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The Global Fund’s financial needs
GFO Issue 2

The Global Fund’s financial needs

Author:

Bernard Rivers

Article Type:
Analysis

Article Number: 6

ABSTRACT How much money does the Fund need? How much ought to be contributed, and how much has been pledged thus far, by each potential donor?

The Global Fund’s Secretariat has calculated that the Fund will need to receive $3 billion in 2003 and $4.9 billion in 2004. (It bases this on its estimates of how many proposals worthy of approval will be received in future rounds.)

Of the two-year $7.9 billion requirement, the total currently pledged to be given to the Fund during those two years (plus the amount left over from 2002) comes only to about $1 billion.

The Global AIDS Alliance and others have proposed an “Equitable Contributions Framework” in which 90% of the amount needed by the Global Fund should be contributed by the 47 countries with a “high” Human Development Index (HDI), with each country’s contribution being in proportion to its GDP, and that the remaining 10% should come from the private sector. (See “Filling the Funding Gap to Save Lives: A Proposal for an ‘Equitable Contributions Framework’ for the Global Fund”, Global AIDS Alliance, 9 Oct 2002, www.aidspan.org/gfo/docs/gfo35.pdf.)

Such an approach leads to the following:

USA:

  • “Equitable contribution” during 2003-2004 = $2,749 million
  • Total pledged for those two years as of 1 Oct 2002 = $200 million (This is 7% of the USa’s equitable contribution.)

(Note: Dr. Feachem has said that an appropriate share from the United States of the two-year $7.9 billion requirement “is somewhere in the range of $2.5 to $3 billion.”)

European Union countries:

  • “Equitable contribution” during 2003-2004 = $2,183 million
  • Total pledged for those two years as of 1 Oct 2002 = $302 million (This is 14% of the EU’s equitable contribution.)

Private sector:

  • “Equitable contribution” during 2003-2004 = $790 million
  • Total pledged for those two years as of 1 Oct 2002 = $50 million (This is 6% of the private sector’s equitable contribution.)

The following table shows the “Equitable Contribution” during 2003-2004, and the total pledged for those two years as of 1 Oct 2002, for all 47 countries with a “high” Human Development Index.

All figures are in MILLIONS of US dollars.

Argentina    Equit. Contr.:    $80  Pledged:   $0 Australia    Equit. Contr.:   $111  Pledged:   $0 Austria      Equit. Contr.:    $54  Pledged:   $0 Bahamas      Equit. Contr.:     $2  Pledged:   $0 Bahrain      Equit. Contr.:     $2  Pledged:   $0 Barbados     Equit. Contr.:     $1  Pledged:   $0 Belgium      Equit. Contr.:    $65  Pledged:   $6 ( 9% of Eq. Cont.) Brunei       Equit. Contr.:     $2  Pledged:   $0 Canada       Equit. Contr.:   $190  Pledged:  $25 (13% of Eq. Cont.) Chile        Equit. Contr.:    $20  Pledged:   $0 Costa Rica   Equit. Contr.:     $5  Pledged:   $0 Croatia      Equit. Contr.:     $6  Pledged:   $0 Cyprus       Equit. Contr.:     $2  Pledged:   $0 Czech Rep.   Equit. Contr.:    $14  Pledged:   $0 Denmark      Equit. Contr.:    $45  Pledged:   $0 Estonia      Equit. Contr.:     $2  Pledged:   $0 Finland      Equit. Contr.:    $33  Pledged:   $0 France       Equit. Contr.:   $356  Pledged:  $49 (14% of Eq. Cont.) Germany      Equit. Contr.:   $521  Pledged:  $34 ( 7% of Eq. Cont.) Greece       Equit. Contr.:    $32  Pledged:   $0 Hungary      Equit. Contr.:    $13  Pledged:   $0 Iceland      Equit. Contr.:     $2  Pledged:   $0 Ireland      Equit. Contr.:    $26  Pledged:   $0 Israel       Equit. Contr.:    $31  Pledged:   $0 Italy        Equit. Contr.:   $300  Pledged: $100 (33% of Eq. Cont.) Japan        Equit. Contr.: $1,304  Pledged:   $0 Kuwait       Equit. Contr.:     $9  Pledged:   $0 Lithuania    Equit. Contr.:     $3  Pledged:   $0 Luxembourg   Equit. Contr.:     $6  Pledged:   $1 (18% of Eq. Cont.) Malta        Equit. Contr.:     $1  Pledged:   $0 Netherlands  Equit. Contr.:   $102  Pledged:  $44 (43% of Eq. Cont.) New Zealand  Equit. Contr.:    $14  Pledged:   $0 Norway       Equit. Contr.:    $42  Pledged:   $0 Poland       Equit. Contr.:    $44  Pledged:   $0 Portugal     Equit. Contr.:    $29  Pledged:   $0 Qatar        Equit. Contr.:     $3  Pledged:   $0 Singapore    Equit. Contr.:    $26  Pledged:   $0 Slovakia     Equit. Contr.:     $6  Pledged:   $0 Slovenia     Equit. Contr.:     $5  Pledged:   $0 South Korea  Equit. Contr.:   $128  Pledged:   $0 Spain        Equit. Contr.:   $156  Pledged:   $0 Sweden       Equit. Contr.:    $64  Pledged:  $29 (45% of Eq. Cont.) Switzerland  Equit. Contr.:    $67  Pledged:   $5 ( 7% of Eq. Cont.) U.A.Emirates Equit. Contr.:    $13  Pledged:   $0 UK           Equit. Contr.:   $395  Pledged:  $39 (10% of Eq. Cont.) USA          Equit. Contr.: $2,749  Pledged: $200 ( 7% of Eq. Cont.) Uruguay      Equit. Contr.:     $6  Pledged:   $0
Pvt. Sector  Equit. Contr.:   $790  Pledged:  $50 ( 6% of Eq. Cont.)

(Note: It is believed that since 1 October 2002 there have been a few new pledges, and that a few countries that had previously made pledges for unspecified years have become more specific. But none of that information has been made public.)

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