The wisdom of refusing a vaccine (1).

It is amply clear now that one of the best decisions that the Indian government took for its covid vaccination programme was something it did not do. It did not sign a contract with American Pharma giant Pfizer for vaccine supply. At the time, many commentators had been highly critical of this, some even predicting that our streets would be piled up with bodies. While some of them surely acted based on their own reading of the situation, others may have been influenced by Pfizer's forceful spin doctors.

The Narendra Modi government was not ready to accept the terms that Pfizer insisted on, the main, the main sticking point being a sovereign indemnity demanded by the company against any problems that might arise in the future from the use of its vaccine. The full details of the indemnity were not made public by any government that signed the contract but these things don't stay hidden for long. Over the last few months, Pfizer's contracts with various governments have been leaked. The picture is not pretty. The contract that Brazil accepted seems to be the most one-sided among those that have been uncovered.

Brazil completely waived of its sovereign immunity and took on 100% of the risk. So, if the Pfizer vaccine does not work or is even proven to be the cause of deaths, it's the Brazilian government's headache and not the vaccine maker's. If Brazil defaults on payments, Pfizer has the power to seize state assets - for instance, Brazil's parliament building or its defence systems - and then, monetize them to recover its dues.

In fact, it can even seize assets as a "Precautionary measure".

If that is not enough, Pfizer has "sole discretion to determine additional terms and guarantees for (the company) for the company to fulfil indemnity obligations". In effect, Pfizer can demand whatever it pleases  of Brazil.

There are no penalties if Pfizer does not deliver vaccines on time. The company is free to adjust its delivery schedule and Brazil "shall be deemed to agree to any revision". And if there is a shortfall, Brazil can neither accept donations of Pfizer vaccines nor buy them from other countries without the company's permission. If it does, it will be considered an "uncurable material breach" of the agreement.  Pfizer can immediately terminate the agreement and Brazil will have to pay the full price for any remaining contracted doses.

......to be continued.

Tailpiece.

Got up at 4, thanks to Lekha's cellphone alarm. Rema, Lekha and Achu went by a cab to complete the puja formalities. They'd returned by lunch time. 

They left for Thrippunithura by a half past 3.