Ideas to Action:

Independent research for global prosperity


Global Health Policy Blog


2005 Economic Report of the PresidentThe The White House Council of Economic Advisors last week published the 2005 Economic Report of the President, a detailed review of the principal economic challenges facing the US. Chapter 7 (of eight chapters) is dedicated exclusively to global HIV / AIDS. It provides a solid overview of the global epidemic, its economic consequences, and strategies towards prevention and care. It includes a discussion of advance market commitments. Two relevant passages are as follows:

"Prizes for successful drug invention, patent buyouts, and advance commitments to purchase the drugs are a few alternatives that are particularly promising because they encourage research without disallowing competition once a drug is developed."

"Some scholars have also suggested that another approach to encouraging vaccine research would be for a foundation or group of foundations to make an advance commitment to purchase a vaccine at a pre-specified price and quantity. Pharmaceutical firms then would have a secure financial incentive for researching vaccines and treatments, even if a disease affects predominantly poor populations, and, once developed, widespread production of the vaccines could be ensured. "

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