Jamra primary scholl for children affected by HIV/AIDS, drugs or poverty, Senegal (c) Nell Freeman/Alliance Participants in the Photovioce project, Ecuador © Marcela Nievas for the Alliance
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Global Fund New Funding Model: 6 basic principles to watch out for

3
SEP
2012

Aids Alliance

As the Global Fund Board prepares to meet (12-14 September) a new funding model is being developed so that money to help end AIDS, TB and malaria can begin to flow again in 2013. Here we highlight some of the options being considered and the key principles we believe should be upheld during the decision making process.

In 2011 the Global Fund adopted a new strategy, driven by a commitment to change the course of the three pandemics.  At the heart of the strategy are ambitious – but achievable – treatment, prevention, care and support targets for HIV, TB and malaria.  

To accelerate the response – and achieve these targets – the Global Fund committed to adopting a less bureaucratic, more flexible and more strategic way of doing business.  This includes rolling out a new funding model (NFM) that will operationalise the Global Funds commitment to funding programmes that are effective, strategic, based on evidence and centred on human rights.

Mike Podmore, Alliance Policy Manager said “Two things are critical for success over the next few months: securing sufficient funding – and we continue to push donors to honour and even increase their commitments – and adopting the right approach to funding country programs. The decisions taken by the Global Fund in the next few months will influence how quickly we can hope to end the three pandemics.”  

NFM components

The New Funding Model will replace the old ‘rounds-based’ system.  It is meant to be more flexible and more effective.

Indications are that there will be a two-step iterative procedure that allows dialogue and early feedback.  Rather than an immediate acceptance or rejection of a proposal, the iterative dialogue process will encourage the development of high quality proposals, which will provide more support to countries and ultimately result in a much higher acceptance rate.  

It will also allow for conversations with countries on how to strategically invest resources to have greater impact, e.g. in concentrated epidemics focusing money on programmes that target key populations rather than on mass media projects.

Civil society has been quite vocal in raising its concerns about proposals for the NFM, particularly the discussions that have focused on formulas for allocating funding using country envelopes.  Read more here in the Global Fund Observer.

Specifically, the Developed Country NGO Delegation to the Board (of which Alvaro Bermejo, Executive Director of the Alliance is the Board member) and a group of 12 civil society organisations working in the field of harm reduction (including Alliance Ukraine) have both published position papers which oppose the use of country envelopes.

Basic principles of success for the NFM

Whatever model is agreed by the Global Fund's Board in the next few months, the Alliance believes the NFM must uphold the following basic principles:

  • A commitment to country ownership as opposed to pre-selected interventions by those outside the country.  This is essential to allow countries to determine their own priorities for funding requests and to develop approaches that are context-specific and based on their experience of effectiveness and impact. This has always been a core principle of the Global Fund and must be retained.
  • Funding that is demand-driven as opposed to the use of caps and envelopes for countries.  By allowing countries to fully express their needs and make specific demands, the Global Fund secretariat can more accurately track the financing gap and drive resource mobilisation.
  • A commitment to supporting community-based responses by maintaining (and improving) policies and approaches that allow support for Community Systems Strengthening and Community Based Organisations.  Communities, and community responses, remain the frontline of an effective HIV response.
  • Focus investments on interventions with proven impact, based on the Investment Framework model.  This includes a focus on funding for key populations/MARPs.
  • Improve impact on human rights, gender and diversity by ensuring that the commitments of Global Fund Strategic Objective 4 on human rights and the gender and SOGI strategies are reflected in all aspects of the NFM and Global Fund grants.
  • Ensure that effective risk management is proportional and appropriate and provide adequate support and capacity building to grant holders where needed.

The Alliance and the Global Fund

The Alliance has considerable experience implementing Global Fund programmes as a Principal Recipient (PR), a Sub-Recipient (SR), and in supporting membership of the Country Coordinating Mechanisms (CCM).  Currently seven Alliance linking organisations serve as PRs, and 17 linking organisations have been Sub Recipients on grants from the Global Fund.  Click here for full details of the Alliance Global Fund Portfolio.