Research On Compensation Mechanism For The Major Animal Epidemic At Home And Abroad

ObjectiveBased on the comprehensive understanding of compensation mechanism for the major animal epidemic in China and overseas, the study aimed to emphatically summarize the characteristics in compensation mechanism in European Union, the United States, Japan, Canada and China, then we made a comparative analysis and case study. It analyzed the current status of compensation mechanism and pointed out the necessity and feasibility of compensation mechanism reform in China. It targeted to reveal the requirement of systemic reform and internationalization in China compensation mechanism reform. The research outcome might supply the solid references in the further reform and improve the compensation mechanism in China. MethodsThe study carried out by literature review, comparative analysis and case study method. Through literature review for compensation mechanism in European Union, the United States, Japan, Canada and China, it referred their major achievement, key points, and research methods. It analyzed the characteristics of the compensation mechanism in different countries. It summarized the revolution achievement and the development discipline of the compensation mechanism in different countries by typical case study. It analyzed the advantages, disadvantages, opportunities and challenges of the compensation mechanism in China by SWOT analysis. It explored the development tendency of the compensation mechanism further reform in China on the basis of drawing lessons from foreign advanced experience. Results1. Serious Situation of the Major Animal Epidemic lead to serious public health problem: According to the WHO reports, the confirmed and deaths cases of H5N1 were 592 and 342 in 2005-2014; According to Official Veterinary Bulletin, the confirmed and deaths cases of H7N9 were 150 and 40 by 2015.2. The compensation mechanism in China has made full ues of national finance: It fully demonstrates the vanguard role of the government in compensation and play the government’s macro-control role. It can mobilize various types of resources to control the spread of the epidemic at the first time after the outbreak which can embodies the advantages of national finance.3. Legal Basis developed in immature form in China: The content is relatively abstract and oversimple although it has developed the Law on Animal Epidemic Prevention. At the same time, the relevant provisions is almost the administrative command in China, it has not realized the legalization construction of the compensation mechanism.4. Burden-sharing mechanisms developed in immature form in China: Foreign compensation mechanism has an important characteristic that risk-sharing mechanism is more mature. Compensation subject generally composition by finance, animal disease fund and insurance, in which fund and insurance has played an important role. For example, national finance and animal disease fund each accounted for 50% of the compensation in Germany; The national administrative compensation is the most important part of compensation subject in China, market mechanism has played very weak role in the in compensation system, the application of insurance system is not mature.5. Compensation Object and Compensation Manner developed in monotonous form in china: Compensation object generally include not only the compensation for eradicated birds but also farmers’ direct loss and indirect loss in foreign countries, such as transportation and handling expenses, harmless treatment cost, labor charges, opportunity cost, etc. Compensation manner is more diversified, in addition to the conventional financial compensation, it also includes tax policies and preferential export policy, technical support and subsequent assistance. Compensation object and manner developed in monotonous form in china which compared with foreign compensation mechanism.6. Compensation Standard and Formula Mode should be improved in China: The compensation standard of foreign compensation mechanism is relatively more in line with the actual value of the livestock, and it will adjust the actual compensation price according to the market price fluctuations based on the highest standard of compensation which has set up by the law. Conclusions1. Serious situation of the major animal epidemic caused huge economic losses to the aquaculture industry and related industries, and also lead to serious public health problems.2. The compensation mechanism is an effective way to respond to the major animal epidemic. The compensation mechanism abroad is specialized in completed legal basis, diversified compensation subject, object and form, market-driven compensation standard, flexible formula mode, normalized supervision mechanism, etc.3. The situation of major animal epidemic which lead to serious public health problems in China is still very serious. Under fully considering the national situations we can build a compensation mechanism in which "national finance and policy agricultural insurance" mode play the core role in the future reform of our country.