Unless donors step up their commitments to the multilateral fund, grant
amounts will be reduced by 25 percent during the second half of their
five-year duration.
The Global Fund’s Head of Communications, Jon Lidén, emphasised that
the shortfall was not related to the global economic downturn but was
part of a demand for assistance to combat AIDS, tuberculosis (TB) and
malaria that was increasing every year. "We’re a victim of our own
success," he said.
The approval of new grants, combined with the renewal of existing
grants that have performed well, has seen the Global Fund’s budget more
than double from just under $2 billion in 2007 to $5.1 billion in 2008.
"This is a trend that will continue," Lidén told IRIN/PlusNews. "The
new size of the [Global] Fund is around $8 billion a year." However,
for the period 2008 to 2010, donors have so far only committed $10
billion.
At least a portion of the shortfall is expected to be made up by the
United States, which has yet to finalise its 2009 budget. Incoming
President Barack Obama has promised to honour and even increase
commitments to development aid.
Lidén said the Global Fund had requested $2.7 billion from the US for
2010 – about a third of the Fund’s budget. Given the current economic
crisis in the country, he said they were "realistic, but hopeful" that
the request would be met.
"We think we have a very strong case in a situation where the US is
strapped for money because we can show efficiency and measure the
effectiveness of each dollar," he said. "This is aid that works."
The Global Fund was founded in 2001 with the goal of streamlining
funding to combat AIDS, tuberculosis (TB) and malaria in developing
countries, and is now supporting antiretroviral treatment for two
million people with HIV around the world. It also provides two-thirds
of all tuberculosis funding and three-fourths of malaria funding.
In November 2008, the Global Fund’s board imposed a 10 percent
"efficiency gain" on all new grants. Grantees were encouraged to look
for ways to maximise efficiency, for example, by negotiating better
prices for drugs and mosquito nets, and reducing non-essential
expenses. The Board also introduced a cap on the amount that grants
could be increased upon renewal.
Lidén said the 25 percent reduction of grant amounts in the final three
years of their funding cycle would immediately be lifted if donors
increased their commitments and eliminated the funding shortfall.
Despite the global financial crisis, with the exception of Italy, no
countries were considering reducing their contributions, he added.
"There’s a strong commitment to maintaining development assistance, and
a few countries are indicating they will increase their commitments."
IRIN
Post published in: Africa News