Vaccine bond answer?
It is possible -- not probable, but possible -- for Thailand to achieve herd immunity against Covid-19 within a single month. It would work like this: A consortium of large companies, state institutions (especially the Royal Thai Army and the Ministry of Public Health), and hospitals would join hands to float a "Vaccination Bond".
The bond will be offered in 60 million bonds, with each costing 650 baht each. For that, it could solicit 39 billion baht -- more than enough to finance the rapid mass Covid-19 immunisation campaign.
The bond matures when herd immunity is reached, with the return yield at 715 baht -- or a 10% return. The bond issuers, therefore, need to provide 3.9 billion baht enough to cover the fast mass vaccination programme.
The budget for vaccination may seem high, but the country has already lost much more.
According to latest forecast by the University of the Thai Chamber of Commerce, money has evaporated at about 523 million baht per day since the third wave of the Covid-19 pandemic started in April.
The bond would be sold via a mobile app. An existing Thai fintech company would be an essential part, perhaps even the organiser of this bond. Very little marketing would be needed: The idea of the bond sells itself. Make a little money, help the nation, participate in something bigger than yourself: powerful prosocial motivates. Many international friends of Thailand would surely also buy.
If two million people were vaccinated each day, then the entire country could reach herd immune within three weeks. The country needs that warp-speed of mass inoculation simply because the current vaccination plan is too slow.
To reinvigorate economic activity, a rapid, highly efficient inoculation campaign is needed if each vaccination costs 600 baht, including cost of vaccines, human resources, logistics and health personnel. Sixty-three million is 90% of the total population: total herd immunity level. Sixty-three million people times 600 baht is 37.8 billion baht. This leaves over 1.2 billion baht as an emergency fund.
The bond would mature when herd immunity is reached, and return 715 baht: that is, a 10% return. The bond issuers, therefore, need to provide 3.9 billion baht enough to cover the fast mass vaccination programme.
Within a month (following the implementation of the Vaccination Bond) tourism could be opened up. There would be some cases of Covid-19, but they would be manageable simply because the population, as a whole, would be immunised.
The success of the Bond here would open up the possibility of funding other large-scale projects through similar bonds to finance public landscape projects such as park development.
The Vaccination Bond is a way of creating a "common good" -- herd immunity. The late economist Elinor Ostrom's first principle for managing commons is: Define clear group boundaries. The most important boundary is between those who issue the bond, and those who buy the bond. This is why you need companies, government institutions, hospitals and foundations involved: A broad range of established institutions indicates the stability of the project.
All of the other principles deserve consideration, but the last is a wise place to end: Commons work best when nested within larger networks. Thailand already has sufficient medical infrastructure, social consensus, and the determination to achieve herd immunity. The addition of a targeted, blockchain-based bond would catalyse the system to achieve the deeply needed common good of herd immunity.
Pony IsaacsohnFounder of Infinite Thailand Strategies