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Pay-or-Play Capitalism

Too many corporate executives have forgotten the principle of enlightened self-interest. But rather than wait around for CEOs to see that healthy societies are essential to their firms' own long-term success, policymakers should start imposing costs on companies that free-ride on public and social goods.

LONDON – When I led the British government’s Review on Antimicrobial Resistance (AMR) from 2014 to 2016, we suggested various ways to fund a market-entry reward for drug makers that develop new antibiotics and vaccines. To that end, one of our most controversial proposals was what we called “pay or play”: a $12 billion pot would be financed by a surcharge levied on the overall sales of pharmaceutical companies that were not developing new drugs.

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