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NY-070626.001/020419VtsimSL001




The Global Fund to Fight AIDS, TB
and Malaria –
A model for International
Development Cooperation?

Berlin, May 21, 2007
NY-070626.001/020419VtsimSL001




• Health is strongly linked to poverty

• Health is strongly linked to globalization

• Addressing health is a priority for development




                                                                           1
NY-070626.001/020419VtsimSL001




• Change in paradigm in the relationship between health
  and development
• Mobilization of public opinion, civil society and
  affected communities
• Mobilization of the political world
• Mobilization of specific resources
• Progress in research; emergence of operational
  research
• Integration of prevention and treatment
• Large scale programs now being implemented

                                                                         2
NY-070626.001/020419VtsimSL001




  !quot;



• The human, demographic, economic, societal
  and developmental impact of AIDS

• The political impact of AIDS and impact on
  global security

• The inequality between the rich and the poor
  with regard to access to treatment and care
  appears unacceptable for a « global » public
  opinion



                                                                    3
NY-070626.001/020419VtsimSL001


#                         $                %
                              ' () –
                        !$
                        &              *




Number
of people
living
with HIV




 * under 15 years old
NY-070626.001/020419VtsimSL001


New HIV/AIDS Infections 2006



     • 4.3 (3.6-6.6) million new HIV infections
       worldwide

     • Half among young adults aged 15-24

     • Half in women

     • Children < 15 : 530 000 (410 000-660 000)

     • 90% in low resource-settings




                                                                              5
NY-070626.001/020419VtsimSL001




Sub-Saharan Africa: Life
expectancy at 46 years


                                          6
NY-070626.001/020419VtsimSL001



  +                      ,                      -&                           $             +


           25,000,000


                                                                                                                                                *
                                                                                                                                         i ty
                                                                                                                                     tal
           20,000,000                                                                                                               r
                                                                                                 IV                               mo IDS
                                                                                             H                                 lt
                                                                                         ith                                 du - A
                                                                                        w                                   A
                                                                                     ng
                                                                                  vi
                                                                             li
           15,000,000
                                                                         s
Millions




                                                                      ult
                                                                    Ad                                                                                 18 million
                                                                                                                                                       orphans
           10,000,000
                                                                                                                            S
                                                                                                                       ID                              due to
                                                                                                                    -A
                                                                                                               ns                                      AIDS in
                                                                                                            ha
                                                                                                          rp                                           2010
                                                                                                      O
            5,000,000



                   0
                                               1985          1990                   1995              2000                                          2010
                                                                                                                                2005
                               1980


   * Mortality is cumulated over 17 years to represent parents that have died.
   Based on projections of the AIDS epidemic 2004 by UNAIDS/WHO working group on HIV/AIDS/STI
   surveillance
                                                                                                                                                                   7
NY-070626.001/020419VtsimSL001

        $                                                             $       .          ! !quot;
                                                                                          &/

  0                                                         ' ()          1

                                     180
                                     160
      Cases per 100,000 population




                                     140
                                                                                                 Africa
                                     120
                                     100
                                     80
                                                                                                     World
                                     60
                                     40
                                     20
                                      0
                                           1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002



Source: World Health Organization. Global tuberculosis control: surveillance, planning, financing.
WHO Report 2005. Geneva, WHO, 2005.
                                                                                                                                      8
NY-070626.001/020419VtsimSL001


quot;           2


    • World realizes that health should not be considered
    anymore as a consequence of development but as a factor for
    development, particularly through preservation of human
    capital

    • Access to health increasingly accepted as a human right;
    control of pandemics increasingly considered as a “global
    public good”

    • Originally considered as a non-profitable source of
    expenditure, health becomes increasingly understood as a
    necessary investment in development and security




                                                                                 9
NY-070626.001/020419VtsimSL001


quot;     2




    • Global health has become an issue for foreign
    policy

    • New models of governance of global health
    proposed and implemented




                                                                     10
NY-070626.001/020419VtsimSL001




2000 : Health brought to the agenda of the G8 in
       Okinawa
2000 : Three of the Millenium Development Goals
       (MDG Summit) relate to health
2001 : UNGASS
2002 : Global Fund to Fight AIDS, Malaria and TB
2003 : PEPFAR
2005 : Declaration on Universal Access to
       treatment of HIV/AIDS by 2010 :
       Gleneagles G8 and MDG summit in New
       York
2006 : UNITAID

                                                                    11
NY-070626.001/020419VtsimSL001


Traditional international development
cooperation - Limits in the face of HIV/AIDS

• Donor Driven – Policies set in donor capitals, often not
  reflecting country realities/knowledge and lacking country-
  ownership

• Limits to accountability – Insufficient incentives and
  transparency to ensure effective use of aid investments

• Government focused – Unable to cope given weak
  health systems

• Inadequately financed – Lack of scale necessary to have
  significant impact
NY-070626.001/020419VtsimSL001


The Global Fund to Fight AIDS, TB and Malaria

  • Called upon by UN Secretary General and endorsed and
  financed by G8 in Genoa (over $1.5 billion)
  • June-September 2001 : Designed by governments from the
  developed and the developing world, civil society,people
  affected by the diseases and private sector as an international
  organization with focus on financing, not implementation
  • April 2002 : GF Board approves first round of grants
  • By May 2007:
          US $ 10. 4 billion raised (cumulative)
          US $ 7.6 billion approved in grants by the Board
          450 programs in 136 countries
          US $ 3.5 billion disbursed
NY-070626.001/020419VtsimSL001


!            !
+                   3   $   4


    • Inclusive Public-Private Partnership
    • Demand-driven and country owned
    • Transparent
    • Performance-based



                                                                       14
Public-Private Partnership: Involvement of stakeholders built
                                                           NY-070626.001/020419VtsimSL001




into governance and implementation

 • Governance:
    - Board governance: 5 of 20 votes are held by Civil Society and
    Private Sector
    - Local Governance: Local bodies applying to the GF and
    responsible for grant oversight include civil society and private
    sector
 • Implementation:
    - 32% of Principal Recipients are non-governmental or
    multilateral organizations (expected to grow further with separate
    funding window)
    - Partnership with other multilateral organizations is key
 • Financing:
    - Private Sector contributes to financing and goods/services (just
    beginning - potential to expand)
                                                                                     15
NY-070626.001/020419VtsimSL001

Demand driven: Countries are in control from design to
implementation of programs

    The Global Fund
         Board
                                              • Entirely demand driven
                                Approval of
   Review & funding
                                Funding
   recommendation
                                              • All donor contributions flow
                                              into a common pool
      Independent
 Technical Review Panel
                                              •No targeting/earmarking
      Grant
                                              by country, region or
      development
                                              intervention
      and
      application
                      Principal
                                              • Competitive selection,
                      Recipients
                                              based solely on technical
                                              merit and feasibility (~60%
                                              rejection rate)
                      Sub-
                      recipient(s)

                                                                                          16
NY-070626.001/020419VtsimSL001


Performance Based: disbursements depend on
attainment of programmatic results and financial
expenditures




                        Performance-
         Programmatic                    Financial
                           Based
          monitoring                    monitoring
                          Funding
NY-070626.001/020419VtsimSL001


Performance-based: Disbursements depend on attainment of
programmatic results and financial expenditures

                                   100%
 % of grant amount disbursed at Phase 2




                                                   79%
                                          80%
                                                               72%
                                                                             64%
                                                                                                   $300 Million
                                          60%                                                 reallocated from poor
                review




                                                                                                    performers

                                                                                           38%
                                          40%



                                          20%



                                          0%
                                                Very strong   Strong      Challenged   Unacceptable
                                                               Grant performance


                                                                                                                                18
NY-070626.001/020419VtsimSL001

5                        $

                     PEOPLE REACHED



     HIV: ARV
                                             128%
     treatment          770,000



                                                                3000 lives
    TB: DOTS
                                                      167%
                        2 million
    treatment
                                                                saved per
                                                                day
                                            120%
MALARIA: ITNs           18 million


                0%        50%        100%      150%      200%
                             % OF END-2006 TARGETS


                                                                                           19
NY-070626.001/020419VtsimSL001


    Transferable lessons from the Global Fund for
       International Development Cooperation

1. Governance beyond governments – ensuring involvement
   of all stakeholders on decision making and implementation
2. Country ownership balanced with accountability and
   rigorous performance management is at the core of
   achieving results
3. Non-political decision making and radical transparency –
   creates legitimacy and is critical to performance based model
4. Vertical, focused interventions catalyze financing and focus.
   There is a need for them to be combined with systems
   strengthening
5. Lean structure building on global and country partnerships
NY-070626.001/020419VtsimSL001



               Areas requiring focus


•   Further strengthening civil society involvement
•   Further strengthening of accountability systems
•   Addressing the high prices of second line drugs
•   Increasing the global effort in research and
    development
•   Addressing the Human Resources and Health
    Systems crisis
•   Increased and sustainable Financing – $ 6-8 billion
    for the Global Fund by 2010

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Presentation Mk 21 May2007

  • 1. NY-070626.001/020419VtsimSL001 The Global Fund to Fight AIDS, TB and Malaria – A model for International Development Cooperation? Berlin, May 21, 2007
  • 2. NY-070626.001/020419VtsimSL001 • Health is strongly linked to poverty • Health is strongly linked to globalization • Addressing health is a priority for development 1
  • 3. NY-070626.001/020419VtsimSL001 • Change in paradigm in the relationship between health and development • Mobilization of public opinion, civil society and affected communities • Mobilization of the political world • Mobilization of specific resources • Progress in research; emergence of operational research • Integration of prevention and treatment • Large scale programs now being implemented 2
  • 4. NY-070626.001/020419VtsimSL001 !quot; • The human, demographic, economic, societal and developmental impact of AIDS • The political impact of AIDS and impact on global security • The inequality between the rich and the poor with regard to access to treatment and care appears unacceptable for a « global » public opinion 3
  • 5. NY-070626.001/020419VtsimSL001 # $ % ' () – !$ & * Number of people living with HIV * under 15 years old
  • 6. NY-070626.001/020419VtsimSL001 New HIV/AIDS Infections 2006 • 4.3 (3.6-6.6) million new HIV infections worldwide • Half among young adults aged 15-24 • Half in women • Children < 15 : 530 000 (410 000-660 000) • 90% in low resource-settings 5
  • 8. NY-070626.001/020419VtsimSL001 + , -& $ + 25,000,000 * i ty tal 20,000,000 r IV mo IDS H lt ith du - A w A ng vi li 15,000,000 s Millions ult Ad 18 million orphans 10,000,000 S ID due to -A ns AIDS in ha rp 2010 O 5,000,000 0 1985 1990 1995 2000 2010 2005 1980 * Mortality is cumulated over 17 years to represent parents that have died. Based on projections of the AIDS epidemic 2004 by UNAIDS/WHO working group on HIV/AIDS/STI surveillance 7
  • 9. NY-070626.001/020419VtsimSL001 $ $ . ! !quot; &/ 0 ' () 1 180 160 Cases per 100,000 population 140 Africa 120 100 80 World 60 40 20 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 Source: World Health Organization. Global tuberculosis control: surveillance, planning, financing. WHO Report 2005. Geneva, WHO, 2005. 8
  • 10. NY-070626.001/020419VtsimSL001 quot; 2 • World realizes that health should not be considered anymore as a consequence of development but as a factor for development, particularly through preservation of human capital • Access to health increasingly accepted as a human right; control of pandemics increasingly considered as a “global public good” • Originally considered as a non-profitable source of expenditure, health becomes increasingly understood as a necessary investment in development and security 9
  • 11. NY-070626.001/020419VtsimSL001 quot; 2 • Global health has become an issue for foreign policy • New models of governance of global health proposed and implemented 10
  • 12. NY-070626.001/020419VtsimSL001 2000 : Health brought to the agenda of the G8 in Okinawa 2000 : Three of the Millenium Development Goals (MDG Summit) relate to health 2001 : UNGASS 2002 : Global Fund to Fight AIDS, Malaria and TB 2003 : PEPFAR 2005 : Declaration on Universal Access to treatment of HIV/AIDS by 2010 : Gleneagles G8 and MDG summit in New York 2006 : UNITAID 11
  • 13. NY-070626.001/020419VtsimSL001 Traditional international development cooperation - Limits in the face of HIV/AIDS • Donor Driven – Policies set in donor capitals, often not reflecting country realities/knowledge and lacking country- ownership • Limits to accountability – Insufficient incentives and transparency to ensure effective use of aid investments • Government focused – Unable to cope given weak health systems • Inadequately financed – Lack of scale necessary to have significant impact
  • 14. NY-070626.001/020419VtsimSL001 The Global Fund to Fight AIDS, TB and Malaria • Called upon by UN Secretary General and endorsed and financed by G8 in Genoa (over $1.5 billion) • June-September 2001 : Designed by governments from the developed and the developing world, civil society,people affected by the diseases and private sector as an international organization with focus on financing, not implementation • April 2002 : GF Board approves first round of grants • By May 2007: US $ 10. 4 billion raised (cumulative) US $ 7.6 billion approved in grants by the Board 450 programs in 136 countries US $ 3.5 billion disbursed
  • 15. NY-070626.001/020419VtsimSL001 ! ! + 3 $ 4 • Inclusive Public-Private Partnership • Demand-driven and country owned • Transparent • Performance-based 14
  • 16. Public-Private Partnership: Involvement of stakeholders built NY-070626.001/020419VtsimSL001 into governance and implementation • Governance: - Board governance: 5 of 20 votes are held by Civil Society and Private Sector - Local Governance: Local bodies applying to the GF and responsible for grant oversight include civil society and private sector • Implementation: - 32% of Principal Recipients are non-governmental or multilateral organizations (expected to grow further with separate funding window) - Partnership with other multilateral organizations is key • Financing: - Private Sector contributes to financing and goods/services (just beginning - potential to expand) 15
  • 17. NY-070626.001/020419VtsimSL001 Demand driven: Countries are in control from design to implementation of programs The Global Fund Board • Entirely demand driven Approval of Review & funding Funding recommendation • All donor contributions flow into a common pool Independent Technical Review Panel •No targeting/earmarking Grant by country, region or development intervention and application Principal • Competitive selection, Recipients based solely on technical merit and feasibility (~60% rejection rate) Sub- recipient(s) 16
  • 18. NY-070626.001/020419VtsimSL001 Performance Based: disbursements depend on attainment of programmatic results and financial expenditures Performance- Programmatic Financial Based monitoring monitoring Funding
  • 19. NY-070626.001/020419VtsimSL001 Performance-based: Disbursements depend on attainment of programmatic results and financial expenditures 100% % of grant amount disbursed at Phase 2 79% 80% 72% 64% $300 Million 60% reallocated from poor review performers 38% 40% 20% 0% Very strong Strong Challenged Unacceptable Grant performance 18
  • 20. NY-070626.001/020419VtsimSL001 5 $ PEOPLE REACHED HIV: ARV 128% treatment 770,000 3000 lives TB: DOTS 167% 2 million treatment saved per day 120% MALARIA: ITNs 18 million 0% 50% 100% 150% 200% % OF END-2006 TARGETS 19
  • 21. NY-070626.001/020419VtsimSL001 Transferable lessons from the Global Fund for International Development Cooperation 1. Governance beyond governments – ensuring involvement of all stakeholders on decision making and implementation 2. Country ownership balanced with accountability and rigorous performance management is at the core of achieving results 3. Non-political decision making and radical transparency – creates legitimacy and is critical to performance based model 4. Vertical, focused interventions catalyze financing and focus. There is a need for them to be combined with systems strengthening 5. Lean structure building on global and country partnerships
  • 22. NY-070626.001/020419VtsimSL001 Areas requiring focus • Further strengthening civil society involvement • Further strengthening of accountability systems • Addressing the high prices of second line drugs • Increasing the global effort in research and development • Addressing the Human Resources and Health Systems crisis • Increased and sustainable Financing – $ 6-8 billion for the Global Fund by 2010