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Global public–private partnerships against neglected diseases: building governance structures for effective outcomes

Published online by Cambridge University Press:  01 January 2008

SEBASTIAN BUCKUP
SEBASTIAN BUCKUP*
Affiliation:
Global Partnership Governance Initiative, Switzerland
*
*Correspondence to: Sebastian Buckup, Project Manager, Global Partnership Governance Initiative, 20 Rue de la Filature, 1227 Carouge (Geneva), Switzerland. Email: [email protected]
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Abstract

Focusing on the problem of pharmaceutical R&D for drugs and vaccines against neglected diseases in developing countries, this article argues that the effectiveness of global health partnerships potentially lies in their capacity to address the problem of dual market failures: on a first level they may tackle the poverty induced lack of effective demand for health products which impedes the creation of market-financed innovative products. On a second level, they may help overcoming hold-up problems and underinvestment induced by the complexity of neglected diseases R&D. Yet, organizing transactions within a partnership is not a panacea against these problems: a crucial determinant of success is proper ownership structures. They need to respond to (i) the degree to which the respective parties value the partnership outcome, (ii) the relative importance of the investment of the parties, and (iii) the nature of the partnership outcome. The argument developed in the analysis is built on an integrated framework combining insights from incomplete contracting theory and public goods economics. It is supported by a preliminary statistical analysis of 17 GHPs.

Type
Articles
Information
Health Economics, Policy and Law , Volume 3 , Issue 1 , January 2008 , pp. 31 - 50
Copyright
Copyright © Cambridge University Press 2008

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