Avoiding a K-shaped global recovery

Avoiding a K-shaped global recovery

NEW YORK - The United States expects to "celebrate independence“ from COVID-19 by Independence Day (July 4), when vaccines will have been made available to all adults. But for many developing countries and emerging markets, the end of the crisis is a long way off. As we show in a report for the Institute for New Economic Thinking's (INET) Commission on Global Economic Transformation, achieving a rapid global recovery requires that all countries be able to declare independence from the virus.Because the coronavirus mutates, it will put everyone at risk as long as it continues to flourish anywhere in the world. It is thus critical that vaccines, personal protective equipment, and therapeutics be distributed everywhere as quickly as possible. Insofar as today's supply constraints are the result of a poorly designed international intellectual-property regime, they are essentially artificial.Advanced economies, especially the US, have acted forcefully to reignite their economies and support vulnerable businesses and households. They have learned, even if only briefly, that austerity is deeply counterproductive in such crises. Most developing countries, however, are struggling to obtain the funds to maintain existing support programs, let alone absorb the additional costs imposed by the pandemic. While the US has spent