The authors examine the economic implications of animal diseases and contro
l programmes at the national level, including the role of government in ani
mal health, the effect of regulations and the use of cost-benefit analysis.
Special attention is paid to the role of economic analysis in government d
ecision-making processes. Economics provides a framework for gathering info
rmation and for the presentation of that information in a methodical manner
, thereby providing a method for the decision maker to examine policy alter
natives. In addition, assumptions underlying the analysis must be clearly l
aid out and explained by the person undertaking the analysis. Economic reas
ons for government intervention in animal health programmes include externa
lities, natural monopolies, public goods, coordination failure, information
failure and distribution issues. An integrated holistic approach that incl
udes national and international policy objectives is outlined in the paper.
In the approach outlined, government coordinates the activities of stakeho
lders in animal health, including producers, consumers and researchers.