Global Fund to Fight AIDS, Tuberculosis, and Malaria

The concept for an international funding mechanism to tackle HIV/AIDS, tuberculosis and malaria began at the Okinawa G8 Summit in July of 2000, and was adopted at the 2001 G8 Summit in Genoa. In May 2001, President Bush announced the U.S. contribution of $200 million, the first pledge by a government to the Fund. The Fund concept was also supported by the UN Secretary-General Kofi Annan, together with many national leaders, at the June 2001 UN General Assembly Special Session on HIV/AIDS. From September through December 2001, delegates from governments, NGOs and the private sector convened in Brussels to develop the Fund’s structure and operating principles.

Purpose of the Fund: The purpose of the Fund is to attract, manage and disburse additional resources through a new public-private partnership that will make a sustainable and significant contribution to the reduction of infections, illness and death, thereby mitigating the impact caused by HIV/AIDS, tuberculosis and malaria in countries in need.

Pledges to the Fund: As of December 2001, the estimated level of financial pledges from all sources is approximately $1.7 billion. Within this amount, several countries have made multiyear pledges. President Bush announced a $200 million U.S. pledge to the Fund, with continuing appropriations expected from Congress for FY 2002 and 2003.

Composition of the Board: As of December 2001, some of the constituencies have already selected their representatives: Currently known Board Members are the European Commission, France, Italy, Japan, Sweden, the United Kingdom, and the United States (representing donors); the Bill and Melinda Gates Foundation; Uganda (representing Eastern and Southern Africa); and Brazil (representing Latin America and the Caribbean). It is anticipated that other seats will be assigned by the time of the first Board meeting in January 2002. The Board will meet at least quarterly.

Location of the Secretariat: The Fund will be incorporated as an independent legal entity within Switzerland to ensure autonomy and flexibility. The Secretariat, the staff that will implement the Board’s policies, will be located in Geneva. To ensure total independence, the Fund will have its own offices and not be housed within any existing institution. The process to recruit an executive officer for the Fund is being initiated.

Basic operating principles: The Fund will seek to operate in a balanced manner in terms of different regions, diseases and interventions. The Fund will pursue an integrated and balanced approach covering prevention, treatment, and care and support in dealing with the three diseases. Central to the Fund will be the establishment of public-private partnerships within countries, including governments, NGOs, and the private sector. These partnerships would submit proposals for consideration to the Fund for support. The Fund would then evaluate proposals through independent review processes based on the most appropriate scientific and technical standards that take into account local realities and priorities.

Role of NGOs: Tapping the energy, entrepreneurial spirit, expertise and innovation of NGOs and community-based organizations is critical to the Fund’s success. NGOs will in most cases work through the country partnerships to access Fund resources. NGOs would be eligible to submit proposals directly in special circumstances and would identify the reasons for doing so.

Fiduciary: The Fund’s financial arrangements will be undertaken by the World Bank, which will have primary responsibility for financial accountability, including collection, investment and management of funds, disbursement of funds to countries and programs, and financial reporting to stakeholders.