Accelerating an AIDS vaccine: recommendations for the World Bank

This paper presents the findings and recommendations of the World Bank AIDS Vaccine Task Force, formed in April 1998 to identify how the institution can accelerate the development of an AIDS vaccine for developing countries. The paper highlights the current lack of investment – both public and private – in AIDS vaccine development. It argues that the AIDS vaccine, as an international public good, suffers from a “free-rider” problem in which individuals and governments are willing to pay less than the value of the benefits they receive. The private sector is also unlikely to invest in research and development for health technologies that primarily benefit countries with low ability to pay.

The report argues that the World Bank is well placed to address some aspects of these market failures. It recommends four actions that will aid in the international effort to develop an AIDS vaccine: (1) enable developing countries to be better partners in AIDS vaccine development through policy dialogue and lending, (2) expand childhood immunisation rates in developing countries, (3) generate new knowledge on the potential public and private demand for an AIDS vaccine in developing countries, and (4) adopt new mechanisms to ensure adequate finance for an AIDS vaccine in developing countries. [adapted from author]