PAX sapiens is launching a program to collaboratively design a compensation mechanism to address the perverse disincentives that apply to those countries that fight emerging epidemics resolutely. The program will offset the individualized economic harms that come from swift disease reporting. Because this reporting contributes to the common good of better pandemic prevention, a compensation mechanism providing economic security to these countries is in the world’s interest.
The first stage of the Pandemic Compensation Initiative will be to convene a diverse panel of experts to design the parameters of a compensation mechanism. This expert panel will be drawn from different economic and geographic sectors with a variety of expertise, and will be informed by extensive stakeholder consultation.
Crucial topics to be addressed through the panel’s deliberative process, over the next 18 to 24 months, include the scope of the compensation mechanism, the kinds of damages that will be eligible for compensation, which entities are compensable, and which entity is best suited to administer a compensation program. Since the answers to these questions have cost implications, the draft proposals of the expert panel will be analyzed by an economic team to provide budgetary estimates, which can be taken into account in finalizing the design of the compensation mechanism.