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
  • Home > News > Global Fund New Funding Model: latest

Global Fund New Funding Model: latest

1
OCT
2012

Aids Alliance

The Global Fund Board has adopted in principle a new funding model. Here we assess the model against our own ‘key principles’ and outline how civil society is involved in refining the process of how money will be allocated.

In The Loop last month, we reported on how the Global Fund is rolling out a new funding model (NFM) that will “operationalise the Global Fund’s commitment to funding programmes that are effective, strategic, based on evidence and centred on human rights”.

Elements of the NFM

The key elements of the NFM (adopted by the Global Fund Board on 13/14 September) relate to (a) how funding amounts will be determined and (b) how applications will be submitted and grant agreements negotiated.  For a full analysis read this article in the Global Fund Observer, and download the full decision point from the Global Fund Board meeting here.

Does the NFM uphold our principles?

Mike Podmore, Alliance Policy Manager said: “We were pleased to see that the model adopted did follow the basic principles we had set out.  Whilst there was a move towards the use of caps and envelopes to foster greater predictability in the application process and financing, this has been done in such a way that the needs relating to each country will still be fully known, and appropriately funded.”

Fit with Alliance basic principles

Our principle: A commitment to country ownership

At the national level, countries will have the flexibility to decide how much funding to request for each disease based on their National Strategic Plans.  Within the country bands (see below), a ‘meaningful’ proportion of funds will be provided to support the prioritized needs as defined within national strategic plans or investment cases.

Our principle: Funding that is demand-driven as opposed to the use of caps and envelopes for countries

Under the new model, funding will be allocated to groups or ‘bands’ of countries.  These bands will be determined by income level and disease burden to allow resources to be focused on where the need is greatest. Countries will be requested to submit full expressions of demand.  Resources within each band will then be allocated to individual countries in two separate ways:

  • The majority of funds for core programming needs will be provided through indicative investment ranges (essentially funding envelopes).  These applications must be robust, ambitious requests based on national strategic plans.
  • The remaining components of each country’s request will be funded through an ‘incentive stream’. These will be allocated from a separate portion of funding and are aimed at incentivising high impact, well-performing programmes over and above the indicative range. This will ensure funds are available to motivate full expressions of quality demand.

Read the full Board decision point on the NFM here.

Our principles: Focus investments on interventions with proven impact based on the Investment Framework model; A commitment to supporting community-based responses; Improved impact on human rights, gender and diversity

Countries and partners applying for funding will be encouraged to use and develop tools to identify highest impact interventions and technologies.  This will include a move towards using the investment frameworks for the three diseases, including the Investment Framework for HIV and AIDS which describes community mobilisation and human rights-based programming as ‘critical’ ingredients for effective health programming. 

The Global Fund secretariat is also developing a new system which aims to link community systems strengthening to its current framework for health systems strengthening.  This aims to ensure that initiatives funded by the Global Fund also improve the underlying health and community systems of countries and/or manage interactions between them in ways that achieve more sustainable health outcomes related to the three diseases.  The Alliance is actively involved in these discussions, along with a range of other civil society stakeholders.  For more information on this work, contact Mike Podmore, Alliance Policy Manager.


Next steps

The Global Fund are now developing the details of the NFM, including the country bands and the formula for allocating funds, for approval at the next Global Fund Board meeting in November 2012.

As part of this process, the various civil society and communities constituencies of the Global Fund Board are being invited to a series of consultations on the key principles of the NFM.  For more details, email bettergrants@theglobalfund.org.

The Alliance – via Alvaro Bermejo, Executive Director of the Alliance and a member of the Developed Country NGO Delegation to the Board – is contributing to these deliberations.  We remain alert to ensuring that our basic principles are upheld as the finer details of the NFM are worked out.  We will keep you updated on developments via our website and in The Loop.

 

    We were pleased to see that the model adopted did follow the basic principles we had set out.