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Economics in Animal Health
Decision Making – International
      Policy Environment

                 Joachim Otte


   Economics in Animal Health and Welfare
            London, 7 December 2010
September 1979
‘International’ Disease Control Programmes
• Rinderpest: Global eradication programme
• FMD: SEA-FMD, EU-FMD, FMD control / eradication in
    South America, ……
•   CSF: Hemispheric plan for South America …..
•   Trypanosomosis: PAAT and PATTEC
•   HPAI: Regional ‘sub-programmes’
•   …….
•   Lobbying for: PPR, CBPP, FMD in South Asia …..
•   ‘International Superstructure’: GF-TADs (FAO&OIE)
Assessments / Evaluations
Specific programmes
• Comprehensive & rigorous         “Why does McDonald’s
    (‘control group’)             know more about making
      • None                       and selling French fries
•   Partial & ‘lose’              than the world’s premiere
      • PARC (ex-post)            animal health institutions
      • Tryps control (ex-ante)      about the impact of
      • Etc                           disease control?”
Generic
  • Disease losses                Adapted from L. Pritchett
  • Benefits of disease control
Political Economy of Large Int. Orgs. (I)
       “Advocates are the entrepreneurs of the public sector”

                       Poverty Reduction most important objective


       Agric productivity most important          Economic growth most important


Crops most important     Lstk most important


                  Breeding      Feeding    An Health


                             Endemic Diseases    Epidemic Diseases


                                                FMD    PPR     ND
Political Economy of Large Int. Orgs. (II)
Programme managers               Organization managers
• Programme efficiency vs        • Sustain the internal
  programme size                   coalitions behind the
• How is programme size            overall objective
  determined and by whom?        • Raise the ‘average
• Advocacy and ‘selective          efficiency’ across all
  ignorance’ better than ‘full     programmes
  knowledge / disclosure’        • Increase resource
• Coalitions that sacrifice        mobilization by ‘steered’
  budget efficiency for            evaluations that
  budget size                      demonstrate resource
                                   efficiency
FAO’s Animal Health Programme


   Support to national and regional        Field data on costs &
      disease control programmes                  impacts


     Enhanced animal health services           Animal health &
   & improved disease control strategies   institutional economics


    Better understanding of disease
   emergence, spread and persistence         ‘Economic drivers’
‘Thematic’ Focus Areas
• Impacts of ‘pathogen pollution’ on society at large
   • Direct human health ‘costs’
   • Regulatory ‘burden’

• Economics of ‘prevention of the known unknown’
   • Uncertainty re disease emergence and nature of the emergent
       disease(s)
   •   ‘Optimal’ international ‘division of labour & cost’
Methodological Issues
• Incorporation of feedback loops
   • Progressive control alters ‘efficiency’ of different control options
   • Changing disease risk induces behaviour changes

• Broaden disease control assessments
   • Multiple dimensions and differential effects on stakeholder
       groups
   •   Non-linearity of effects
Improved Baselines
• Disease burdens and ‘losses’
   • Different disease ‘types’
   • Stratified by region and ‘livelihoods’ status

• Disease control options / instruments
   • What works where under which circumstances
   • Short-term benefits vs long(er)-term risks
Livestock Sector Analysis, Information & Policy Branch




Animal Production and Health Division

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723 otte

  • 1. Economics in Animal Health Decision Making – International Policy Environment Joachim Otte Economics in Animal Health and Welfare London, 7 December 2010
  • 3. ‘International’ Disease Control Programmes • Rinderpest: Global eradication programme • FMD: SEA-FMD, EU-FMD, FMD control / eradication in South America, …… • CSF: Hemispheric plan for South America ….. • Trypanosomosis: PAAT and PATTEC • HPAI: Regional ‘sub-programmes’ • ……. • Lobbying for: PPR, CBPP, FMD in South Asia ….. • ‘International Superstructure’: GF-TADs (FAO&OIE)
  • 4. Assessments / Evaluations Specific programmes • Comprehensive & rigorous “Why does McDonald’s (‘control group’) know more about making • None and selling French fries • Partial & ‘lose’ than the world’s premiere • PARC (ex-post) animal health institutions • Tryps control (ex-ante) about the impact of • Etc disease control?” Generic • Disease losses Adapted from L. Pritchett • Benefits of disease control
  • 5. Political Economy of Large Int. Orgs. (I) “Advocates are the entrepreneurs of the public sector” Poverty Reduction most important objective Agric productivity most important Economic growth most important Crops most important Lstk most important Breeding Feeding An Health Endemic Diseases Epidemic Diseases FMD PPR ND
  • 6. Political Economy of Large Int. Orgs. (II) Programme managers Organization managers • Programme efficiency vs • Sustain the internal programme size coalitions behind the • How is programme size overall objective determined and by whom? • Raise the ‘average • Advocacy and ‘selective efficiency’ across all ignorance’ better than ‘full programmes knowledge / disclosure’ • Increase resource • Coalitions that sacrifice mobilization by ‘steered’ budget efficiency for evaluations that budget size demonstrate resource efficiency
  • 7. FAO’s Animal Health Programme Support to national and regional Field data on costs & disease control programmes impacts Enhanced animal health services Animal health & & improved disease control strategies institutional economics Better understanding of disease emergence, spread and persistence ‘Economic drivers’
  • 8. ‘Thematic’ Focus Areas • Impacts of ‘pathogen pollution’ on society at large • Direct human health ‘costs’ • Regulatory ‘burden’ • Economics of ‘prevention of the known unknown’ • Uncertainty re disease emergence and nature of the emergent disease(s) • ‘Optimal’ international ‘division of labour & cost’
  • 9. Methodological Issues • Incorporation of feedback loops • Progressive control alters ‘efficiency’ of different control options • Changing disease risk induces behaviour changes • Broaden disease control assessments • Multiple dimensions and differential effects on stakeholder groups • Non-linearity of effects
  • 10. Improved Baselines • Disease burdens and ‘losses’ • Different disease ‘types’ • Stratified by region and ‘livelihoods’ status • Disease control options / instruments • What works where under which circumstances • Short-term benefits vs long(er)-term risks
  • 11. Livestock Sector Analysis, Information & Policy Branch Animal Production and Health Division