Developing countries often face severe animal health problems, with a number of endemic diseases, and lack resources to put in place the animal health programs of more developed nations. The social costs including lost trade opportunities as a result of animal diseases often exceed the private costs to livestock producers. Improved animal health is a means of promoting sustainable development1 through more efficient resource use, additional export earnings to finance economic growth, improved livelihood of livestock producers and increased animal welfare. Economic analyses of animal health programs have frequently considered only some of the relevant cost and benefit categories, and have sometimes used inappropriate cost and benefit measures. This paper will examine the relationship between animal health programs and economic development, particularly in relation to development of the livestock sector, trade gains and export-led growth. Comments will be made on animal health programs in relation to foot-and-mouth disease (FMD) in Thailand as a case study