 27
Even if COVAX ensures an equitable
Vaccine Production
distribution, which agency will monitor
Production can be at a very high level.
the internal distribution within a country
Still,
depending
upon
the
nature
of
vaccine produced, or procured from the vaccinated and not the ruling elite and their
international market, the challenges will
coterie of friends and supplicants and the privileged ones? Vaccines are emerging not just as a
vaccine will require minus 70 degrees cold
public health tool but more as a strategic
chain storage. Even the Moderna needs
asset to shore up geopolitical relations and
minus 20 degrees. While India does have
alliances. Out of 11 candidates in phase 3
the capacity for minus 20 degrees, it is
trials, four are being developed by Chinese
unlikely to be picking up vaccines which
organisations and companies and one
require an extremely low cold chain storage
by the Russians. It is much harder to get
for its large scale vaccination programme.
information on what their volume and processes are.
A
vaccine produced by an Indian
manufacturer or based on an Indian
The regulatory approval of these vaccines
manufacturer using a licence from an
by WHO will be critical for shoring up
international developer would be ideal for exploiting the vast Indian production base.
WHO must also ensure the pedigree and
As per the Indian Health Ministry, the
security of the supply chain. For example, in
target is to immunise about 300 million
the past, the validation of three top Indian
people by Sep 2021, with the anticipation
companies for anti-viral drugs internationally
that the immunisation programme will begin by Feb or March.
allowing many companies to come in and manufacture without much validation, it
Vaccinating the Billions
will have enormous consequences both
The vaccine supply chain will depend upon
politically and health-wise.
the production volume, the procurement
28 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
volume and the availability of the cold chain
response and yet be free of any inadvertent
requirements, which are already being
transmission of viruses.
enhanced.
The universal immunisation
programme had established a countrywide
Potential side affects
cold chain network which is being ramped
Every vaccine in the world has an adverse
up.
reaction. When a protein is injected in a A big challenge is in terms of the health
human body, it creates a unique response;
workforce as, unlike earlier immunisation
it can also create any adverse effect being
campaigns which targeted much lower
alien to the human system. Post-vaccination
numbers, this time an entire population
fever, myalgia, headache, rash and even, life-
worldwide is the objective.
threatening anaphylactic shock resulting in
The Oral Polio vaccine oral drops were much more comfortable to store and
death are some potential risks. Therefore,
the
need
for
transport, but in this case, it may require an
Pharmacovigilance and vaccine adverse
intramuscular injection, and if two doses
reaction reporting gains importance. This
are needed, then it will double the number of not only the doses but also the effort
vaccination system and address the adverse
that goes into immunising each person.
reactions in real-time.
Mobilisation of not only nurses and doctors
The trials done so far are on a limited
but also medical students and trainee
population except for one or two vaccines,
nurses and paramedics would be required.
so obviously we do not know at this stage the long term adverse effects– some are theoretical while some could be very real.
not aware of their health status. Therefore,
Medical management of these adverse
age criterion may have to be applied–say
reactions will be crucial before we even go into launching the vaccine.
assembling, administrating both doses on time and to follow up for potential adverse reactions will be a task of gigantic proportions. Strict
hygiene
with
needle-based
concern in populous countries like India. There
are
pathogens
vast like
levels
of
hepatitis
bloodborne C
and
transmissions of these pathogens can happen as it has happened in the past. You may get protected against CORONA but in the process get infected with hepatitis C! It would be advisable to use a vaccination jet or transdermal vaccinator or even nasal vaccines which can trigger the immune
www.synergiafoundation.org
HOW EFFECTIVE ARE THE Estimated effectiveness at Covid-19 prevention based on interim data from latestage clinical trials* mRNA-1273 (Moderna) BNT 162b2 Gam-COVID-Vac sputnik V
Nov 16
95%
Nov 18
95% 92%
Nov 11
Research Institute)
ChAd0x1 nCov-2019
(University of Oxford/ AstraZeneca)
Nov 23
70%
*As of Nov 23, 2020. Phase III trials for BNT162b2 are complete. Sources: Respective companies, Russian health ministry
| COVID-19 COMPENDIUM | 29
vaccine escape mutants. This has happened A vaccine is designed to create a correlate of protection which in simple terms means
in hepatitis B and other viral diseases. This is a zoonotic disease which came
the quantum of antibodies formed and the
from animals;
it had recombined within
length and duration of protection afforded.
animals before it struck human immune
For instance, all these vaccines are claiming
systems. Recently we had what was called Mink infection with SARS COVID 2. After
encouraging. Conventional vaccines like the
passing through the mink, it became much
hepatitis B vaccine have not been able to cross
more virulent. Normally after passing through
80 per cent despite having four generations
animals, the virus becomes attenuated and
and a huge vaccination history. Similarly, with
less virulent but not in this case. Such a comeback can threaten your vaccine strain.
not been able to cross even 60 per cent.
Antibody-Dependent
Enhancement
The point is whether COVID vaccines
(ADE) is another threat. This has been seen in
really are able to reach the claimed
cases of Chikunguniya and similar related viral diseases. If there is a prior antibody or if you
in a sustained manner. It’s quite likely that
immunise someone against a disease some
six months down the line, the vaccine levels
time because of adding to the mix of the
may drop to 50 per cent. We need a plateau
immune system and the viral components
and not a downward spiral that can happen with vaccines that initially show very high levels of response.
It is for this reason;
vaccines use a prime and boost system. A shot is given on day zero, and after 30 days, the booster dose is delivered – a double
THE CASE FOR INTRANASAL VACCINES Intranasal
vaccines
are
an
excellent
vaccination system. If it is going to be an annual vaccination scheme we are not sure if it is a double dose again or just a single dose. In the past,
of the population as one year they get vaccinated and skip the next. The Darwinian evolution principles apply to the virus equally. When under the selection pressure of a vaccine, the virus is bound to become resistant. Right now the virus is immune system literally feeding on it, but the
Nasal vaccines stimulate both mucosal and systemic immunity which gives better Nanoemulsions are an ideal vehicle for the delivery of intranasal vaccines backed by SBS patent-protected platform to deliver vaccines intranasally is available. The advantages of this delivery system for the COVID vaccine are: Long-lasting immunogenicity Strong immune response Increased potency, sustained release of
day an effective anti-viral vaccine is injected
Stability on storage (may not require cold chain)
into the virus and host ecology, the virus will
Protection from degradation
30 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
of the related viruses there can be some kind of enhancement so that the next time it can
| CONCLUSIONS
become very severe. If you are infected with
For the future, the issue of global
one strain of dengue virus the next time you contract dengue it could be very severe There are theoretical risks that this vaccine can create such a milieu and when you have
rules and money put on the table so that when the next pandemic hits, the world is not scrambling in
an actual infection again, there could be a hyperactivated immune system leading to lung disorders and other complications, Another issue is whether people already contracted COVID will need the vaccination.
Securitisation of global health is making the vaccine as much an issue of national security and national diplomacy as national
There are three categories of such people; those hospitalised, those not hospitalised
polarised world where decisions are
with mild symptoms, and those who were detected purely on antibody-based serological surveys.
Some could have
been positive but remained asymptomatic. In most cases, it isn’t easy to assess the duration of immunity based only on the
Trade-offs between the vaccine that the host country needs and what are the requirements of multilateral organisations will remain a muchcontested issue at home and
antibody levels. Cellular immunity may last longer than three months or six months, or even longer, no one can say with certainty how
It is not important for every individual to rush for the vaccine; it depends upon the priority and
protected these individuals are from reinfection. There are already some reported
most pandemics have vanished
incidents of re-infection based on the genetic signature of the second virus
individual’s work or life does not involve exposure to infection such
So we have to proceed on the assumption that there is still vulnerability, even if some antibodies were produced affording some
of wait and watch may be advisable
cellular immunity, it might not be strong enough to last a long time. It depends upon the viral load they were exposed to and what the body’s capacity to produce lasting immunity is. In
infections
caused
by
previous
coronaviruses like the SARS 1 virus, the immunity lasted up to 2 to 3 years, but the common cold corona viruses have immunity lasting for only a few months.
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 31
Evolving a Medical Strategy
With the limitations on bed capacity in India, a graded approach to patient care has to be adopted so that only the most deserving cases reach COVID hospitals. “In about 90 per cent cases, COVID-19 only
SYNERGIA FOUNDATION RESEARCH TEAM
T
causes mild illness which does not require hospital care and can be cured at home, with remote medical supervision,” says
he aim should be to create a
Arvind Kasturi, Head Community Heath
responsive
system
Care, St. John’s National Academy. Naresh
pandemics.
Shetty, President, M.S. Ramaiah Memorial
designed
healthcare to
tackle
Hospital, is of the view that it is critical to
National Disaster Management Agency and the Public Health Foundation of India, a
the patient is admitted. Hospitals should
public–private partnership would be critical.
have a fever clinic outside, where blood
A well-integrated
strategy should be
test and X-rays can be done. A rapid test
based upon 3Cs: convergence of policies between government, local administration,
The supply chain for PPE should be robust,
public
proper
particularly in private hospitals for they
communication strategies; and coordination.
continue to attract scores of patients who
and
private
hospitals;
While public healthcare is ideal in a pandemic, the private sector should not be left out.
are relatively well-cared for, the greater
The Aarogya Setu app has failed in its
worry lies in rural areas, where people are
objective. Its widespread usage would have
dependent on local-level care such as
generated useful data to track the infection
ASHA workers and PHCs. “It is here where
and supplement it with other containment
the battle needs to be fought and won,”
measures.
says Arvind Kasturi, Head, Community
32 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Heath Care, St. John’s National Academy.
Fatigue & System Failure
As R. Balasubramaniam (Harvard School of
‘Prevention fatigue’ can set in due to long
Public Health) rightly put, social distancing
hours of work in an overloaded system. The doctor or nurse could lower their guard,
activities. In rural areas, lack of water makes
resulting in exposure. The second aspect is the ‘bystander effect’. When healthcare
and social stigma of the disease is also a big
workers
issue.
among their infected colleagues, it can
Sundareshan
from
the
IISc.
for COVID-19, in consultation with foreign universities. By factoring varied population sizes and types, living conditions, rates infections,
and
and
fatalities
judgment.
Bangalore, has been working on simulators
of
illness
lead to mental exhaustion and poor clinical
Simulator Models Rajesh
observe
hospital
capacities,
The Private vs Public Debate
simulation can give us an idea of morbidity/
Tobby Simon, Founder and President, Synergia Foundation & R Balasubramaniam,
mortality rates. After this, a variety of interventions can be applied to mitigate model should cover the smallest possible scale, i.e., at the local level, proposes Mukund
Harvard School of Public Health and Founder, Swami Vivekananda Youth Movement and GRAAM, Mysuru
Thattai of NCBS-TIFR. The results would be easier to re-calibrate on a larger scale. However, evolving a model for COVID-19 is
I
t has emerged clearly that the delivery
like earlier viruses, especially in how it has created symptomatic ‘super-spreaders’.
of healthcare, either by the private or the State-run system, is a national priority. All
such resources are “public goods” to be
shared equitably for the common good. global
Most countries have a dual system of
response lies within the network of hospitals.
private and public healthcare, yet the public
Shortage of PPE shows the lack of alternative
system is most accessible to those with
manufacturing options. The rising demand
lower income. Public hospitals get quickly
for ventilators and a diminishing stockpile of
overwhelmed while catering to all segments
oxygen can have devastating consequences.
of society. But, private institutions are
Pre-designated
and
inclined more towards super-specialisation
decontamination sites are not routinely
and hence, are expensive. Consequently,
incorporated into hospital design. Further,
they are not well-equipped to intervene
shutting down hospitals as contaminated
during pandemics. Responding to public
sites, even temporarily, deprives the citizen of
health emergencies is resource-intensive
routine health services.
and is not commercially attractive.
Orchestrating
a
national
isolation
www.synergiafoundation.org
and
venues
| COVID-19 COMPENDIUM | 33
Systems Around the World
A robust public healthcare sector, on the
Though Italy and Spain have excellent
other hand, can ensure proactive responses
public healthcare systems, they were not
at the national and local-level, making
equipped to handle a pandemic. Chinese
it easier to handle crises.
authorities, on the other hand, operating
response usually demands a multi- and
under a centralised system, took quick
interdisciplinary approach to management
decisions to stem the tide by building new
and many times, it goes even beyond a
COVID-19 hospitals overnight.
The U.S.,
medical approach to the problem. Private
largely dependent on a private healthcare
hospitals usually operate on commercial
system, found itself poorly equipped to deal
principles and there may be no space for
with the pandemic. Deterred by expensive
free services during public emergencies.
healthcare
But, they have a role to play by continuing
and
absence
of
adequate
insurance cover, people chose not to go to hospitals. This compounded the infection
Public health
to address regular health issues. Governments
also
need
to
build
rates and stretched the public health
complementary partnerships with private
system beyond its limits.
and civil society. It is only when all players
In India, the response to the pandemic
work together that such situations can be managed.
healthcare. Some private hospitals have been directed to treat symptomatic patients,
Fight Forward, Fight Local
but due to limited testing facilities and
Japan, South Korea, Singapore and Taiwan
higher cost, the number of such patients
had endured the most of SARS and knew
has so far been low. In semi-rural areas, the
what was brewing. They operated on the
private sector hospitals are not comparable
belief that the virus can be defeated if local
to those in the cities. They only have basic
governance fetched up. Herein lies the
infrastructure. It is also worrisome that
mantra for waging a successful campaign
many smaller private hospitals and nursing
against this insidious virus — empowering
homes in cities have closed down their out
local
and inpatient facilities.
panchayat, and ward-level to carry out the
34 | COVID-19 COMPENDIUM |
governance
at
district,
tehsil,
www.synergiafoundation.org
59,481,313 1,404,542 Deaths
Source: World Health Organisation
plan conceived at the national level.
support, isolation wards, and creating
The district administration is key in
additional ICU beds and monitoring the
successful implementation of the national
available ventilators in the district to ensure
plan. Districts that have activated their crisis management groups and control centres in
in charge will have to urge private hospitals
a proactive manner will be able to confront
and practitioners to be available to pitch in.
the developing situation well. The national
Kerala learnt from its Zika experience
directive of COVID-19 is clear: surveillance,
and quickly tracked down clusters of infections. They used anganwadi and Kudumbashree workers to conduct door-
then treat. Risk communication is critical, as a large
to-door surveys, and used digital mapping
part of the population may be illiterate and
to ‘break the chain’ of infections. Karnataka
would not know the stark dangers posed
created a Municipal Corporation War Room
by this virus.
to track cases using mobile tracking.
The community worker is
the frontline soldier in this war. The local populace has to be taught the basics of
Centre and State Coordination
social distancing and home quarantine.
State governments must expand their
Constant vigilance has to be maintained
hospital capacity by decongesting hospitals
to detect symptoms. The tehsil and district
and converting public accommodations
bodies would need to prepare for a large
into makeshift holding areas and isolation centres. The existing staff must undergo a
focus has to be on enhancing laboratory
www.synergiafoundation.org
crash course in epidemiology. Final-year
| COVID-19 COMPENDIUM | 35
trainees (doctors/paramedics/nurses) must
should be reorganised looking at a longterm battle.
timely sharing of information hampers the
It is essential to set up kiosks in hospitals for fever checks and monitoring
good example was the mass movement of
suspect cases among the staff. Contact
migrants from megacities.
has
to
be
minimised
through
strict
visitor protocols, patient protocols, tele-
The American Experience
medicine, postponing elective surgeries,
There is a need to re-engineer COVID
and changing medication to make visits of
treatment spaces with negative pressure
patients to hospitals less frequent. Matthew
as no hospital is designed to handle
Anthony Kalliath, Chief Surgical Resident,
pandemics:
University
Richard
Garcia,
Medical
Director – Chief of Staff, Ferry County
of
Pennsylvania
Medical
Center, Harrisburg, advised upgrading air-
Memorial Hospital, Washington. In U.S., too, frontline doctors faced the shortage of PPE.
However, doctors are
effective against the virus. Jake
Moore,
Emergency
Medical
learning on the job along with the progress
Physician, Rush Oak Park Hospital, IL,
of the pandemic. There is scope for
stressed the importance of regular and accurate messaging about the pandemic. “Everyone appreciates knowing the hard
patient management. Shameeke Taylor, Emergency Medical
truths about the pandemic,” he says.
Physician, Mount Sinai Medical Center, New
People should be informed about the
York, described the innovative ways used
risks and stigmatisation should be nipped in the bud.
construction workers and 3D printers used
for
making
face
shields.
Dynamic inventory management
| CONCLUSIONS
should be practised to anticipate
Protecting Healthcare workers Human
Resources
should
look
into
rotation
of
shifts,
employment
of
volunteer staff, and ensuring
correct
An integrated national action plan, support by WHO, and global data sharing is the need of introduced a drivethrough testing method to get as many people tested and Germany also followed broad
wearing of PPE by the staff.
Work
shifts
36 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Countries and Pandemics TOBBY SIMON, FOUNDER AND PRESIDENT, SYNERGIA FOUNDATION
One represents danger, and the other represents opportunity
T
John F. Kennedy, he world, irrespective of political ideologies of ruling dispensations, has been brought
short list of countries that have experienced remarkable success are Vietnam, Cuba, South
chief strategy was early detection, followed by free treatment and care to anyone with an infection. Private healthcare systems have been found wanting, especially in India.
Is Socialism the Vaccine?
mortality rates and a new drug, Avifavir, to
It may be true that the socialist approach to governance brings greater focus on public
healthcare
and
social
support
As an example of nationalistic bravado, Alexander Lukashenko of Belarus, president since 1994 and ex-Soviet soldier, has
communist dispensation could be worse
dismissed corona as a “psychosis” and said,
has focused on public healthcare. The key
that ice hockey is “better than antiviral
differentiator may not be ideology, but a
medication”; and asking people to “wash
responsive, empathetic administration.
their hands with vodka”. With no lockdown,
Russia, from among the lowest caseloads
no border sealing, and among East Europe’s
in March, soared to world number two, till
highest caseloads, the situation is being
it was replaced by Brazil. The country was
called a “viral Chernobyl”.
weighed down by inexperience and an
Here we look at four success stories where leadership can stall an epidemic’s
talking points now: allegations of fudged
www.synergiafoundation.org
passage.
| COVID-19 COMPENDIUM | 37
Cuba For a country nicknamed ‘El Cocodrilo’, there’s one thing Cuba is not: being cold-blooded when it comes to healthcare. Its renowned free public healthcare system is in the limelight again, aplomb. Cuba has the highest ratio of physicians to population, a key factor in its low caseload of 2,173, with just 83 deaths. It called on nearly 28,000 medical students who went door-to-door across the country. Cuba also made headlines with its ‘medical internationalism’— sending doctors and support staff to crisis-hit Italy. Integral to reducing the number of deaths globally is a Cuban antiviral drug, Interferon alfa-2b. The Canadian pharma major BetterLife is now taking up this 30-year-old invention for trial and mass production.
New Zealand The expeditious and
South Korea
calm reaction of New
It was
Zealand Prime Minister
evident
Jacinda Ardern to the
that South
Christchurch shooting
Korea had begun
New Zealand’s
stockpiling
commitment to
coronavirus
remain a liberal country. It’s with the
testing kits
same spirit she took on the COVID-19
long before the outbreak in its cities.
battle. New Zealand met the goals of
Providing close to 10,000 tests a day,
mandatory quarantines, countrywide
and supplementing it with a mobile
lockdown, and social distancing without
app for citizens to keep themselves
being draconian. On June 8, New
constantly updated, the country was
Zealand cleared its last active case.
on the ball.
Vietnam Vietnam and China share a land border stretching about 1,444 km. With a population of 95 million and a relatively low per capita income, Vietnam is an outlier success story. The country is beginning to lift the strict lockdown measures it imposed in February. It has yet to generate the global applause it for a success story. There was a touch of authoritarian surveillance built into its control strategy, but the difference with more ‘democratic’ countries tackling the pandemic was not much and there was wide social consensus for the same.
38 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Responsiveness Begins in the Beginning. Look at Kerala
what must be done in the face of a 21st century pandemic,” leadership consultant Mark Nevins wrote in Forbes. An inclusive,
case arrived from Wuhan in the end of
cohesive society, one not polarised on
January. Its signature moves: participatory
ideological, racial, ethnic, or religious
contact tracing; a supportive quarantine
faultlines, cannot harm the cause. Africa is
for nearly two lakh people; feeding and
largely caught between a stark leadership
supplying provisions to some 87.28 lakh ration card-holders and 1,50,000 migrant
end, Tanzanian President John Magufuli
labourers; daily public dissemination
ridicules testing kits, saying even “a goat
of information; and a hands-on health
and a pawpaw” had tested positive. At the
minister. The approach was empathetic
other, a French scientist said on TV, “If I
and grassroots-oriented. In a country of
can be provocative, shouldn’t we be doing
India’s scale and inequities, a bottom-up
this study in Africa...”, prompting outrage.
approach that ensures economic
Among the angry decrials: the Ivorian
and social security, proved the best
football star Didier Drogba memorably
pandemic shield.
proclaiming that Africans are “not guinea
“There’s no playbook for leadership when the stakes are high, no playbook for
pigs”. What one needs is collaborative, people-oriented leadership.
RANKING GLOBAL PANDEMIC PREPAREDNESS This pre-COVID-19 report found that no country was truly prepared to manage a pandemic The Global Health Security Index measures the state of health security around the world. The index is composed of 6 categories:
Prevention
Detection and Reporting
Rapid Response
Health System
Prior to the COVID-19 outbreak, China had a plan in place to deal with communicable diseases with pandemic potential.
Americas Europe South-East Asia Eastern Mediterranean Af rica
Italy ranked 126th in the Emergency Response Operation indicator and 59th in Emergency Preparedness and Response Planning.
A cholera outbreak has infected over 2.2 million people in Yemen since 2016.
www.synergiafoundation.org
25,223,599 17,516,493 10,524,941 3,899,741 1,464,106
Situation by Country, Territory or Area
Iran ranked 108th in Emergency Preparedness and Response planning.
73%
Risk Environment
Situation by WHO Region
of Indicators including: Epidemiology Workforce, Biosecurity and Emergency Preparedness and Response Planning.
of the world’s population lives in countries that scored below 50 in the Health Secuity Index.
Compliance with Global norms
The report found that most countries lack foundational health systems capacities vital for epidemic and pandemic response.
USA India Brazil Russian Federation France Spain The United Kingdom Italy
12,276,834 9,222,216 6,087,608 2,162,503 2,115,778 1,594,844 1,538,798 1,455,022
| COVID-19 COMPENDIUM | 39
Destroying Dissent in Democratic Frameworks democratic framework is under enormous duress. Brazil’s President Jair Bolsonaro’s
TM VEERARAGHAV,
administrative campaign against COVID-19
CONSULTING EDITOR, SYNERGIA FOUNDATION
has been plagued by sackings of a string of Health Ministers. Luiz Henrique Mandetta, a paediatric orthopaedist, was sacked from his post by
A
clutch of powerful world leaders,
the president in early April after he defended
at the helm of some of the most the pandemic, in opposition to the line
demonstrated their intolerance for dissent
advocated by the president. His successor
and the spirit of democratic debate during
Nelson Tich, a practising oncologist, fared
the pandemic. Their ability to dismiss
no better.
opposing
voices
has
grown
He too quit in disgust after
stronger
because of their power to outshout them
with the president’s brazen disregard for
on social media and during a calamity
containment measures. He was replaced
like a pandemic, giving them enormous
by General Eduardo Pazuello with zero
‘emergency’
health-care experience.
powers.
U.S.
President
Donald Trump is a prime example of such
Democracy
is
all
about
accepting
leadership. His method is clear cut: remain
differences along political and ideological
silent or leave the corridors of power.
lines and building consensus through
Health Ministers as Casualties in Brazil But POTUS is not the only one. From Washington
to
Rio
de
Janeiro
and
Hungary to India, the space for dissent in a
40 | COVID-19 COMPENDIUM |
debates.
However,
with
polarisations
gaining deeper roots amidst the disruptions caused by falling national incomes and the pandemic, the resistance to engage with opposing points of view is growing stronger in ruling establishments.
www.synergiafoundation.org
The enormity of the pandemic in India
Vietnam
and the lockdown measures only intensify
Vietnam launched an aggressive response.
the barriers to a factual exchange of
Communications
thoughts and reduce the impact dissenting
through clear public messaging and real-
voices could have on the administration.
time sharing of data. It was equally prompt
Liberals fear that during the postCOVID
in isolating and tracking individuals and
period, which could last for a long time, the
their second- and third-hand contacts,
situation may get more extreme.
quarantining
were
travellers,
transparent
and
enlisting
In Hungary, Prime Minister Viktor Orban
services of all medical professionals —
used the pandemic to pass a ‘Coronavirus
students, retired doctors, and nurses. The
Bill’ that gives him enormous emergency
outbreak was contained, without resorting
powers with no end date and arguably
to mass testing as Vietnam does not have
makes him the government judge, jury,
the capacity. Lockdown was enforced in
and executioner of the European nation.
pockets, instead of a blanket ban.
Unfortunately, the overarching feeling is that allowing dissent is a sign of weakness
South Korea
and debate could lead to indecisiveness. But,
South Korea’s model of ‘trace, test, and treat’
the true art of statesmanship is to balance
has been unique and allowed it to control
decisiveness with dissent and democracy.
the infection rate without a lockdown. Yet,
National and global emergencies are what
in April, there were cases of viral reactivation.
put leaders on the line, and crushing dissent
Since most of its new
may often lead to catastrophic decisions,
imported,
whereas lending an ear to a naysayer may
stricter measures. Short-term travellers
indeed save the day.
without a place of residence are allowed
SE Asia, Surge and the Covid Strategy
Korea
has
enforced
to use the quarantine facility provided by the government for a fee. Routine updates are still in place, with the Korea Centres for Disease Control and Prevention issuing daily on infected people’s movements. Testing
SYNERGIA FOUNDATION RESEARCH TEAM
S
South
cases have been
has been free and those quarantined are treated in hospitals that are stocked
outh
East
Asia
represents
a
kaleidoscope of governance, with both democratic and autocratic systems,
China
and different levels of economic and social
Current indicators show that China has
indices. Perhaps it is this diversity that has
managed to contain the contagion, but has
shaped their strategies against COVID-19.
seen a second wave. There were many gaps
Singapore, South Korea, Taiwan, and Vietnam
in its strategy, both in sharing of data and ensuring an adequate supply of masks and
Indonesia, Malaysia and the Philippines stand
sanitisers. However, manufacturers soon
out for their laggard and chaotic response.
rolled out PPEs and other essentials in huge
www.synergiafoundation.org
|
COVID-19 COMPENDIUM
| 41
Current indicators show that China has managed to contain the contagion, but has seen a second wave. There were many gaps in its strategy, both in sharing of data and ensuring an adequate supply of masks and sanitisers numbers, and today China is supplying to
accommodations. Singapore commenced
other countries.
its preparations the moment the Wuhan
Taiwan Taiwan has had better results. It has not
fever
was
revealed
in
December.
It
immediately began research, increased border control and surveillance, and started
closed its borders, although quarantining of travellers is still on. SARS taught them to
healthcare system, wisely well equipped
be better prepared with a national health command centre, stockpile of supplies, and restricting the price of masks. To ease screening, it merged peoples’ international travel history with digital health-insurance access. Those violating quarantine were
Japan During the early stages of the pandemic, Japan appeared to have a grip on things; infection and mortality rates were low. It did not go for a complete lockdown. People were advised to work from home and stay indoors, but this was not strictly enforced. week of April, a second wave came, spiking
imposed.
Singapore: Highs and Lows Singapore with its controlled, meticulous, and focussed approach, showcased its degree of preparedness. However, in the surge, mostly from dense migrant worker
42 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
with PPE and ventilators, enabled it to save the lives of patients, keeping its morbidity rate low. The government also established an online app called TraceTogether (akin to our own Aarogya Setu) to enable tracing and tracking through smartphones. Lisa Ng, the senior principal investigator of the Agency for Science, Technology and Research’s Singapore Immunology Network, stated that SARS-2003 served as a “wake-up call,” based on which they increased R&D and were equipped to adopt a more stringent approach to COVID-19.
A Measured Approach Dwelling on Singapore’s fall from the ‘gold handling the pandemic, Boon Hui Khoo, Senior Deputy Secretary of the Ministry of Home Affairs in Singapore, blamed the sharp second surge to employing unsophisticated contact-tracing methods as a deliberate choice. Singapore abides by two inherent principles: preserving individual privacy and rights, and giving equal opportunity and care to all. When Singapore was hit
| CONCLUSIONS In future, humanity will face new challenges, so we must build an inclusive, cohesive society that can help leaders to be effective during a crisis. There is no playbook for leadership when the stakes are high, and there’s certainly none for how to face a 21st century pandemic. ‘Effective crisis leadership’ involves leaders crafting a roadmap that helps clarify the problem and unite the population. Many of the challenges of global governance are rooted in the tragedy of global commons, in that no country feels motivated to make sacrifices for the common good. Healthcare is a global common, a global good. Russia’s strategy against the pandemic has been proactive. Though saddled with an ageing and archaic public health system, the network of healthcare facilities is widespread, providing one of the largest per capita bed availability. There is hope that African countries, being more resilient, could avoid a rapid spread of COVID-19, despite their trade trajectory with China. Every country has a lesson for India. In the absence of mass testing, India opted for a total lockdown to flatten the curve and gain time to build up medical defences. It does, however, need to increase its testing capacity, up imports of PPE and ventilators. Public healthcare systems have withstood the challenge well, especially in countries which had invested wisely upon them. Even Italy, while it may have suffered huge fatalities, was able to put up a gallant fight against COVID-19 thanks to its world-class public health system. In India, we have seen that private healthcare, has near-zero capacity to handle an epidemic of this nature. India could establish a national command centre for disease control. The National Disaster Management Authority has proved ineffective, and creating a separate entity to deal with pandemics would be effective in future.
by SARS, there were only 238 cases and 33 fatalities. The police had helped the Ministry of Health contact trace. “But, this time around, we didn’t opt for technologies that are more intrusive because it was an issue of privacy and rights. We shut down That’s the price we had to pay because we didn’t want to be perceived as a state where the police could have overarching powers,” says Mr. Khoo. Singapore also prides itself in treating everyone on its shores equally. Both foreigners and residents are being given free treatment in the same hospitals, and get equal access to equipment and medicine.
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 43
Data Sharing Crucial During a Pandemic to allow for the sharing of information across INPUTS BY YE BAIXIN, CHIEF MEDICAL OFFICER , RENMIN HOSPITAL, WUHAN UNIVERSITY
C
borders between medical professionals, as he has managed to achieve from China.
Containing the Spread in China The COVID-19 pandemic originated as a in Wuhan, the capital of Hubei province. As
the pandemic, and there is much to
the number of cases grew, the potential for
be learnt from how they managed
an outbreak was discovered by the National
to do so. This is something Dr Ye Baixin
Health Commission (NHC) in Beijing after
highlighted in his talk at the panel hosted
sending experts to Wuhan. On the same
by Synergia Foundation in cooperation with CCG. In an interview, he says, “Having gone
Health Organisation.
through all the hardships and eventually conquered the epidemic, Wuhan doctors
sequence of the virus was published on an
are like an internationally recognised brand
open-access database. The Wuhan seafood
name to overseas health workers. We
market was closed down by Jianghan
cannot only provide them with experience
District’s Health Agency and Administration for Market Regulation on January 1st. On
In the panel, he stated three things that
January 20th, the NHC set up a group
worked for them, which were namely the
to deal with pneumonia caused by the
containment of spread and disease action,
coronavirus, which then went to other
good procedures for disease management
provinces and cities to supervise the control
and avoiding medical resource wastage (all
of the epidemic. The mainland also stepped
of which was free to people in China), and
up its production of masks from 10 million per day to 116 million daily. Delivery drones,
emphasised on the need to set up resources
44 | COVID-19 COMPENDIUM |
AI, and facial recognition systems were
www.synergiafoundation.org
used to keep a check on the epidemic. Makeshift hospitals were also built that resembled those made for the 2003 SARS outbreak in Caidian, Wuhan. to go into a full lockdown - on January 23rd - by its own and not on the suggestion of the WHO. A lockdown of this scale had never been seen before. Caught
off-guard
by
the
epidemic, China received help internationally, from places like Japan, Guinea, and even the Bill Gates Foundation. Many cities limited the number
of
people
going
Patient-level COVID-19 data is also not publicly available. The data available is said to “lack comprehensive information beyond typical registry resolution.” To deal with the virus
out per household, with only one person permitted for purchasing necessities every
China’s prompt response be credited with curtailing the spread of the virus, along with the willingness of citizens to adhere to protocol. China now has sent medical equipment and PPE all over the world to help other countries still working on slowing down their cases. While there have been issues raised about the quality of the PPE and the chance that China could have hidden the exact number of cases, the effort put in by the doctors on the ground cannot be negated in controlling the
spread of the virus.
are now necessary and commonplace at
The Case of Information Sharing
each entrance. There is round the clock
Some databases offer data on COVID-19
surveillance through contact tracing apps,
through public-private partnerships such
CCTV usage, and check-in by doctors. Dr Ye
as databases by Dawex, Parexel, and
also stated that what they learnt from their
the EU’s ERA vs Corona Action Plan. But
battle with COVID was that even though
this kind of data-sharing is done only in
they asked suspected cases to stay at
certain circles, with no one governmental
home, the number of cases still increased,
organisation
which then had to be controlled through
Patient-level COVID-19 data is also not
community containment.
publicly available. The data available is
1-3 days in February. Temperature checks
having
taken
the
lead.
The lockdown was lifted in May after
said to “lack comprehensive information
76 days, and an ambitious testing regime
beyond typical registry resolution.” To deal
was introduced in Wuhan after new cases
with the virus, there is the need to create a
emerged, raising fears of a second wave.
unifying multinational COVID-19 electronic
Wuhan states that it has now tested nearly
health record which can be accessed by
seven million people in 12 days.
researchers globally.
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 45
The non-existence of this is not due to the absence of technology. One such example of a publicly-available, anonymous, electronic health record is the MIMIC-III (Medical Information Mart for Intensive Care III), present since 1996. It contains roughly 40,000 patients in the Beth Israel Deaconess Medical Center (BIDMC). It offers insights into a critical care cohort, allowing clinicians and computer scientists to address research questions and build
weapons against spread of infection, the
predictive models.
complete dynamics will change if the
Much of what is known about COVID-19
virus becomes aerosol borne.
Similarly,
comes from how it has spread in different
its presence in stool can make hygiene of
countries, based on which doctors make
common spaces, especially in rural areas,
their assumptions. Creating large scale
important.
COVID-19 Real World Evidence (RWE)
The Second Wave:
studies that take in data from a variety of real-
strict curfew, the spread of infection will
world sources — like patients being treated
be far more rapid in the second wave and
in the hospital — could help accelerate
may overwhelm hospital facilities. The
the development of treatments in a more
government has to plan for a surge in
patient-centric and patient-friendly way.
hospitals.
The need for open-source hardware and
In the absence of
A New Normal: Social-distancing norms
software that allows for national and subnational health systems to collect and share
masks mandatory.
live and updated data in a timely manner,
should be adopted. Based on emerging
while being mindful of privacy laws has
infection patterns, selective quarantine
never been more topical. This would allow
should
already overburdened healthcare systems
requiring hospitalisation must be kept
around the world to quickly adjust in their
within the established bed capacity. In the
be
Enhanced testing
imposed.
New
infections
event of an uncontrolled surge, complete
The Exit Strategy SYNERGIA FOUNDATION RESEARCH TEAM
T
shutdown should be ordered. Testing: India’s population makes largescale testing unaffordable until a cheap indigenous test kit is found. The criterion on symptomatic patients and healthcare
here are certain outcomes which
workers on the frontlines.
must be looked into for the exit
Cure:
strategy of a lockdown.
take more than a year to be available, by
Even if a vaccine is found, it may
New Vectors For Transmission: While
when the pandemic may have passed.
social distancing and masks are the primary
Other options include anti-malarial drugs
46 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
which cannot be relied upon for universal
assets of the Armed Forces already have a
application; possible ozone therapy; use of
heavy load of military personnel for tertiary treatment. However, in an emergency, each
Graded: Treatment Distinction must be
can create special facilities for COVID-19,
made between patients and use of precious
which can be used as a general medical
medical resources as per this protocol.
reserve.
Bottom-Up Approach
Long-Term Strategy
Fight locally at the PHC level: Empower
What we have learnt from the COVID-19 is
health worker/ASHA to track, trace, isolate,
that the world needs a resilient, robust, and
and treat patients. Shift attention from metros to rural areas.
Making Hospitals COVID Proof: Indian
Protecting Medical Staff: Trained and
government
experienced health workers need to be
for their standards of cleanliness and
protected.
general hygiene. Without delay, COVID
Reserves have to be trained.
hospitals
are
notorious
Since pandemics are here to stay, this must begin now. Meticulous Implementation: The Indian
air-conditioning;
Containment Policy for COVID-19 issued on
which automatically screen and disinfect
March 4 by the GoI is a document which
entrants. Selected private sector hospitals
and
have
entrances
lays out broad guidelines for infected geographical areas, both in an urban and
government to become COVID-proof.
rural areas. These need to be implemented with sincerity and ingenuity. Build Up Our Healthcare Resources: Total capacity for hospitalisation in India is about 7,13,986 government beds, of which 5-8per cent are ICU beds, and assuming that 50per cent of these ICU beds have ventilators, we arrive at an estimate of 17,850 to 25,556 ventilators in the country (Source: Data from National Health Proile–2019). Support from the Armed Forces: Armed forces have a pool of trained personnel and can provide basic training to core body of trainers from each State and later provide teams for on-site quality-check and advice. Field medical hospitals of the Army are airportable, and if equipped with COVID-19 related kits, they can be mobilised to hotspots anywhere in India. The medical
www.synergiafoundation.org
|
COVID-19 COMPENDIUM
| 47
INVESTING IN A ROBUST PUBLIC HEALTHCARE SYSTEM The share of public healthcare in the national budget has to go up to make it capable of
(a)
Hospital
Surveillance – infection-control teams and
Infection Control – inclusion of hospital
intra-hospital and inter-hospital disease
bio-safety as a standard feature in every
surveillance can help in identifying the
hospital
sudden appearance of disease clusters (like
Hospital
Biosafety
infection
&
control
programme.
SARS-like pneumonia in Wuhan). written standard operation protocols.
(h)
( b ) Hospital Design & Construction -
a basic programme of routine training
any new health facility has to consider the
and frequent drills provide a reasonable
possibility of treating pandemics. Previously
deterrent against any unknown pathogen.
built structures may be remodelled.
Simulants and surrogates can be used to
( c ) Hospital Ergonomics & Rostering
train hospital staff.
-
(i)
Hospital
workforce
should
not
be
Hospital Training & Drills - Even
Hospital
&
overburdened; duties should be cycled.
Disinfection
Facilities
workforce
disinfection of hospital sites pose a serious
comfort and address fatigue prevention.
challenge. Based on the characteristics of
Mental health issues should be addressed.
the pathogen, plans for various forms of
(d)
Hospital Stockpile, Biological &
decontamination with approved biocides
Antidotes - Pharmacies can store an
and surface disinfectants should be in place.
added stockpile of experimental drugs,
(j)
antidotes
should
and
enhance
monoclonal
antibodies.
Many repurposed drugs can be given as
-
Decontamination Decontamination
and
Hospital Laboratory Network - A
chain
of
allied
hospital
microbiology
laboratories can act as sentinels in the time of an outbreak. They can greatly aid in early
( e ) Hospital Expansion & Annexation - to address the surge of patients, neighbouring
Forensic microbiology could be used to
sites and large storage areas should be ( k ) Coordinated Responses -The recently such spaces during biological emergencies
passed National Medical Commission Act
should be in place.
should be amended to include coordinated
(f)
responses in such a crisis. It could function
Hospital Early Warning System
- disease forecasting and early warning
virtual
applications
as the command centre. Central and State agencies should be placed
could be integrated into
under this commission.
hospital
( l ) GPS Uses - Geo-tagging,
management
systems. It will provide time
for
pre-emptive
action.
QR codes for medical services, and mapping strategies can help
local
governments
( g ) Hospital Epidemiology & Disease
48 | COVID-19 COMPENDIUM |
operations.
www.synergiafoundation.org
| CONCLUSIONS While designing an exit strategy, it must be remembered that while we can borrow best practices from other countries, a single ‘gold standard’ does not model’ will need to be re-engineered for a hilly, underdeveloped State like
HOWEVER, OUR RESEARCH POINTS TO FIVE MAJOR FOCUS AREAS: Proactive Leadership Inspiring Leadership. At the apex level must encourage trust in the is achieved that contact tracing, aggressive testing, and building need to build cohesiveness within our cultural and economic
healthcare too is an insurance COVID-19
has
clearly
driven
Leveraging Digitisation to Combat Pandemics. Countries with superior digital access can muster its resources in a coordinated and effective footprint in the digital domain,
Quality of Nursing Care and Primary Health Workers. The
R&D. Home-grown R&D in the
health workers and professionals
the economics involved would
been one of the contributory factors behind Kerala’s low death
have to pitch our R&D for cures at the global level, coordinating and cooperating with the best
Healthcare as an Investment. Like national defence, public
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 49
Pandemics: A National Security Concern society,
emerging
diseases
and
their
TOBBY SIMON,
pandemic potential pose perhaps an even
FOUNDER AND PRESIDENT, SYNERGIA FOUNDATION
spread more rapidly than the previous eras.
greater national security threat, disease can Preparedness not prevention is the solution to this escalating problem. Thirty
S
four percent of all deaths worldwide are tating that preparedness is the only
now attributable to infectious disease, while
key solution in addressing outbreaks,
war only accounts for 0.64 percent of those
Mr
Tobby
Simon,
founder
and
chairman, Synergia Foundation, highlights
killed approximately 5,00,000 Americans,
that the genesis of national security is the
more than all wars fought in the 20th
preservation of the state from physical
century. Consider the effect of smallpox on
threats.
the indigenous peoples of North America.
Thucydides,
in
his
5th-century
Many argue that they were not conquered
the
by superior weaponry or forces, but by
Peloponnesian War, mused about the
their lack of natural immunity to European
profound effects of the plague of Athens
diseases. Even recently, the Ebola outbreak
publication,
The
History
of
led to the collapse of the national health the war between the Athenians and the
care system in Liberia.
Peloponnesians. He describes how, during the Peloponnesian wars, disease demoralised the Athenian people, undermined the political leadership, and weakened the army, preventing it from achieving key military objectives. It is not only the general population that is threatened by disease, but the military as well. Ingenuity, knowledge, and organisation alter
but
cannot
cancel
humanity’s
vulnerability to invasion by parasitic forms of life. Infectious disease which antedated the emergence of humankind will last as long as humanity itself, and will surely remain, one of the fundamental parameters and determinants of human history. The genesis of national security is the preservation of the state from physical threats. However, in today’s globalised
50 | COVID-19 COMPENDIUM |
Article written by TOBBY SIMON, published in BioSpectrum, October 2014 issue
www.synergiafoundation.org
Improving detection through bio surveillance is the key to stopping epidemics and India must increase its funding and focus on improving both domestic and global bio surveillance capability. While surveillance and developing early warning sensors are effective deterrents to combat pandemics, we would recommend the following:
Strong Leadership: Multi stakeholder and
multi-sectoral
coordination.
Command and control should be based on existing infrastructure and continually strengthened. Appropriate Funding: Multi resource resources, and preparation of advance vaccine
purchase
agreement,
technology, surveillance and ability to assess risk dynamically.
Broad and multi sectoral-level stake holder
representation,
communication
channels
effective across
sectors, planning both at a regional (South Asian) and International level
healthcare professionals and public
and developing platforms that permit interoperability with countries and
Effective
strategies
regions.
implementation
of
for
successful surveillance,
monitoring, risk assessment and an Effective
communication
among
The Synergia Foundation is a Bangalore based multi-disciplinary think tank that has over three decades of experience in strategic security. It has worked with several International organisations in the past including Medicines Sans Frontiers (Nobel Prize 2000) and The World Health Organisation in developing affordable treatment regimes for Malaria, Tuberculosis, and AIDS for
with their research partners, the Massachusetts Institute of Technology and the Indian Institute of Management, Bangalore
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 51
Adapting to New Lifestyle Mores Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety
SYNERGIA FOUNDATION RESEARCH TEAM
Proximity and Covid Dangers
R
As per India’s 2011 Census, 65 million people (17per cent) of urban population live in slums. The most threatened are the low-income ghettos, with little access to basic sanitation and water supply. With
ural societies and those in remote
community water taps and community
mountainous areas, where space is
toilets, crowding is a way of life.
not a constraint, are showing a much
slower pace of spread, but closely packed
Differing Exposure Risks
urban slums are not so fortunate. The
The nature of employment of the inhabitants
most central and dense cities are the ones
have a bearing on the risk of exposure.
that have been most affected. In India, the
Sanitation workers, municipal cleaners,
highest number of cases are in Maharashtra,
hospital garbage disposers, and others,
Delhi, and Tamil Nadu — States with cities
who keep our city clean and liveable, are in
that are metropolitan hubs. Vast slums like
harm’s way. There is little effort to address
Dharavi in Mumbai are ticking time bombs.
these threats as reported by the Coalition
While all densely populated areas are
of Human Needs, a collection of national
at risk, the difference is in the nature of
organisations working together to promote
the density. A report by CityLab shows
public policies. Many slum-dwellers are
that in New York, the cases are not high in
closely connected with the transportation
uber-dense Manhattan, rather in the less
business, be it the porters and other staff
dense outer boroughs such as the Bronx
at the railway station, the bus station, and
and Queens. It is essentially the rich and
the airport. Mumbai has the second busiest
poor divide which ultimately exposes their
airport, and a sizable number of Dharavi
vulnerability to the spread of viruses.
inmates work there.
52 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Lockdown, Stay Home and Pause SYNERGIA FOUNDATION RESEARCH TEAM
T
he
most
common
method
to
reduce the spread of infection is by
shutting
down
non-essential
services, restricting congregations, allowing government facilities to function in a
skeletal capacity, and ensuring hospitals and grocers stay open. lockdown policy. A week’s worth of paid leave was offered to everyone, and people over 65 years were told to stay indoors. Free transport passes were cancelled to ensure this. Australia closed its borders and enforced a lockdown, but left schools open,
stop’ of lockdowns is the best way to control
asking parents to use their discretion in
the pandemic, so that people can also
sending children to schools.
build immunity after being exposed to it in a weaker form. It also suggests that two or
the way they enforced a shutdown, causing hardship to lower economic classes who
stretch the slow down longer. However, the
could not access rations and resources in
virus would still return.
time. Use of water cannons, rubber bullets, and lathis came under severe criticism.
In Theory
Counterpoint Andrew Napolitano, a former U.S. judge,
A 2005 report by Proceedings of the National
state, and local — of “totalitarian impulses”
Academy of Sciences of the U.S. on H5N1
and argues that “no matter the state of
in its birthplace (China) for nearly 10 years
Constitution protects our natural rights,
and had been repeatedly introduced into
and its provisions are to be upheld when
neighbouring regions, turning Asia into a
they pinch, as well as when they comfort”.
pandemic threat zone. In such cases, is a
If liberty and freedom can be taken
simple lockdown an effective measure in
away in times of crises, is it truly liberty?
the future?
While it is essential to maintain social
A study by Cambridge University has suggested that a method of ‘stop-start-
www.synergiafoundation.org
distancing, severe policing is equivalent to a fascist state.
| COVID-19 COMPENDIUM | 53
Keeping Mental Equilibrium stay busy, make a schedule and follow it, be involved in the housework and distract
MAJ GEN AJAY SAH,
yourself from negative emotions by listening
GEOPOLITICAL AND STRATEGIC ANAYLST, SYNERGIA FOUNDATION
to music, reading, watching entertainment programmes, revive hobbies, etc.” Amir Khan, GP, NHS UK, says, “Take control over your mind and have a clear structure for
N
ever
your day, allowing worry only at certain before
in
the
history
of
times.”
mankind has entire populations felt
Experts recommend three levels; get
intense anxiety. Fully appreciating
your nerves under control, respond to the
the extent of the threat, the WHO has
situation rather than react, and do not let
issued a worldwide advisory accepting that
lack of knowledge compound your fears.
the COVID-19 crisis is generating stress. The
Breathing exercises, meditation, yoga,
most common emotions faced by all are
restricting your screen time, and the
fear, anxiety, and panic. Every one cannot
amount of information you are exposed to
handle social isolation or social distancing.
can be the key to your mental health. Apps,
A suspected COVID-19 patient, isolated
online games and social media platforms
at the Safdarjung Hospital in New Delhi,
are connecting people with friends and
jumped to his death. In another incident,
support groups, reaching out to vulnerable
a 56-year-old man, who suspected he had
segments and creating self-help groups.
the coronavirus, ended his life in Udupi
Mobile apps are playing a big role in remote
district of Karnataka.
medical counselling. Some useful apps in
Frontline workers have to handle the social stigma attached to working with
and Wysa (created by a Bangalore-based
infected persons. Isolated from their family,
company) AI now enables remote diagnosis and
they are the most vulnerable group. After the SARS epidemic in S. Korea,
monitoring. Researchers in the University
20-25per cent of health workers had
of Colorado Boulders are applying machine
heightened
learning AI to psychiatry.
anxiety,
depression,
and
A speech-
something akin to Post Traumatic Stress
activated mobile app could categorise a
Disorder (PTSD). Once we have defeated
patient as per his/her mental health. Peter
COVID-19, the health workers will require
Foltz, research professor, Institute of
psychiatric care.
Cognitive Science, said: “We are not in
Coping Strategies
any way trying to replace clinicians, but we do believe we can create
People want to know
tools that will allow them
how to deal with it, and
to better monitor their
experts say, “Stay positive,
54 | COVID-19 COMPENDIUM |
patients.”
www.synergiafoundation.org
Working from Home. Is the Shift Permanent? SYNERGIA FOUNDATION RESEARCH TEAM
W
been part of their planning and work culture, which is tested and changed annually. After that a lot of work can be done from home,
orking from home (WFH) used
leading both managers and employees to
to be at best, something workers took once or twice a week to only option
necessary. However, it has also opened a can of worms
novo need to look at how we work to make
with
corporations
questioning
the need for workers at all.
Kai-Fu Lee,
the experience more enjoyable.
Yeas and Nays
and Google’s erstwhile top executive in China, opines that AI developments will
WFH is a good option in times of a pandemic,
be more disruptive to people than other
but the concept holds up even when public
technological developments. Yet in some
health is not at risk. It allows for a better
cases, automation may be the solution. For
work-life balance, reduces commute time,
instance, Toyota is working on autonomous
and is better for the environment. On the
driving technology, yet not replacing the need for a driver altogether, at least for the
employees working less or not giving their best, while employees miss collaboration and brainstorming.
time being.
A Cost-Effective Option
The reason MNCs have been able to
Research done on WFH by a set of Stanford
quickly shift to WFH is that this has always
University researchers, Nicholas Bloom
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 55
and his colleagues, on a company in China, showed that there was no difference in productivity among the WFH group and people found it easier to concentrate at home. Additionally, employee attrition decreased by 50per cent among the WFHs, and they took shorter breaks, fewer sick days, and less time off. The company also saved nearly US$ 2,000 per space needed. The study also found that in 2012-13, managers in the U.S., UK, and Germany were allowed to WFH for nearly half the amount of time, showing that this could now be a mainstream practice.
Frugality, the New Normal SANJAY JAJU, IAS AND DEEPANSH SOMANI, SANJAY JAJU IS FROM THE INDIAN ADMINISTRATIVE SERVICE, VIEWS EXPRESSED ARE PERSONAL. DEEPANSH SOMANI IS A GRADUATE IN BEHAVIOURAL ECONOMICS.
W
hile those living in the margins have to count each paisa, it is interesting to look at how the
so-called elites are coping. The impact on the mighty looks equally strong and
Administration in 2017 saw that the country
real. Before the pandemic, the majority
used 391.40 million gallons of gasoline daily.
of elites were leading globe-trotting, fast-
Employees
reduced
paced lives. But these experiences that give
gasoline consumption, thereby reducing
meaning to their lives have disappeared
greenhouse gas emissions.
with the COVID-19. Once this life “meaning”
working
remotely
gets
Missing Social Touch
snatched
away,
what
happens?
Humans have an unfortunate tendency of to
not appreciating the good that may follow
implement in the service sector and the
a calamity. While COVID-19 wreaks havoc
unorganised
beings,
on the economy, could it have a sobering
humans working without any interaction
effect on the general consciousness of this
would feel cut off. It could also make them
planet’s elite?
Naturally,
WFH
would
sector.
As
be
harder
social
prone to taking on more work than is needed, as employers sometimes use the
The Good that Comes from Evil
WFH option as a bargaining chip to get
This period of quarantine has given us an
people to do more in exchange for the
opportunity to introspect and meet our
comfort of working from home. Women
demons face to face, and attempt to address
are also more likely to be affected by WFH
them. With strong positive implications on
possibilities as they still have the added
both the physical and emotional well-being
responsibility of taking care of the home,
of people, this period has seen an extensive
especially in India. On the plus side, those
rise in people also getting their life together.
with children would get more time to spend with them.
56 | COVID-19 COMPENDIUM |
Many have started reading books, auditing eating habits, taking up new
www.synergiafoundation.org
hobbies, and tapping into creative reservoirs.
commercial and business activities, without a
We could even call it a blind spot, as never
thought of nourishing and nurturing it.
did such important, but often overlooked
Evidence of wild animals and birds taking
aspects of our lives seem so clear. We all
to the streets is a sign that they were unhappy
needed a course correction in the form of a
with our monopoly of the planet. With more
break from the pace of our existence to re10,00,000 automobiles on the roads spewing
Mother Earth in Revival
poison into the air, it seems that by a miracle, the virus has given the earth a break. Who
Empowered through technology, we have
knows, this might be the change that
reduced this planet into commodity for our
humanity has been seeking for a while now.
| CONCLUSIONS Basic precautions like social distancing will be the new normal if mankind has to
We need to take inspiration from the frontline workers who are stoically
that the poor are given the maximum
too need to visualise our contribution in the larger framework against
collection from community taps and use of public toilets; volunteers/local leaders could regulate the use of facilities; public messaging to drive home the criticality, are some ad hoc measures that need to become the
We should also get a chance to build immunity against the virus if it’s here most democratic way of handling a pandemic, and a more thoughtful, people-centric approach would be
The human race is resilient; that is how it has not only survived but risen
in on the trend and come up with contingency plans that prepare them must ensure that work gets done in a more congenial work environment, should be organised periodically for
We are experiencing a phase of change, a phase of disruption, uncertainty and of time, as we settle down in our new routines, we will regain our mental
www.synergiafoundation.org
WFH needs world-class infrastructure — high-speed, dependable broadband, and uninterrupted power supply, which
| COVID-19 COMPENDIUM | 57
CHAPTER 3
ECONOMICS OF A U.S. President Donald Trump’s ‘America
SYNERGIA FOUNDATION RESEARCH TEAM
First’ policy and demonising of international
he concept of globalisation was
of adequate funding. The U.S. withdrawal
already under a cloud due to
from
increasing income gaps in the
besides the nuclear deal with Iran, and
global market. Capitalism, viewed as the
Trump’s undermining of the WTO has
T
institutions has led to them being deprived international
trade
agreements,
adversely impacted global trade. Trump’s main malaise. The wave of migration from
unpredictable negotiating style and his threat of tariffs has alienated allies in Europe.
and North America cannot be separated
Tariffs on steel and aluminium on Germany
from economic migration. Migration is thus
are a clear refusal to recognise that the
being viewed as abetting stress on limited
European Union (EU) is a single trading
resources. Such fracturing of societies
block. The U.S.-China trade war has seen
has given rise to nationalistic movements
only a temporary reprieve with the Phase 1
that thrive on parochialism. Right-wing
agreement in January this year.
governments have found favour across continents.
58 | COVID-19 COMPENDIUM |
American
withdrawal
from
the
international arena has given rise to a
www.synergiafoundation.org
fractured geopolitical landscape. Rivalry in a multi-polar world has witnessed a more belligerent China impose its writ in East Asia. Russia, in its quest for the glory days of the Soviet Union, has openly challenged the West, particularly in Eastern Europe and the Middle East. The fractured relationship between the Organisation of the Petroleum Exporting Countries (OPEC) and Russia, that is presently playing out with regard to oil pricing, has the U.S. in focus. Massive stimulus spending after the economy that was already staring at a global slowdown. The leadership void created by the U.S. withdrawal from the
GDP rating for India has been revised from 5.3 per cent to 2.5 per cent. Growth
global stage adds to a least conducive environment to respond to crises like the COVID-19 pandemic. As professor Sridhar Venkatapuram stated in the Indian Express, “[It is] unfortunate that the coronavirus pandemic has plagued the international community
at
its
weakest
moment
quarter ending March 2020 paint a bleak picture. All major economies have slid severely
where national politics and economic parochialism are upending the idea of one global village”. The coronavirus arrived
Medium and Small Industries, the world
into a near-perfect storm.
over, have been severely impacted. The
Dire Predictions
natural fallout is massive job losses. In India, the massive informal job sector has resulted
Rating agency Moody’s has now forecast
in a huge exodus of migrant workers to their
a contraction of global GDP for the year.
villages. Supply-side economics, the world
Rating for India has been revised from
over, has thus been severely impacted. The crisis can be understood through
just out for the quarter ending March 2020
different faces of the economy. On the
paint a bleak picture. All major economies
demand side, a combination of low
have slid severely. Stock markets have at
income; fear of contagion shifting spending choices; and lower levels of consumption.
straw of positive news in terms of rate cuts
On the supply side, a sudden stop in
and stimulus package announcements.
manufacturing has caused massive supply-
The obvious impact of the total lockdown,
chain disruptions, which cannot be met
as in India, is the shutdown of all productive
by inventory stockpiles. Manufacturing
activity, save for essential goods and services.
shutdowns, if continued for longer than
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 59
two months, will result in worldwide
Supply Chain unaffected. The impact of
bottlenecks as no major manufacturer
COVID-19 is bound to call for its review. The
builds all components inhouse. They rely on
initial impact of the virus on China affected
supply-chain hubs like China, South Korea,
supply of components and commodities to much of the world.
in the foreign exchange market. This
Shaping the Political and Economic Environment
pushes
emerging markets to become
Rebecca Solnit in the New York Times states
more vulnerable to the consequences of
that “every disaster shakes loose the old
the crisis as fresh capital will be diverted
order. What replaces it is up to us”. There are
away from them.
many examples that are emerging: industry
many markets, and volatility has increased
On the demand side, the shutdown of
realigning businesses where automobile
nonessential services and stay-at-home
manufacturers are rolling out ventilators
measures have killed demand in general. Joblessness has constrained liquidity. The
manufacturing masks. There is, however,
retail sector has been severely impacted.
little else to cheer about in what is turning
India, which is largely a consumer-driven
out to be an increasingly protectionist
economy, is naturally staring at a serious
environment. James Crabtree, in the Asian
impact on GDP. Even the U.S., a huge
Review, argues that complex supply chains
exporter of primary goods like aircraft,
and just-in-time production methods are
weapons, oil etc., is essentially a consumer-
vulnerable to shocks. In the current crisis,
driven
with
he opines that it will “hasten decoupling
countries like Germany, Japan, and China,
between the U.S. and China and accelerate
which are export-driven. The demand side
the collapse of the trade-dependent model
of the economy, like supply, is adversely
of globalisation upon which so many Asian
impacted, a double whammy unlike any
economies rely”. Companies are rethinking
other. The travel industry, which includes
their vulnerabilities. The pharmaceutical
airlines and hospitality, will be in a prolonged
industry in India, dependent on China for
crisis.
70per cent of its inputs, is an extreme case
economy.
This
contrasts
Financial markets have been in turmoil
that would naturally come up for review.
with investors withdrawing close to US$
It need not, however, swing to the other
85 billion, at last count, from emerging
extreme where the genuine advantage of cross-border trade is surrendered for
ever recorded, with investors seeking refuge
political considerations. The system that
in the U.S. dollar. Interest rate cuts freeing liquidity and massive stimulus packages
political leadership in the major economies.
have become the norm across the globe. Its
Pointers to what could be a post
effect on what is already a global debt crisis
COVID-19 era are already emerging. Will
is not being factored at this stage.
the U.S. and China be able to set aside their
The fractured geopolitical environment
differences and initiate high-level talks? The
had, by and large, left the existing Global
American administration should bear the
60 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
burden of responsibility for having disrupted
dependence on China’s supply chain
an established, if imperfect, world order. The
linkages and exports. Chinese tourist fall
capacity and means to reform the system
could cost the Thai economy about US$ 3.05
exists, but will leadership stand up to the
billion, according to The Tourism Authority
challenge? China is a global supply chain
of Thailand, not counting other nationalities
hub, and disruption there undermines
choosing to stay away.
output elsewhere. Along with Hong Kong, the Chinese trade surplus is US$ 301 billion,
European Tremors
which accounted for 16per cent of the global
Europe is more dependent on China for
exports. Even if the outbreak
trade than the U.S. Automotive
wanes
negative
sectors and have stated that
demand and supply shocks
they are weeks away from
fade into memory, the damage
stopping
to
depleting component supply.
and
China
these
and
the
global
repercussions would be lasting.
production
with
Germany’s exports to China
Epidemiological estimates state that the global GDP is
(US$ 101.6 billion). These levels
likely to shrink by US$ 500
are impossible to match this
billion, which is the economic price tag of the coronavirus.
The China-Centric Ecosphere South an
Korea
has
economic
declared
emergency
to limit the damage to the economy deeply intermeshed with
China.
Its
electronics
companies, automakers, and electrical
equipment-makers
face a problem of getting parts from China for
their
factories. In Japan, Toyota and
China was to lower its tariffs for the import of millions of dollars’ worth of American farm products as a goodwill gesture to resolve the trade war
Nissan have had their output
year and the price will be paid by its already stressed manufacturing
sector.
Before the coronavirus, Italy’s economy was contracting at 0.3per cent and a recession was looming. Chinese tourists are a major source of earning and premier fashion brands are particularly exposed.
The United States The U.S. appeared relatively resilient by comparison, but GDP growth in the fourth
disrupted while inbound Chinese tourism has reduced immensely. Japan’s economy
China exported US$ 539.5 billion in goods
has contracted at an annualised rate of 6.3per
and services to the U.S. in 2018, according to
cent in the fourth quarter of 2019. A recession now seems likely. Japan, scheduled to host
which is more than 21per cent of all imports
the 2020 Olympics in July, has spent more
into the country. Chinese tourists to the U.S.
than 1.37 trillion yen on preparations.
have increased 13 times since 2002. A report
Vietnam
is
suffering
www.synergiafoundation.org
due
to
its
from the Tourism Economics states that it
| COVID-19 COMPENDIUM | 61
Saudi Arabian crude supply to China for March has been reduced by 500,000 barrels per day. As the virus spreads around the world, oil prices have sunk to US$ 50 a barrel is expected that the U.S. will lose about 1.6
also spend on accommodation, food, and
million visitors from mainland China. China
other expenses. Fishing and tourism have
was to lower its tariffs for the import of
also been affected.
millions of dollars’ worth of American farm products as a goodwill gesture to resolve the
Indian Landscape
trade war. This is now likely to be affected.
The most severely impacted segments of the economy in India, which will face
The Middle East
a long and uphill struggle to recover are
China is the largest consumer of petroleum
automobile, entertainment (multiplexes,
products in the world and a slump in its
restaurants, bars etc.), tourism, hospitality,
industry will directly impact oil-producing
and jewellery.
nations.
Saudi Arabian crude supply to
will take a severe hit with the RBI predicting
China for March has been reduced by
an increase of about 10.5per cent in
500,000 barrels per day. As the virus spreads
NPAs by the end of the Q3 of 2020. The
around the world, oil prices have sunk to
airline industry is in grave danger of
US$ 50 a barrel, with fears of the situation
insolvency.
getting worse.
1.5per cent to India’s GDP, an economic
In the UAE, Chinese tourists make up
The banking sector too
The
contribution
of
industry U$
35
contributed billion,
and
supported 6.2 million jobs. renowned high-end shopping and resorts are seeing falling footfall. Iran’s emergence
Stock Markets
as a hot zone for coronavirus has made
That the world is one big market was made
it complicated for the economy which is
amply clear by crashing stock markets in all
sliding deeper into recession. U.S. sanctions
major economies as investors sensed the
have worsened Iran’s medical sector, which
impending economic fallout of the virus.
has struggled to keep up with soaring prices
The organisation, resources, labour, sourcing,
of medicines and medical instruments.
and logistics are the key components that
Australia
and move them to the end customer. The
Australia is the world’s most reliant
coronavirus has put limitations at all levels,
economy on China, with about one-
and could create a further lag in the process
third of its exports going there. There are
timeline as quarantine guidelines get stricter.
1,60,000 Chinese students; one-third of
80 per cent of the world’s goods move by
the total fee of Australian $32 billion came
ship, and demand for shipping is starting to
from them alone. International students
slip noticeably.
62 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Economic landscape Post-Covid-19
SYNERGIA FOUNDATION RESEARCH TEAM
T
across the globe, the impact on low-income countries in Africa, Central America, and South-East Asia will be severe. It is unlikely
he duration of the contagion will
that the economic losses suffered by all
decide the shape of the economic
segments would have been offset after the
landscape; the longer it lasts, the
pandemic slows. This is where governments
more severe will be the impact, and more
will have to step in through guarantees,
painful will be the recovery process. In
liquidity support, short-term work schemes,
China, reports say that almost 60per cent of
and a moratorium on loans. If effective
companies resumed operations between
policy
March and April. The Eurozone economy
immediately, the recovery will be V-shaped.
has shrunk by almost 3.8per cent, the
This
interventions scenario
is
are
implemented
based
upon
the
highest since its creation, and it has no
assumption that there will be no second
option but to resume economic activities at
wave of the pandemic for at least one more
the earliest.
year. In case a viable antiviral treatment is
The Prognosis
found or a vaccine created by the end of the year — together with more widespread
Two scenarios are being considered: the
testing protocols, higher surge capacity
best case is a return to normalcy within
created in healthcare, and more disciplined
the next three months i.e. by August 2020.
approach to life and work through social
The worst-case scenario is a full year of the
distancing and hygiene — full lockdowns
pandemic, and the world yo-yoing between
can be avoided even if some infection re-
lockdowns and short windows of controlled
emerges in the winter months. Tourism
activities.
and its ancillaries are unlikely to revive in
While the economic cost will be spread
www.synergiafoundation.org
the next 12 months, which will have a huge
| COVID-19 COMPENDIUM | 63
impact on the overall recovery. Recession
The way forward
would be experienced by most economies,
Some
but by 2021 growth would accelerate.
unprecedented steps to tackle the economic
countries
have
already
taken
If there is a second wave sometime in
consequences of the crisis. Immediate/
December-January, the world would be
short-term measures include direct-cash
wiser and better prepared in managing
transfers to citizens as unemployment levels
it. While some areas would again see a
skyrocket, and lowering of interest rates by
total lockdown, containment measures would be more tailor-made, ensuring that
moratorium on payment of EMIs or on credit
some regions/sectors are kept running. In
card dues. To save businesses that have run
this case, the economic recovery will get
dry of working capital, governments are
pushed into the spring of 2021.
promising bailout packages.
Pre-crisis level recovery in most
Estimates through the Global
segments will not be possible
Policy model suggest that
before late 2022.
national incomes may rise by
In the worst-case scenario,
U.S.$ 1.4 trillion for developed
major economies, including
countries because of these
India, will be constrained to
expensive packages, however
impose lockdown measures until the end of 2020, at least. Then,
economic
activities
would reach pre-crisis levels only in the second quarter of 2021. By then, hopefully, a vaccine would be available as
well
as
a
tried
and
tested antiviral regimen. A considerable number would have acquired herd immunity. Even if the virus makes a return,
To save businesses that have run dry of working capital, governments are promising bailout packages
it can be dealt with without a
there is fear that developing economies may not be able to meet the crisis head-on. Comparison
between
the Global Financial Crisis (GFC)
and
the
consequences
of
economic COVID-19
have already begun. However, unlike GFC, we still do not know when this crisis will end. An uncertain future can cause delay in taking effective policy action, and even the massive
lockdown. Even air travel and tourism would
packages announced may prove to be too little and too late.
However, one must not rule out the
Many countries do not have the effective
extreme economic, social and political
mechanism to bounce back like the last
turmoil which we will be seen in the whole
time. China’s large stimulus and increased
of 2020. Most economies will experience
global south-south trade had positively
an
impacted growth in many parts of the
unprecedented
contraction.
The
rebound in the second half of 2021 would be muted, and we can assume that pre-
capacity, and the global nature of the
crisis levels in economies will not be
crisis constraints us from using the same
reached until 2023.
methods. Due to increased fear of future
64 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
supply-chain disruptions, countries and companies will rethink their supply-chain strategy, and this will cause longer delays in rise in global trade. While
developed
countries
have
protection schemes, a decline in revenue constraints, even as people demand increased
welfare
schemes.
Currency
depreciation causes an increase in the cost of importing essential products, and lack of administrative ability increases the toll on the healthcare system. This is a vicious cycle that developing countries will struggle to conquer, creating an opportunity for social unrest. A
recent
pledge
taken
by
G-20
countries to inject US$ 5 trillion into the global economy to mitigate the crisis is commendable, but more can be done. This crisis could be the right time to discuss
A recent pledge taken by G-20 countries to inject US$ 5 trillion into the global economy to mitigate the crisis is commendable, but more can be done. This crisis could be the right time to discuss changing the rules of Special Drawing Rights
changing the rules of Special Drawing Rights (SDR) practised by the IMF. SDRs are like a current account held by the
A third possible policy decision is to
IMF; countries can use this mechanism
have a temporary halt on loan repayments.
to obtain hard currency and as a means
This can happen when creditor countries
of payment between countries. Each
choose to extend debt repayments for a
country has a quota, which is directly
couple of years. During this time, creditor
proportional to the amount shared with
institutions should not take legal recourse
the IMF. Developed countries have better
for repayment of debts.
access to these funds than developing
Stimulus packages are a necessity
countries. This time IMF can allocate more
now, but it results in an alarming rise in
funds to developing countries based on
global debt. Coupled with low commodity
their need and ability to recover.
prices, emerging economies will be the
Another solution is globally endorsed
hardest hit. The absence of a vaccine in
capital control measures. This move can
the immediate future may translate to a bleak economic performance in the
depreciation of currencies and asset
forthcoming quarter. Under-performance
prices. This must be legitimised globally
in two consecutive quarters is clearly a
and needs to be assisted by international
recession that looms. Some experts even
organisations like the IMF.
fear a depression on the horizon.
www.synergiafoundation.org
|
COVID-19 COMPENDIUM
| 65
Reviving the stalled economy
0.1per cent, while the Federal Reserve of U.S.
SYNERGIA FOUNDATION RESEARCH TEAM
A
has brought interest rates down to 0.25per cent. The RBI is still maintaining the REPO
t this juncture, companies and
rate at 4.4per cent!
individuals leveraged by debt are
The RBI should adopt the ZIRP (Zero
the most disadvantaged. Despite
Interest Rate Policy) for the duration of
the absence of income (because of the
the economic recovery. By adopting ZIRP,
lockdown), they are required to pay back
economic activity should take-off, because
both principal and interest. The RBI had issued instructions to banks to postpone
cheap
credit.
Extraordinary
measures
repayment of loans, from April 1 to May 31,
are needed to deal with extraordinary
2020. However, all banks, without exception,
challenges. However, there is a downside
have offered only delayed repayment, with
with ZIRP. The RBI would no longer be
additional interest. Some economists call
able to reduce interest rates, rendering
interest as rent on capital. When economic
conventional monetary policy ineffective.
activities are stopped by government
However, it could employ quantitative easing, and in extreme situations, even offer
continue to charge interest on capital invested in the stalled economy? Interest
rates
change
over
time,
negative rates.
Inspire the Consumer
depending on market conditions. Central
Another
banks of nations, use interest rates as
consumer demand even as the coronavirus
monetary tools, to stimulate the economy
persists. Governments should not hesitate
unique
challenge
is
reviving
to inspire people to learn to live productive lives in a COVID environment. The same are Switzerland (-) 0.75per cent, Denmark (-)
agencies (public health and police) who
0.6per cent, Japan (-) 0.1per cent, Sweden
implemented
0per cent, and Spain 0per cent. The Bank of
advocate the resumption of normal lives
England has dropped their interest rate to
with pragmatic precautions.
66 | COVID-19 COMPENDIUM |
the
lockdown
should
www.synergiafoundation.org
Private Sector Responsibilities in a Pandemic
moderator Andy Mok (Senior Fellow, CCG) focused on the private sector and COVID-19. The speakers were Dr Kevin Kang (Chief Economist, KPMG China), Jason LU (Vice President, KORRUN Group), Gina QIAO (Senior Vice President and Chief Marketing (Managing Director of ThyssenKrupp).
INPUTS BY GOPI HANUMANTHAPPA, MANAGING DIRECTOR, THYSSENKRUPP AEROSPACE INDIA PVT LTD
I
The two main topics covered pertained to how supply chains could be made stronger, and how corporate responsibility helps in navigating a pandemic as well. This piece shall focus on the latter. Responsible
capitalism,
where
n the “India and China: Two Asian giants
companies seek to act quickly and have a
amidst a pandemic” webinar hosted by
backup plan for a backup plan, now faces its
Synergia foundation in collaboration with
biggest test yet. Today’s CEOs are faced with
CCG (Center for China and Globalization),
multiple choices and decisions in the face
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 67
of the pandemic, ranging from how to deal
this problem doesn’t last too long. There
with losses in their business, handling the
are those who hesitate, though. The main concern with using other companies as
customers, staff and suppliers - the list goes
manufacturers is that there could be large
on. Since no one saw COVID turning into
differences in the manufacturing process.
as to what is the best way to deal with the scenario. Naturally, it will be impossible to
How do Companies Deal with a Pandemic
keep everyone happy.
Pandemic preparedness for one’s company can be only as good as the experience,
Shifting Gears The focus of any company during a
the coworkers. It would be even better if
pandemic is (or should be) to protect their
there was the collective experience of all
workforce and ensure continuity of output.
the companies in the world—if they were
This has seen companies change, for the
willing to share.
time being, the products they produce, to
Michael T. Osterholm, an American
keep production going along with creating
infectious
disease
epidemiologist
and
necessary equipment for the pandemic.
director of the Center for Infectious Disease
Jason Lu, VP of the KORRUN group, a
Research and Policy at the University of
business travel company, did just the same.
Minnesota, states that, “We see frightfully
In the webinar, Mr Lu spoke about how his
little private or public sharing of creative
company contributed their services in making masks to donate to healthcare workers, especially to Indonesia and India. Their factory in Bengaluru,
approaches or experiences wrestling with tough preparedness issues. No
one
has
comprehensive from
a
collection companies—
Karnataka, was also given clearance
of
to operate due to this.
not trade associations, other
KORRUN isn’t alone. Londonbased
boutique
liquor
brand 58
plans
assembled
business groups, nor the federal government.”
Gin stopped making gin and started making hand sanitizers. maker
Vacuum-
Dyson
took
an order of 10,000 ventilators from the UK
government.
While the drastic change in products did
create
certain
hurdles in sourcing materials, navigating alternatives in the supply chain ensures that
68 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Surviving and Thriving in the Pandemic
companies have been able to survive the onslaught of the economic crisis unscathed. Even fewer were not a part of the industries that saw an increase in demand due to the pandemic (such as facemasks, sanitizer, etc.). It seems almost unfathomable that a company involved in aviation, one of the
INPUTS BY UDAYANT MALHOUTRA,
hardest-hit industries, could become a rare success story.
CEO & MANAGING DIRECTOR, DYNAMATIC TECHNOLOGIES LTD
H
In this dystopian situation, very few
Proactive and Innovative Measures Dynamatic’s decision to manufacture their
ow can the right decisions and rapid
products locally turned out to be the correct
responses help a company emerge
one under the current circumstances.
unscathed from the pandemic?
As a producer of high tech equipment
Udayant Malhoutra, CEO and MD of
for several aviation majors, their demand
Dynamatic Technologies Ltd was a panellist
is of a global nature.
They built their
in the 81st Synergia Forum’s 17th Virtual
manufacturing plants in the countries of
Forum on Supply Chain & Core Resilience
their principal customers, saving a great
Capabilities. This article is based on his views
deal on transportation. While this also
expressed during the discussions.
meant a possible loss due to paying higher
“It’s a really challenging moment [...] For
wages (than if they were manufacturing
risk mitigation, and to have that sole supply
in China) and due to economies of scale,
dependency of the big OEMs on us, we
it made their supply chains resilient to
had local manufacturing [...] In a sense, that business was not really disrupted (because of this)” The
pandemic
has
proved
highly
disruptive to the Indian economy, and resulted in estimates that this would be the worst recession since the economic liberalization of the 1990s, and possibly even since Indian Independence. 140 million people lost their jobs, while many more endured salary cuts . Up to 53% of businesses were projected to be had their operations temporarily suspended or reduced . Many smaller companies were forced to shut down due to a lack of funding caused by the pandemic.
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 69
disruptions. Spreading manufacturing over
nature of the virus. In March, all of
different countries is rare, but it can serve as
their 3000 employees were tested for Covid,
a reliable hedge against disruptions in the supply chain. Dynamatic is a sole supplier for certain
collaboration with the Indian Institute of Science to develop testing protocols that
products to major companies, like Boeing. In Udayant Malhoutra’s own words, ‘being a sole
the state governments, it was ensured
supplier means risk’. Any disruption has the
that production could go on undisrupted.
potential to cripple an entire company ahead
They even invested in innovation to create
of them in the supply chain. Accordingly,
the cheapest ventilator in India, costing
the sole supplier has to be responsive and
as low as Rs.2500. As a result, they have
proactive if it wishes to survive in the industry,
managed to emerge from the crisis not
especially when confronted with disruption
just intact, but indeed better than many of
as destructive as the pandemic.
their competitors. They were able to survive without the aid of the Reserve Bank of
Taking Care of Suppliers, Customers & Workers
India, while ensuring the safety and security,
Sensing the potential for disruption, in
customers and their employees.
January itself, Dynamatic prepaid all of
The story of Dynamatic and of Udayant Malhoutra is a unique one.
Their ability
quarters. As early as February, they began to
to mitigate risk, both before and during
prepare (sooner than many governments)
the current crisis, as well as their culture
by training their employees to continue
of innovation, can serve as a blueprint
to work with new guidelines that could
for others that wish to survive the next
protect workers from the contagious
economic crisis.
70 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
‘Pharma, the Knight of the Pandemic’ for Promotion of Industry and Internal
INPUTS BY RANJIT SHAHANI,
Trade (DPIIT) set up a control room, with the
FORMER MANAGING DIRECTOR
respective
State
drug
controllers,
providing operational data on a daily basis. “There’s a lot going on in this space
NOVARTIS INDIA LTD PRESIDENT OF THE
[pharma], which will hopefully give some
OF COMMERCE, INDIA
succour. Indian companies have upscaled
P
their
manufacturing
for
HCQ,
clinical
trials for which are still going on to see its have
usefulness; there are companies which are
been extending a helping hand
producing re-purposing medicines to see
to
whether they can help in the pandemic.
harmaceutical consumers
companies facing
economic
There’s a lot of creative work going on,” says
Eli Lilly, a U.S. company, has offered support
Ranjit Shahani, a former president of the
to
Organisation of Pharmaceutical Producers
many
insulin-dependent
diabetics
whose loss of income has left them unable to access life-saving medication.
of India.
measures to avoid supply-chain disruptions
The Many Layers of Drug Marketing
in
A major issue is the licensing protocol
The Indian government took proactive the
pharma
industry.
To
monitor
transportation and delivery of essential
for newly introduced drugs.
commodities in real-time, the Department
Remdesivir was sanctioned the ‘orphan
www.synergiafoundation.org
|
Recently,
COVID-19 COMPENDIUM
| 71
drug’ status by the USFDA, which was quickly revoked due to severe criticism. An ‘orphan drug’ tag is given in situations where the disease affects fewer than 2,00,000 patients, whereas in the U.S. far more people were infected. This status comes with a seven-year market exclusivity to the company, which means Gilead would have had an exclusive right to manufacture and market the drug, giving it a monopoly. ‘Doctors Without Borders’ has urged global leaders to accord patents to privately developed COVID-19 treatments to “ensure availability, reduce prices, and save more lives”. Creating a vaccine for a virulent virus is extremely hard work, and ensuring it is accessible to all will
be even harder.
Shahani explains the dilemma: “Access has more than one dimension. People focus on it only in relation to price. Access also relates to availability and quality. You may have the product, but not the right quality, then that’s poor access.[...] Now, either the government
Americans pay the highest amount for innovative products, followed by the Europeans where the pricing is 20-30per cent less than the U.S., followed by Asia where the price drops by around 50per cent. When it comes to India, it is
does the research, and a pharma company
globally.
does the manufacturing to distribute it. But if you are a listed company, and you are my shareholder, then you’ll want a reasonable return on the investment. This is always the challenge. Americans pay the highest
The API Conundrum
amount for innovative products, followed
In fact, in 2014 the present National Security
by the Europeans where the pricing is 20-
Adviser Ajit Doval had warned that India’s
30per cent less than the U.S., followed by
dependence on China for APIs could be a
Asia where the price drops by around 50per
national security threat. Shahani cites the example of Switzerland,
of the pricing sold globally. Yet, we have
which follows a rule of maintaining a
six hundred million people here who have
two-year stock of critical supplies. “79%
an income of about two dollars a day or
dependency on one country, China, is just
less. Now, that’s the challenge. One way is
not on,” he says. In sum, Shahani feels that
to distribute these through government
there is great opportunity for the pharma
outlets, like ration shops. The government
industry in coming times. He says, “Pharma
can buy these in bulk and sell it to them, or
is going to be the White Knight as we go
give it for free.”
ahead”.
72 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Why was India Way Behind
competitively produce APIs with a 3per
The 1970s was momentous for the growth of
cent variance for labour cost, but Chinese
the Indian pharmaceutical industry. To help
exporters have the capacity to obtain low-
compete with multinational companies,
interest credit and invest in high capacity
the government revised its patent law to
infrastructure. While Chinese plants can be
focus on process and shortened the life
set up in one year, in India, it would most
of the patents. Through the 1990s, Indian
likely take 3 to 4 years.
chemists were able to reverse-engineer manufacturing processes, hold domestic
Chokepoint with Covid-19
prices, and compete to eventually hold
India, the U.S., Nigeria, and the EU are
20per cent of the market share in exports.
admitting the dangers of allowing China
China, however, became a formidable
a monopoly in the manufacturing of
competitor and overtook India in API
essential raw materials. Sourcing of APIs
manufacturing
companies
became a serious issue once the supply
enjoyed subsidised infrastructure and low–
chains from China collapsed at the onset of
interest credit. In the 1980s, India was one
the pandemic.
as
Chinese
of the largest producers of semi-synthetic penicillin
Chinese
of the Central Drugs Standard Control
strategically reduced the cost of Penicillin G
Organisation (CDSCO) had to step in with
by over 80per cent which led to the closure
a package to replenish the API industry.
of some of the largest bulk drug plants for
The
antibiotics such as Gujarat Lyka Organics
of Commerce and Industry (FICCI), has
and Kopran. Over time, India shifted focus
recommended incentivising manufacturers
to formulated drugs and turned to imports
to tackle the disruptions and position India
for API. Penicillin, a revolutionary antibiotic
as an alternative source to China. The
discovered 80 years ago, is now in scarce
disruption has already increased prices
supply.
of basic drugs in India like paracetamol
The
in
the
biggest
world.
the
In March, the Joint Drugs Controller
challenge
to
Federation
of
Indian
Chambers
Indian
by 40per cent and some antibiotics by
manufacturers to produce APIs is low
70per cent. In a country, where more than
capacity utilisation which is pegged at 30-
75per cent expenditure of out-of-pocket
40per cent compared to the Chinese, at
expenditure is on healthcare, this could
65per cent. Studies show that India can
deeply impact the poor.
The biggest challenge to Indian manufacturers to produce APIs is low capacity utilisation which is pegged at 30-40 per cent compared to the Chinese, at 65 per cent www.synergiafoundation.org
|
COVID-19 COMPENDIUM
| 73
The disruption has already increased prices of basic drugs in India like paracetamol by 40per cent and some antibiotics by 70per cent. In a country, where more than 75per cent expenditure of out-of-pocket expenditure is on healthcare, this could deeply impact the poor A strategic initiative to consider would be to revive public sector drug manufacturers
waste enters waterways resulting in the
and further their capacity to produce
development of multi-drug pathogens. In
API and formulations.
Indian PSUs like
November 2016, German scientists found
Hindustan Antibiotics Ltd. and IDPL used
that all of the specimens collected from
to play a key role in ensuring uninterrupted
sites around the bulk drug manufacturing
supply of basic raw material, but withered
facilities
in
due to lack of State support.
villages,
known
Environmental Challenges and Drug Resistance
Bollaram with
Hyderabad as
the
zone, were
and
nearby
Patancheruontaminated
antimicrobials. They also found
95per cent contained worryingly high
The pharmaceutical industry emits 48,550
levels of bacteria and fungi resistant
kg of carbon-dioxide-equivalent (CO2e)
to antibiotic drugs. These discharges have
per million dollars, which is about 55per
polluted river sediment surface, ground,
cent more than the automotive industry.
and drinking water.
74 |
COVID-19 COMPENDIUM
|
www.synergiafoundation.org
Social Security Umbrella for the Marginalised SYNERGIA FOUNDATION RESEARCH TEAM
T
and an additional $500 for every child in the family. But, there is also rising opposition to this scheme. The debate is whether to expend the funds on individuals or on industries that employ them. America was losing 8,00,000 jobs per this time around, millions of jobs have been lost in a week. It is in a bind as it confronts a providing bread and butter to the millions
be focussed on the bottom layers of
of poor, but also has to spend billions on
the economic pile: the daily-wage
strengthening its medical defences against
earners in the informal or unorganised sector. This includes the rickshawallah,
the virus.
porters, street vendors and the like. The
Is this the Best Solution Yet?
sudden and complete halt in all kinds of
Critics of UBI say that a direct cash transfer
economic activities may well push many,
might help if the economy is running
already in the abysmal depths of abject
and picking up. But if the economy is at a
poverty, towards starvation, if COVID-19 was primarily seen as a supplement to the Of the many solutions suggested, the most logical one is the Universal Basic Income (UBI) — direct cash transfer to all eligible individuals by the government.
income of the household, but not as the income in itself. The
second
issue
is
how
many
instalments of the UBI should be given
Developed countries like Canada, the
to the needy — a one-time package, or
UK and the U.S., which already have an
should it be spread out once we are clear
extensive social security umbrella in place,
how long the crisis is going to last? The
are now toying with the idea of universal
third biggest concern is identifying who
distribution of cash subsidies to the weaker
is eligible. Many developing countries still
sections. The U.S. government is planning
do not have effective bank penetration or
to give $1,200 per adult for families with
digital access. Governments cannot dump
annual income below the $75,000 mark,
cash into bank accounts if people do not
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 75
have the facility. Data is also crucial in
Still Better than Most
identifying who the real victims are; people
UBI is still considered by many as the most
Developed countries, which already have unemployment insurance (the dole), have
its success. The Jan Dhan accounts (cash
a clear picture of those under the poverty
transfer to farmers every six months) have
line or the unemployed. India has no such
shown that this system is handy in identifying
database; Aadhaar is the
the
primary database, but it
Internet
does not list the citizen’s
and
economic
have increased, but other
status
or
right
recipients. connectivity
bank penetration
methods, such as linking Due to low demand and
the
many
companies
eventually
lockdown, run
will
An
a
bail
already
out.
stressed
not be able to face this
meltdown.
government
is
The now
caught in the horns of a dilemma: support the poor citizen or the private sector?
considered.
out
of money and would require
ration cards could be
If production
stops and there are no longer essential goods being produced, of what use is the UBI?
Once operational, the
In a deposition by the Government of India before the Hon’ble Supreme Court, it was revealed that around 5.7 million migrant labourers were involved in this abrupt migration spurred by the lockdown
Interest rates have been
cut
since
the
‘one nation one ration card’ (ONORC) system would
be
the
best
solution as migrants can use this card anywhere in the country, and since the enrolment process for the ONORC would be stringent enough to render eligible only the poorest of the poor, the ONORC would be the basis for distribution of UBI. Government welfare schemes
generally
collapse due to the high
beginning of this crisis, by pumping in
marginal cost of public funds (MCPF), i.e.
more money into the system, countries
the amount spent by the government to
will have to face the risk of mounting
provide Re. 1 of goods to its citizens. India has an MCPF of 2.5 to 3.5, which means the government needs to spend an extra Rs. 3 for providing goods worth Re. 1. UBI avoids this as it cuts through layers of bureaucracy
cent of GDP (Union and States included),
and corruption by putting money directly
so the cost of the UBI is then not viable.
into the pockets of the people.
76 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Systems and Solutions to the Migrant Labour Crisis
the size of France migrates from one state to another within India, with a large section that migrates and returns annually, in search of seasonal work and daily wages. Of that 30 percent are labourers, and of those labourers, 30 percent are casual labourers. based on the data provided by Prof Amitabh Kundu
TM VEERARAGHAV, CONSULTING EDITOR, SYNERGIA FOUNDATION
of
Research
and
Information
Systems for Developing Countries, it is estimated that there are about 65 million inter-State migrants in India. A study conducted by the Azim Premji University concluded that 29 percent of
U
the population of big Indian cities are nderstanding the magnitude of
predominantly interstate and intrastate
the crisis and addressing it as a
migrants. For instance, a typical Indian
socio-economic issue from the
metro with a population of 80 to 100 million
perspective of the states, the migrants and
would have up to 30 million such migrant
the industry is the only way forward. The size
workers.
of the informal or unorganised workforce
When India announced a sudden and
in India is staggering; a population almost
strict lockdown to counter the COVID-19
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 77
spread, it is these teeming millions who
two categories; the intrastate and the
were exposed, caught between the devil
interstate migrants.
and deep, far from the safety net of their
manage to get better access to resources
rural homesteads amidst the uncaring
of their home state, it is the latter who are
urban chaos. TV images beaming visuals
left to fend for themselves with no social
of their pathetic journeys across the baking
security cover of any kind, neither food from
hot Indian plains, on foot, cycles and an
the public distribution system nor access to
assortment of modes of transport, gave
other social schemes run by the state.
While the former
an indication of their size and the unsung
A research study by Alpa Shah of London
service they perform behind the façade of
School of Economics and Jens Lerch of
a rising India.
the University of London estimates that
While this unorganised or informal
Adivasis and Dalits, who form the lower
sector of the economy plays a major role
socio-economic strata, from States like
in the agriculture, transport, realty and
Jharkhand, Chhattisgarh, Odisha, Madhya
warehousing industries, their presence
Pradesh amount to around 40 per cent of
is critical in other sectors too. Changing
the seasonal migrant workforce. States like
demographics and uneven pace of growth
Uttar Pradesh, Bihar and West Bengal too
in the country over the last three decades
contribute to the migrant labour force.
has triggered these migrations, resulting in a chaotic situation which accords almost
as ‘Sender’ states. The destination is
zero social security cover to these workers,
industrially developed States in south India,
unlike their counterparts in the organised
Maharashtra, and bustling cities like New
or the formal sector.
Delhi and they can be termed ‘receiver’
In a disposition by the Government of
states. Agriculturally rich states like Punjab
India before the Hon’ble Supreme Court,
are also heavily dependent upon these
it was revealed that around 57.72 lakh (5.7
migrants for the sowing and harvesting.
million) migrant labourers were involved
While such studies reiterate a common
in this abrupt migration spurred by the
notion of ‘Sender’ or ‘Receiver’ States,
lockdown. However, it is suspected that the
they reveal little more. The need is for an
actual numbers are much higher as record
exhaustive exercise to collate detailed
keeping was poor.
data of every migrant worker and his or
Sender and Recipient States
her family. And, then formulate targeted solutions for diverse segments, like State-
Daily wagers can be broadly divided into
The Confederation of All India Traders, an apex association of traders in India, announced a nationwide boycott of Chinese products from June 10
78 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
A Universal Ration Card as a Solution To understand the magnitude of the problem, precise data of their numbers and movements is critical.
The government
in consultation with the sender and the recipient states have to set in place processes to register and track this workforce. A large scale, “mobile-based survey could generate good ideas about the post lockdown recovery from both the employer and migrant” point of view, suggests Mr Sanjay Mitra, a former secretary to the Government of India. Migration by itself is economically
nearest ration stores could also enhance data gathering to reveal the real-time
distribution of cheap labour from labour-
geographic spread of migrants and help to target the delivery of relief, subsidies, and
boosting employment while keeping input costs low. Mr. Mitra suggests that targeted
assistance to them in a crisis.
for migrants” and not try to mitigate
Addressing the Economic Model
migration itself, which he feels is the result
There is a counterview that such massive
of “a functioning economic model where
movement of populations from rural to
resources move where demand is high and
urban centres on a regular basis does not
returns are higher”.
give much credit to the stability of such
measures
should
look
at
“protection
an economic model and needs a deeper have hurt the migrants and that post lockdown
effects
will
be
analysis.
“temporary”.
Mr E.S.L.Narasimhan, former Governor
However, there is a need to assess
of Telangana and Former Director of the
the recovery process through precise
Intelligence Bureau says, “It’s time we look
information and ensure that the lessons
at the underlying cause,” and adds that, “We
from the crisis that followed the lockdown lead to systematic solutions. A “universal ration” card could enhance
a hub of activity for the rural populace”.
social protection for migrants; he points
Mr. Narasimhan suggests that like smart
out. The concept of ‘one nation one ration’
cities, we could look at “smart rural regions”
is one solution for providing social security
as a possible solution and proposes to “semi
for migrating, lower economic strata of the
urbanise rural areas, so wealth spreads
population in terms of subsidised food and
evenly.” However, this would require an
health care.
accompanying push for education and
In fact, aligning ration card to the
www.synergiafoundation.org
other infrastructure in rural areas.
| COVID-19 COMPENDIUM | 79
There are compelling arguments for a
travel, it is an ordeal for interstate workers
social net for the migrant labour, including
to return to their job sites. While easing
a national urban employment guarantee
interstate movement may restore some
programme, on the lines of NREGA, and an economic focus to contain massive
systems and solutions. Mr. Mathew points
migration. Without a concerted effort, the
out that key learning for the industry was
situation will only deteriorate, even without
that the need for migrant labour was “very
a pandemic.
evident” and the receiver state must treat
Who Bells the Cat?
its “guest” labours at par with the locals. As a long-term solution from the
Each state has a unique demography, and
industry, Mr. Mathew proposes the following
a ‘sender’ state is in the best position to
measures: A registry of migrant workers,
understand the needs of its population.
transfer of wages online so that there is an
However, the ‘receiver’ state is better placed
electronic trail, on-site housing for labour
to track the number of migrants with their
before large projects receive clearances
exact locations. It would be morally binding
like in the Gulf along with ancillary services
on the receiver state, which is reaping the
like medical and counselling and lastly dedicated special trains to facilitate mass
cater to their social needs too. The centre at best could act as a regulator by ensuring laws safeguarding the rights of the migrant labour are enacted and acted upon. Mr. Mitra warns that a “centralised intervention would be disastrous” and argues that the break was a result of the pandemic and the system did not crash on its own.
movements.
In a post lockdown economy, measures have to be put in place to facilitate the return of the millions of migrant workers
The Industry View In a post lockdown economy, measures have to be put in place to facilitate the return of the millions of migrant workers so that the wheels of the economy start turning soonest. According to Roshin Mathew, Executive Director and President Engineering at Brigade Enterprises, Bangalore “the labour situation today is at around 55 per cent of what it was before the lockdown. It was at around 32 percent on the day lockdown was lifted”. Amidst restrictions on road and train
80 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
However, many global products are today sourced from multiple agencies and then either assembled or produced locally. Are MAJ GEN MONI CHANDI, CHIEF STRATEGIC OFFICER, SYNERGIA FOUNDATION
O
those local or foreign? In free markets, consumers should be empowered to make their own choices on criteria such as price, availability, and quality, no matter where the products are made or sold. Is India’s commitment to free-market
n May 12, 2020, Prime Minister
and globalisation now in question? BJP
Narendra Modi in his address to the nation, urged Indians to be
that there would not be a government
‘Be vocal for local’, suggesting that Indians
directive to only buy local products, but
should buy local products with pride.
that people may themselves see merit in
The main problem with the ‘buy local’
buying items of good quality, made in our
theme is that it suggests discrimination of
country. He also stressed that the PM’s
What exactly is a local product? A product
just about products made by domestic
manufactured locally from local resources.
companies, but that any item, as long as it
Moreover, a product manufactured abroad
was manufactured in India, fell within the
with foreign resources is a foreign product.
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 81
‘Make in India’ Policy ‘Make in India’, is the name for the ‘swadeshi’ movement launched by the government on September 25, 2014, and initially covered 25 sectors of the Indian economy. The intention was to encourage companies to manufacture their products in India so as to promote investment in Indian manufacturing. A year later, India had emerged a top destination for FDI (Foreign Direct Investment) attracting US$ 60 billion. As per current policy, 100per cent investment is now permitted in 100 sectors of the Indian economy, with exceptions for space (74per cent), defence (49per cent) and news media (26per cent). On April 1 this year, the empowered committee
of
secretaries
issued
a
Boycott of Chinese Products On June 7, 2020, the Confederation of All India Traders (CAIT), an apex association of
Linked Incentive (PLI), to further encourage
traders in India, announced a nationwide
FDI. In addition to providing additional
boycott of Chinese products from June 10.
incentive on exceeding production targets
The organisation’s aim was to bring down the value of current Chinese imports from
contentious clauses to make investment in
US$ 75 billion to approximately US$ 13 billion
India more attractive. It is hoped that this
by December 2021. Chinese exports to India
push will pave the way for Apple, Samsung,
constitute mainly manufactured products
Foxconn, Oppo, Vivo and Flextronics to
— electrical machinery, electronics, and
commence local production of next-gen
plastics. India’s exports to China constitute
smartphones in India. The vision is to
mainly raw materials and industrial inputs,
make India an export hub for next-gen
including chemicals and cotton.
smartphones. The ‘Make in India’ initiative was a
Attracting FDI
grand proposal, with ambitious targets,
According to the UNCTAD (United Nations
particularly
manufacturing
Conference on Trade & Development),
sector. Five years after its launch, many
in 2019, India was amongst the top 10
of the initial targets have slipped. The
destinations of FDI in the world. The U.S.$
national
in
the
economic
slowdowns,
poor
implementation of the policy, and global adversely
(hardware & software), telecommunications,
affected its implementation. Despite this,
trading, automobiles, tourism, construction,
trade
protectionism
have
companies dealing in services, computers
the policy still holds prospects for India in the long term.
82 | COVID-19 COMPENDIUM |
report, Singapore and Mauritius were
www.synergiafoundation.org
the top sources of FDI, followed by the
FOREIGN DIRECT INVESTMENT INFLOW
Netherlands, U.S., and Japan. Singapore and Mauritius are attractive sources for
Financial Year 2020-21 (April to August, 2020)
FDI because they provide favourable tax regimes for companies investing in India.
During April to August, 2020,
The India-Mauritius Tax Treaty was signed
US$ 35.73 billion
in 1982, while the India-Singapore Double Tax Treaty was signed in 1994; both the treaties have been periodically updated. Investments originating from Singapore
31.60 billion).
and Mauritius are more likely to be foreign companies, with business presence (shell
(April to August, 2020) is
companies) created to take advantage of
US$ 27.10 billion
the good business environment and tax
India, possibly through this route. Indian companies like OLA, Hike, BigBasket, Byju’s, Delhivery, Dream-11, Oyo, Paytm, Snapdeal, and Zomato now have sizeable Chinese equity holdings.
Emphasis on Self-Reliance
industries. Government tenders, up to Rs.
The government has periodically raised
200 cr., are now only reserved for Indian
import tariffs in critical sectors to promote
bidders. The FDI policy has been amended
domestic manufacturing. In November
to
2019, India decided to forego joining the
“opportunistic acquisitions”, by introducing
RCEP (Regional Comprehensive Economic
scrutiny under the Ministry of Commerce
Partnership) citing negative impact for
and Industry, for countries sharing land
farmers, MSMEs, and dairy products. In the
borders with India.
wake of the COVID-19, the government has stressed the importance of self-reliance by
protect
After
the
Indian
reforms
companies
of
1991,
from
many
economists suggested that tariff protection,
announcing measures to support home
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 83
will make the domestic industry less and not more competitive. India’s globally competitive info-tech, automobile, and pharma sectors were forged through international competition and now require no further protection.
Police Canteens On May 13, 2020, the MHA issued a directive that all police canteens, including those of central police organisations, will only sell goods that are ‘swadeshi’. In a later
into three categories: those purely Indian, those manufactured or assembled in India,
demonstrated commitment. ‘Be Indian – Buy Indian’ should not mean citizens
categories would be permitted for sale
are required to buy more expensive and
in canteens, the third category was to be delisted. On May 29, an order was issued
they are produced by Indian companies.
delisting more than 1,000 products from
In fact, protection of domestic industry,
sale in canteens. However, on June 1, the
under the garb of nationalism, has been
order was withdrawn, stating that it had been erroneously issued and that more
work standards, corruption in business
deliberation was required.
dealings, and nepotism in accumulation of
With this logic, an imported Mercedes-
wealth. There is little merit in misquoting
Benz and Levi’s jeans should be delisted
nationalism to justify poorly-designed, over-
from sale in police canteens. But, if the
priced, and poor-quality products.
same products are assembled or made
From a purely nationalistic perspective,
in India, they could still be available in the canteen. With the proliferation of MNC
brand-name,
production-in-India,
and
Indian ownership. However, in modern discern purely imported items from those
India, with its integrated economy, the
that have been assembled or produced in India. This is perhaps where the serious
‘Indian-ness’, only in terms of production-
challenge lies.
in-India. In the 1920s, Mahatma Gandhi led
In a Nutshell
a successful people’s movement to burn Lancashire textiles in favour of homespun
Governments are obliged to enable citizens
and hand-woven substitutes. In the 21st
to get the best value for their money.
century India, it may not be so easy to
There is also the promise of free trade and
discern ‘foreignness’, with the multitude of
open markets, to which our leaders have
goods and services available in our country.
84 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Think and Act Local, with a Global Perspective
workers to report to duty. Even post-COVID, workers will have to be equipped with essential PPE and the distancing.
Gradually, increased use of
technology in production will minimise
INPUTS BY PRASAD CHANDRAN,
human intervention, but at a social cost. Management has to have two sets of
FOUNDER & CHAIRMAN SEEGOS, FORMER CHAIRMAN & MANAGING DIRECTOR, BASF INDIA LTD
T
collapse of the supply chains and inability of
teams. One team should look at the here and now, and the other should look at the long-term opportunities and solutions. The short-term group would be focused on upstream suppliers and downstream
he chemical industry is the crux of
distributors and how to create alternative
most sectors, be it general chemicals,
supply chains, while the long-term think
speciality chemicals, petrochemicals,
tank could focus on how to turn the sector
chemicals
used
in
agriculture,
or
in
medication. But, during the lockdown, the industry suffered inertia as it was not
into an alternative market to China, for the U.S., Australia, and Europe.
Agricultural Push
chemical factories in the USA, Germany,
India has been fortunate that, so far, the
Japan, and China continued functioning.
impact on its food supplies has been
Even if the industry had its machines on full
controlled. The rabi harvest closed with
throttle, it would have shut down due to the
a record food production of 225 million
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 85
tonnes of foodgrains. The worrying factor is the exodus of migrant labourers, who felt uncared for in guest States. When will it be safe for them to return to agricultureintensive States in the west and the south? Local labourers seem an unviable prospect for farming. On the legislative side, the newly introduced reforms in the agricultural sector could help revive it. These are amendments to the Essential Commodities Act, the dismantling of the APMC (Agricultural Producers’ Marketing Committee) offering more
competitive
pricing,
and
the
introduction of contract manufacturing. People talk about farmers having onetwo acres of very small holdings, but that doesn’t matter. We can have contractual manufacturing where a huge value chain in agriculture can take place.
Government Control vs Entrepreneurship The
Indian
government,
through
its
has tried to ensure a smooth exit from the lockdown. Yet, bureaucracy and babudom could negate the full impact. Deep control
without strings attached. As far as the
and licensing should be done away with.
government is concerned, the important
While the government’s plan has been
thing is to reset our thinking and it must
to promote a self-reliant India, there is
be from a collaborative, cooperative and
much work to be done to make this a reality.
together approach.
India has a long history of a dominant State Bharat’ may seem like a dream when the
Revamping the Agriculture Sector
Centre seeks to control the way production
The agriculture system is in dire need of a
works. Vulnerable citizens end up having to
new legislation to replace those crafted in
fend for themselves, while those who can
the 1950s and 60s. The need of the hour
afford it, seek better prospects overseas to
is direct linkages between farmers and
bypass regulations. When money is being
corporates bypassing the age-old,
given, for example, MSME support given
entrenched middleman system. If you can
by the banks, it’s important that it comes
get large industries like the ITC to come in
and vast swathes of poverty. ‘Atmanirbhar
86 | COVID-19 COMPENDIUM |
well-
www.synergiafoundation.org
use for bio-waste within the next one and a ITC can get into an NPO and get a price
half years, India can have an energy system
that the farmer wants. So, the farmer is
which completely changes our need to import oil. So, “think global, act local” will
the middleman gets cut off. So be it. That
change to “think and act local” but, with
will change India.
a global perspective. There will be more
The post-COVID period will change the
conservation and savings as people look for
way business is done. The focus will now
safety in their transactions. Consumerism
be on nationalism, localism, and WTO
will change, and the American dream
globalisation, which is both a risk and an
is going to change with it. There will
opportunity. India could have changes in its imports as well. For example, Punjab and
1 per cent phenomenon where this 1 per
Haryana have sugarcane, rice, paddy, and
cent population owns about 85 per cent of
wheat waste; if the government can put consumerism is.
Insurance Dovetailing with Changing Consumer Behaviour home to the world’s biggest car market,
INPUTS BY TAPAN SINGHEL,
which was paralysed by the pandemic-
MD & CEO BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD.
the China Automobile Dealers’ Association,
induced economic freeze. According to about 99per cent of China’s auto showrooms
I
was at 66per cent of normal levels.
and perhaps tragedies due to deaths from the virus, people are now looking to
Consumer
preferences
across
the
world are changing. Transactions have
insurance companies to make good their
moved
promises.
products have taken a hit as customers
The
pandemic
has
fundamentally
remain
online. obsessed
Non-essentials/luxury with
COVID-related
changed the way the world works, and
essentials — hygiene, sanitation, cleaning,
how people live and think. The changes in
and staples. People are once again buying
lifestyle have long-term implications for the
local, patronising small corner shops.
market and industries.
Understanding this shift in consumer
In Wuhan, the sale of private vehicles
behaviour, the market has to be sensitive
went up after the lockdown eased. People
to their emotions in these trying times,
want to use private vehicles; nobody wants
going that extra mile to be with them
to use public transport anymore. China is
[customers].
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 87
Risk Mitigation in a Post-Covid World
as the damage caused has been drawn
With crises and natural calamities occurring
distress.
out, with immense losses and prolonged
regularly, insurance covers are becoming
Today, industries have moved online,
increasingly important. It also calls for
employees are working from home, and
individuals as well as businesses to reassess
the majority of work is being done remotely.
their risk exposure, to better protect
With these changes, new risk factors
themselves in the future. But, do individuals
come into play, like cybersecurity. With
and businesses invest in insurance covers in
dependence on digital platforms, there has
the wake of disasters? Based on previous
been a spike in cybersecurity threats, with a
experience,
consider
reported rise in phishing attacks, malspams,
insurance to be a cost rather than an
and ransomware attacks. These threats are
investment. The human brain is not wired
prompting insurance companies to match
to see risk; otherwise, we would be staying
their pace with evolving risks. Organisations
in.
are reviewing their cyber risk management
people
generally
measures, remote work processes, and example, conversation about insurance
downsizing.
takes place while a disaster, natural or
On the brighter side, the changes taking
otherwise, is already taking place, and there
place now could be great opportunities
is a dip in interest as soon as normalcy is
for industries to become more resilient in
restored. However, there could be a shift
the future and emerge stronger than ever
in attitudes with the COVID-19 pandemic,
before.
88 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Status of the GIG Economy SYNERGIA FOUNDATION RESEARCH TEAM
T
enable easier contracting. This was proven by the market success of gig platforms on ride-sharing platforms, economy hotel rooms, home deliveries, etc. at the expense of big corporations.
by Tina Brown, the then editor of The
The gig economy companies, such
New Yorker in 2009. It was used for
as Uber, Airbnb, Lyft, Etsy or TaskRabbit,
workers engaged in the knowledge-based
connect the worker and the consumer.
projects, consultancies, and part-time bits
quick, temporary job (a gig), which can
and pieces while they transacted in a digital
include any kind of work, depending on the
marketplace”. Since then it has been used
industry.
to describe a labour market with short-term contracts or freelance work.
A Mastercard survey found that the global gig economy generates US$ 204 billion in
In fact, Ronald Coase, Nobel laureate,
gross volume, with transportation-based
predicted the demise of traditional large
services (eg. ride-sharing) taking 58per cent
companies in favour of gig workers if there
of it. Gig workers are not employed solely by
are low costs (money or time) to a customer
people; companies also outsource tasks to
in the search for alternative suppliers who
trained workers, which also gives workers
are small scale, can assure quality, and
the option to work for multiple companies
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 89
in temporary positions. In a report in the New York Times, Google employed 1,21,000 contract-based freelancers in its global
COVID IMPACT 2 in 5 employees are facing
operations in March 2019, compared to
39%
1,02,000 full-time employees. There
is
one
distinction
here
—
freelancers can be seen as those who mostly associate themselves with companies that
15%
Salary cuts have been planned/ announced
Layoffs have been planned/ announced
have an economic turnout themselves, while gig workers are those who are associated with companies who simply connect workers to customers.
Their Fragility The fragile situation of gig workers stands exposed by the pandemic.
Lacking the
innate protection provided by traditional employment vulnerable
they
lot.
are
an
Businesses
54%
No impact it’s business as usual
3%
Company might close down
extremely like
public
have advocated “contactless deliveries”
transportation (Uber, Ola) are bleeding,
and have offered free medical consultation
and the victims are these workers. These
for workers. Uber suspended pool rides
human-based businesses depend on real
in the U.S., India, and Canada, and offered
people providing services from end to end. Work from home (WFH) is not a possibility
they test positive for the virus. There have
for most in this segment.
also been tie-ups with other retailers to
What is disconcerting is that this
help keep the gig economy working — with
segment involves huge numbers. In India,
Flipkart, BigBasket and Spencer’s Retail —
close to 1.5 million drivers work for platforms
to provide essentials. Swiggy, Dunzo, and
such as Uber and Ola. According to a report
Amazon have also done the same. Possibly,
published by Invest India, the share of the
a similar reorientation of business models
gig economy is as high as 25per cent in
could have been done to stem the migrant
the services sector in an urban labour force
exodus from urban centres.
totalling over 35 million. During the 2008
Despite these moves, there has been
recession, gig-economy steamrollers like
many lay-offs. Of the approximate 450
Uber and Airbnb emerged and turned
driver centres, Uber operates worldwide,
successful, but this pandemic is defeating
40per cent may shut down. Lyft Inc., the
their business models.
alternative to Uber in North America, is
Mitigating Strategies
said to be dismissing 17per cent of staff and cutting salaries. Airbnb Inc. has said it
It’s not that all gig businesses have
would be cutting a quarter of its workforce.
abandoned their workers; efforts have been
Swiggy plans to lay-off nearly 1,100 people in
made to protect them. Swiggy and JustEat
India, while providing them a few months
90 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
of salary based on their tenure. Reportedly, the Indian government is seized of the matter and is ramping up plans to bring gig workers in unorganised sectors within the ambit of social security schemes.
Projected Gross Volume of the Gig Economy The Gig Economy is projected to grow to $455 B by year-end 2023 in Gross Volume Transactions. (Billions USD) 500
and Work
400 300
gig workers has led to their exclusion from
200
the extended coverage of labour laws and
100
protection. The counter debate is that modern
0
work realities demand labour laws that have
204.0
2018
R= CAG
248.3
2019
% 17.4
296.7
2020
347.8
2021
401.4
2022
455.2
2023
Ultimately, the pandemic has given most digital platforms an opportunity to show With the prevalence of the pandemic,
that there is the long-term necessity of a
workarounds must be found to keep people safe and employed. This can be done by
industries, such as Uber and Flipkart, shows
minimising contact between consumer
how there can be an inherent support
and workers, providing safety equipment,
network in the gig economy itself, which
and ensuring medical assistance in case
can work towards providing for its workers
they test positive.
and consumers.
| CONCLUSIONS The global economy is staring at a
for intelligent, data-driven supply chain systems for faster and effective
‘World’s Factory’ touches the life of hailed as a miracle of globalisation, it this experience will act as a further dampener on globalisation and “outsourcing” will only be known once voices against globalisation, especially in North America and Europe, are
and machine learning foundation can trigger real-time alerts based on proactively take measures to avoid the
The virus has surfaced when there is erosion of trust within and between occurring at a greater frequency, and the world has to jointly devise global
A global epidemic reinforces the need
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 91
Global leaders have to rise to meet the challenge by not only tackling the crisis in their own countries help can come through debtrelief measures, postponing debt repayments, lowering tariffs, or entering into trade agreements with developing countries will have to make watertight commitments and ensure 100 per cent transparency in utilisation of economic support rendered by richer countries at great
Aviation has become the sinews of
The government has to provide more support to the pharmaceutical Industry to establish an ecosystem There must be more use of bioremediation, a technology that can treat environmental pollution using microbes, plants, or their xenobiotic and recalcitrant pollutants through physical and chemical
Fear of pandemics will ensure that healthcare emerges as a singular
The industry cannot recover unless the commercial aviation business and greater commercial outreach to Travel phobia may keep most non-
pharma
industry,
coupled
with
Hence, it will be a long, hard, and a
The airline dialogues
industry must have on post-COVID-19
Post-COVID the Indian pharmaceutical industry has the potential to expand both regionally and globally by investing more in R&D and supporting research in Indian
set of standard practices that can be The devil of the API dependency has As the rate of unemployment has increased, families are under acute
the
right
technology,
92 | COVID-19 COMPENDIUM |
teams must start research from basic chemicals upwards, and not from advance intermediates, and give impetus to in-house manufacture
adequate
www.synergiafoundation.org
would be critical through tax sops, dedicated zones for chemical industries, and fast-tracking of
Considering the ballooning Indiapresence of Chinese investments in India, it may be challenging to
Already saddled with an adverse balance of trade, there are fears that many sectors of the Indian industry are not ready to face international disruption caused by the pandemic, it is perhaps prudent to delay the exposure of Indian industry to protection should be temporary, and our long-term commitment should remain focused on free trade (minimal tariffs) and open markets
The Green Revolution changed the face of Indian agriculture, raising it from a subsistence level to a driver
chains will need re-designing, there will be a rebalancing of assets base and supplier mix, and a trend towards trend had, in fact, started earlier, and
The insurance industry could use its experiences from the COVID-19 crisis to evolve for the better, by studying altered consumer preferences marketing of insurance will grow, as customers will increasingly prefer online channels to enquire, assess, interact, and buy insurance, just like providers will have to invest in state-
Innovation is the route to survival and risk management teams need to keep reviewing external and internal risks to stay a step ahead and be prepared for potential and
The pandemic could well be the Considered as a high consumer of natural resources to generate much lesser value; susceptible to climate
of savings in terms of direct and indirect costs that the gig economy offers, it could well become the new
supply–demand variables, it is long
In these disruptive times, building operations resilience will be critical
www.synergiafoundation.org
date, been more successful in the arena of knowledge work, there is a risk of over-reach and too much
|
COVID-19 COMPENDIUM
| 93
CHAPTER 4
GEOPOLITICS IN THE TIME OF A PANDEMIC ‘GLOBAL ORDER NO MORE’
The West has made its fair share of
INPUTS BY M.K. NARAYANAN,
mistakes, especially in the invasions of Iraq and Libya, the handling of the Syrian
FORMER NATIONAL SECURITY ADVISER, GOI AND GOVERNOR TO WEST BENGAL
T
of 2008. Yet, the most glaring one as of now seems to be the way the pandemic has
he swing of the pendulum may veer
been handled, especially by the U.S. and the
in favour of China vis-a-vis India, if one
UK.
goes by the sheer display of state
The U.S. healthcare system is not
craft by China in handling the pandemic.
designed to meet the challenges of a
While the West appeared to maintain its
pandemic. The public health system has
lead in terms of economic development,
seen
neglect
with
private
healthcare
education, social welfare, public health, military
people. The initial cavalier approach to the
power, its dealing with the pandemic has
pandemic, claiming that everything was
been suboptimal. The decline in the primacy
under control, when the reality was quite
of the U.S. in the global power equation has
different, added to the crisis. The throwaway
been evident — from President Barack
remarks of the President, and going on the
Obama’s
withdrawal
offensive when it was prudent to seek advice
of an overstretched military from Iraq,
and cooperation from other countries, has
Afghanistan, and the Middle East, to
turned the U.S. inside out.
technological
innovation,
initiation
of
and
the
President Donald Trump’s mixed signals in
Europe has not fared any better going
Syria allowing for a vacuum to be exploited
by the mortality rates and the sheer lack of
by competing powers. Trump was forced to
direction. The British Prime Minister started
conclude a deal with the Taliban, with few clear gains, and this further diminished the
that herd immunity was the only way out
shine on Pax Americana.
in the absence of a vaccine, but confronted
94 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
with rising deaths, he lost his way and took resort to a total lockdown, albeit as a way out and not as a well-thought-out strategy. Though the British National Health Service (NHS) is a formidable institution, years of neglect in funding was evident when its lack of preparedness to face an epidemic was cruelly exposed from the lack of basic PPE. Sadly, many of the NHS health workers themselves were struck down by the virus. The one country which was the black swan and is attempting to masquerade as a white swan is China. The Chinese regime could enforce a severe lockdown over a vast swathe of its population, something the liberal democracies could implement only when the situation became desperate, and that too with marked reluctance and against strong public resistance. China is well on the path of recovery with its economy back in action.
However, questions are
now emerging about its transparency at the onset of the pandemic. In its efforts to appear as a responsible world power, China is now sending medical experts, protective masks, and respirators all over the world. Most other Asian countries, such as Taiwan, South Korea, India, and Singapore, have shown great control over the disease. The East is appearing to be the one led by science and quick action, while the West pushes aside the science.
EU COVID Deal Euro 1.1 trillion
Euro billion
EU budget for the next seven years
grant to the worst affected economies.
Euro 360 billion meant for low-interest loans for the most severe victims of the COVID-19 mayhem 170 countries will see their GDP per capital fall by the end of the year. With research showing that 79% of companies with high-performing supply chains achieve revenue growth greater than the average within their industries. According to Forbes Insights, 44% of respondents state that the Amazon effect (the assumption that all e-commerce sites must provide customers what they want, when they want it and at a lower price) is having a dramatic impact on their logistics, supply chain and transportation operations. By the end of 2020, 50% of all manufacturing supply chains will have the capability, either in-house or outsourced, to enable direct-to-consumption shipments and home delivery. (IDC) 48% of supply chain and transportation executives say they are experiencing the need to reevaluate warehouse locations due to shifting trade patterns resulting from changes in the U.S. economy. (Forbes Insights) Businesses with optimal supply chains have 15% lower supply chain costs, less than 50% of the inventory holdings, and cash-to-cash cycles at least three times faster than those not focused on supply chain optimization. (Logistics Bureau)
Post-Covid World
50% of respondents say advancements in technologies are exerting a strong impact on their company’s logistics, supply chain and transportation operations. (Forbes Insights)
Post the pandemic, the world is going to be
The Institut Pasteur in Dakar, Senegal has been
very different. Which country in the world is in a position to stand up? Most of the areas we mentioned are hit by terrorism. West Asia is about to implode because of they have. In the U.S., people are starting
Mologic to develop a new form of rapid test kits for the COVID-19 virus, to be made in and distributed across Africa from their custom-built DiaTropix facility. Similarly, researchers at the Kenya Medical Research Institute have joined the race with their colleagues from across the world in developing new vaccine candidates to meet the COVID-19 challenge.
to talk of it in terms of a declining power,
www.synergiafoundation.org
|
COVID-19 COMPENDIUM
| 95
etc. Most of the countries in the world are
share their collective resources.
in deep depression of one kind or the other.
This is not to say that the East holds all the
So, many of the measures we could have
answers. With leaders in the East, whether
implemented if the governments around
it be Xi Jinping in China or Putin in Russia,
the world were strong enough like the
the current so-called ‘successful’ leaders
past, but are not. We are going to face the
are those who are practitioners of, for lack
biggest depression the world has ever seen,
of a better word, personal authoritarianism.
with vast numbers of people without jobs,
There is now a willingness to restrict a
huge numbers without health. I think few
degree of securities in the belief that public
governments are prepared for this and the
good takes precedence over everything
only country which has come out of this and
else. This, undoubtedly, raises the question
is preparing to take over the world in some
of what is the perfect balance between
ways is China. Countries like the U.S. and
authoritarianism
Western Europe are going to take a long,
whether when emergency services are put
long time to recover from the pandemic.
in place, is there the trust that they would be
The world will have to decide how we
rolled back after the emergency fades?
are going to deal with this new situation,
and
democracy,
and
where a country that doesn’t believe in
The Counterpoint
international rules and conduct is going to
Naturally, it would not be that easy to
be a dominant power at least in this part of
dethrone the West. Above all, leadership in
the world.
global governance requires a combination
East or West, What is Best?
of performance, diplomacy, and principles. It is not that the West lacks these. It is just that the pandemic brought out the instability of
the West has been questioned. The appeal
its capitalistic practices. The West still stands
of the American model was also sullied by
for upholding a world-class education
gun violence and the mismanagement
system. Most of Europe has nationalised healthcare, and the Scandinavian countries
After the 2008 Great Recession, most of Asia
are examples of the balance between public
was relatively unscathed, while the U.S. and
welfare States and democracies. There
is
also
concern
about
the
most countries keeping their resources for
violation of people’s rights in the East
themselves due to the fear of shortages at
under authoritarian regimes, and rightly
home. After long talks, emergency packages
so. The Uighur Muslim crisis, along with the subduing of free speech in India has raised
96 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
concerns about whether authoritarianism
The whole concept of the international
can be an option at a time when people’s
community is coming under question. The
identities and personal beliefs are louder
point we need to realise is that if there is no
than ever. There is the concern that once
global community, there is no globalisation.
these regimes employ such powers, would
The only way a global community exists
they also, then equally pull back these
is if the East and West play off each
measures when the time comes? The State
other instead of trying to be one-up on
knows best is the answer to most questions.
each other.
No Man is an Island INPUTS BY MICHAEL CHERTOFF, FORMER SECRETARY, U.S. DEPARTMENT OF HOMELAND SECURITY
the Czech Republic had announced bans on the export of protective gear to avoid shortages at home in March. Although under pressure, India as well as some countries in the European Union did indeed lift the ban, the situation highlighted the fragility of supply chains, which could so easily be broken when national interests overtake cooperative international trade.
f there is one thing that the COVID-19
‘Extraordinary Measures Should be Extraordinary, not Ordinary.’
pandemic has proven, it is that we live in
There’s always a risk that people will
an increasingly interconnected world — of
exploit this opportunity to cement their
goods, services, capital, people, and ideas —
authoritarian tendencies. President Jair
for mutual advantage. However, what has
Bolsonaro of Brazil is trying to use this
become starkly clear are the dangers of this
crisis to push back on his own limitations
very reliance on one another. But, cutting
on power. Chinese President Xi Jinping is
ourselves off from the rest of the world is not
attempting to consolidate his power. The
a realistic option. This issue will surely be part
Chinese, in many ways, tried to overplay
of the political discourse in the years to come.
their hand to minimise the extent of the
Most countries are linked through supply-
pandemic. That has caused a backlash
chain dynamics. When the pandemic hit the
as there is much more cynicism and
United States, Americans discovered that
questioning. It requires us to be mindful
72per cent of its pharmaceutical needs were
and conscious that extraordinary measures
mostly from the European Union, India, and
should be extraordinary and not ordinary.
I
China. Worse, of this, 97per cent were for
In Hungary, Prime Minister Viktor Orban
antibiotics. It was the dire need to battle
has been granted, by vote, extraordinary
this unknown virus that drove President
powers for an unlimited period to tackle
Donald Trump to threaten India well nigh
the virus, and there is fear he might misuse
to lift the ban on her considerable stock of
it. There is a perception that modern-day
hydroxychloroquine. Germany, France, and
western democracies such as the UK and the
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 97
U.S. have been reactionary in their approach
not have any wasteful capabilities. The
and have faced the brunt of the calamity.
problem is when one hits a bump on the road. Resiliency is about having a margin of
Data Surveillance
error, an extra layer of fat in the system on
On the debate over using data surveillance
which one can rely upon when winding up
to track the infected, there are long-term
in dangerous times. We need to build our
measures that countries should take. It
systems with that in mind.
consists of building contingency plans,
Second,
a
global
world
will
be
applying time-limited emergency measures
affected by global issues, like pandemics,
with clarity over how such measures will be
climate change or massive international
implemented, and by whom.
disruptions on the internet.
The U.S. did this post 9/11. In
A global approach is needed
the
extraordinary
to respond to it. No country
situation, world leaders must
can do it alone, because no
balance the principles of civil
one can have borders that will
liberties
authoritarian
keep out all germs and the
tendencies until we chart a
internet, unless they wish to
clear way forward, and should
be completely disconnected.
present
and
not exploit the situation. China has been in middle of internal and geopolitical disruptions — the upsets in Hong Kong, and the election in
Taiwan.
Unhappiness
also manifests itself in the population over censorship, and in the way they have managed information with respect
to
the
pandemic.
There are hints of fragility: The
Chinese
always
acted
regime
has
upon
the
Americans discovered that 72 per cent of its pharmaceutical needs were mostly from the European Union, India, and China
There is a category of issues that we need to work on together and come up with
some
understanding
of how we will police these multinational threats. Finally,
countries
themselves
need
to
take
responsibility of their own health and security. That would mean building a contingency plan and stocking up supplies. This does raise the question of how supply-chains would
assumption that their legitimacy comes
then work. Another part of resiliency is to
from performance. You have economic
have alternative supply chains so that one
damage and the way they have handled
can turn to others in times of need.
the pandemic — there is fragility there.
Resilience, Extra Layer of Fat
The bottom line is this: national security needs to take account of interdependence in a global world. People may not like what
three
they call globalisation, but the reality is that
things. First, the importance of resilience.
given technology, weather, viruses and
The general expectation of a normal society
bacteria, we live in a global environment
The
pandemic
has
highlighted
and it requires concerted efforts.
98 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
On a United Front SYNERGIA FOUNDATION RESEARCH TEAM
I
n an era of globalisation, many countries
have integrated to form regional Free
their public through trade. Sadly, in the face of the pandemic, as each country husbands
its resources, the common interests of the bloc are suffering. This was well enunciated by the Italian Prime Minister when he
estimated that the EU may see its GDP
called for a coordinated response across the world’s largest trading blocs and reminded
due to the combined effect of a slowing
all that European Union (EU) leaders faced
global economy and the aftershocks of the
an appointment with history that they
pandemic. The landmark Economic Recovery Deal
could not miss.
was signed by all 27 member-countries
Europe Leading the Charge The status of collaboration within the
much political contention.
Negotiated
EU was succinctly summarised by the
alongside the EU’s upcoming budget, or
Commission President, Ursula von der Leyen. She conveyed a “heartfelt apology”
the deal allows for the infusion of funds
to Italy on behalf of Europe for failing to
into European economies over a seven-
come to their aid at the most perilous
year period, helping to recover from
times. She went on to claim “Europe has
the economic tailspin threatening the
now become the world’s beating heart of
Eurozone.
solidarity”. She was referring to fresh joint
First, the deal: it has three principal
initiatives of member countries to share
elements to it. A Euro 1.1 trillion EU budget for the next seven years, a Euro 360 billion
worst affected countries, and initiating the
meant for low-interest loans for the most severe victims of the COVID-19 mayhem
The European Union (EU) has been
and a Euro billion grant to the worst affected economies. To get a perspective of the deal,
economic carnage of COVID-19. With many
it may be interesting to note that it is almost
EU members like Italy, Spain, Greece and
as large as 75% of India’s GDP!
Portugal already in the throes of extreme economic discomfort even before the
deal?
It may be recalled that after the
pandemic struck, the recovery package could not have come any sooner.
www.synergiafoundation.org
It is
growing disinclination amongst member
| COVID-19 COMPENDIUM | 99
WORLD BLOC RESPONSES
burden of their poorer and worst hit comembers. Weaker economies like Greece were asked to improvise through austerity
THE EUROPEAN UNION EU Solidarity Fund: assistance of up to € 800 million to the worst affected countries € 750 billion in a Pandemic Emergency Purchase Programme, along with € 120 billion in the Asset Purchasing Programme (APP) € 140 million mobilised to develop vaccines, new treatments, diagnostic tests and medical systems.
ASSOCIATION OF SOUTH EAST ASIAN NATIONS After the SARS epidemic, the bloc had carved out a common mechanism for pandemics. Aims to intensify the “timely sharing of information, experiences and best practices and enchance cooperation around regional food security, including through utilising the ASEAN plus Three Emergency Rice Reserve.”
SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION COVID Emergency fund was proposed by the Indian Prime Minister, which April. This is more of a “virtual fund” with no central pooling of money and without a central administrator.
and higher taxes on its citizens. This led to what was called euro-scepticism and calls for the breakup of the union gained voice to these sentiments through its BREXIT move. In what is seen as a move to perhaps save the political idea of the EU, the richer countries have now stepped forward to shoulder a greater burden. The fact that the deal was concluded despite huge differences is itself an achievement.
A
of the past against debt mutualisation, Germany and France will shoulder the Four’— Austria, Denmark, the Netherlands, and Sweden — have also managed to secure important concessions, such as rebates for their contributions to the EU budget. Member states will have to draw up national recovery plans while pledging
BRAZIL, RUSSIA, INDIA, CHINA AND SOUTH AFRICA (BRICS) BRICS New Development Bank (NDB) issued a 3-year RMB Coronavirus Combating Bond to raise 5 billion yuan
to reform their economic and political systems to be able to gain access to their share of the funds. integration, the recovery fund will allow Brussels to borrow €750 billion on capital
ASIA-PACIFIC ECONOMICS COOPERATION (APEC)
markets and parcel it out in terms of budgetary
released, but is a focus on dealing with the impact on SMEs including lending facilities, lowinterest loans, etc.
core proposal Next Generation EU stipulates
support to countries on a need-basis. The that about €390 billion will be distributed in the form of grants and €360 billion in low-
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) The NAFTA bloc is in the middle of a transition to United States-MexicoCanada Agreement (USMCA).
interest loans as a core component of the EU’s Recovery and Resilience Facility. For countries such as Spain, Italy, and Greece, the hardest hit by the pandemic, this fund will provide much-needed economic relief.
100 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
ASEAN
BRICS
After the SARS epidemic, the bloc had
For the BRICS countries, the OECD predicts
carved out a common mechanism for
a potential GDP decline at constant prices
pandemics. This had seven components —
of over 20per cent in Brazil and India, 23per cent in Russia, about 19per cent in China,
Operations Centre Network (Malaysia); Field
and 17per cent in South Africa. The BRICS
Epidemiology Training Network (Malaysia and
New Development Bank (NDB) issued a
Thailand); Bio Diaspora Virtual Centre for Big
three-year RMB Coronavirus Combating
Data Analytics (Philippines); Risk Assessment
Bond to raise 5 billion yuan (US$ 706 million).
& Risk Communication Centre (Malaysia);
The NDB has also approved an emergency
Regional Public Health Laboratory Network
assistance loan of 7 billion yuan (US$ 1 billion)
and Public Health Laboratory Network for health hazards. These mechanisms did not
BRICS countries are yet to come together
meet the expectations as the suddenness
to form a joint strategy, although, during
of the pandemic allowed little space for
the recovery phase, they may collaborate to
coordination.
expedite the recovery process.
ASEAN sought cooperation from China, Japan, and South Korea in “timely sharing of
information,
experiences
and
APEC
best
practices, and enhance cooperation around
Cooperation convened in Malaysia to
regional food security, including through
discuss strategies for the surveillance
utilising the ASEAN plus Three Emergency
and
Rice Reserve”. The ASEAN Risk Assessment
APEC economies are also examining
and Risk Communication Centre, hosted
supply-side
by Malaysia, has now taken the lead in
vaccine-based public health responses.
risk communication initiative for public
“Saving lives is obviously what matters
communications throughout the bloc. An
most right now,” said the Chair of the
ASEAN Response Fund is proposed.
APEC Business Advisory Council (ABAC),
management
of
strategies
the to
outbreak. strengthen
Dato Rohana Tan Sri Mahmood. “This
SAARC
demands
The COVID emergency fund was proposed
region on the knowledge and the tools
by the Indian Prime Minister, which had
we need to combat the health impacts
accumulated US$ 21.8 million by April. This
and mitigate the most severe economic
is more of a “virtual fund” with no central
consequences in the short term,” she
collaboration
across
the
pooling of money and without a central administrator. Each member would take
not yet been released by APEC, the focus
its own decision on implementation of
is on dealing with the impact on SMEs,
their commitments. India has also offered
including lending facilities, low-interest
assistance in material and services to
loans, moratoriums on rental payments,
neighbouring countries, if required, an
tax deferrals, and wage subsidies for three
Armed Forces Humanitarian Assistance
months. This is guesstimated to amount
Teams have been placed on standby.
to US$ 471 billion.
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 101
NAFTA
MERCOSUR
The North American Free Trade Agreement
Member
bloc is in the middle of a makeover, trying to
Paraguay and Uruguay, and later joined
change its image to the U.S.-Mexico-Canada
by Venezuela and Bolivia. Also called the
Agreement. While Canada and Mexico
Southern Common Market, MERCOSUR
have come on board with the plan this year,
has approved US$ 16 million for the
the U.S.’s stance on the agreement has to
multinational project “Research, Education
emerge. The NAFTA 2.0 deal does, however,
and Biotechnologies applied to Health,” to
countries:
Argentina,
Brazil,
emphasise an “enforceable biotechnology chapter,” as per the council. The deal has taken a backseat during the crisis.
5.2%
According to World Bank forecasts, the global economy will shrink by
Post-Covid Geopolitical Equations and India SYNERGIA FOUNDATION RESEARCH TEAM
C
North and the South to vitalise multilateral contributor to the budget of multilateral agencies like the WHO, and the IMF, its the activities of these institutions, and over the years have earned considerable goodwill. This is the time to strengthen WHO and IMF, and India must put its weight behind like-minded
OVID-19 has reinforced the need
countries. India must push for a coordinated
for a collaborative action plan and
and global economic rehabilitation plan, strengthen international institutions and
agencies. International governance can still
multilateral dialogue, and give a boost to
redeem itself by a coordinated response
globalisation.
and tempering the tensions between geopolitical rivals like the U.S. and China.
United States
Better still, with a collaborative approach, we can prepare better for the next pandemic. India can act as a bridge between the
102 | COVID-19 COMPENDIUM |
been diminishing, and the crippling effect of COVID-19 may further damage its standing.
www.synergiafoundation.org
However, the U.S. is still the most
Macron has been playing a leading role by
powerful nation and will remain so for some
trying to use the G7 and G20 to deal with the
time to come.
economic and geopolitical consequences
India’s strategic partnership with the
of COVID-19.
U.S. remains strong, despite a few minor
India is in a good position to act along
hiccups, and India should endeavour to
with European countries, led by Germany
strengthen it further post-COVID-19. India’s
and France, to build up a relationship with
gesture of meeting the U.S. requirement of
South Korea and Japan as part of the post
Hydroxychloroquine and its formulations
COVID-19 “alliance for multilateralism”. A
was a step in the right direction. A new
weakened EU would need India’s markets. Europe too may look for alternative supply
pandemic blows away. The pandemic
chains. Post-BREXIT, bilateral trade, and
could trigger resentment and antagonistic
investment opportunities with the UK are
sentiments in the West against China amd
there to be exploited.
whether that could be turned to India’s advantage is something India has to
The Middle East
incorporate in its geostrategic calculations.
Oil-producing countries face an uphill battle to recover from the economic fallout.
Europe
Iran has been most severely
Europe will emerge bruised
impacted by the pandemic
and
and crashing oil prices. It
battered
from
the
COVID-19 having topped the 1962, approached the IMF for
charts in morbidity, mortalities, and the manner in which the whole crisis has been dealt
isolated in the Middle East.
with. Coming so soon after BREXIT, it may trigger a further weakening of the EU with rightist
movements
within
individual States. Propped up by fears of the renewed migrant crisis, these right-wingers may seek stronger border controls, disrupting the freedom of movement so important for the idea of the EU. However, Europe can play a vital role in acting as the bridge between the U.S. and China to bring back globalisation and multilateralism into play. French President Emmanuel
www.synergiafoundation.org
The OECD expects global GDP to return to its pre-pandemic level by Q3 2021, however, economic output is expected to remain below late-2019 levels in many countries.
proxies, there is a danger that the regime could try to provoke external crises in the political pressures. India must join other nations to seek a relaxation of sanctions on Iran to enable import of critical medical supplies. It is critical that the falling oil prices do not
trigger
an
economic
collapse in the Middle East as millions of Indian ex-pats would be affected and India’s remittances would drop.
| COVID-19 COMPENDIUM | 103
‘Humanitarian’ Silk Route China-based Alibaba Foundation donated INPUTS BY PATRICK MENDIS,
PPE (personal protective equipment) and
FORMER AMERICAN DIPLOMAT & VISITING PROFESSOR NATIONAL CHENGCHI UNIVERSITY
but also to the U.S.
other medical supplies, not only to Europe, China is displaying proactive leadership through its already established HSR. Of course, there have been adverse reports of its medical equipment not being up to
T
standard. he Health Silk Road (HSR) dates back
In the post-COVID-19 scenario, China
to 2017 when Chinese President Xi
is likely to leverage the goodwill earned
Jinping signed a memorandum
through its
HSR for its commercial
of understanding with the WHO for the
enterprises, like Lenovo and Huawei, who
construction of the HSR, with a promise
are now marketing ventilators and other
of over of US$ 30 million. The aim was to
medical electronics to members of the BRI
improve public health in countries along
in Europe.
the Chinese belt.
This diplomatic heft would help China
Since the beginning of the pandemic,
achieve its mission to become the most
China had tried to turn the concept into
prosperous nation in the world by 2049. Of
reality through diplomatic engagement
greater interest to India would be China’s
and despatch of medical aid. The aid
strong bilateral relations with South Asian
provided to Italy was its major activity,
countries, and the willingness to open its
which was given wide publicity. Even the
purse strings in these desperate times.
104 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Disrupted Supply Chains China was able to compete ahead of every other country in supply-chain dynamics to western countries. In a post-COVID-19 scenario, if other countries like India are for global supply chains, then they would
immensely from supply chains aligned to western markets, it is an irony that the West is now suffering from a disrupted global supply chain. A global supply chain is for everybody. China now has been through a discussion on whether it should focus on domestic supply chains themselves. This re-thinking has been based on the principles of Tao
and
Confucianism.
The
western
concept of competitive supply chains has overwhelmed all countries, including China and India, and it is not a sustainable feature.
BRI investments show highest share of renewable energy investment, amid a 50% decline in total BRI investments [Green Belt and Road Initiative Center]
There are, however, some to whom China’s COVID-19 aid seems to have a more intrusive bearing. Chinese supplies to
for delaying the acknowledgement of a
countries like Spain, Italy, the Netherlands,
new deadly virus amongst its citizens, and
and India, have turned out faulty by local
allowing its spread during the Lunar New
standards. Severely affected countries have
Year exodus of the Chinese all over the
termed Chinese supplies as “paltry” when
globe. Also is suspect the strong Chinese
compared to its massive manufacturing
hold over the WHO, which was clearly
potential.
hesitant
in
undertaking
independent
The world is unlikely to forget or forgive
investigations of the developing crisis
China for its lack of transparency, the
and accepting, at face value,
second time over (after the SARS epidemic),
www.synergiafoundation.org
Chinese statements.
| COVID-19 COMPENDIUM | 105
‘Globalisation with Localisation’ INPUTS BY BOON HUI KHOO, SENIOR DEPUTY SECRETARY, MINISTRY OF HOME AFFAIRS, SINGAPORE AND FORMER PRESIDENT OF INTERPOL
S
everyone on its shores equally, whether a foreigner or a resident. All are being given free treatment in the same hospitals, and get equal access to equipment and medicine on a par with citizens. We have Chinese tourists; then from Malaysians who travel to Singapore to work; third from
ingapore’s fall from the ‘gold standard’ pandemic is attributed to employing
students overseas who returned home; and
unsophisticated contact tracing methods
Globalisation
as a deliberate choice.
Unfettered globalisation would no more be
Singapore abides by two inherent
the norm. Instead, there would be a move
principles — preserving individual privacy
towards
and rights, and giving equal opportunity
— starting supply chains domestically —
globalisation
with
localisation
and care to all. When Singapore was hit by SARS, there were only 238 cases and 33 fatalities. The police
possibly also lead to geopolitical tensions.
had helped the Ministry of Health in contact
However, Singapore is a price taker, it
tracing. That was quite an achievement.
does not set rules, it follows the rules. It needs
But, this time around, we didn’t opt for
globalisation, and so follows appealing
technologies that are more intrusive because
strategies to overcome the crisis.
it was an issue of privacy and rights. We shut
As for China’s perceived global might, there is a feeling that businessmen in
That’s the price we had to pay because we
Singapore are looking towards China, as
didn’t want to be perceived as a State where
that is where the money is. However, the
the police could have overarching powers.
Singaporean government and its people
Our country also prides itself in treating
106 | COVID-19 COMPENDIUM |
are well informed and wary.
www.synergiafoundation.org
Change of Guard enterprise’ within Chinese socialist thinking, and opening up to foreign investment.
MAJ GEN MONI CHANDI, CHIEF STRATEGIC OFFICER, SYNERGIA FOUNDATION
According to the IMF, in terms of purchasing power parity, China’s GDP is the largest followed by the EU and then the U.S. China’s competitive advantage stems from three factors. First, lower wages to workers
I
n the last 75 years, the liberal world order
because of lower cost of living standards.
strengthened
institutions
Second, the Chinese yuan enjoys a low
(UN, WTO, IMF, World Bank), promoted
exchange rate with the U.S. dollar, making
multilateral
democracies around the world, developed
their
the open-market system of trade and
the Chinese government’s collaborative
attempted
support to big business.
to
create
a
rules-based
international order. From 1978 onwards, the economy of the
exports
price-competitive.
Third,
The Rise of the EU
People’s Republic of China (PRC) grew at
The vision of the EU was to ensure free
an astonishing rate of 9.5per cent annually.
movement of people, goods, services and
From a per-capita GDP of less than US$
capital, within its region. This has been largely
300, it grew to more than US$ 18,000. Deng
accomplished with the abolition of passports
Xiaoping was the architect of modern China
within the Schengen region, the creation of a
and he is credited with the introduction of
single internal market and a standard system
many reforms; including, strengthening
of laws with voluntary participation. The
university
economic performance of the PRC and the
education,
making
a
new
constitution for the Chinese Communist Party
(CCP),
institutionalising
www.synergiafoundation.org
‘free
challenged U.S.’s otherwise pre-eminence.
|
COVID-19 COMPENDIUM
| 107
By not paying their dues to the UN
only helps to control appreciation of the
and the WHO, reneging on the Palestine settlement, and walking out of the UN
nations. Since 1900, Argentina, Hungary,
convention on climate change, the U.S.
Iceland, Venezuela, Zimbabwe, Germany
appears to have voluntarily stepped back
amongst others, have all experienced runs
from global leadership.
on their respective national currencies.
US Dollar is Still King
If despite quantitative easing, the US dollar continues to rise in value, the U.S. government may request the G-7 to release
and investors prefer to hold US dollars. While drawing down on credit, they prefer
their dollar holdings to meet the demand.
to receive US dollars. To preserve wealth,
Largest Debtor Nation
they prefer holding US assets, which needs
“The dollar is our currency but it is your
US dollars. Banks and even central banks of
problem,”
nations take in more US dollars than they
Treasury Secretary was famously cited
would otherwise need. Thus, despite the
during his address to G-10 Finance Ministers
pandemic, the US dollar has appreciated in
in 1971.
John Connally, the then US
value, against most currencies. As on April 7,
Debt rises when one spends more than
2020, the US dollar had gained 6per cent in
one earns. As of April 2020, U.S. national
value from its lowest point in the previous
debt was estimated at US$ 24 trillion. Due
month. Even against the Euro, the US dollar
to the coronavirus pandemic, the U.S.
has appreciated 3.5per cent, since January 1, 2020.
a record US$ 3.8 trillion (18.7per cent of GDP)
However, most U.S. economists are not happy with the appreciation of the
this year. The U.S. public health system is known
dollar because it makes U.S. exports more expensive though it also makes imports
increases in life expectancy, there are
cheaper.
growing numbers of senior citizens who
In response to the surge in dollar demand, the U.S. Federal Reserve has
Shortfalls in budget have been met by
resorted to quantitative easing, by printing
increasing
and releasing more than US$ 700 billion
interest. While the government may have
into the market. Quantitative easing not
some control over domestic interest rates,
federal
debt,
which
costs
Despite the pandemic, the US dollar has appreciated in value, against most currencies. As on April 7, 2020, the US dollar had gained 6 per cent in value from its lowest point in the previous month
108 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
the U.S. has committed interest payments on international debt. Both PRC and Japan each hold more than a trillion dollars in U.S. debt. The federal government does not have income to meet its expenditure. Cheap imports from the high-value dollar has made domestic production uncompetitive and populist tax measures have curbed government revenues. Cost of public health, increasing federal
The US-China Growing U.S. trade balance with China from 2014 to July 2019 (in billion U.S. dollars) U.S. exports to China -367.33
-344.82
483.20
468.47
U.S. imports from China -347.00 462.54
-375.58 505.47
Balance
-419.53
debt, and shortfall in national income are recent but have progressively aggravated over decades. The bottom line is that U.S. national debt is increasing every year and at
-167.04
539.68
219.04 123.65
115.87
2014
2015
129.89
115.54 2016
2017
120.15 2018
52.00 H1 2019
Source: United States Census Bureau
some point in the future, bills will be called for payment.
encouraging US customers to buy more
Bedfellows: US and China
expensive but US-manufactured products. Any policy that makes US customers
has consistently exceeded US$ 300 billion
pay more, merely to eliminate foreign
annually.
mobile
competition, violates the open-market system
phones and manufactured products were
of trade that has been the cornerstone of U.S.
the major US imports from China, totalling
foreign policy for over seven decades. In terms
US$ 452 billion, while aircraft, soybeans and
of free trade, the US needs to increase exports
were the major US exports to China, totalling
to China to match their demand for imports.
a mere US$ 106 billion. The PRC’s consistent
After years of tit-for-tat tariffs, the January 15,
trade surpluses over decades has helped it
2020 US-China trade agreement, offers little
to accumulate the largest foreign exchange
clarity except making for a truce during the
reserves in the world, estimated at US$ 3.9
US Presidential campaign.
In
2019,
computers,
trillion (March 2020). been concerned with the situation. On
Chinese Perspective & the Mandate of Heaven
one hand, he could try and force China
The PRC would like yuan to replace the US
to appreciate the yuan against the dollar,
dollar as the world’s popular global currency.
but that could make the same imported
In order to achieve this, it has a monetary
Chinese product more expensive to U.S.
and infrastructure plan. The monetary plan
customers. Alternatively, he could impose
encourages both the use of the yuan in
additional tariffs on Chinese products
international contracts and the holding of
(which he has done) but that would also
part reserves in the yuan by international
make the products more expensive at
banks. Both these measures are expected
home. Perhaps the President’s intention is
to make the Chinese less dependent on the
to make Chinese imports more expensive,
US dollar.
President Trump has understandably
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 109
In 2013, the PRC launched the Belt & Road Initiative (BRI) to connect Asia, Africa, and Europe with a network of land and maritime corridors. The plan promises to improve regional integration, increase trade, and stimulate economic growth. It involves trillions of dollars of investment for ports, roads, railways, and tele-communication networks. Created in 2016, the Asian Infrastructure Investment Bank (AIIB), is a multilateral development bank structured Beijing, it has 102 approved members,
on federal debit, balance of trade, and
including India. While Nirmala Sitharaman,
monetary policy. China, with its ample
Finance Minister, is a governor of the bank,
foreign exchange reserves and export-
Atanu Chakraborty, Secretary Economics
focused economy, will be in a better position
Affairs, is an alternate governor.
to assist recovery of the global economy in
The BRI is key to PRC’s emergence on
the aftermath of the pandemic and the BRI
the world stage. It provides an investment
and the AIIB unlikely to face competition
opportunity for China’s foreign exchange
for infrastructure projects. China is also
reserves, most of which are tied up in low-
likely to use the opportunity to transfer
return U.S. treasury bonds. It also provides
funds from U.S. treasury bonds to more
new markets for China’s high-speed railway
remunerative infrastructure projects. The current scepticism for BRI is likely to give
steel and metal exports. Further, it provides
way to more pragmatic embracement, in
China with the power and prestige it has
Asia, Europe and Africa. Bretton Woods
sought since the humiliation of the Opium
institutions (IMF and World Bank) as well
Wars.
as the UN and WTO, should become more
No matter who wins the U.S. presidential election in November 2020, the incumbent
representative of Asia (China and India), in the emerging world order.
Further, with remarkable increases in life expectancy, there from the decrepit system
110 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
India and China: Ancient Bonds Need Fresh Stimulus INPUTS BY NIRUPAMA RAO, FORMER FOREIGN SECRETARY OF INDIA, FORMER AMBASSADOR OF INDIA TO CHINA AND THE UNITED STATES
T
he India-China relationship, despite
almost inconceivable crowd” turned up to
differences, is too important to
greet him at the station, he was felicitated
squander. The future should be
by a gathering of scholars led by Liang
built on a balanced partnership that works
Qichao, who spoke of Indians and Chinese
for a world order that is inclusive, open,
as brothers, anticipating the slogan of the
compassionate,
development-oriented,
and respects diversity
Old Bonds between China and India
depth and feeling. In Liang’s words, “We are brothers, India is our elder brother and we are the younger. This is not only an expression of courtesy. We have got
While there would be ups and downs
ample proof of that statement in history…
in geopolitics, with regional and global
Indians did not covet anything from China.
competition between nations, there are
They gave us the sadhana (contemplation,
certain threads that bind them together.
meditation, and focus) of freedom, and
India and China, two of the world’s ancient
maitri (friendship). .... Rabindranath has
civilisations, have always shared a cultural
come to us from the country of our elder
bond. This two-nation connect was never
brother.” Tagore responded saying that
more highlighted than in the reverence of
India felt a “very great kinship with China”,
Rabindranath Tagore. The joint celebration
sraddha as he called it, which translates to
of the birthday of this great poet, artist,
mutual respect, awareness, and kinship.
novelist and musician -– a true Renaissance
Tagore’s ideal was the universal human
man – both in India and China with equal
spirit linked by reason and rationality
fanfare, is a manifestation of such bonds. When Tagore visited China in 1924, he
nationalism. Today, as every corner of the
said: “Where is the difference between
world is ravaged by a virus, the world needs
China and India?” In Beijing, where “an
to be reminded of the need for rationality, for
www.synergiafoundation.org
|
COVID-19 COMPENDIUM
| 111
the respect of universality that rises above the
Challenges of the Pandemic The world is on edge. It is on the brink of what could be a cataclysm that is both societal and economic which tests human resilience. And yet, nations act as if it is business as usual, continuing to pursue outstanding
differences,
unresolved
problems, old grievances, and rivalries, in the race towards global leadership or regional supremacy. Insularity, the chase of narrow ambition, jockeying for spheres
The Chinese-Indian Trade Relationship Trade in goods between China and India in 2018* Chinese exports to India Electronics and machinery Chemical products Metals Textiles Plastic and rubber Indian exports to China Mineral and Oil Chemical products Textiles Electronics and machinery Metals
$ 36.8b $ 12.8b $ 5.9b $ 4.0b $ 3.2b Total exports $ 4.8b $ 3.6b $ 1.9b $ 1.4b $ 1.2b
$ 75.5b
$ 16.6b
China to India
India to China
Source: UN Comtrade/BACI Internatinal via OEC/MIT
seem to be the preferred route. The speed with which the disaster, the by French President Emmanuel Macron recently) that is COVID-19, has overwhelmed all nations and it should induce much greater sobriety in the way nations think. pointing, and countries such as the United States and China, the leading powers, have also succumbed to this exercise, infusing the current situation with even greater complexity. The grammar of so-called diplomatic language has descended into depths that reduce it to street insults. This only compounds the tragedy because
chart a vision and plan a strategy. What is
“grown-up nations are supposed to behave
the future we want? It is not about kicking
like grown-ups”. Where there should be
the can down the road. Two to three years
convergence, there is divergence and
from now, what is the world we want to see?
dissatisfaction.
Populism,
protectionism
and the retreat to isolationism is the natural
The Complex Equation
backlash from the dislocation. Many worlds
India
are colliding.
relationship. Both are Asian giants, but with
and
China
have
a
complex
What is diplomacy without a strategy,
an irksome frequency, their interaction is
without a vision? And a vision must be
fraught with tugs and pulls, with repetitive
We have to think about a future when we
resolution despite all the positive outcomes
112 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
that capture media headlines when our leaders meet, informally or formally. This year commemorates 70 years of diplomatic relations between the two countries. While a pandemic rages, there is news that we are engaging in confrontations along our shared borders. New generations of young Indians and Chinese have grown up on a diet of strong nationalism, quite different from the vision of Tagore, and despite the processes of globalisation that like a tide, have lifted up boats in both nations. Historically, both nations are not known to have practised hegemony, or indulged in armed conquest,
India-China relationship, despite their differences, is too important to squander. The issues that should determine our future are questions of
rather we are purveyors of civilisational values, or peaceful commerce, and rich cultural traditions. But looking back over
avoid ‘the Thucydides Trap
the last 70 years, both are seemingly intent on charting a course more in line with habits and practices imported from
modernisation,
development,
freedom
the Western playbook, the precepts of
from bondage and equality for all. The
Westphalia seems to override the principles
present generation too must be guided by that spirit, of constructive cooperation
peaceful coexistence of all beings that the
rather than mutually wasting and narrow
great Sakyamuni preached 2,500 years ago. Will the pandemic teach us lessons? The India-China relationship, despite their
The Future Path
differences, is too important to squander.
First and foremost, both nations have
The issues that should determine our
to ensure that there are self-correcting mechanisms
that
are
built
into
our
Both have to avoid ‘the Thucydides Trap’,
relationship that will prevent it from
although in the present context it has not
becoming prey to self-destructive threats
been applied precisely; the war between Athens and Sparta cannot be a paradigm
relationship built over the last two decades
for a 21st century Asia.
must serve the cause of the peoples, not
The May Fourth Movement was an anti-
just mercantilist interests. The aspirational
imperialist, cultural, and political movement
youths of both countries must not be denied
which grew out of student protests in
livelihoods, skill enhancement, access to the
Beijing on that day in 1919. The spirit of the
fruits of technological advancement and
young men and women of China, who led
progress. Public health and education must
that movement, is remembered to this
become the new frontiers of cooperation.
www.synergiafoundation.org
|
COVID-19 COMPENDIUM
| 113
changing direction and the need of the hour technologies that have mass application and
is moral leadership.
Multilateralism that
eschews hegemony, needs strengthening and mass transportation, environment
and preservation.
protection and pollution control, climate
Organisations such as the WHO cannot
change and renewable resources, bio-
be dismissed just because its work during
tech,
and
the pandemic could have been better.
communications should form part of our
WHO is relevant to the process of coming
bilateral relationship.
up with sensible strategies to combat the
pharmaceuticals,
electronics
Hundreds of global leaders and opinion
pandemic, and to develop global protocols
makers have advocated the absolute
for mitigation, treatment and prevention of
need for a COVID-19 vaccine, which when
the disease as also against future biological
developed, would be available to all --
threats.
patent-free -- and produced at scale, at
The future should be built on a balanced
no cost to people any where. This ‘people’s
partnership between India and China, as
vaccine’ should be a common goal towards
mutually responsible countries, that work for a world order that is inclusive, open,
talents, resources both human and material.
compassionate, development-oriented and
There is also a need to institute an impartial
respects diversity and the rule of international
inquiry into the origins of the pandemic so
law. Both must build middle ground in a
that its cause and spread can be unravelled
polarised world and stress on the core values
and fool-proof protocols can be developed.
as a humanity. It could perhaps be the start
As the Canadian historian Margaret MacMillan said recently, the river of history is
We Can Win this Battle by Working Together: Sun Yuxi
of a ‘Himalayan Consensus’ between India and China that can apply to the world.
My three years as Chinese ambassador in India left me deeply in love with the land and its people. During my tenure here, China and India established a strategic, cooperative partnership for peace and prosperity. Since then, I think our people have enjoyed more in-depth exchanges and cooperation, and
INPUTS BY SUN YUXI, FORMER CHINESE AMBASSADOR TO INDIA
I
our two governments have coordinated more on major international and regional affairs. Now, the COVID-19 outbreak is posing a severe challenge to mankind. While global efforts have come to a crucial point, I think
am here to talk about cooperation
solidarity and cooperation are the most
against the COVID pandemic.
epidemic.
114 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Viruses are enemies of mankind. They respect no borders, and epidemics do not distinguish between races. We are now in the same boat. I would like to focus my attention mainly COVID-19. We can win this battle by working together. China has taken responsibility and provided support to the international community. We have worked closely with international and regional organisations, especially WHO. We have sent many medical teams to other countries and provided huge amounts of medical supplies. What we have done is based on the belief of building a community of a shared future for mankind. China and India are both ancient civilisations, with populations accounting for more than one-third of the world. So, I think that we have all the reasons to strengthen cooperation. So far, China and India have been maintaining close communication and cooperation on the pandemic and control. The leaders of our two countries have exchanged
messages
and
telephone
calls. We both believe in strengthening international cooperation. This reminds me of the touching story of Dr. Kotnis who went all the way to China during the Second World War to support the war of resistance against the Japanese aggression in China, carry forward his spirit of internationalism against the epidemic.
Mutual Medical Assistance I have noticed that at a critical moment government provided medical supplies to
www.synergiafoundation.org
SINO-INDIA TRADE RELATIONS It is estimated that Chinese manufacturers make around 40% of all APIs (active pharmaceutical ingredients) used worldwide and that China and India are the source of 75% to 80% of the APIs imported into the U.S. India relies on China for about 70% of its supply of APIs. And for some well known drugs, such as paracetamol, amoxicillin and ibuprofen, India is almost 100% dependent on China. India is the third-largest producer of pharmaceuticals in the world by volume. The country’s Department of Pharmaceuticals reported that it supplies 20% of global exports of ‘generic’ drugs. India also produces 65% of the World Health Organisation’s requirement of DPT – diphtheria, pertussis, and tetanus – and tuberculosis, as well as 90% of its measles vaccines. March 18: India provides 15 tonnes of medical supplies to coronavirus-hit China comprising masks, gloves, and other emergency medical equipment at a cost of about Rs. 2.11 crore. April 14: Indian companies and government entities place orders for 15 million Personal Protective Equipment (PPE) kits, including gowns and masks, and 1.5 million rapid testing kits from China. April 16: Of 1,70,000 PPE kits that arrived in India on April 5, about 50,000 failed quality tests.
BILATERAL TRADE
85.17
BILLION YUAN
TRADE DEFICIT FOR INDIA
$56.77 BILLION As of Feb 2019
| COVID-19 COMPENDIUM | 115
The Chinese people, and the Indian people
with India, strengthen medical and health
have shown their support in various ways. All this valuable support and assistance will be
However, in a crisis like this, I feel very sorry
greatly appreciated and long remembered.
to hear leaders or politicians complaining,
And since the outbreak of COVID-19 in India, we in China have shared the same feeling and
game. Such moves will likely divide the
have also extended a helping hand. China
international community, lead to prejudice
has, in a timely manner, shared experiences with the Indian side in epidemic prevention
hurt the shared interests of the world. At
and treatment. Some Chinese provinces
present, I have learned that the Indian
and cities have donated medical materials,
government has taken strict prevention
and many Chinese companies and charities
and control measures, which has delivered
have provided India with a large number
positive results. India’s victory in epidemic
of medical supplies, such as facial masks, protective suits, gloves, and ventilators. I’m sure that China will continue to jointly work
Seeking Harmony from Shared History
sincerely wish India an early victory.
I would just like to say that China and India really have so many similarities and so many ways that we could collaborate closely. Firstly as Ambassador Sun said we have a long civilisation - India is a long civilisation and China has a long civilisation - we really have a long tradition of working
I
INPUTS BY WANG HUIYAO,
together. One of the early Chinese returnees
PRESIDENT, CENTRE FOR CHINA AND GLOBALISATION
brought Buddhism from India. So we see
was an Indian of the Tang Dynasty and he a lot of cultural heritage as well. We have a lot of similarities in terms of urbanisation, rural
development,
infrastructure,
think we had a very excellent discussion
telecommunication, and now particularly
this
we have to share with each other on public
afternoon.
We
really
appreciate
Ambassador Rao and Ambassador Sun.
It’s very positive, it’s very constructive, and it’s
As Wang Feng said, Indian experts
very forward-looking. And we are backed up
are actually really those leaders that are
by so many distinguished panelists - from
collaborating with India. We have a TATA in China, we have a lot of Indian companies
share experiences, and how we can support
in China. There’s a huge potential. In the
each other. The global value chain that
future, we should have more student
we’re in, where we are in the same situation
exchanges. I understand there are some
and can help each other.
Indians studying in China, there should
116 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
also be more Chinese studying in India. We
friend Tobby Simon as a counterpart to co-
should have more tourism. India is such a
organising this and my staff for putting this
nice, big, civilised, traditional country with
together. It’s been a great exchange. And
many historical sites to be seen. China had
so many people have viewed this, and we
150 million outbound tourists before the
hope we have more to generate on this. So
coronavirus. So we hope more tourists go
thank you again for participating in this.
to India and more Indian tourists come to China. I think there are many ways we can work - we should simplify visas, have more airline connections - we should have more close collaborations. Being the two most populous countries neighbouring each other, we have every reason to collaborate and work together. As we said at the beginning, if China and India combined, it
Chinese Opening Gambits SYNERGIA FOUNDATION RESEARCH TEAM
some historical misunderstanding, but I think
W
now,withtheeconomyandallthethingsgoing
military moves made by China have left
on, we have all the reason to work together. If
the world with a degree of unease. With
we really think about the two biggest giants
the pandemic still on, China watchers have
in Asia we should really set good examples of
been surprised by its aggressiveness so
collaboration. This webinar is a good example
soon after its Wuhan crisis. Recent Chinese
of how China’s and India’s businesses,
gambits send signals that the pandemic
public, academics, and think tanks can work
has in no way slowed China’s relentless
together and is a good way to exchange.
march to global primacy.
would be 1/3rd of the world’s population. we’re a peace-loving country. There may be
hile geopolitics is not hostage to pandemics or any other act of nature and tends to have
its own dynamics, the recent political and
I hope that in the future we can continue the dialogue. We should try to seek common
by the National People’s Congress (NPC) of
ground
the PRC of a new national security law to be
and
minimise
the
differences.
I think the economic dividend between the
extended to Hong Kong.
two countries will unleash more desire to collaborate for both countries, we need each other.
stand-offs during the summer months are
China has a lot of experience gained
not extraordinary, it is the scale and choice
from its dense population. That experience
of location that has caused ripples amidst strategic circles. These two incidents are not in isolation. The Chinese have been
I’m glad we had a very good discussion
active in the South China Sea too, sinking
this afternoon. I want to thank Ambassador Rao and Ambassador Sun, and all the
Malaysian offshore oil platform and have
distinguished panelists. I want to thank my
been admonishing Taiwan.
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 117
Vice on Hong Kong It has always been Beijing’s contention that the unrest in Hong Kong has its roots overseas. With the new security law for Hong Kong, it intends to plug the “foreign interference” in the politics of Hong Kong. With the Chinese proclivity not to dither once a decision has been made, it is feared by those who cherish the unique freedom enjoyed by Hong Kong despite being part of an authoritarian state, that within a few months, the new law would be effective.
systems’ is China’s basic state policy, the
The bill will permit Chinese national security
Central Government has all along fully
organisations to set up their agencies in
and faithfully implemented (the system)...
Hong Kong, thus extending their reach over
in which the people of Hong Kong
Hong Kong.
govern Hong Kong with a high degree of
When China regained sovereignty over Hong Kong from its colonisers, the British, ‘one country, two systems’ principle. This
autonomy,” he said.
Tensions along Himalayan Frontiers
ensured that Hong Kong, for at least the next 50 years, would continue to have
intruded into the Galwan Valley in Ladakh
an
separate
in June 2020. This area is well within the
legislature, and freedom of speech and
Indian side of the Line of Actual Control
political activities. Vide article 18 of Hong
(LAC), which although not demarcated or
Kong’s
is
delineated yet, is accepted by both India and
restricted from applying its mainland laws
China as a working international boundary.
on the territory, except those related to
In response, India also staged forward its
national defence and external policy.
troops and upgraded its alert levels to deal
independent
judiciary,
mini-constitution,
a
the
PRC
The dual standards for Hong Kong have
with any contingency. However, there are
suited China’s economic interests as Hong
other intrusions at multiple points along
Kong was the ‘golden goose’ that attracted
the LAC. Mechanisms exist to deal with such stand-offs.
law spell the doom for the ‘one country
However, the size, composition and level
two systems’ principle? In any case, China
of preparedness of Chinese troops in the
has been assiduously nibbling away at the
Galwan Valley indicate their intention to dig
autonomy of its city-state for some years
down and hold position.
now and perhaps, the unending mass protests have forced its hand.
International Reactions
Chinese Premier Li Keqiang assured the
There has been widespread criticism in
international community that principles
the western media on the Chinese action.
would remain intact. “’One country, two
The U.S. was especially vociferous in its
118 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
criticism, claiming that “the NPC’s decision
has imposed a massive 80 per cent on
means Hong Kong is no longer politically autonomous from mainland China”. It has
due to Australia pushing for a coronavirus
threatened to revoke the special status
investigation to establish Chinese culpability
afforded to the city-state. This, married with
in its rise.
further U.S. sanctions, is a threat to China’s
viewed by China as defensive to safeguard
economy. Worse still, it would be fatal to
its national interests.
Hong Kong’s standing as one of the world’s
These actions are apparently
With regards to the LAC, force is not the solution. The Indian External Affairs Ministry
the recently released U.S.-China strategy,
spokesperson Anurag Srivastava stated,
addressing the military threat posed by
“We are engaged with the Chinese side
China, including its economic espionage.
to peacefully resolve it”, while his Chinese
India’s response to the intrusion has
counterpart Zhao Lijian said, “We are capable
been muted as obviously the government
of properly resolving the issues between us
is keen on de-escalating at the earliest and
through dialogue and consultation. We do not need the intervention of the third party.”
virus. President Trump’s offer on Twitter to
India has over the years upgraded
mediate surprised both parties and neither
infrastructure along its northern borders
responded to it.
to make it compatible with its rapid deployment strategy. This has not escaped
Timing of the Move
China’s notice, and the recent culmination
While these brash encounters may seem
of a strategic road project in the Shyok
as if China is trying to utilise the scenario
Valley leading to a forward Landing
offered by the pandemic to her advantage,
Ground at Daulat Beg Oldie, close to the
the overall picture is more complex. China
Galwan Valley, could have been the trigger
too has its plate full, and it is illogical to
for the Chinese intrusion.
burden itself with additional challenges.
skirmishes and stand-offs with India seem
“The military
President Xi Jinping is on record reasserting still increasing Covid-19 infections, coupled
the same. Are
these
sudden
aggressions
a
with its economic downturn, places it in
smokescreen for the larger looming issue of accountability for the origin of COVID-19
according to
and
Indian Centre for Policy Research.
concealing
its
www.synergiafoundation.org
presence?
Beijing
Brahma Chellaney of the
| COVID-19 COMPENDIUM | 119
| CONCLUSIONS The pandemic was the perfect opportunity for the ‘global village’ to pitch in with all their combined skills, resources, and technical expertise to wrestle with a virus that does not the world powers, the powerful multilateral agencies, and even
The East has shown a stronger face mostly due to the authoritarian
establish the shift from West to East in the short term, yet the way the pandemic has been handled by Asia does pose a challenge to the long established western dominance in
The pandemic has demonstrated the fragility of supply chains and prompted countries to protect national interests rather than There is a need to establish contingency plans for natural as well as man-made disasters, and applying time-limited emergency
Post-COVID-19, there is a need to look into how systems are built, make them resilient, ensure alternative
Trade blocs help by providing a safety net of sorts and work towards building stronger relations, which
Trade bloc policy should enhance the effectiveness of public health should be taken of trade-health linkages, and those that deprive buyers of medical supplies must be
The self-centred approach in dealing with the pandemic has It has exposed the deep social inequalities and animosities members fail to come to the aid of the worst affected members now, then it affects the quest for long-term prosperity through integration,
Multilateral institutions have to step up to prevent restrictive trade year up till March 21, 46 export curbs on medical supplies have been introduced by 54 governments, creating a shortage of essential
India delivered hydroxychloroquine of sources, and create a portfolio of global crises that would require all
120 | COVID-19 COMPENDIUM |
the export ban two weeks after
www.synergiafoundation.org
public consciousness and “market itself” to potential investors, who may be looking for alternatives to
are already heavily dependent upon international aid agencies and donor governments for food, agencies need to leverage their ensure coping strategies against COVID-19 are implemented in these with bio-weapons in their labs have an immense responsibility to secure
The new undermine
Chinese law may Hong Kong’s legal,
trade during trying times is key to ensure that no one country gets left
threaten to jeopardise its ranking as
BIMSTEC during the last two decades has failed to live up to
China has no doubt that the unrest in Hong Kong is being fuelled by external forces and fanned by a
millions of its citizens despite the proximity and huge markets shared to make a realistic assessment of the impediments and draw up
BIMSTEC has generally remained in the background of regional
tighten its reins over the city-state before it is too late and the virus of
The LAC tensions with India may be China’s way of sending a strong message to its neighbour over the abrogation of Article 370, which changed the autonomous status of J&K, and hence the dynamics of the territorial disputes in Aksai Chin and
focus on enhancing its visibility in
www.synergiafoundation.org
|
COVID-19 COMPENDIUM
| 121
CHAPTER 5
CYBER DOMINATION SYNERGIA FOUNDATION RESEARCH TEAM
C
Absenteeism and Cross Dependencies The outcome will depend predominantly
ritical Infrastructure (CI) entities are
on the extent of absenteeism, the degree
bound to feel the aftermath of the
of know-how required to maintain utilities,
pandemic. It is estimated that up to
and the proportion of the community
40per cent of a company’s employees could
that can be rallied into action as required.
be sick, quarantined, or might stay home
Statistics attributable to seasonal and
to care for ailing family members. Vendors and suppliers that companies rely on could
Labour Force concluded that absenteeism
experience similar shortages. Given the
rates
were approximated at 12per cent
protracted impact of a pandemic, it would 2008-09, and 13per cent for the two H1N1 mutual assistance programme that would
pandemic waves. It is now predicted that
help utilities restore service after natural
the rate for COVID-19 could be as high as
disasters.
20- 50per cent.
122 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
In the last 100 years, there have been
manufacturing, etc. The challenge often is that there is a relatively small population that
architecture, and interdependency of our
can execute these specialised functions. The
critical utilities. Before electricity generation,
industrial sector tends to react differently to
transmission, distribution, and consumption
high absenteeism, depending on the skill
operated in silos, functioned at different
sets required.
cities and immediate suburbs. Today, the
Cyber Vulnerability to CI
interdependency of goods and services i.e.
In a pandemic, governments need to be
water, electricity and power, transportation
vigilant about cybersecurity threats to critical infrastructure. Terrorists and hostile
emergency services, food and agriculture
nations are already looking to leverage more
and public safety, with the healthcare sector
than one attack vector at a time. A cyber-
is critical. While the interdependency of the
attack at the time of a disaster becomes far more crippling.
agriculture is the safety net for inpatients,
For instance, if a hostile group were to
and public safety provides for patient
attack the power grids of a nation during a
transport and triage assistance.
pandemic, the emergency response would
Electrical
power
grids
are
highly
be hampered to the point of damaging the overall effectiveness of the counter-
Further,
there
are
major
cross-sector
interdependencies like that of the energy sector to power equipment operation;
VECTORS OF ATTACK
the chemical sector to provide required
Which of the following types of security incident has your organisation experienced over past 12 months? Select all that apply
materials to treat water supply; and the
Percentage of survey respondents
transportation sector to deliver critical supplies from the chemical sector. Over
the
years
privatisation government ensured
of
there
has
utilities
following
deregulation.
that
commercial
been
This
has
companies
now operate under different protocols of budgeting, coverage, upkeep, monetary, and continuity of operation plans. This often advocate a course of action rather than stipulate one. Many
infrastructure
information
sectors
technology,
today
machine
learning, robotics, communication skills, pharmaceutical
specialisation,
www.synergiafoundation.org
additive
Cyber incursion into IT/data systems
53
Physical incursion into IT/data systems
37
Incursion into OT/ control system via IT/data system
36
Physical incursion into OT/control systems
32
Physical incursion into non-IT/OT facilities
17
Another type of incursion into our OT/control systems
17
An unintentional incident We have experienced none of the above
14 7
| COVID-19 COMPENDIUM | 123
strategy. This is the catalyst for a perfect
of multiple systems. The 2017 WannaCry
storm. With an antiquated infrastructure,
ransomware attack on the UK’s National Health Service is a prime example. Lasting
a cyber-attack. A targeted attack on the
over several days, it disrupted the entire NHS
electricity supply of any major electric grid
functioning with over 19,000 appointments
for 48 hours can cause inconsistencies in
being cancelled. Similarly, in Denmark, the
the supply of potable water in any major
headquarters of Maersk was brought to a
city in the subcontinent.
standstill by NotPetya malware, causing disruptions at ports worldwide.
An Estonian Perspective
Trust Building
“COVID which required physical
The World Economic Forum’s
distancing proved that Estonia
Global Risks Report of 2019
had made a wise choice in
ranked cyberattacks among
investing in digital services,” said Lauri Aasmann, Director of Cyber Security, Information System Authority of Estonia. “Even today, all the public sector is working successfully all the public services are up
and
running.”
Estonia
also managed to detect the 50per cent increase in the Cert incidents triggered by hyperactive
scamsters
and
hacksters under the guise of COVID-related themes. A
remote
work
environment will add another layer to CI. This environment will
grow
in
size
surprising then that the value
Estonia also managed to detect the 50 per cent increase in the Cert incidents triggered by hyperactive scamsters and hacksters under the guise of COVID related themes
and
of the cybersecurity market is estimated to grow from US$ 112 billion in 2018 to US$ 281 billion by 2027. Without effective security measures in place and the cooperation of the public to use them, cyberthreats would undermine
the
stability
of
modern-day societies, making digital technologies a source of risk rather than development. Security in this form, for users, should not be at the cost of their privacy or wallets. The responsibility for developing
and improving new cybersecurity methods and value.
Inter-Sector Dependency
for the services and products they offer, along with collaborating with the public sector. When it comes to building a functioning
While the internet has made CI more
digital society, Aasmann draws on the
complex, the impact of a single point
Estonian experience. “Trust will be the
cyber-attack could be spread over various
cornerstone, and unfortunately, it is very
interdependent sectors of the economy/
fragile. [.. ] security cannot be achieved at
business/ government, leading to a collapse
the cost of the liberties.”
124 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Resilience in the New World of Cybersecurity the report states that it detected 4,67,825
INPUTS BY CIARAN MARTIN,
email attacks, 9,116 of which were related to COVID-19.
CEO, NATIONAL CYBER SECURITY CENTRE, GCHQ UNITED KINGDOM
T
The WHO has reported increased attacks on its staff. In the fourth week of April, it saw some WHO staff email addresses and passwords being leaked,
of critical infrastructures (CI) as the
along with thousands belonging to those
changing perceptions are giving
working on the coronavirus. Hammersmith
rise to totally new threats. For example,
Medicines Research (HMR), which carries out tests to develop the Ebola vaccine and
rang alarm bells right up to the top
performs early clinical trials of drugs and
because, located just next to the nightclub
vaccines in the U.S., was also attacked by
was a building that housed the systems to
ransomware that broadcasted personal
run ATMs for servicing over three million
details of former patients after HMR
citizens. This gives rise to another principle
declined to pay a ransom.
of cybersecurity — dependency. Similarly,
Cyberattacks
the logistics systems of food supply chains
targeting
have also become CI during this period.
intellectual
A
report
by
Barracuda
Networks,
vaccines
have
will
change.
property,
and
increased,
so
and
Healthcare,
pharmaceuticals,
forth
will
become
cloud-enabled
vulnerable, but who’s carrying out the
security and data protection solutions,
cyberattacks and why are they doing
states that there has been a variety of
it? The mixture of economic, strategic,
phishing campaigns using the pandemic
and propaganda advantage will majorly
as a distraction to distribute malware,
remain the same. Nature of vulnerabilities
steal credentials, and scam users out of
too will change, as critical infrastructure
money. Between March 1 and 23, 2020,
migrates towards different sectors.
a
leading
provider
www.synergiafoundation.org
of
| COVID-19 COMPENDIUM | 125
Resilience of Security
to break the myth that cybersecurity is
Cyber resilience is part of cybersecurity. While
too technical for normal leadership teams.
cybersecurity deals with the overarching
It is the responsibilty of any State, which is
concept of security, cyber reliance is the
serious about defending itself, to have some
concept that is focused on adaptability
level of government capability, appropriate
to changing conditions and preparation
laws and proportionate action plans to
to withstand and rapidly recover from
defend themselves.
disruption.
Cyber-resilient
Organisations must also realise the
organisations
interdependent
do not depend on traditional technology
increasingly
relationships
complex
in
their
networks.
Key
user and access management controls) to
relationships to consider should include
achieve this; they focus on resilient leadership,
all players, not just the core partners.
networks, and readiness of change to create
Intelligence
a sustainable advantage over cybercriminals
cybersecurity activities are good ways to
and other malicious actors.
build and collaborate approaches in larger
sharing
and
coordinated
organisations, which can lead to a resilient
There is a lack of understanding of
ecosystem around their supply chain.
cybersecurity by top leadership. We need
COUNTRIES WITH HIGHEST SHARE OF USERS ATTACKED WITH RANSOMWARE FROM 2017 TO 2018 Which of the following types of security incident has your organisation experienced over past 12 months? Select all that apply
PERCENTAGE OF SURVEY RESPONDENTS
9.57%
Thailand
8.67%
United Arab Emirates
8.47%
Iraq
7.62%
Bangladesh
6.17%
Vietnam
5.45%
Saudi Arabia
5.36%
China
4.28%
India
3.59%
Algeria
3.22%
Turkey 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
Share of users attacked with ransomware out of all users encountering malware
126 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
Local and Global Threats Different countries have different risk both nationally and together, where an
The Changing Face of CI Security
attack in one country is an existential threat to a whole bunch of countries, then we have got it wrong. This is because we need to be mindful of localised threats.
PPP in Cybersecurity In the UK, the private sector is built into our model and our model of cybersecurity cannot work if it does not have the in-built partnership with the private sector. If the cybersecurity of a bank is not compatible with its business model, then it is not going to work. It is not going to be of the same posture for an energy company as it has industrial control systems, variations, and so on. In UK, the partnership goes beyond routine
commercial
ventures
and
is
embedded even in strategic plans. In our
INPUTS BY LT. GEN. RAJESH PANT, NATIONAL CYBER SECURITY COORDINATOR, GOVERNMENT OF INDIA
C
an
you
clearly
distinguish
between critical and non-critical infrastructures
in
the
modern
world when everything is interconnected?
own government organisation (National
With technology changing so rapidly,
Cyber Security Centre), over 100 staff working
its intervention in almost every aspect is
on cybersecurity are paid for by the private The U.S. has 14 sectors that fall under has actually originated from the private
critical infrastructure (CI). The U.S. Homeland
industry. The partnership contributes to
Security guide on CI states that natural and
national well-being as a well-protected
manmade incidents have the potential to
industry/business is more productive.
incapacitate CI. In the Netherlands, along
Democracy and Cybersecurity There are challenges that democracies face in
with a few other countries, it considers ‘Heineken’ a CI! In India, under the National Critical
managing cybersecurity. There are two parts
Information
to this; one is transparency and the second
Centre (NCIIPC), created under Sec. 70A
is that democracies have to show that their
of the Information Technology Act, 2000,
net footprint on the internet is a positive one.
there are six critical sectors: transport, oil and
We have to show that sometimes our law
natural gas, power, telecommunications,
enforcement agencies need special access
government, and strategic (related to
to get bad people misusing technology for
critical defence sector). The health sector
harmful ends. We need to show that we are
never merited this attention.
trying to protect and secure technology.”
www.synergiafoundation.org
Infrastructure
Protection
It is best to focus on all threats, including
| COVID-19 COMPENDIUM | 127
environmental
and
biological,
which
would allow for better planning and utilisation of resources. There is also the
Top 5 causes of cyber disruptions >50% of the organisations reportedly affected in 2017
57%
question of interdependence between
41%
sectors. Tomorrow, it could be a sector as
30% 20%
19%
that has undergone immense digitisation, thus rendering it highly vulnerable to cyberthreats.
Phishing and social engineering
Malware
Spear Phishing
Denial of service
Out of date software ransomware
Threats during Covid-19 Cybercriminals are exploiting the COVID-19 outbreak to send phishing emails claiming to have important updates, encouraging donations,
impersonating
trustworthy
organisations, according to the advisory by the Computer Emergency Response Team of India (CERT-In). There are many IoT devices that are being used —Alexa and your camera. All these are now coming as a part of your
are especially vulnerable and need robust
home environment. Now, that’s a cause for
protection. Financial online transactions
concern as these can become entry points
have ballooned with over 50 lakh new UPI
when you are working from home. Then, if
handles being opened.
you are using a VPN, there is something else. There is a VPN aggregator with the optical
Managing Security of CI
switch operator. So, the whole security
The end-point security is not the laptop
architecture has changed. From there we
on which an individual works, but his
come to cybercrime. Globally, it has shot up
mind. Every individual needs to develop
by 500per cent. That is the change in data
an inherent sense of cyber hygiene and
that is now being accessed. This was bound
security. The concepts of security remain
to happen when more and more novices
the same, whether physical or cyber. You
are entering the cyberworld.
cannot address everything with the same
A large number of apps are being used in
level of security. So, the concept is to protect
millions of smartphones, with users having
the core areas with whatever you have. In the
little idea about their security.
Further,
COVID era, our strategists are saying that we
almost every piece of electronic equipment
are entering an era of e-globalisation. Threat
is today linked, be it medical devices
intelligence sharing is very good. There is
used by the healthcare sector or systems
also a need to look into security threats at
managing critical supply chains, and few of
different levels of engagement, such as the
them are protected against cyberthreats.
individual level, enterprise, sectoral, national,
Labs looking for a vaccine for COVID-19
and international levels.
128 | COVID-19 COMPENDIUM |
www.synergiafoundation.org
PPP Model
least in the critical sectors we would be
There is no doubt that without Public-
comfortable.
cybersecurity solutions. But, even in the
Changing Face of Security
public sector, some industries are private.
With work from home being the norm, how
Solutions are also provided by private
are we going to implement cybersecurity
parties. With the start-up culture and the
solutions? We in India do not understand
incubators in educational institutions,
the value of data. Facebook paid the
there is no doubt that the private sector is
Federal Trade Commission of U.S. $5 billion
playing an increasing role in cybersecurity.
for the data that had gone to Cambridge
As long as the solutions are indigenous,
Analytica. So, I don’t know what it will take
and the servers are within the country, at
for us to realise the value of data.
SYNERGIA FOUNDATION RESEARCH TEAM
A
midst the panic set by the COVID-19 spread,
the
hardpressed
U.S.
Health and Human Services (HHS)
Department faced a different threat — a
cyberattack falsely proclaiming a national
beetle infestation caused crop damage,
quarantine in the U.S. While the authorities
and the country’s leadership was quick to
quickly went into damage-control mode,
blame the U.S. However, the most widely
experts are warning of a “steady stream”
disseminated misinformation campaign
of phishing attacks with cybercriminals
was orchestrated by the Soviet KGB in the
preying on the information void. This is a
1980s, code named Operation Detrick,
new front in the war against the pandemic:
which blamed the U.S. for the AIDS virus.
combating rumours, misinformation, and
Similar conspiracy theories are doing the
fake news swamping the internet. The
rounds with the coronavirus now, with
extent of misinformation has compelled the
uninformed and scared social media users
WHO to launch a website dispelling fake China and the U.S. have been pointing false posts or removing them. Rumour mongering goes back in
created as a bio-weapon. The U.S. has also
history to the great plague, which killed
accused Russia of the same. A study by the
millions in Europe. The ‘Black Death’ was
U.S. State Department said that about 2
attributed to the Jews provoking ostracism
million tweets were on conspiracy theories
and violence against the community. In
about the virus. Amidst the hype, useful
1950 in East Germany, a Colorado potato
nuggets of accurate information get lost.
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 129
| CONCLUSIONS COVID-19 pandemic has spurred a global discourse on pandemics, More broadly, it has forced nationstates, corporations, think tanks, individuals, and a host of other
By undertaking a critical appraisal of all sectors affected and identifying international best practices, the world can prepare itself for a similar public health emergency when it arises next, for rest assured, this is not the last pandemic that
This Synergia Foundation Compendium is a collection of thoughts, ideas, prescriptions and policy recommendations garnered over the last ten months that endeavours to create the basic
130 | COVID-19 COMPENDIUM |
database generated through our discussions, virtual forums, research and interactions with experts of all
As a continuum, we plan to launch a succinct monograph on Biosecurity covering natural and intentional epidemics, the Biopreparedness for it, and the science behind
Since the need of the hour is a collaborative approach, the Synergia Foundation has collated insights from experts around the world, which can serve as a useful
We hope you enjoy reading this compendium as much as we did
www.synergiafoundation.org
www.synergiafoundation.org
| COVID-19 COMPENDIUM | 131
CONTACT US Sambratha Shetty sambratha@synergiagroup.in
132 | COVID-19 COMPENDIUM |
+91 80 4197 1000 & www.synergiafoundation.in @synergiafoundation @synergiaimpact @synergiafoundation
www.synergiafoundation.org