Urgent International Appeal
for Full Funding of the Global Fund
10 August 2005
"Please make no mistake about it:
the Global Fund, whatever its teething problems, has emerged as the most formidable
new international financial mechanism in the battle against communicable
disease. It deserves every ounce of
support it can muster... Your collective voices at this moment are indispensable. This next round of the Global Fund is
receiving proposals on treatment, capacity and orphans as never before. It must not be forced to turn away countries
in urgent need of help."
- Stephen Lewis, Envoy for HIV/AIDS in Africa of the UN
Secretary-General, 24 July 2005
Summary
The Global Fund to Fight AIDS, Tuberculosis and Malaria is a critical
mechanism in international efforts to eradicate disease and poverty. The Global Fund requires solid financial support to
enable it to continue contributing effectively to the fight against these three
deadly diseases. Donor governments will
hold a Replenishment Meeting in London on 5-6 September 2005 to raise the
Global Fund's stated needs: $2.9 billion in 2006 (plus a further $0.7 billion
to meet the anticipated 2005 funding gap), and $4.2 billion in 2007, for a
total of $7.8 billion. These funds are required to
cover the renewal of ongoing two-year grants that have proven to be successful,
the launching of one new grant round in 2006 and two in 2007, and the funding
of the Global Fund's fifth Round of grants, which will be approved by the Board
in September.
As
things currently stand, there is a real possibility that the Fund will not
raise enough money to enable it to launch any new rounds in 2006 or
2007. Insufficient funding for the
Global Fund will also undermine efforts to attain the Millennium Development
Goal (MDG) of halting and reversing the spread of HIV and other communicable
diseases by 2015. Likewise, if the
Global Fund does not have enough resources, implementing the G8's recent
promise to achieve universal access to HIV treatment by 2010 will be
impossible.
We
call on donor governments to show leadership, and to demonstrate their
commitment to fully funding the fight against HIV/AIDS, tuberculosis and
malaria by contributing their fair share to meet the Global Fund's needs and encouraging other countries to
increase their contributions.
The urgency of AIDS, tuberculosis and malaria
HIV/AIDS,
tuberculosis and malaria are ravaging the lives of tens of millions across the
world. The three diseases kill more than
6 million people each year and shatter the lives of millions more. Not only do they constitute an enormous health
challenge; they also undermine efforts to raise living standards and eradicate
poverty, and jeopardise peace and stability in many of the worst affected
countries.
A comprehensive response to these diseases is
needed. This requires
predictability of funding levels, long-term financial commitments, and
frontloading of resources. Investments in effective
prevention, treatment and supporting health delivery systems in 2005-2007 will
save millions of lives, lessen the socioeconomic impact of the diseases on low-
and middle-income countries, and reduce the need for increased spending on
these chronic crises in the future.
The
role of the Global Fund to Fight AIDS, Tuberculosis and Malaria
There are various bilateral and multilateral
funding mechanisms that are making valuable contributions to the fight against
the three diseases. The Global Fund plays
a key role in this funding environment, providing approximately 55% of all current
external funds in the fight against tuberculosis; 40% in the fight against
malaria; and 20-25% in the fight against HIV/AIDS. To
effectively reverse the spread of AIDS, UNAIDS estimates that $15 billion will
be needed in 2006, $18 billion in 2007, and at least $22 billion annually from
2008 onwards.
The Global Fund is unique in the way it aims to deliver assistance. It funds technically sound projects designed and implemented
by recipients themselves - both governmental and non-governmental; its procedures and operations
are transparent and accountable; and it offers an opportunity for
public-private partnership. The Global Fund has proven to be flexible and responsive, while
maintaining a small, cost-effective infrastructure. As with all new organisations, there have been operational challenges,
but these are being addressed through re-evaluation and modification of
procedures.
Since becoming operational in 2002, the Global Fund
has built up an impressive track record. Grants totalling $3.1 billion across 127 countries had
been approved and $1.2 billion disbursed by the end of April 2005. Three years after its inception Global Fund financing has been a key factor in providing 130,000 people with AIDS treatment; more than one
million persons with voluntary HIV testing; 385,000 patients with tuberculosis
treatment; more than 300,000 people with malaria treatment; and more than 1.35
million families with bed nets to protect against malaria. Global
Fund support has also reached
tens of millions of people through a wide range of prevention programs. In addition, the Global Fund is responding to the
urgent need for strengthening of human resources for health to combat HIV,
tuberculosis and malaria by funding health care worker salaries and other
recurrent costs that donors traditionally have not funded.
Yet, the Global Fund is at a critical
juncture. It will need approximately $2.9 billion in 2006,
and from 2007 onwards some $4 billion annually, to continue to contribute
effectively to the international fight against the three diseases. It is also facing a
funding shortfall of $700 million for 2005 - hampering the funding of
technically sound proposals submitted for Round 5 funding.
The U.S. has committed to
provide up to one-third of the
Global Fund's funding, dependent on the rest of the world committing the other
two-thirds. In 2004, Europe provided just over half of the
Global Fund's needs. Donor countries outside of Europe and the U.S. are committing
approximately one-sixth of the required funding. The attached table proposes the 'fair share' that donor
countries should contribute to fully cover the Global Fund's needs for 2006 and
2007 (based on the assumption that the U.S. will provide one-third of the total need;
Europe will provide at least half; and remaining donors will provide
one-sixth).
Our
call to action: donors must fully fund the Global Fund
We, the undersigned, believe that the Global Fund
is an essential funding mechanism to address HIV/AIDS, tuberculosis and malaria, and deserves full
financial support. We call on the governments of donor countries to
demonstrate their commitment and leadership to fighting AIDS, TB and malaria by
fully covering the Global Fund's needs for 2005-2007, and to urge other
countries to increase their contributions.
By fully covering the Global Fund's needs, donor
governments will:
- Enable the Global Fund to finance years three
through five of successful ongoing programs;
- Allow the Global Fund to launch funding for
additional much-needed programs, including new programs to strengthen human
resources for health and health systems;
- Help reduce future funding needs in the fight
against AIDS, tuberculosis and malaria by providing sufficient funds now;
- Ensure that life-saving programs are not
disrupted due to funding shortages;
- Contribute to much talked-about donor
harmonization efforts;
- Support an effective and transparent
multilateral funding mechanism;
- Demonstrate the international community's
strong moral commitment to fighting these diseases.
The world must win the fight against HIV/AIDS, TB
and malaria. Each donor country should
contribute its fair share to this fight.
<signatures here>
Annex -
Proposed 'Fair Share' Contributions to the Global Fund by International Donors,
$US millions 4
This table shows the average annual pledge during 2002-2004, as well as current known and anticipated pledges for 2005, 2006 and 2007. It also proposes the 'fair share' that donor countries should contribute to fully cover the Global Fund's needs for 2006 and 2007. This is based on the assumption that the US will provide one third of the total need, European countries will provide half, and remaining donors will provide one sixth.
|
Donor |
Average annual pledge during 2002-4 1 |
2005 pledge |
Best guess for 2006 2 |
Best guess for 2007 2 |
Proposed 'fair share' pledge for 2006 3 |
Proposed 'fair share' pledge for 2007 3 |
|
TOTAL |
1,221 |
1,411 |
2,018 a |
2,119 a |
3,600 |
4,200 |
|
United States |
361 |
435 |
600 g |
600 g |
1,200 (1/3
of total) |
1,400 (1/3
of total) |
|
Europe |
654 |
748 |
1,011 a |
1,102 a |
1,800 (1/2
of total) |
2,100 (1/2
of total) |
|
Austria |
1 |
0 |
1a |
1 a |
10 |
10 |
|
Belgium |
10 |
6 |
10 a |
10 a |
30 |
35 |
|
Denmark |
15 |
23 |
23 b |
23 b |
45 |
55 |
|
Finland |
0 |
0 |
0 a |
0 a |
5 |
5 |
|
France |
101 |
181 |
272 d |
363 e |
325 |
375 |
|
Germany |
32 |
103 |
103 b |
103 b |
125 |
145 |
|
Greece |
0 |
0.3 |
0 a |
0 a |
5 |
5 |
|
Ireland |
11 |
12 |
12 b |
12 b |
35 |
40 |
|
Italy |
161 |
121 |
150 d |
150 f |
350 |
410 |
|
Luxembourg |
2 |
1 |
2 a |
2 a |
5 |
5 |
|
Netherlands |
35 |
56 |
56 b |
56 b |
110 |
125 |
|
Norway |
18 |
19 |
19 b |
19 b |
55 |
65 |
|
Portugal |
0.5 |
0 |
0.5 a |
0.5 a |
5 |
5 |
|
Spain |
25 |
15 |
35 c |
35 c |
75 |
90 |
|
Sweden |
27 |
46 |
46 b |
46 b |
85 |
95 |
|
Switzerland |
6 |
4 |
6 a |
6 a |
20 |
25 |
|
United Kingdom |
59 |
89 |
175 d |
175 f |
180 |
210 |
|
Other Europe |
0.3 |
0 |
0.3
a |
0.3 a |
10 |
10 |
|
European
Commission |
151 |
70 |
100 h |
100 h |
325 |
390 |
|
Other |
206 |
229 |