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Small group of rich nations have bought up more than half the future supply of leading COVID-19 vaccine contenders

Wealthy nations representing just 13 percent of the world’s population have already cornered more than half (51 percent) of the promised doses of leading COVID-19 vaccine candidates, Oxfam warned today as the health and finance ministers of G20 countries meet to discuss the global pandemic.  

 

Oxfam analysed the deals that pharmaceutical corporations and vaccine producers have already struck with nations around the world for the five leading vaccine candidates currently in phase 3 clinical trials, based on data collected by Airfinity. 

 

The international agency also warned that the same companies simply do not have the capacity to make enough vaccines for everyone who needs one. Even in the extremely unlikely event that all five vaccines succeed, nearly two thirds (61%) of the world’s population will not have a vaccine until at least 2022. It’s far more likely some of these experiments will fail, leaving the number of people without access even higher. 

 

The calculations expose a broken system that protects the monopolies and profits of pharmaceutical corporations and favours wealthy nations, while artificially restricting production and leaving most of the world’s population waiting longer than necessary for a vaccine. 

 

One of the leading vaccine candidates, developed by Moderna, has received USD$2.48 billion in committed taxpayer’s money. Despite this, the company has said it intends to make a profit from its vaccine and has sold the options for all of its supply to rich nations – at prices that range from USD$12-16 per dose in the US to around USD$35 per dose for other countries – putting protection out of reach for many people living in poverty. While it may be making real efforts to scale up supply, according to reports, the company only has the capacity in place to produce enough for 475 million people, or 6 percent of the world’s population.

 

Oxfam and other organisations across the world are calling for a People’s Vaccine – available to everyone, free of charge and distributed fairly based on need. This will only be possible if pharmaceutical corporations allow vaccines to be produced as widely as possible by freely sharing their knowledge free of patents, instead of protecting their monopolies and selling to the highest bidder. 

 

Chema Vera, Interim Executive Director of Oxfam International, said: “Governments will prolong this crisis in all of its human tragedy and economic damage if they allow pharmaceutical companies to protect their monopolies and profits. No single corporation will ever be able to meet the world’s need for a COVID-19 vaccine. That’s why we are calling on them to share their knowledge free of patents and to get behind a quantum leap in production to keep everyone safe. We need a People’s Vaccine, not a profit vaccine.” 

 

Beyond the five leading vaccine candidates, reported vaccine deals also reveal stark inequalities between countries. The UK government has managed to secure deals on several leading vaccine candidates, equivalent to five doses per head of population. By contrast, Oxfam analysis reveals that Bangladesh has so far secured only one dose for every nine people.

 

There are also large differences in the willingness of pharmaceutical companies to set aside supply for poorer nations. While Moderna has so far pledged doses of its vaccine exclusively to rich countries, AstraZeneca has pledged two-thirds (66 percent) of doses to developing countries. Although AstraZeneca has done most to expand its production capacity by partnering with and transferring its technology to other manufacturers, it could still only supply up to 38 percent of the global population, and only half of this if its vaccine requires two doses.  

 

Winnie Byanyima, Executive Director of UNAIDS and Under-Secretary General, said: “We in the AIDS movement have seen in the past how corporations use monopolies to artificially restrict supplies of life-saving medicines and inflate their prices. UNAIDS and other members of the People’s Vaccine Alliance are calling for a new approach that puts public health first by sharing knowledge and maximising supply. Anything short of that will lead to more deaths and economic chaos, forcing millions into destitution.”

 

The estimated cost of providing a vaccine for everyone on Earth is less than 1 percent of the projected cost of COVID-19 to the global economy. The economic case for requiring pharmaceutical companies to share their vaccine knowledge free of patents so that production can be scaled up as fast as possible could not be clearer, the agency said.  

 

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For more information or to arrange an interview please contact:

Kelsey-Rae Taylor | [email protected] | +64 21 298 9854

Notes to editors: 

 

All figures in USD.

 

The G20 Health and Finance Ministers meeting takes place virtually on Thursday 17 September 2020.

 

Nine COVID-19 vaccines are currently going through phase 3 clinical trials, of which supply deals have been made public for five. These vaccines are being developed by AstraZeneca, Gamaleya/Sputnik, Moderna, Pfizer and Sinovac. Data on vaccine supply and production has been provided by Airfinity, the data and science analytics company https://www.airfinity.com/

 

Oxfam calculated the combined production capacity of these five vaccine candidates at 5.94 billion doses, enough for 2.97 billion people given that all five future vaccines will or are highly likely to require two doses. Supply deals have already been agreed for 5.303 billion doses, of which 2.728 billion (51 percent) have been bought by developed countries including the UK, US, Australia, Hong Kong & Macau, Japan, Switzerland and Israel, as well as the European Union. The remaining 2.575 billion doses have been bought by or promised to developing countries including India, Bangladesh, China, Brazil, Indonesia and Mexico among others. Included within the supply for developing countries are the 300 million doses of the AstraZeneca vaccine pledged to the Covax Advanced Market Commitment (AMC), the vaccine pooling mechanism. To avoid double counting we have assumed the recent additional agreement between the AMC and the Serum Institute of India to ‘accelerate’ the production of 100 million AstraZeneca or Novavax vaccines is already captured within those companies’ respective supply deals with the Serum Institute.

 

The calculation for the UK is based on Airfinity’s data and includes all of the UK’s published vaccine deals. The calculation for Bangladesh is based on the country’s share of the doses currently available under the Covax AMC, and would be the same for all 92 AMC eligible countries if the vaccine is distributed evenly.

 

The People’s Vaccine Alliance is a coalition of organisations and activists united under a common aim of campaigning for a ‘people’s vaccine’ for COVID-19 that is based on shared knowledge and is freely available to everyone everywhere. The alliance is calling on pharmaceutical corporations to share all vaccine knowledge with other companies and research institutions, including through the COVID-19 Technology Access Pool (C-TAP).

 

The IMF’s latest World Economic Outlook from June 2020 projected the cumulative loss to the global economy for 2020 and 2021 at $12 trillion. Using data provided by the Access to Covid-19 Tools (ACT) Accelerator, Oxfam has calculated that the estimated cost to research, make, procure and distribute a vaccine to everyone on the planet could cost $70.6 billion. Therefore, the cost of providing a vaccine for everyone on Earth is equivalent to 0.59% of cost of COVID-19 to the global economy. 

New Zealand must scale up climate ambition to meet zero emissions by 2030 – Oxfam report

Oxfam New Zealand is publishing a ground-breaking report on New Zealand’s contribution to global climate action this week.

A Fair 2030 Target for Aotearoa shows the stark discrepancy between what New Zealand is currently doing and what it should be doing, to meet its commitments under the Paris Agreement and to stand with our Pacific neighbours and others on the frontlines of climate breakdown.

The report highlights how New Zealand must enhance its 2030 target under the Paris Agreement and increase climate finance for developing countries as a critical part of meeting our fair share of the global effort to limit warming to 1.5 degrees.

Oxfam New Zealand Campaigns Lead Alex Johnston said: “What’s clear is that New Zealand is not doing its fair share to keep global heating within 1.5 degrees. Our neighbours in the Pacific know all too well that the impacts of climate change are not distributed equally – nor should the responsibility for tackling it. As a well-off, industrialised nation New Zealand has a responsibility to do more than the global average to reduce emissions.

“Our fair share equates to getting emissions to zero by 2030. If we can’t manage that domestically, we must support frontline countries who would be forced to carry our load. We can do this by greatly increasing climate finance.”

Through the Zero Carbon Act incorporating the Paris Agreement’s principles, there is a legal obligation for New Zealand to consider equity and how the burden of reducing emissions is shared between different countries – including our relative wealth, and historic pollution compared to developing countries.  

According to the report, if every country were to share the effort to keep to 1.5 degrees based purely on their population when the Paris Agreement was signed, New Zealand would still need to reduce emissions by 80% from 1990 levels by 2030. 

When considering historical responsibility, New Zealand’s fair share of global efforts to reach 1.5 degrees would increase to reductions of at least 99% by 2030. Our current target is equivalent to an 11% reduction.

Johnston said before the next major global milestone on climate action, COP26 next year, we must increase our 2030 target by our maximum possible ambition, and make up the gap between what we can do domestically and what our fair share is through greatly enhancing the climate finance we give to developing countries to reduce their emissions and adapt to climate breakdown. 

“As we look to recover from the pandemic and its effects on communities, now is the moment to reset the barometer of action and look to where we are heading. Our current pathway is miles off a safe climate future. If Aotearoa is to be a good Pacific neighbour, we need to aim for the best chance of staying to 1.5 degrees, and to pull our weight to get there.”

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For more information or to arrange an interview please contact:

Kelsey-Rae Taylor | [email protected] | +64 21 298 9854

Notes to editors:

Oxfam New Zealand’s report A Fair 2030 Target for Aotearoa is available to download here

  • New Zealand’s current Nationally Determined Contribution under the Paris Agreement sets a 2030 emissions reduction target of 30% below 2005 levels, equivalent to 11% below 1990 levels. This international target is distinct from the targets set under the Zero Carbon Act.
  • The Climate Commission has been asked by the Minister of Climate Change to advise on the consistency of New Zealand’s current Paris Agreement 2030 target with global efforts to keep to 1.5 degrees, ahead of the next global climate talks, COP26, to be held in Glasgow next year.
  • Oxfam and a dozen more of New Zealand’s leading international aid agencies launched a joint campaign in July at www.bighearts.org.nz, calling for New Zealand to dramatically increase its aid funding and climate finance for poorer countries.

A Fair 2030 Target for Aotearoa Report

New Zealand should greatly enhance its 2030 target under the Paris Agreement on the basis of equity. Climate finance for developing countries must play a critical part in meeting our fair share of the global effort to limit warming to 1.5ºC.

Aotearoa New Zealand’s current Nationally Determined Contribution (NDC) of 11% off 1990 levels by 2030 falls short of its equitable contribution to the global effort to limit warming to 1.5ºC.

International and New Zealand law both require the Government to consider equity in setting emissions budgets and targets, and therefore to differentiate New Zealand’s emissions reductions.

Several competing equity models exist. When each model is based on a trajectory that limits warming to 1.5ºC, with no or limited overshoot, these models suggest that New Zealand’s fair NDC for 2030 would involve emissions reductions ranging from at least 57% off 1990 levels, to cutting emissions by 99%, or even reaching net negative emissions by 2030. 

PDF icon Click here to read ‘A Fair 2030 Target For Aotearoa’ Report

PDF icon Click here for the supporting calculations

Pandemic Exposes the Obscenity of our Economy: 3 Ways We Got Here and 4 Ways We Can Get Back on Track

Released today, Oxfam’s report – Power, Profits and the Pandemic – reveals how global corporate behaviour has not only made the economic impacts of the coronavirus pandemic worse, but has also shielded many of these corporations from the economic fallout felt by the rest of us. Throughout the disaster, they have continued to profit and pass these gains on to their mostly wealthy shareholders.

Oxfam found that 32 of the world’s most profitable corporations are together expected to rake in nearly NZ$165 billion more in 2020 than the average of the four previous years. These corporations are household names including Visa, Procter & Gamble, Nestle, Johnson & Johnson, Facebook, Google, Microsoft, and Apple.

This isn’t right. How have we managed to build a global economy that puts more and more wealth in the control of a handful of people, while billions of other people suffer?  As of this writing, more than 800,000 people have died from Covid-19. Approximately 400 million people, mostly women, have lost their jobs, which impacts entire families. Some estimates have up to 500 million people being pushed into extreme poverty while the pandemic rages on. Meanwhile, the 25 wealthiest billionaires – some of the largest shareholders in the above-mentioned corporations – have increased their wealth by a staggering NZ$340 billion between mid-March and late-May alone. 

Power, Profits and the Pandemic

How did we get here?

1) Corporations made trillions for the few, almost nothing for the many.

Between 2010 and 2019, the companies listed on the S&P 500 Index paid a total of NZ$13.7 trillion to their shareholders – approximately 90% of their profits over that time. While these corporations could have been investing in the well-being of their workers and climate-friendly technologies, they were channelling the vast majority of their profits back into the hands of a small number of already wealthy individuals. If they had been investing more in their businesses, they would have been more resilient in the face of this crisis. They would have had cash on hand to protect their workers, prevent lay-offs, and avoid costly public bail-outs when the coronavirus pandemic hit.

2) Governments have helped, corporations have not.

The pandemic has highlighted the crucial role our governments play in providing for all people, especially in times of crisis.  Yet, many of the largest global corporations have done very little to help. They stand to make NZ$165 billion more during 2020 than in the past four years, and some of their largest shareholders increased their collective wealth by an unfathomable NZ$340 billion during the height of the pandemic.  Despite this windfall, these companies’ donations to Covid-19 relief have amounted to less than 0.5% of their 2019 profits. In stark contrast, 94% of their 2020 profits have gone back to their already wealthy shareholders.

3) Corporations prioritised their profits over their own people.

Oxfam has found that more than 400 corporations have continued to make shareholder pay-outs and executive compensation despite laying-off workers and receiving government bail-outs. These companies have shifted costs and risks down their supply chains, impacting workers in vulnerable situations. 

 

Power, Profits and the Pandemic

This situation is not right

It is the result of a broken economy that works for the few, not the many and puts the wealth of a small number of people before the well-being of our planet and billions of people across the world. But we created this economy — we can fix it. We can reprogramme the economy to put people and the planet at the centre, protect workers in the most vulnerable situations, share profits fairly, and ground it in democracy. The way to do this is by focusing on the four Ps: purpose, people, profits and power.

1) Purpose

We should re-examine   the purpose of corporations. A corporation’s ‘reason for existence’ is a policy choice, not an inevitability. Corporations should be redefined to ensure that they exist not only to compensate shareholders, but also to care for workers, consumers, and their communities. The objectives of corporations and director’s duties should include non-financial aims, such as improving social and environmental conditions.

2) People

We should put people at the centre of business models, and insist that corporations invest in decent jobs, protect and promote their workers’ human rights, and address human rights risks, and support efforts for universal social protection.

3) Profits

We should ensure that all stakeholders get a fair share of the profits that corporations create. For example, dividends paid out to shareholders should be capped, and only paid out after corporations are paying a living wage to all their workers and investing in achieving carbon neutrality. These measures should also be extended through corporations’ supply chains, which could have a massive impact on people across the entire world.

Power, Profits and the Pandemic

4) Power

We should change the rules that currently allow global corporations and their shareholders to have vast amounts of power to protect their own interests. This is possible through increased transparency, and more inclusive and equitable governance structures. Governments should require corporations to limit CEO-to-worker wage gaps, disclose human rights risks, enforce human rights due diligence, and publish corporate carbon footprints. Collective bargaining and robust grievance mechanisms should be enforced. And corporations should prioritise suppliers that give greater voice, power and value to workers and farmers.

We can fix this

As a first step, we propose a World War II-style Covid-19 Pandemic Profits Tax to make sure these corporations do their bit to help us all during this global disaster. Oxfam estimates that the excess profits of these 32 global corporations could raise an estimated NZ$157 billion — enough to pay for Covid-19 testing and vaccines for every single individual on the planet. After that, there would still be plenty left over to invest in supporting small and medium-sized enterprises, protecting workers, and providing robust health services for all.

Power, Profits and the Pandemic

The coronavirus pandemic has shown us how connected we are as a global human family. Global corporations have grown and benefitted from these connections for centuries, but they have not contributed to the global public good in the way that they should. In fact, in many cases, they have done harm. The excess profits the largest corporations are making through a time of great suffering for millions of people across the world exposes the obscenity of the way our global economy has been built. We need to fix this now so that all people, everywhere, can enjoy the basic dignities of life, on a planet that thrives.

To read the report in full click here

Pandemic profits for companies soar by billions more as poorest pay price – Oxfam

Power, Profits and the Pandemic

Workers producing personal protective equipment (PPE) for health professionals at a garment factory of Urmi Group in Dhaka on March 31, 2020. Credit: Sk Hasan Ali 

Some corporations are cashing in on Covid-19 on behalf of the wealthiest

Thirty-two of the world’s largest companies stand to see their profits jump by USD$109 billion more in 2020 as the Covid-19 pandemic lays bare an economic model that delivers profits for the wealthiest on the back of the poorest, according to a new Oxfam report today.

Power, Profits and the Pandemic shows how during the global pandemic corporations across the globe have put profits before workers’ safety, pushed costs and risks down the supply chain, and used their political influence to shape policy responses.

Globally, half a billion people are expected to be pushed into poverty by the economic fallout from the pandemic. 400 million jobs have already been lost and the International Labour Organisation estimates that more than 430 million small enterprises are at risk.

Meanwhile, the 25 richest billionaires increased their wealth by a staggering USD$255 billion during the global crisis. Jeff Bezos could personally pay each of Amazon’s 876,000 employees a one-time USD$105,000 bonus today and still be as wealthy as he was at the beginning of the pandemic.

Oxfam New Zealand Communications and Advocacy Director Joanna Spratt said: “The pandemic has laid bare what we already knew to be true – our global economy is broken. With millions out of work and governments struggling to effectively respond to the pandemic, companies earning exorbitant profits for the already wealthy and well-connected will no longer suffice.

“Covid-19 has been tragic for the many but good for a privileged few. Corporations have exacerbated the economic impacts of the pandemic by funnelling profits to shareholders instead of investing in better jobs and climate-friendly technology, paying their fair share of taxes, and prioritising profits over people,” Spratt said.

Oxfam is calling for a response to the immediate crisis that prioritises support for workers and small businesses. It includes establishing a Covid-19 Pandemic Profits Tax to ensure shared sacrifice, and the redeployment of resources away from those cashing in on the pandemic and toward those bearing the burden.

“These outrageous and outsized gains should be taxed to level the playing field between companies and raise much needed funding for Covid relief and recovery,” said Spratt.

For perspective, redeploying the excess pandemic profits of just 32 of the most profitable corporations using this tax could pay for Covid-19 testing and vaccines for everyone on the planet, plus USD$33bn more to invest in building a 21st century frontline healthcare workforce.

“This was a popular and effective tool for many allied countries during World War II, as an excess or pandemic profits tax is designed to tax the portion of super profits that large companies derive not from hard work, but from an external event the company had no hand in making.”

Long-term, Oxfam is asking policymakers and corporations to re-balance corporate purpose, profits and power away from exclusively benefiting executives and shareholders towards workers, suppliers, consumers and communities.

“Oxfam is calling for a reprogramming of the faulty global economy. Governments must enact corporate reform to ensure every worker is paid a living wage, has a safe place to work and a voice in the workplace before a single dividend is paid to shareholders. Corporations must pay their fair share of tax and policy makers must rein in corporate power to stop them from rigging the rules.”

Spratt said our broken economic model has allowed corporations to exploit the system and further deepen existing inequalities.

“What this situation shows us like never before is how we’ve built a global economic system that does not protect people or the planet, but funnels ever-increasing amounts of wealth to a small number of people – mostly white men in rich nations – who already have more than they need.

“At this point, we have no choice but to overhaul the rules that govern this broken economic model. A system that allows corporates to get away with such obscene imbalances of power and money should no longer be tolerated.

“The solution starts and ends with an economic model that puts people at the centre, protects the most vulnerable, shares profits equitably, and is grounded in democracy. It starts with taxing excess profits made during the pandemic by a few for the public good.”

Spratt said: “We are at a critical juncture. We have a choice between returning to ‘business as usual’ or learning from this moment to design a fairer and more sustainable economy.”

“Unless we change course, economic inequality will increase and the divisions that hurt us all will become even more entrenched.”

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For more information or to arrange an interview please contact:
Kelsey-Rae Taylor | [email protected] | +64 21 298 9854

Notes to editors:

Power, Profits and the Pandemic is available here

  • All figures in USD
  • For perspective, redeploying the excess pandemic profits of just 32 super-profitable corporations using this tax could pay for COVID-19 testing and vaccines for everyone on the planet, plus USD$33bn more to invest in building a 21st century frontline healthcare workforce.
  • The 32 companies expected to make additional profits of USD$109bn in 2020 are listed in the table below. The table lists annual average profits and dividend pay-outs for the period 2016-2019, and 2020. 
  • Jeff Bezos is the founder and owner of Amazon. Amazon’s market capitalization is over USD$1.5tn[1] and Jeff Bezos is now the richest man on earth worth around USD200bn.[2]  His wealth has increased with USD$92 billion in only five months, between 18 March and 20 August 2020. Bezos could have paid each of Amazon’s 876,000 employees a USD$105,000 bonus and would still be as wealthy as he was at the onset of the pandemic.[3] Invested over 25 years at 6% interest rate this bonus would increase to USD$450,000 in retirement savings for each employee.

    [1] P.R. La Monica. (2020, July 10). Amazon, Apple and Microsoft race to $2 trillion. CNN. https://www.cnn.com/2020/07/10/investing/amazon-apple-microsoft-market-value/index.html
    [2] Forbes. (2020, August 26). Jeff Bezos Becomes The First Person Ever Worth $200 Billion. https://www.forbes.com/sites/jonathanponciano/2020/08/26/worlds-richest-billionaire-jeff-bezos-first-200-billion/#64e574b44db7
    [3] https://www.forbes.com/profile/jeff-bezos/#7cb1a86a1b23;  https://www.businessinsider.com/jeff-bezos-net-worth-life-spending-2018-8;  https://www.geekwire.com/2020/amazon-tops-935k-employees-week-pandemic-driven-hiring-spree-continues/ 

Power, Profits and the Pandemic Report

The worsening inequality crisis triggered by COVID-19 is fuelled by an economic model that has allowed some of the world’s largest corporations to funnel billions of dollars in profits to shareholders giving yet another windfall to the world’s top billionaires, a small group of mostly white men. At the same time, it has left low wage workers and women to pay the price of the pandemic without social or financial protection. Since the onset of the pandemic, large corporations have put profits before workers’ safety, pushed costs down the supply chain and used their political influence to shape policy responses. COVID-19 should be the catalyst for radically reining in corporate power, restructuring business models with purpose and rewarding all those that work with profits, creating an economy for all.

 

Click here to read the full report.

Copyright © 2024 Oxfam Aotearoa.

Oxfam is a worldwide development organisation that mobilises the power of people against injustice. Oxfam Aotearoa is a registered charity with the New Zealand Charities Register (registration CC24641). Donations are tax refundable.

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