Rich Countries Seek Priority Access to COVID-19 Vaccine

In order for an eventual COVID-19 vaccine to save as many lives as possible, it would require rapid distribution, and to those countries struggling with the highest infection rates. The chances that will happen are slim, say several experts who see an increasingly competitive race for first-access to a potential vaccine.

“We have this beautiful picture of everyone getting the vaccine, but there is no road map on how to do it,” the Associated Press was told by Yuan Qiong Hu, a senior legal and policy adviser at Doctors Without Borders in Geneva.

Hu predicts that the existing structure, in which companies establish patents at every step of vaccine development, will hamper the distribution and development of a vaccine that could be made available to all. “We can’t afford to face these multiple layers of private rights to create a ‘people’s vaccine,’” she told the AP.

Three phases

Several possible vaccines are under development across the world thanks to global efforts, with around a dozen in the early stages of testing. Vaccine development requires any potential remedy to go through a three-phase process that tests the efficacy of the drug while ensuring that side effects do not pose unforeseen risks.

In the first phase, small groups of people receive the trial vaccine. If the vaccine proves successful without any significant health risks among the participants, the process moves to the second phase.

In phase two, the clinical study expands to a group of people who are part of the risk group for whom the vaccine is intended, which in COVID-19 cases would be older people and those vulnerable because of pre-existing illnesses.

The third and final phase tests the vaccine on thousands of people to ensure safety and a proven efficacy to avoid false positives and detect possible allergic reactions or side effects.

Private investment

Several wealthy countries have spent millions to support the rapid development of possible vaccine candidates and ensure a potential vaccine could be manufactured on a large scale. In exchange for these investments, these countries are expected to receive vaccines before others.

The British government has declared that the first 30 million doses of a possible vaccine under development at Oxford University will be earmarked for British citizens. The US became entangled in a diplomatic row with France over the potential future distribution of a French vaccine candidate to which the US expected first access because of its investments.

AstraZeneca, a drug manufacturer that intends to produce Oxford University’s vaccine, has signed an agreement with the US that would guarantee 300 million doses for the US, to be delivered as soon as possible.

The same manufacturer struck a deal with four EU countries to also supply them with 300 million doses. Drug manufacturers appear to be actively goading governments into making early commitments to buy yet-unproven drugs, playing countries against each other as they stand to make giant profits.

While pharmaceutical companies have pledged to provide a not-for-profit version of their vaccines, it is becoming clear that the world’s richest will be the first to receive the vaccines, even if other countries need them much more. Another example of the perverse nature of privatized medicine, it will be the richest, not the sickest, who will receive priority in this global crisis.

What is Behind Rising Tensions Between India and China?

The two most populous nations on earth are again facing a diplomatic stand-off over their disputed border in the Himalayas. Tempers among border troops have resulted in several undisciplined bouts of hand-to-hand fighting in recent years, with one such scuffle now resulting in casualties.

Fueled by nationalism and an increasingly skewed worldview, the governments of India and China appear to have lost control over their own narrative as political posturing amid a lack of facts is bringing both nations closer to a war neither country wants, and neither country could win.

Scuffles

Twenty Indian soldiers have died after fighting broke out between Indian and Chinese infantry in the isolated mountains of the Himalayas. Soldiers from the two nuclear armed nations threw rocks, used bamboo sticks with nails, and fists in an uncontrolled scuffle that had little to do with any military objective.

Weeks of high-level talks between the top brass of the two nations has now been undone, with few repercussions for the soldiers involved who are being hailed as martyrs by Indian media.

Three soldiers were reported dead on Tuesday June 16, but a further 17 injured Indian troops have succumbed to hypothermia following the brawl. In a world that is littered with contentious borders and disputed territory, the two Asian giants appear to be unable to maintain discipline within their ranks.

The uncontrolled tempers of border troops is now being presented as a major escalation as both countries present opposing narratives while high-level military officials attempt to de-escalate.

History

Tensions on one of the world’s longest borders stem from a 1914 border drawn by the British who then ruled India. The “McMahon line” has been disputed by China since its conception, but India has considered it the legal border since the country was granted independence in the 1947 partition of India and Pakistan. The dispute led to a 1959 disagreement during a meeting between the countries’ leaders that rapidly escalated.

Three years later, in 1962, the two nations fought an inconclusive month-long war that set the stage for the continued militarization of the border in decades to come. In 1967, the two countries again came to blows as both countries exchanged artillery fire and infantry combat that would be the last shots fired between the two countries.

But China outgrew India economically, aligned itself with India’s traditional foe Pakistan, and started expanding its soft power in the south-Asia region through major infrastructure projects.

India meanwhile became a central fixture in the US Indo-Pacific strategy aimed at curbing Chinese influence in Asia. In 2017, Indo-Chinese relations again deteriorated after a stand-off over a strategic plateau in the Himalayas, leading to the military build-up that resulted in the recent brawl.

Nationalism

The primary fuse of today’s heated tempers was lit by growing nationalism in both countries. The Chinese and Indian governments took wildly different approaches in economic development and methods to control their enormous populations.

The Chinese government chose to rapidly increase Chinese living standards by lifting millions out of poverty, but the “Chinese miracle” came at the price of surrendering free speech and increased state control over citizen’s lives. In 2020, China expects to have completely eradicate extreme poverty, but citizens are controlled and monitored like never before.

India took another approach. Indians enjoy far greater personal freedom and the state has little control over its 1.3 billion citizens, but millions of Indian citizens remain trapped in class-based poverty. Even though relative success was achieved in reducing poverty, the country was unable to match the dramatic improvements in healthcare, education and living standards that China’s government realized.

Poverty and limited opportunities led to an increase in Hindu nationalism in India as tensions with its Islamic neighbor Pakistan produced increasing xenophobia, mob violence and religious intolerance. After Indian prime minister Nahendra Modi rose to power, the government has done little to stop this worrying trend, instead opting to fuel the flames.

In China, state-control over media and increasing international prominence led to a different form of nationalism as economic results and a consolidation of power in Beijing produced a renewed national belief in Chinese power and influence on the global stage. With reporting on Chinese government decisions tightly controlled, citizens increasingly see their country as the next global superpower.

Political posturing

Chinese government officials have mostly tried to cool tempers by highlighting both countries’ mutual interests and emphasizing de-escalation and high-level talks. Indian military officials similarly tried to diffuse rising Indian anger by emphasizing a diplomatic resolution.

India’s politicians have shown no such restraint, however, with India’s defense minister stating that the brawling soldiers had “displayed courage and valor.”

Yet, increased self-confidence in both populations has created echo-chambers in which newspapers present only the national perspective. Chinese media have reported little on the May 15 scuffle that led to casualties, while India’s media have reported on the issue as if it were a battle in a war, fueled by its increasingly belligerent politicians.

While China has attempted to hide the embarrassment of the undisciplined brawl, India’s politicians have attempted to re-frame the event as a moment of Indian bravery in the face Chinese aggression.

The three deceased Indian military members who were initially reported as the only casualties have been hailed by politicians as martyrs who died fighting for their country. Some politicians and political commentators have called for an all-out war with China in response to the scuffle.

Media landscape

Chinese broadcasters have published official statements with little additional commentary or analysis as the amount of Chinese injuries or casualties in the brawl still remains unclear. China’s Global Times published an editorial that blamed Indian “arrogance and recklessness” as it downplayed the event as “confrontational sentiments.”

India’s media has applied no such restraint as its media which regularly publishes dangerous Islamophobic conspiracy theories and fuels inter-religious tensions now cries out for a military “push back.” The Hindustan Times published statements calling its brawling border troops “great heroes” to which the country “is in debt.”

The few Indian commentators that have highlighted that the event was likely triggered by individuals in India’s army have been met with an avalanche of criticism on social media. As Indian media makes it impossible for its military to discipline its troops, increasing the likelihood of another violent confrontation led by emotional young men on its borders.

Military strength

While the Indian media has pushed for a military response, its military will be well aware that such an act could trigger a full-blown conflict with an emerging global superpower. Both nations have a large population and available manpower, and both countries have large nuclear arsenals, but the similarities end there.

China’s defense budget of $237 billion stands in stark contrast to India’s $61 billion annual spending. While China has been rapidly modernizing its military in recent years, the Indian armed forces have not been able to keep up. India, instead, relies on its central position in the US Indo-Pacific strategy instead.

China has a distinct advantage when it comes to essential elements of modern warfare, having more than twice the amount of combat aircraft, a tenfold advantage in attack helicopters and 3,800 pieces of self-propelled artillery compared to India’s 235. China possesses a wide variety of missiles, including advanced Intercontinental ballistic missiles while India’s arsenal is far more limited.

China’s navy is significantly stronger and its fleet is more than twice the size of India’s. The Chinese have triple the destroyers, four times more frigates more than double the amount of frigates that the Indian navy has. The one advantage India holds is the location of its military assets and infrastructure, which are primarily located on its northwestern border, while Chinese assets are spread out across the country.

The impossible war

China’s technological military advantage would however count for little in a conflict in the Himalayas. A war in the “roof of the world” would have to be fought by infantry and light arms as the high-altitude region is ill suited for tanks or even heavy artillery. The few roads that lead through the mountains would provide for perfect choke-points where mechanized forces would suffer heavy casualties.

Because of the high-altitudes, both countries’ air forces would have little impact and any advances would have to be realized by combat between infantry units and light artillery. China’s navy would have to travel for thousands of kilometers through choke-points like the strait of Malacca or the Sunda strait, which would be relatively easy to defend for India’s naval forces.

The only way for both nations to advance would be through the treacherous mountain ranges. Once either military manages to make it through however, they would face the other country’s more advanced military units once they descend from the mountains.

The only feasible result would be a bloody stalemate with marginal territorial gains in the Himalayas. Because both countries possess a nuclear arsenal, no decisive victory could ever be realized without creating an unparalleled human tragedy for both nations.

The Chinese and Indian military appear to be fully aware of this situation and have emerged as the primary source of de-escalation in the current heated debate. Persistent nationalist attitudes in both countries mean it is unlikely that such news would reach their populations however, creating a sense of an emerging conflict that in reality is very unlikely to materialize.

Central Banking For All: How a Digital Yuan Could Change Banking Forever

When officials in China’s government heard Facebook CEO Mark Zuckerberg announce plans for a digital currency called the “Libra” in October, it made a decision to fast-track the implementation of its own digital currency. The Chinese government had been working on a digital version of its currency since 2014 and the looming threat of a potential competitor meant they needed to act fast.

Leaked’ trials

In April 2020, in the midst of a global pandemic, China started field-testing its digital currency in four large cities. Screenshots of China’s digital currency soon circulated on the internet, prompting government officials to announce that the new currency’s digital wallets were “part of the test in our research and development process and it does not mean the digital yuan has been launched officially.”

The trial run in Chengdu, Shenzhen, Suzhou, and Xiong’An meant that locals would receive part of their wages not in their bank account, but instead through deposits to a “digital wallet.” From that digital wallet customers could buy a hamburger at McDonald’s, pay for their morning coffee at Starbucks, or spend their earnings in participating shops, entertainment venues, and restaurants.

The government has stressed that it has no official timetable or launch date for the digital currency but currency traders and financial experts have nevertheless begun debating the potential threats and benefits. “American economic and geopolitical power is at stake,” stated Foreign Affairs, while Forbes published an op-ed titled “China could force Donald Trump and the Fed to destroy the US banking system.”

Going digital

The Chinese are already very familiar with cashless payments. Apps like Alipay and Wechat Pay mean Chinese people increasingly grab their phone instead of their wallet when it is time to pay at shops, restaurants, or even informal street vendor stalls, a user experience very similar to that of a potential digital Yuan.

After it became clear that the COVID-19 pandemic had hit Wuhan the worst, China’s government had trucks full of locally used cash shipped to be disinfected for reuse. Officials feared the virus could easily transfer through currency and initially planned to literally “launder” the money to clean and disinfect it.

But it soon became clear it was easier to replace the paper notes with digital currency and that the implementation of a digital currency meant that in a future crisis, money could be distributed instantly to citizens.

The Coronavirus crisis has already inspired the much-criticized Chinese government to ditch growth targets, something deemed unimaginable just a year ago, and could be set to again challenge the global financial and economic status quo with its newest innovation: “Central banking for all,” with the digital Yuan.

Cutting out the middleman

While some fear a possible long-term threat of the digital Yuan replacing the Dollar as the favored international currency, it is the banking system that should be most worried. The digital Yuan means that citizens, businesses, and the government can make payments without banks taking their cut.

Our global status quo means citizens get their money from their employer. They then deposit this in a bank account, and the bank then uses that money as collateral in order to borrow much more money from central banks, which banks use to make trades and invest just like any market trader would. In essence, banks hold depositors’ money, and use it to borrow more money to loan out or “play with” in the market.

That system is the part of the “financialized economy” in which we live, where banks produce no actual products but profit from their position in between central banks and citizens and businesses. That entire industry could be upended by China’s digital Yuan with citizens receiving and transferring money directly through their central bank with no fees or profits made.