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    I.M.F. World Economic Outlook Forecasts 6 Percent Global Growth

    The International Monetary Fund warned on Tuesday that the gap between rich and poor countries was widening amid the pandemic, with low vaccination rates in emerging economies leading to a lopsided global recovery.The I.M.F. maintained its 2021 global growth forecast of 6 percent in its latest World Economic Outlook report, largely because advanced economies, including the United States, expect slightly faster growth than the global body previously forecast. Economic growth in developing countries is expected to be more sluggish, and the global body said the spread of more contagious variants of the virus posed a threat to the recovery. It called on nations to work together to accelerate the protection of their citizens.“Multilateral action is needed to ensure rapid, worldwide access to vaccines, diagnostics and therapeutics,” Gita Gopinath, the I.M.F.’s chief economist, wrote in the report. “This would save countless lives, prevent new variants from emerging and add trillions of dollars to global economic growth.”The I.M.F. projected that the U.S. economy will expand 7 percent in 2021. The euro area was projected to expand 4.6 percent and Japan 2.8 percent. Rapid expansion was expected for China, at 8.1 percent, and India, 9.5 percent, but both of their outlooks have been downgraded since April. The outlook in China was lowered because of a scaling back of public investment, while India was downgraded because of a severe second wave of the virus slowing the recovery.The global expansion in 2022 was projected to be stronger than previously forecast, with growth of 4.9 percent. That, too, will be led by advanced economies, the I.M.F. predicted.More than a year after the coronavirus emerged, economic fortunes are closely tied to how successfully governments have been at providing fiscal support and acquiring and deploying vaccines. The I.M.F. said about 40 percent of the population in advanced economies had been fully vaccinated, while that figure is just 11 percent or less in emerging markets and low-income developing economies. Varying levels of financial support from governments are also amplifying the divergence in economic fortunes.The I.M.F.’s executive board announced this month that it had approved a plan to issue $650 billion worth of reserve funds that countries could use to buy vaccines, finance health care and pay down debt. If finalized in August, as expected, the funds should provide additional support to countries that have been lagging behind in combating the health crisis.Concerns about price increases have grabbed headlines in the United States and elsewhere, but the I.M.F. said it continued to believe that the recent bout of inflation was “transitory.” The organization noted that jobless rates remained below their prepandemic levels and that long-term inflation expectations remained “well anchored.” Ms. Gopinath said that predicting the path of inflation was subject to much uncertainty because of the unique nature of the economic shock that the world had faced.“More persistent supply disruptions and sharply rising housing prices are some of the factors that could lead to persistently high inflation,” Ms. Gopinath said.As the Federal Reserve prepared to meet on Tuesday and Wednesday, she advised central banks to be nimble in setting monetary policy and urged them not to raise interest rates too soon.“Central banks should avoid prematurely tightening policies when faced with transitory inflation pressures but should be prepared to move quickly if inflation expectations show signs of de-anchoring,” Ms. Gopinath added.During a press briefing on Tuesday, I.M.F. officials said they had been observing how supply shortages were depressing manufacturing activity and hurting sectors such as the automobile industry.While the I.M.F. expects inflation in the United States to remain high this year and normalize by next year, it is looking for signs that rising prices could “de-anchor” from the Fed’s 2 percent target. That will become clear, it said, if medium-term inflation expectations begin to rise and if higher prices become locked into wages and business contracts. Officials are also watching to see if the recent sharp increase in house prices continues to lead to higher rents, which would lift the inflation outlook.Mutations of the virus remain the most daunting challenge facing the global economy. The I.M.F. projected that highly infectious variants, if they emerged, could derail the recovery and wipe out $4.5 trillion in gross domestic product by 2025.The brunt of that pain would most likely be felt in the poorest parts of the world, which have been hardest hit by the initial waves of the pandemic.“It was already diverging, and that has exacerbated in this period,” Ms. Gopinath said of global inequality. “It is a reflection of some very big fault lines that are growing.” More

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    Delays, More Masks and Mandatory Shots: Virus Surge Disrupts Office-Return Plans

    A wave of the contagious Delta variant is causing companies to reconsider when they will require employees to return, and what health requirements should be in place when they do.Several hospital systems that previously held off making vaccines mandatory for health care workers are now willing to do so. Google employees in California who have voluntarily returned to the office are again wearing masks indoors. Goldman Sachs is considering whether to reinstitute testing for fully vaccinated employees in the company’s New York City offices, according to a person familiar with the situation who spoke on the condition of anonymity because nothing had been decided. And on Monday, Apple told its work force that it would push back its return-to-office date from September to October.When companies began announcing tentative return-to-office plans this spring, there was a sense of optimism behind the messages. Covid cases were dwindling in the United States as the vaccine rollout picked up pace. Employers largely hoped their workers would get shots on their own, motivated by raffle tickets, paid time off and other perks, if not by the consensus of the medical community.In recent days, that tone has suddenly shifted. The Delta variant, a more contagious version of the coronavirus, is sweeping through the country. Fewer than half of Americans are fully vaccinated, exacerbating the situation. Nationally, the daily average of new coronavirus infections surged 180 percent in 14 days to 45,343 by Thursday, and deaths — a lagging number — are up 30 percent from two weeks ago, to nearly 252, according to New York Times case counts. Vaccines are still unavailable for children under 12, many of whom are preparing for an in-person return to school this fall.America’s business leaders are being forced to decide whether to reverse reopening plans or to mandate vaccinations.George Etheredge for The New York TimesIt all adds up to a difficult calculation for America’s business leaders, who hoped the country would already be fully on a path to normalcy, with employees getting back to offices. Instead, individual companies are now being forced to make tough decisions that they had hoped could be avoided, such as whether to reverse reopening plans or institute vaccine mandates for employees. All the while, they continue to grapple with the unpredictable nature of the pandemic.“It’s emotionally draining on all of us, and it drives the top management teams crazy,” said Bob Sutton, a psychology professor at Stanford University who studies leadership and organizations. He said some executives he had advised were “pulling their hair out” over what to do.For employers wary of the legal ramifications and political backlash of mandating a vaccine, the tide has begun to turn, if ever so slightly.“At the beginning, there were a lot of employers that were concerned about jumping in too soon and being the one out front — it is a divisive issue,” said David Barron, a labor and employment lawyer at the law firm Cozen O’Connor. “The calculus starts to shift a little bit when you see another spike.”Mayor Bill de Blasio of New York on Friday encouraged private employers to require workers to get vaccinated. He also said the city might broaden the number of city workers required to get vaccinated or to be tested weekly.Recent court decisions have upheld employers’ rights to require vaccinations, including a ruling that said Houston Methodist Hospital could require health care workers to get shots. On Monday, a federal judge ruled that Indiana University could require students to be vaccinated as well.At a vaccination center in New York. Vaccine mandates are still far from the dominant approach that executives are taking.Kevin Hagen for The New York Times“The legal authority continues to line up on the side of employers being allowed to mandate vaccines if they choose to,” said Douglas Brayley, an employment lawyer at the global law firm Ropes & Gray.When Twitter reopened its San Francisco office this month at 50 percent capacity for those who wanted to go back, only vaccinated workers were allowed inside. In June, a civilian group that oversees the Los Angeles Police Department was examining the possibility of requiring police officers to get shots. And numerous colleges have required students and staff to be fully inoculated before they step foot on campus in the fall.“The recent news of Delta surging in some places is just adding to that determination to be as safe as we possibly can,” said Tim Killeen, the president of the University of Illinois System, which instituted a vaccine requirement Wednesday.Novant Health, a North Carolina-based health care company with more than 35,000 employees, said Thursday that it would make vaccinations mandatory for its workers by Sept. 15. Its efforts to overcome vaccine hesitancy through education and making shots easily accessible had stagnated.“Now that almost four billion doses of vaccine have been given around the world, and we see that it’s safe and effective, we see that the Delta variant is obviously here, and we have it in our communities, and that almost all the patients being added to our hospitals are unvaccinated, the time was right to say, ‘We’ve got to move forward with requiring vaccines of our team members,’” Dr. David Priest, the company’s chief safety officer, said.For others, high voluntary vaccination rates among employees have made requiring the shot simpler. Morgan Stanley, the investment banking firm, is requiring employees and guests at its New York offices to be fully vaccinated, according to a person familiar with the situation who spoke on the condition of anonymity to discuss company protocols. By the time it imposed the mandate in June, 90 percent of its employees were vaccinated.Vaccine mandates are still not the approach that most companies are taking. And the risk that the coronavirus poses to much of the population is far from what it was at the worst of the pandemic. New cases, hospitalizations and deaths remain at a small fraction of their previous peaks, largely localized to areas with low vaccination rates. Vaccines remain effective against the worst outcomes of Covid-19, including from the Delta variant.“The big question is not so much ‘Can we keep workers safe in our buildings?’ but ‘Will workers feel comfortable enough coming back, even if good controls are in place?’” said Joseph Allen, an associate professor at the Harvard T.H. Chan School of Public Health who advises companies on Covid-19 strategies. “There’s a renewed anxiety that maybe started to dissipate in the spring — but it’s back.”When Twitter reopened its San Francisco office at half capacity for those who wanted to return, only vaccinated workers were allowed inside.Cayce Clifford for The New York TimesThat tension may make it more difficult to persuade workers to return to the office. In California’s Silicon Valley, tech companies largely embraced the new era of remote work during the pandemic. But not all have been eager to let their employees stay home for good..css-1xzcza9{list-style-type:disc;padding-inline-start:1em;}.css-3btd0c{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:1rem;line-height:1.375rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-3btd0c{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-3btd0c strong{font-weight:600;}.css-3btd0c em{font-style:italic;}.css-w739ur{margin:0 auto 5px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}#NYT_BELOW_MAIN_CONTENT_REGION .css-w739ur{font-family:nyt-cheltenham,georgia,’times new roman’,times,serif;font-weight:700;font-size:1.375rem;line-height:1.625rem;}@media (min-width:740px){#NYT_BELOW_MAIN_CONTENT_REGION .css-w739ur{font-size:1.6875rem;line-height:1.875rem;}}@media (min-width:740px){.css-w739ur{font-size:1.25rem;line-height:1.4375rem;}}.css-9s9ecg{margin-bottom:15px;}.css-uf1ume{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;}.css-wxi1cx{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;-webkit-align-self:flex-end;-ms-flex-item-align:end;align-self:flex-end;}.css-12vbvwq{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;}@media (min-width:740px){.css-12vbvwq{padding:20px;width:100%;}}.css-12vbvwq:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-12vbvwq{border:none;padding:10px 0 0;border-top:2px solid #121212;}.css-12vbvwq[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-12vbvwq[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-12vbvwq[data-truncated] .css-5gimkt:after{content:’See more’;}.css-12vbvwq[data-truncated] .css-6mllg9{opacity:1;}.css-qjk116{margin:0 auto;overflow:hidden;}.css-qjk116 strong{font-weight:700;}.css-qjk116 em{font-style:italic;}.css-qjk116 a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;text-underline-offset:1px;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:visited{color:#326891;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:hover{-webkit-text-decoration:none;text-decoration:none;}In June, Apple’s chief executive, Tim Cook, told employees that they would be required to return to the office at least three days a week, starting in September. About 1,800 employees sent Mr. Cook a letter calling for a more flexible approach.He did not respond, but days later Apple posted an internal video in which company executives doubled down on bringing workers back to the office. In the video, Dr. Sumbul Desai, who helps run Apple’s digital health division, encouraged workers to get vaccinated but stopped short of saying they would be required to, according to a transcript viewed by The Times.The video didn’t sit well with some employees.“OK, you want me to put my life on the line to come back to the office, which will also decrease my productivity, and you’re not giving me any logic on why I actually need to do that?” said Ashley Gjovik, a senior engineering program manager.When the company delayed its return-to-office date on Monday, a group of employees drafted a new letter, proposing a one-year pilot program in which people could work from home full time if they chose to. The letter said an informal survey of more than 1,000 Apple employees found that roughly two-thirds would question their future at the company if they were required to return to the office. In Los Angeles, Endeavor, the parent company of the William Morris Endeavor talent agency, reopened its Beverly Hills headquarters this month. But it decided to shut down again last week when the county reimposed its indoor mask mandate in the face of surging case counts. An Endeavor spokesman said the company had decided that enforcement would be too difficult and would hinder group meetings.The employment website Indeed had been targeting Sept. 7 as the date when it would start bringing workers back on a hybrid basis. Now it has begun to reconsider those plans, the company’s senior vice president of human resources, Paul Wolfe, said, “because of the Delta variant.”Some companies said the recent spike in cases had not yet affected their return-to-office planning. Facebook still intends to reopen at 50 percent capacity by early September. IBM plans to open its U.S. offices in early September, with fully vaccinated employees free to go without a mask, and Royal Dutch Shell, the gas company, has been gradually lifting restrictions in its Houston offices, prompting more of its workers to return.Hewlett Packard Enterprise began allowing employees to return to its offices Monday, bolstered by a survey of its California employees that found 94 percent were fully vaccinated.“That gives us an added layer of comfort,” a company spokesman, Adam Bauer, said.Wells Fargo told its employees on July 16 that it would begin to bring employees currently working remotely back to the office on Sept. 7. But unlike banks that earlier called workers back with declarative language ringing in a new stage of the pandemic, the memo, sent by the bank’s chief operating officer, Scott Powell, had a notable degree of caution.“The timing communicated in this message is dependent on our assumption that the pandemic continues to remain stable or further improves,” Mr. Powell wrote. “We continue to actively monitor the situation and any developments, including new variants.”Reporting was contributed by More

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    Janet Yellen Warns That Coronavirus Variants Threaten Global Recovery

    At the end of a gathering of the finance ministers of the Group of 20 nations, the U.S. Treasury secretary called for an acceleration of vaccine distribution worldwide.Treasury Secretary Janet L. Yellen said on Sunday that coronavirus variants could hinder the global economic recovery and called for a stepped-up effort to vaccinate the world’s population.Luca Bruno/Associated PressVENICE — Treasury Secretary Janet L. Yellen said on Sunday that she was concerned that coronavirus variants could derail the global economic recovery and called for an urgent push to deploy vaccines more rapidly around the world.Her comments, made at the conclusion of a gathering of the finance ministers of the Group of 20 nations, came as the highly contagious Delta variant of the coronavirus was driving outbreaks among unvaccinated populations in countries such as Australia, Indonesia, Malaysia and Portugal. Delta is also now the dominant variant in the United States.“We are very concerned about the Delta variant and other variants that could emerge and threaten recovery,” Ms. Yellen said. “We are a connected global economy. What happens in any part of the world affects all other countries.”Many cities and countries have started to declare victory against the pandemic, easing restrictions and returning to normal life. But Ms. Yellen warned that the public health crisis was not over.She said that the world’s top economic officials had spent much of the weekend in Venice discussing how they could improve vaccine distribution, with the goal of getting 70 percent of the world inoculated by next year. Ms. Yellen noted that many countries had been successful in financing the purchase of vaccines, but that the logistics of getting them into people’s arms were falling short.“We need to do something more and to be more effective,” she said.The spread of variants has started to dampen optimism about the trajectory of the recovery.Analysts at Capital Economics said this week that they planned to lower their economic growth outlook for the year to below 6 percent.The spread of new coronavirus variants has “raised doubts about the pace of real economic growth in the second half of this year and beyond,” Paul Ashworth, the chief North America economist at Capital Economics, wrote in a research note.The International Monetary Fund said that it was maintaining its projection for 6 percent global growth this year, but it warned that growth was being suppressed in developing countries where infection rates were surging.“The divergence across economies is intensifying,” Kristalina Georgieva, the managing director of the I.M.F., said on Saturday. “Essentially, the world is facing a two-track recovery.”Some finance ministers also expressed concern over the weekend that variants and slow vaccine uptake could upend the recovery. That concern was highlighted as a downside risk to the global economy in the joint statement that the group released.“The single hurdle on the way to a quick, solid economic rebound is the risk of having a new wave of pandemics,” said Bruno Le Maire, the French finance minister. “We all have to improve our vaccination performance.”The I.M.F. executive board approved a plan last week to issue $650 billion worth of reserve funds that countries could use to buy vaccines and to finance health care initiatives.Ms. Yellen said that she had pressed her Group of 20 counterparts to accelerate “equitable” delivery and distribution of vaccines, diagnostics and therapeutics to ensure that low- and middle-income countries could fight flare-ups of the virus.Policymakers at the meeting this weekend also spent time focusing on new investments to prepare for future pandemics. Ms. Yellen said that, while this was important, there was more that needed to be done in the near term.“Certainly variants represent a threat to the entire globe,” she said. More

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    I.M.F. Board Backs $650 Billion Aid Plan to Help Poor Countries

    The expansion of emergency reserves to help fund vaccines and pay down debt is politically contentious in the United States.VENICE — The International Monetary Fund took a step on Friday toward easing widening global inequality and helping poor nations get access to vaccines, saying its executive board approved a plan to issue $650 billion worth of reserve funds that countries can use to buy vaccines, finance health care and pay down debt.The decision comes at a pivotal moment as Covid-19 infections continue to spread among populations that have not been inoculated and as more contagious variants of the coronavirus are posing new health threats. The pandemic has drained the fiscal resources of poor countries over the past year, and the I.M.F. projected this week that faster access to vaccinations for high-risk populations could save 500,000 lives in the next six months.The new allocation of so-called Special Drawing Rights would be the largest such expansion of currency reserves in the I.M.F.’s history. If approved by the group’s board of governors, as is expected, the reserves could become available by the end of next month.“This is a shot in the arm for the world,” Kristalina Georgieva, managing director of the I.M.F., said in a statement. “The S.D.R. allocation will help every I.M.F. member country — particularly vulnerable countries — and strengthen their response to the Covid-19 crisis.”Ms. Georgieva made the announcement as finance ministers and central bank governors of the Group of 20 nations were gathering in Venice to discuss international tax policy, climate change and the global economic response to the pandemic. The I.M.F., established in 1944 to try to broker economic cooperation, has warned of a two-track economic recovery, with poor countries being left behind while advanced economies experience rapid expansions.Ahead of the meetings, Treasury Department officials said expanding access to vaccines would be a central topic of discussion. It is also a potentially contentious one, as some developing countries have suggested that advanced economies are not doing enough to ensure fair distribution of vaccines.“The immediate priority for developing countries is widespread access to vaccines that match their deployment programs,” David Malpass, president of the World Bank, said in a speech in Venice on Friday.Mr. Malpass called on G20 countries to share doses and remove all trade barriers to exporting finished vaccines and their components. He noted that the pandemic had aggravated structural weaknesses that had dogged developing countries for years.“Even as that is accomplished,” Mr. Malpass said of expanded vaccine distribution, “development faces years of setback and struggle.”Narrowing the gap between the fortunes of advanced and developing economies was a central topic on the first day of the G20 meetings in Venice. Bruno Le Maire, France’s finance minister, told reporters on Friday that inequality was a risk to the stability and security of Europe that could lead to an influx of refugees. He argued that it must be urgently addressed.It remains to be seen how far the $650 billion will go to help developing countries as they race to vaccinate people before new variants of the virus take hold, including the Delta variant, which has plunged many countries back into a health crisis.The United Nations Conference on Trade and Development called this year for $1 trillion worth of Special Drawing Rights to be made available by the I.M.F. as a “helicopter money drop for those being left behind.”Jubilee USA Network, a nonprofit organization that advocates debt relief for poor countries, praised the move by the I.M.F. and called on wealthy countries to do more to help.“This is the biggest creation of emergency reserve funds that we’ve ever seen, and developing countries will immediately receive more than $200 billion,” said Eric LeCompte, executive director of Jubilee USA Network. “Wealthy countries who receive emergency reserves they don’t need should transfer those resources to developing countries struggling through the pandemic.”The I.M.F., the World Bank, the World Health Organization and the World Trade Organization have created a new vaccine task force and called for an additional $50 billion investment to broaden access to supplies. The groups have also called on G20 countries to set a goal of having 40 percent of their populations vaccinated by the end of this year and 60 percent by the middle of next year.The United States has thrown its support behind the expansion of the I.M.F. reserves, reversing a Trump administration policy and angering Republican lawmakers in the process.The Trump administration balked at the proposal last year and prevented it from moving forward. It argued at the time that boosting the emergency reserves was an inefficient way to provide aid to poor countries and that doing so would provide more resources to advanced economies that did not need the help, like China and Russia.Republican lawmakers have since accused the Biden administration of bolstering the fortunes of adversaries, while doing little to actually help developing nations. Although Republicans have introduced legislation that would put restrictions on how the I.M.F. reserves were used if they were authorized, such proposals are unlikely to pass with Democrats in control of Congress.Under Treasury Secretary Janet L. Yellen, the United States has taken a different view from the Trump administration, and the United States supports the allocation. Ms. Yellen believes that rich countries will have little use for the S.D.R.s but that developing economies will be able to use them to get enough money to vaccinate their people.Treasury Secretary Janet Yellen, center, arriving for the Group of 20 finance ministers and central bank governors meeting in Venice on Friday.Andrea Merola/EPA, via ShutterstockSpecial Drawing Rights work by allowing member countries of the I.M.F. to cash the asset in for hard currency. Their value is based on a basket of international currencies and is reset every five years.Each of the 190 countries that is a member of the I.M.F. gets an allotment of S.D.R.s based on its shares in the fund, which tracks with the size of a country’s economy. The new reserves would also be distributed under this formula, with the largest economic powers like the United States gaining the biggest tranche.The drawing rights cannot be used to buy things on their own, but they can be traded for currencies that can. If two countries agree, they can trade their Special Drawing Rights for cash, with the I.M.F. acting as a middleman to facilitate the trade.That has prompted some criticism that the program will not work unless rich countries voluntarily transfer their holdings to poorer nations.“It is a legitimate concern that new S.D.R.s will end up mostly in the hands of large and rich countries that have little use for them rather than in the hands of the smaller and poorer countries that really need them,” said Eswar Prasad, the International Monetary Fund’s former China chief. “A reallocation of S.D.R.s toward the latter group, in addition to increasing the overall volume of S.D.R.s, would be helpful in dealing with stresses to the global financial system.”To address some of those concerns, the I.M.F. is working to develop a new trust fund where rich countries can channel their excess S.D.R.s. The goal is to create a $100 billion pot of money that poor countries take loans from so they can expand health care systems or address climate change in conjunction with existing I.M.F. programs.The United States has previously indicated it will make available about one-fifth of its allocation, worth about $20 billion. At the urging of the United States, the I.M.F. is also working to create greater transparency around how the assets are being used so that it is clear that American adversaries are not benefiting from the proceeds.The I.M.F.’s board of governors is expected to hold its vote in early August. More

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    They Relied on Chinese Vaccines. Now They’re Battling Outbreaks.

    More than 90 countries are using Covid shots from China. Experts say recent infections in those places should serve as a cautionary tale in the global effort to fight the disease.Mongolia promised its people a “Covid-free summer.” Bahrain said there would be a “return to normal life.” The tiny island nation of the Seychelles aimed to jump-start its economy.All three put their faith, at least in part, in easily accessible Chinese-made vaccines, which would allow them to roll out ambitious inoculation programs when much of the world was going without.But instead of freedom from the coronavirus, all three countries are now battling a surge in infections.China kicked off its vaccine diplomacy campaign last year by pledging to provide a shot that would be safe and effective at preventing severe cases of Covid-19. Less certain at the time was how successful it and other vaccines would be at curbing transmission.Now, examples from several countries suggest that the Chinese vaccines may not be very effective at preventing the spread of the virus, particularly the new variants. The experiences of those countries lay bare a harsh reality facing a postpandemic world: The degree of recovery may depend on which vaccines governments give to their people.In the Seychelles, Chile, Bahrain and Mongolia, 50 to 68 percent of the populations have been fully inoculated, outpacing the United States, according to Our World in Data, a data tracking project. All four ranked among the top 10 countries with the worst Covid outbreaks as recently as last week, according to data from The New York Times. And all four are mostly using shots made by two Chinese vaccine makers, Sinopharm and Sinovac Biotech.“If the vaccines are sufficiently good, we should not see this pattern,” said Jin Dongyan, a virologist at the University of Hong Kong. “The Chinese have a responsibility to remedy this.” A vaccination on Chiloé Island, Chile. In Chile, the Seychelles, Bahrain and Mongolia, 50 to 68 percent of the populations have been fully vaccinated.Alvaro Vidal/Agence France-Presse — Getty ImagesScientists don’t know for certain why some countries with relatively high inoculation rates are suffering new outbreaks. Variants, social controls that are eased too quickly and careless behavior after only the first of a two-shot regimen are possibilities. But the breakthrough infections could have lasting consequences.In the United States, about 45 percent of the population is fully vaccinated, mostly with doses made by Pfizer-BioNTech and Moderna. Cases have dropped 94 percent over six months.Israel provided shots from Pfizer and has the second-highest vaccination rate in the world, after the Seychelles. The number of new daily confirmed Covid-19 cases per million in Israel is now around 4.95.In the Seychelles, which relied mostly on Sinopharm, that number is more than 716 cases per million.Disparities such as these could create a world in which three types of countries emerge from the pandemic — the wealthy nations that used their resources to secure Pfizer-BioNTech and Moderna shots, the poorer countries that are far away from immunizing a majority of citizens, and then those that are fully inoculated but only partly protected.China, as well as the more than 90 nations that have received the Chinese shots, may end up in the third group, contending with rolling lockdowns, testing and limits on day-to-day life for months or years to come. Economies could remain held back. And as more citizens question the efficacy of Chinese doses, persuading unvaccinated people to line up for shots may also become more difficult.One month after receiving his second dose of Sinopharm, Otgonjargal Baatar fell ill and tested positive for Covid-19. Mr. Otgonjargal, a 31-year-old miner, spent nine days in a hospital in Ulaanbaatar, the capital of Mongolia. He said he was now questioning the usefulness of the shot.“People were convinced that if we were vaccinated, the summer will be free of Covid,” he said. “Now it turns out that it’s not true.”Xi Jinping, China’s leader, pledged to deliver a Chinese vaccine that could be easily stored and transported to millions of people around the world. He called it a “global public good.”Andrea Verdelli/Getty ImagesBeijing saw its vaccine diplomacy as an opportunity to emerge from the pandemic as a more influential global power. China’s top leader, Xi Jinping, pledged to deliver a Chinese shot that could be easily stored and transported to millions of people around the world. He called it a “global public good.”Mongolia was a beneficiary, jumping at the chance to score millions of Sinopharm shots. The small country quickly rolled out an inoculation program and eased restrictions. It has now vaccinated 52 percent of its population. But on Sunday, it recorded 2,400 new infections, a quadrupling from a month before.In a statement, China’s Foreign Ministry said it did not see a link between the recent outbreaks and its vaccines. It cited the World Health Organization as saying that vaccination rates in certain countries had not reached sufficient levels to prevent outbreaks, and that countries needed to continue to maintain controls.“Relevant reports and data also show that many countries that use Chinese-made vaccines have expressed that they are safe and reliable, and have played a good role in their epidemic prevention efforts,” the ministry said. China has also emphasized that its vaccines target severe disease rather than transmission.No vaccine fully prevents transmission, and people can still fall ill after being inoculated, but the relatively low efficacy rates of Chinese shots have been identified as a possible cause of the recent outbreaks.The Pfizer-BioNTech and Moderna vaccines have efficacy rates of more than 90 percent. A variety of other vaccines — including AstraZeneca and Johnson & Johnson — have efficacy rates of around 70 percent. The Sinopharm vaccine developed with the Beijing Institute of Biological Products has an efficacy rate of 78.1 percent; the Sinovac vaccine has an efficacy rate of 51 percent.The Chinese companies have not released much clinical data to show how their vaccines work at preventing transmission. On Monday, Shao Yiming, an epidemiologist with the Chinese Center for Disease Control and Prevention, said China needed to fully vaccinate 80 to 85 percent of its population to achieve herd immunity, revising a previous official estimate of 70 percent.Data on breakthrough infections has not been made available, either, though a Sinovac study out of Chile showed that the vaccine was less effective than those from Pfizer-BioNTech and Moderna at preventing infection among vaccinated individuals.A representative from Sinopharm hung up the phone when reached for comment. Sinovac did not respond to a request for comment.William Schaffner, medical director of the National Foundation for Infectious Diseases at Vanderbilt University, said the efficacy rates of Chinese shots could be low enough “to sustain some transmission, as well as create illness of a substantial amount in the highly vaccinated population, even though it keeps people largely out of the hospital.”Mongolia now ranks among the top countries that have fully vaccinated its population, inoculating about 52 percent of its people. But on Sunday, it recorded 2,400 new infections, quadrupling from a month before.Khasar Sandag for The New York TimesDespite the spike in cases, officials in both the Seychelles and Mongolia have defended Sinopharm, saying it is effective in preventing severe cases of the disease.Batbayar Ochirbat, head researcher of the Scientific Advisory Group for Emergencies at Mongolia’s Ministry of Health, said Mongolia had made the right decision to go with the Chinese-made shot, in part because it had helped keep the mortality rate low in the country. Data from Mongolia showed that the Sinopharm vaccine was actually more protective than the doses developed by AstraZeneca and Sputnik, a Russian vaccine, according to the Health Ministry.The reason for the surge in Mongolia, Mr. Batbayar said, is that the country reopened too quickly, and many people believed they were protected after only one dose.“I think you could say Mongolians celebrated too early,” he said. “My advice is the celebrations should start after the full vaccinations, so this is the lesson learned. There was too much confidence.”Some health officials and scientists are less confident.Nikolai Petrovsky, a professor at the College of Medicine and Public Health at Flinders University in Australia, said that with all of the evidence, it would be reasonable to assume the Sinopharm vaccine had minimal effect on curbing transmission. A major risk with the Chinese inoculation is that vaccinated people may have few or no symptoms and still spread the virus to others, he said.“I think that this complexity has been lost on most decision makers around the world.”In Indonesia, where a new variant is spreading, more than 350 doctors and health care workers recently came down with Covid-19 despite being fully vaccinated with Sinovac, according to the risk mitigation team of the Indonesian Medical Association. Across the country, 61 doctors died between February and June 7. Ten of them had taken the Chinese-made vaccine, the association said.The numbers were enough to make Kenneth Mak, Singapore’s director of medical services, question the use of Sinovac. “It’s not a problem associated with Pfizer,” Mr. Mak said at a news conference on Friday. “This is actually a problem associated with the Sinovac vaccine.”Bahrain and the United Arab Emirates were the first two countries to approve the Sinopharm shot, even before late-stage clinical trial data was released. Since then, there have been extensive reports of vaccinated people falling ill in both countries. In a statement, the Bahraini government’s media office said the kingdom’s vaccine rollout had been “efficient and successful to date.”Still, last month officials from Bahrain and the United Arab Emirates announced that they would offer a third booster shot. The choices: Pfizer or more Sinopharm.Reporting was contributed by Khaliun Bayartsogt, More

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    For Many Workers, Change in Mask Policy Is a Nightmare

    After a shift by the C.D.C., employers withdrew mask policies that workers felt were protecting them from unvaccinated customers.The Kroger supermarket in Yorktown, Va., is in a county where mask wearing can be casual at best. Yet for months, the store urged patrons to cover their noses and mouths, and almost everyone complied. More

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    United Airlines will start a ticket lottery for vaccinated loyalty program members.

    United Airlines is encouraging people to get vaccinated by offering them the chance to win free flights.The airline said on Monday that loyalty program members who upload their vaccination records to United’s mobile app or website through June 22 are eligible to win a round-trip flight for two “in any class of service, to anywhere in the world United flies.”The carrier will give away 30 pairs of tickets in June. On July 1, United will give five people a grand prize of travel for a year for themselves and a companion. The Centers for Disease Control and Prevention in April said that Americans who were fully vaccinated against the coronavirus could travel at low risk to themselves.The sweepstakes comes as the Biden administration pushes for 70 percent of adults in the United States to receive at least one dose of the coronavirus vaccine by July 4. Some states and businesses have created incentives of their own: Ohio will give five people $1 million each in return for having been vaccinated as part of a weekly lottery program, and Krispy Kreme is offering one free glazed doughnut every day if those take their vaccination card to any location in the United States. More

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    Seychelles Sees Rise in Coronavirus Cases Despite Vaccinations

    Seychelles has seen a surge in coronavirus cases despite much of its population being inoculated with China’s Sinopharm vaccine.Marie Neige, a call center operator in Seychelles, was eager to be vaccinated. Like the majority of the residents in the tiny island nation, she was offered China’s Sinopharm vaccine in March, and was looking forward to the idea of being fully protected in a few weeks.On Sunday, she tested positive for Covid-19.“I was shocked,” said Ms. Neige, 30, who is isolating at home. She said she has lost her sense of smell and taste and has a slightly sore throat. “The vaccine was supposed to protect us — not from the virus, but the symptoms,” she said. “I was taking precaution after precaution.”China expected its Sinopharm vaccines to be the linchpin of the country’s vaccine diplomacy program — an easily transported dose that would protect not just Chinese citizens but also much of the developing world. In a bid to win good will, China has donated 13.3 million Sinopharm doses to other countries, according to Bridge Beijing, a consultancy that tracks China’s impact on global health.Instead, the company, which has made two varieties of Covid-19 vaccines, is facing mounting questions about the inoculations. First, there was the lack of transparency with its late-stage trial data. Now, Seychelles, the world’s most vaccinated nation, has had a surge in cases despite much of its population being inoculated with Sinopharm.For the 56 countries counting on the Sinopharm shot to help them halt the pandemic, the news is a setback.Seychelles has relied heavily on Sinopharm to inoculate more than 60 percent of its population.Rassin Vannier/Agence France-Presse — Getty ImagesFor months, public health experts had focused on trying to close the access gap between rich and poorer nations. Now, scientists are warning that developing nations that choose to use the Chinese vaccines, with their relatively weaker efficacy rates, could end up lagging behind countries that choose vaccines made by Pfizer-BioNTech and Moderna. That gap could allow the pandemic to continue in countries that have fewer resources to fight it.“You really need to use high-efficacy vaccines to get that economic benefit because otherwise they’re going to be living with the disease long-term,” said Raina MacIntyre, who heads the biosecurity program at the Kirby Institute of the University of New South Wales in Sydney, Australia. “The choice of vaccine matters.”Nowhere have the consequences been clearer than in Seychelles, which relied heavily on a Sinopharm vaccine to inoculate more than 60 percent of its population. The tiny island nation in the Indian Ocean, northeast of Madagascar and with a population of just over 100,000, is battling a surge of the virus and has had to reimpose a lockdown.Among the vaccinated population that has had two doses, 57 percent were given Sinopharm, while 43 percent were given AstraZeneca. Thirty-seven percent of new active cases are people who are fully vaccinated, according to the health ministry, which did not say how many people among them had the Sinopharm shot.“On the surface of it, that’s an alarming finding,” said Dr. Kim Mulholland, a pediatrician at the Murdoch Children’s Research Institute in Melbourne, Australia, who has been involved in the oversight of many vaccine trials, including those for a Covid-19 vaccine.Dr. Mulholland said the initial reports from Seychelles correlate to a 50 percent efficacy rate for the vaccine, instead of the 78.1 percent rate that the company has touted. Sinopharm vaccines being unloaded in Budapest in February. China has donated 13.3 million Sinopharm doses to other countries.Kkm, via Reuters“We would expect in a country where the great majority of the adult population has been vaccinated with an effective vaccine to see the disease melt away,” he said.Scientists say breakthrough infections are normal because no vaccine is 100 percent effective. But the experience in Seychelles stands in stark contrast to Israel, which has the second-highest vaccination coverage in the world and has managed to beat back the virus. A study has shown that the Pfizer vaccine that Israel used is 94 percent effective at preventing transmission. On Wednesday, the number of daily new confirmed Covid-19 cases per million people in Seychelles stood at 2,613.38, compared to 5.55 in Israel, according to The World In Data project.Wavel Ramkalawan, the president of Seychelles, defended the country’s vaccination program, saying that the Sinopharm and AstraZeneca vaccines have “served our population very well.” He pointed out that the Sinopharm vaccine was given to people age 18 to 60, and in this age group over all, 80 percent of the patients who needed to be hospitalized were not vaccinated.“People may be infected, but they are not sick. Only a small number are,” he told the Seychelles News Agency. “So what is happening is normal.”Sylvestre Radegonde, the minister for foreign affairs and tourism, said the surge in cases in Seychelles happened in part because people had let their guard down, according to the Seychelles News Agency. Sinopharm did not respond to a request for comment.A wedding in Kiryat Gat, Israel, in March. Israel, which has the second-highest vaccination coverage in the world, has kept its number of cases down after using the Pfizer vaccine.Dan Balilty for The New York TimesIn a response to an article from The Wall Street Journal on Seychelles, a spokeswoman for China’s foreign ministry blamed Western media for trying to discredit Chinese vaccines and “harboring the mentality that ‘everything involving China has to be smeared.’”In a news conference, Kate O’Brien, director of immunizations at the World Health Organization, said the agency is evaluating the surge of infections in Seychelles and called the situation “complicated.” Last week, the global health group approved the Sinopharm vaccine for emergency use, raising hopes of an end to a global supply crunch.She said that “some of the cases that are being reported are occurring either soon after a single dose or soon after a second dose or between the first and second doses.”According to Ms. O’Brien, the W.H.O. is looking into the strains that are currently circulating in the country, when the cases occurred relative to when somebody received doses and the severity of each case. “Only by doing that kind of evaluation can we make an assessment of whether or not these are vaccine failures,” she said.But some scientists say it is increasingly clear that the Sinopharm vaccine does not offer a clear path toward herd immunity, particularly when considering the multiple variants appearing around the world.Governments using the Sinopharm vaccine “have to assume a significant failure rate and have to plan accordingly,” said John Moore, a vaccine expert at Cornell University. “You have to alert the public that you will still have a decent chance of getting infected.”Wavel Ramkalawan, the president of Seychelles, right, filling out paperwork before receiving his first dose of Sinopharm vaccine in January. He has defended the country’s vaccination program.Rassin Vannier/Agence France-Presse — Getty ImagesMany in Seychelles say the government has not been forthcoming.“My question is: Why did they push everyone to take it?” said Diana Lucas, a 27-year-old waitress who tested positive for Covid-19 on May 10. She said she received her second dose of the Sinopharm vaccine on Feb. 10.Emmanuelle Hoareau, 22, a government lawyer, tested positive for Covid-19 on May 6 after getting the second dose of the Sinopharm vaccine in March. “It doesn’t make sense,” she said. She said the government had failed to give the public enough information about the vaccines.“They are not explaining to the people about the real situation,” she said. “It’s a big deal — a lot of people are getting infected.”Ms. Hoareau’s mother, Jacqueline Pillay, is a nurse in a private clinic in Victoria, the capital. She said she believes there is a new variant in Seychelles because of an influx of foreigners who have arrived in recent months. The tourism-dependent country opened its borders on March 25 to most travelers without any quarantine.“People are very scared now,” said Ms. Pillay, 58. “When you give people the right information, then people would not speculate.”Health officials have recently appeared on television to encourage those who have only taken the first dose of the Sinopharm vaccine to return for the second shot. But Ms. Pillay said she is frustrated that the public health commissioner has not addressed why the vaccines don’t appear to be working as well as they should.“I think a lot of people aren’t coming back,” said Ms. Pillay.Marietta Labrosse, More