Global Fund: donors meeting fails to unleash cash for further scale-up

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An international meeting of donor countries designed to replenish the reserves of the Global Fund to Fight AIDS, TB and Malaria has failed to generate the cash necessary to further expand treatment programmes in 2006 and 2007, according to advocacy groups.

The Global Fund replenishment conference, which took place in London on September 5th and 6th, was intended to mobilise pledges from donors for approximately $7.1 billion to cover 2006/2007.

Current Global Fund figures show a further $2.9 billion is needed for 2006 and $4.2 billion for 2007 to ensure the G8's commitments become a reality.

Glossary

disability-adjusted life year (DALY)

A method for measuring disease burden, often used in cost-effectiveness analyses, expressed as the number of years lost due to ill-health, disability or early death. A DALY represents one year of healthy life, and is usually expressed as DALYs lost compared with a life with maximum achievable life-expectancy and no disability or disease. 

malaria

A serious disease caused by a parasite that commonly infects a certain type of mosquito which feeds on humans. People who get malaria are typically very sick with high fevers, shaking chills, and flu-like illness. 

However the Global Fund announced last night that pledges made so far have amounted to just $3.7 billion.

The largest donor to the fund is now France, which has pledged $658 million for 2006/7. The United States has pledged $600 million, and the United Kingdom $357 million. Japan has increased its contribution from $100 million in 2005 to $500 million for 2006/7. Germany’s contribution remains in doubt due to the pending elections, but will amount to at least $200 million.

According to an analysis by non-governmental organisations, only France and the United Kingdom have come close to meeting their fair share of the Fund’s needs. The European Commission has pledged $113 million, just 16% of the amount NGOs say should come from central EU funds, whilst the US pledge accounts for just 23% of the amount NGOs think America should contribute.

“The disappointing U.S. pledge today of $600 million over 2006 and 2007 is far less than the U.S. commitment to funding one-third of the Global Fund's needs of $7.1 billion over the two years,” said the Global AIDS Alliance yesterday.

David Bryden of US-based Global AIDS Alliance said: “The world was counting on the United States. President Bush made an important commitment to funding one third of the Fund. By breaking that promise Bush is letting down the most vulnerable people in the world. If his commitment to Africa is real, then words are not enough.”

"This conference blatantly demonstrates that contributions to the Global Fund should not be based on voluntary pledges. Funding should be predictable and based on countries' fair shares," said Dr Mohga Kamal Smith, Health Policy Advisor for Oxfam.

The US Congress is in the process of finalising its allocation for the Global Fund; it could receive up to $600 million from Congress for US fiscal year 2006. But the US share of the Global Fund's needs in fiscal year 2006 for renewed funding, not only for existing programs but also for funding new rounds of grants, are at least $840 million.

Felicity Daly of ActionAid, part of the MakePovertyHistory campaign, said: “Where is the urgency among major donors? We are disappointed that they have not used this opportunity to take a robust approach to making the G8’s historic promise of ensuring universal access to HIV treatment a reality by 2010.”