Questions on the Fund, February 2002
What is the Fund to
Fight AIDS, Tuberculosis
was the Fund created?
address these three diseases?
is the Fund different from previous efforts to address
HIV AIDS, TB, and malaria?
the Fund replace current funding mechanisms for HIV AIDS,
TB, or malaria?
the Fund address the root causes of these diseases, including
poverty, gender disparity, lack of education, and poor
nutrition and sanitation?
much money has been committed to the Fund? How much more
UN Secretary-General has called for $7-$10 billion annually
for AIDS. How does this relate to the goals of the Fund?
process was followed in setting up the Fund?
is the Fund staffed?
will the Fund raise additional money?
is the Board structured?
pharmaceutical companies represented on the Board?
will the Board make its decisions?
is the legal status of the Fund?
is the role of the United Nations in the Fund?
whom will be Fund be accountable?
much of the Funds resources will go to AIDS, and
how much to the other diseases?
much of the Funds resources will be spent on prevention
compared to care?
the Fund support the purchase of antiretroviral treatment?
the Fund be able to purchase generic drugs or will it
be held to patent protections?
does the Fund keep track of its donations?
does the fiduciary mechanism work?
is the Global Fund
to Fight AIDS, Tuberculosis and
Fund is an independent, public-private partnership designed
to attract, manage, and disburse new resources to fight the
crises of AIDS, tuberculosis,
and malaria. The Funds objectives are to:
- finance effective programmes,
balancing the needs for prevention, treatment, care, and
support, in order to alleviate suffering, save lives,
and help end these diseases
- dramatically increase
resources dedicated to fighting these diseases
Why was the Fund created?
Fund was created to fight the global
HIV AIDS, TB, and malaria epidemics by sharing resources
and expertise across national boundaries, and between the
private and public sectors.
concept for an international funding mechanism to fight
HIV AIDS, TB, and malaria began at the Okinawa G8 Summit
in July 2000. At the urging of UN Secretary General Kofi
Annan and many national leaders, the concept of the Fund
was unanimously endorsed in June 2001 at the first UN General
Assembly Special Session to focus on HIV AIDS. In July 2001
at its meeting in Genoa, G8 leaders committed
US $1.3 billion to the Fund.
Why address these
need for more rapid, sustained and concerted action on AIDS,
TB, and malaria is overwhelming.
Together, these diseases have a devastating global
impact, killing nearly 6 million people each year and causing
major social and economic upheaval. While effective interventions
now exist to help prevent and treat these diseases, they
remain out of reach for most people in the developing
world. A dramatic increase in resources to fight HIV, TB,
and malaria is urgently needed to help reduce the suffering
and death caused by these diseases.
How is the Fund
different from previous efforts to address HIV AIDS, TB,
Fund is a unique global
public-private partnership that
includes donor and recipient country governments, multilateral
agencies, NGOs, private sector representatives, and representatives
from the communities affected by the three diseases. The
full involvement of all these stakeholders reflects an unprecedented
level of shared commitment to roll back these global health and development challenges. The
Fund is a novel approach that emphasizes the achievement
of results, independent technical validation of proposals,
and efficient processes for utilizing resources.
Does the Fund replace
mechanisms for HIV AIDS, TB, or malaria?
The Fund is meant to
supplement, not to replace, current funding mechanisms
for HIV AIDS, TB, and malaria. In
fact, support for current efforts to fight these
diseases should also be increased.
How will the Fund ensure that
it doesnt duplicate or compete with the work of others
in the field?
Fund is not an implementing agency, so it will in no way
compete with development
or international agencies on the ground. Instead, the Fund
is a mechanism to raise new funds to fight HIV AIDS, TB,
and malaria, and to direct these resources quickly and efficiently
where they are most needed, to programs and interventions
that are not adequately funded now. The Fund is committed to coordinating with and
working through existing international, regional, and national
mechanisms wherever possible.
Will the Fund address
the root causes of these diseases, including poverty, gender
disparity, lack of education, and poor nutrition and sanitation?
addressing HIV AIDS, TB, and malaria in developing
countries will require action from a broad developmental
perspective. The Fund will favour programmes that build
on and coordinate with efforts to address factors that can
be root causes of these diseases, including poverty, gender
disparities, lack of education, lack of access to health
care, and inadequate nutrition and sanitation.
much money has been committed to the Fund? How much more
of May 2002, US$ 2.08 billion has been committed to the
Fund from industrialized and developing
country governments, corporations, foundations, and individuals.
A number of these commitments are multiyear, giving the
Fund approximately US$800 million to disburse in 2002.
far more resources are needed to adequately address HIV AIDS,
TB, and malaria, current pledges to the Fund will allow
the Board to begin funding programmes and demonstrate results.
Once the Fund has shown that it is working as planned, it
is hoped that current donors will increase their commitments,
and that new donors will come to the table.
The UN Secretary-General
has called for $7-$10 billion annually for AIDS. How does this relate to the goals of the Fund?
Annans call for US$ 7-$10 billion annually for AIDS
is based on an estimate of the total
resources required annually to address the HIV AIDS epidemic
and middle-income countries from all
sources including the new Global
Fund, bilateral and other donors, and the affected country
governments themselves. Similarly, estimates suggest that
about US $2 billion is needed annually from all
sources to address TB and malaria.
The Fund is but one of many contributors to help
address these overall needs.
Fund was never intended to become the sole source of financial
support to fight HIV AIDS, TB, and malaria. It is a new
tool to attract, manage, and disburse additional resources. The Fund will also help to leverage
additional financing mechanisms such as debt relief,
governments own budgets, health insurance schemes,
development loans, private
sector contributions and other new financing strategies.
process was followed in
setting up the Fund?
July 2001, a Transitional Working Group (TWG) for the Fund
was established, consisting of nearly 40 representatives
countries, donor countries, NGOs, the private sector, and
the UN system. During the second half of the year, the TWG
basic guidelines for the Funds operation, including
its legal status, management structure, financial systems
and general eligibility criteria. The TWG met three times
in October, November, and December 2001. In addition,
the TWG held regional consultations in Africa,
and Eastern Europe,
as well as thematic consultations with NGOs/civil society,
the private sector, and academia.
late 2001, members of each of the Funds constituencies
including donor countries, developing
countries, NGOs, and the private sector selected
representatives for the Funds Board.
At its first meeting in January 2002, the Board reviewed
the TWGs recommendations and adopted a framework document
that made the Fund officially operational.
How is the Fund
Interim Secretariat, based in Geneva,
is providing staff support to the Fund until a permanent
Secretariat also in Geneva
is established. The Interim Secretariat is staffed
by secondments from governments and multilateral agencies. Permanent
staff members will be recruited during the summer.
How will the Fund
raise additional money?
additional public and private resources is a key goal of
the Fund. A comprehensive strategy is being prepared to
raise additional funds from current and potential donors.
The Funds immediate priorities are to collect the
donations that have already been pledged and to wisely and
effectively disburse the funds it already has at its disposal.
is the Board structured?
Chair of the Board is Dr. Chrispus Kiyonga, Minister without
Portfolio of the Government of Uganda. The Vice-Chair is
Seiji Morimoto, Deputy Director-General of the Multilateral
Cooperation Dept. of the Ministry of Foreign Affairs in
Board includes an equal number of donor and developing
country governments, with seven seats each. The seven donor
countries represented on the Board are France,
and the European Commission. Some of these seats have alternates
and will rotate among countries.
countries on the Board include Brazil (representing Latin
and the Caribbean), China (Eastern Pacific countries), Pakistan
(Eastern Mediterranean), Thailand (Southeast Asian countries),
Uganda (Eastern and Southern Africa), and Ukraine (Eastern
Europe). The representative of West and Central
Africa has not yet been confirmed.
Board also includes two NGO and two private sector donor
seats. The NGO seats include one representative of NGOs
from the South and one representative of NGOs from the North.
The two private sector seats include one representative
of private foundations (currently the Gates Foundation)
and one representative of private companies (currently Anglo-American
members were chosen by their own constituencies. The majority
of Board members, including the Chair and Vice-Chair, have
WHO, and the World Bank hold ex-officio (non-voting) seats
on the Board. The Board also includes a person living with
or affected by HIV AIDS, TB or malaria, also in a non-voting
a complete list of Board members, please visit the Fund
companies represented on the Board?
The Board does not currently include a representative of
the pharmaceutical industry.
The Boards private sector representative was selected
by the private sector through a broad and open process that
began in early December with a consultative meeting held
at the World Economic Forum (WEF) in Geneva. The process was facilitated by the WEF in conjunction
with the Corporate Council on Africa, the Global Business Council on HIV & AIDS, the International
Business Leaders Forum and the International Chamber of
How will the Board
make its decisions?
Board will seek to reach consensus on all matters. If consensus
cannot be reached, board action will require two-thirds
majorities from two groups of Board members the first
group includes representatives of donor countries and the
private sector and foundations, and the second group includes
representatives of developing
countries and NGOs
What is the legal
status of the Fund?
Fund has been established as an independent private foundation
under Swiss law. The
World Bank has primary responsibility for collecting, investing,
and disbursing funds, as well as financial reporting.
What is the role
of the United Nations in the Fund?
leadership and vision of UN Secretary-General Kofi Annan
have been essential to the Funds success, especially
in the areas of mobilizing resources and building political
commitment. The Fund is not a United Nations entity, but
an independent public-private partnership that includes
governments, the UN and other international organizations,
industry, academic institutions, foundations and other relevant
civil society groups.
Fund is coordinating closely
with UN bodies including the World Health Organization (WHO)
and the Joint United Nations Programme on HIV AIDS (UNAIDS),
and is benefiting from the technical expertise of these
organizations. UNAIDS Executive Director Peter Piot and
WHO Director-General Gro Harlem Brundtland serve as ex officio
members the Funds Board.
In addition, the Funds Technical Review Panel
will consult with UNAIDS and WHO on technical matters before
making its final recommendations to the Board.
To whom will be
Fund be accountable?
and foremost, the Fund is accountable to the millions of
people affected by HIV AIDS, TB, and malaria, their families,
and those at risk of infection. Regarding the use of funds
and the achievement of results, the Fund is accountable
to donors, technical partners and developing
How much of the Funds
resources will go to AIDS, and how much to the other diseases?
Fund will target resources where the needs are greatest,
based on country priorities. Current estimates of disease
burden and economic indicators suggest that HIV AIDS will
consume the greatest amount of Fund resources, followed
How much of the
will be spent on prevention compared to care?
One of the principles
of the Fund is to
pursue an integrated and balanced approach that covers
prevention, treatment, care, and support. Taking a long-term perspective,
is the most effective strategy for alleviating suffering
and reducing the social and economic impact of these diseases.
and prevention are clearly related prevention efforts
will never succeed if care and support services for the
infected and directly affected are not provided.
Will the Fund support
the purchase of antiretroviral treatment?
Provision of antiretroviral
treatment is currently included in the Funds scope
as an example of the types of activities
that could be supported.
The Board of the Fund will balance the available resources
against the priorities that countries themselves identify
within the context of comprehensive health system strategies
the Fund be able to purchase generic drugs or will it be
held to patent protections?
Fund will not act as a procurement agent. Instead, its resources
may be used to support programmes that include procurement
of critical health products for the treatment and prevention
of the three diseases.
Fund will encourage efforts to make high-quality, safe and
effective drugs and products available at reasonable prices.
The use of the Fund' s resources will be consistent with
international law and agreements. It should be noted that
many of the most critical drugs and products - such as antibiotics
to prevent and treat tuberculosis and other AIDS-related
opportunistic infections - are not protected by patents
and are available from a variety of manufacturers.
does the Fund keep track of its donations?
World Bank manages public donations; private donations to
the Fund will be made through the UN Foundation. In order
to disburse funding to approved projects, public and private
donations will be merged into a single bank account and
subsequently disbursed either to national Ministries of
Health or to NGOs directly.
How does the fiduciary
The World Bank is the Trustee of the Global Fund.
The Trustees primary responsibilities include collection,
investment and management of funds, disbursement of funds
to countries and programs, and financial reporting. The World
Bank will disburse funds on the instruction of the Fund's
Board of Directors.