28 Apr 2016
Three-year GNI per capita average to be used to determine income level

Under the new Eligibility Policy adopted by the Board at its meeting in Abidjan on 26-27 April, a three-year GNI per capita average will be used to determine income level classification for eligibility purposes (replacing the single year per capita numbers that have been used up to now).

The Eligibility Policy is used to determine which components are eligible to receive an allocation from The Global Fund. It is based on both income level and disease burden.

The Global Fund said that this change will have minimal effect on country eligibility but will serve to moderate the rate of transition into and out of Global Fund eligibility for countries who experience significant annual fluctuations in their GNI per capita.

(Many people have voiced concern about using GNI per capita as the economic indicator, both for the Eligibility Policy and the allocation formula, because it is considered to be a blunt instrument. The Global Fund is participating in an Equitable Access Initiative with other global organizations to develop alternate ways to classify countries for aid purposes. More information on the EAI is available here.)

The other changes to the Eligibility Policy are minor, designed mainly to update terminology and clarify language.

The new Eligibility Policy replaces the current Eligibility and Counterpart Financing Policy.  The co-financing portion has been moved to the new policy on sustainability, transition and co-financing (see GFO article) along with the focus of application requirements.

The Eligibility Policy contains a matrix which defines the five disease burden categories: low, moderate, high, severe, and extreme. The matrix may be amended from time to time.

The new policy retains the NGO rule, under which upper-middle-income countries not listed on the OECD’s Development Assistance Committee list of official development assistance recipients are eligible to receive an allocation for HIV if they have a reported disease burden of “high,” “severe,” or “extreme,” and if they meet certain conditions. Grants approved under the NGO rule are managed by NGOs.

The new policy also retains the provision that components currently being funded are eligible to receive an additional allocation for the period immediately following their change in eligibility. In these cases, the Secretariat determines the amount of funding and the funding period.

The Global Fund Eligibility Policy, Board Document GF-B35-06, should be available shortly at www.theglobalfund.org/en/board/meetings/35.

Read this article in French. Lire l'article en français.

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