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Compensation in HPAI control: An update on good practice

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Enhancing Control of HPAI in Developing Countries through ... for the Palestinian Territories, for Armenia, Nigeria, Bosnia& Herzegovina, Kosovo, Albania. ... – PowerPoint PPT presentation

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Title: Compensation in HPAI control: An update on good practice


1
Compensation in HPAI control An update on good
practice
  • Anni Mc Leod and Patricia Mc Kenzie
  • on behalf of a multi-disciplinary,
  • multi-agency team
  • October 9, 2007

2
Outline
  • Background
  • The Bamako Report
  • Operational Plans
  • Results
  • Next steps
  • Sustainability of funding
  • Evidence of impact on reporting
  • Implications for other diseases

3
Background

4
The Bamako report
5
The approach
  • Multi-disciplinary, multi-agency (collaboration
    between World Bank, FAO, OIE, and IFPRI)
  • Review of rich published OECD literature,
    developing country grey literature
  • Staff interviews, experience
  • Field visits to Indonesia, Egypt and Vietnam

6
Outline of Report
  • The context for compensation
  • Who to compensate
  • Types of losses to compensate
  • Levels and timing of compensation
  • Boosting awareness
  • Organizing payment
  • Transition as disease becomes endemic

7
After Bamako
  • The policy framework had been set by the report.
    Countries have asked for assistance to implement
    it.
  • Operational manuals describing the implementation
    of compensation schemes have been elaborated for
    the Palestinian Territories, for Armenia,
    Nigeria, Bosnia Herzegovina, Kosovo, Albania.

8
Main Results

9
Effective Schemes
  • Compensate the appropriate beneficiaries an
    appropriate amount
  • With only a short interval between reporting,
    culling and payment
  • Require considerable advance prep
  • Require financial, institutional and human
    resources
  • Much harder to do AFTER disease outbreaks

10
Preparedness is Key
  • Legislation that spells out the rights and
    responsibilities of individuals and various State
    actors in animal disease control
  • A broader disease control strategy in place
  • Prior agreement among stakeholders on who, when,
    how and how much
  • Resources for implementation that are immediately
    available for response

11
State of preparedness
  • Over 90 of European and Central Asian countries
    and 52 of countries in Africa have compensation
    programmes. (UN system and World Bank forthcoming
    report).
  • Far fewer have operational plans (8 countries)
  • An operational plan describes the stages of the
    compensation scheme and identifies the
    responsible persons at each of the stages of the
    plan. Generally from 0 (pre-outbreak) to 12
    (confirmation of funds cashed by farmer)

12
Identification of Beneficiaries
  • The owners of the animals culled
  • (other losers from the disease outbreak typically
    not compensated by a disease control program)
  • Complications
  • Contract farmers often compensated for labor
    input to flock culled
  • Ensuring actual decision-makers are involved
    (such as farm wives in some cases)
  • Lack of info on smallholder flocks

13
Losses to Compensate (1)
  • Direct losses are the ones compensated in whole
    or in part
  • Birds destroyed
  • Disinfection/disposal where practical
  • Consequential losses on farm typically not
    compensated downtime, impact of movement
    controls, price declineshard to do and costly

14
Losses to compensate (2)
  • Indirect losses off farm are by far the largest
    losses (3 to 4 times direct plus consequential
    losses)
  • Lost input sales, lost tourism, etc.
  • Never compensated by disease control programs, as
    not part of incentives for compliance
  • Can be insured against where risks are well-known
    (e.g. OECD countries?)

15
Losses currently included
  • Payment for birds culled (all countries)
  • Payment for dead birds (few countries)
  • Payment for feed destroyed (some countries)
  • Support payment for restocking (Viet Nam)
  • Consequential and indirect losses not
    compensated.
  • Growing interest in cost-sharing schemes and
    insurance schemes.

16
Compensation Rates (1)
  • Based on pre-outbreak market prices as fixed of
    a periodic average market price (not production
    costs or budget availability)
  • Big market price drops during/post outbreak but
    usually full recovery in a few months
  • Need a regularly collected price series with
    procedures to adjust back to farm gate (allows
    flexibility if price declines persist)

17
Compensation Rates (2)
  • Set relevant categories in advance, as simple as
    possible e.g. broiler, layer, duck, native
    chicken
  • High value special cases an issue
  • Rates should be 50, and ideally between 75 and
    90 of market
  • Avoid influx of healthy birds for culling from
    outside and selling off of diseased birds
    important to control movement

18
Establishing rates
  • The proportion of countries which compensate more
    than 50 has increased in all regions, except for
    MENA and the Americas. Reported to have increased
    from 60 to 65 of countries. (UN System and
    World Bank forthcoming report).

19
Establishing Awareness
  • Communication should be 10-20 of total disease
    control budget
  • Awareness of issues and options by all in chain
    key to success
  • Requires advance preparation of messages and
    diffusion
  • Requires chain of command for health oversight of
    messages combined with professional communication
    skills

20
Progress with communication
  • Has been limited.....
  • A round table in March 2007 identified this as an
    issue to be addressed by Animal Health
    Communication programmes

21
Organizing Payment (1)
  • Response has been most rapid when national
    budgets have contingency line items of 3 to 5 of
    total budget.
  • Forecast compensation needs in of market value
    of national flock
  • 1 where little trade and institutions strong
  • 5 most developing countries beyond this level
    strategy shifts to reduce culling
  • 10 upper limit, applicable if trade w/o
    vaccination is a major issue

22
Organizing Payment (2)
  • Prep includes cross-provincial arrangements and
    cross-ministry coord.
  • Pre-existing data base of eligible parties is key
    to rapid response and governance
  • Large scale commercial have records and bank
    accounts that simplify issues
  • Payment in cash of smallholders within 24 hours
    of culling vouchers OK if good rural post
    offices or other institutions

23
State of funding
  • Donor support for compensation has increased
  • But one issue often raised by countries is
    sustainability of compensation since it is
    generally externally funded (ie by the WB)
  • Funding sources at national level need to be
    established to sustain the system
  • There is an issue of efficiency. It tends to be
    more efficient to manage the fund from the MoA/L
    but this appears to clash with WB / IMF
    recomendations

24
Governance
  • Major concern for most governments and their
    partners, can delay response
  • Problem is worst where preparation in advance of
    an outbreak is least, as prior agreements,
    arrangements and stakeholder buy-in are needed
  • Where outbreaks occur in an unprepared
    institutional environment, ex post audits
    substitute for ex ante institutions and
    procedures, but not fully

25
Progress with payment and governance
  • Time frames for payment range from 3-4 weeks in
    operational manuals
  • In practice, these have been improving, down to 7
    days after culling e.g Turkey, Albania and
    Bosnia
  • Some countries still have delays up to 3 weeks
    after culling

26
Next steps

27
Most critical needs
  • Continue to assist countries to establish their
    operational plans
  • Address the question of sustainable sources of
    funding private/public sector cost sharing
    insurance schemes
  • Explore most efficient disbursement methods (e.g.
    faster transfer to MoA)
  • Greater empowerment and use of social
    accountability mechanisms

28
Medium term steps
  • There is a need to evaluate the effect of
    compensation on reporting
  • The broader issue of funding of animal health
    systems
  • There is a need to distill lessons learned from
    external audit reports and operational audits

29
  • Thank you
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