According to UNAIDS and the Kaiser Family Foundation, funding from donor countries for HIV/AIDS decreased by 10% from 2009-10, and donor contributions to the Global Fund are 20% less than pledges at the last replenishment meeting. As a result, the Fund is in the worst financial situation it has ever been.
The Global Fund is also faced with the task of implementing the consolidated transformation plan which was adopted at the Board meeting following the recommendations of the High Level Independent Review Panel earlier this year.
It is in this context that the Global Fund board has decided to effectively cancel its 11th funding round due to lack of funding. This is the first time this has happened since the Fund was established ten years ago.
Alvaro Bermejo, Executive Director of the Alliance said “These should be exciting times. The latest scientific developments are showing us that HIV treatment can have a powerful HIV prevention effect by reducing the infectiousness of HIV positive people.”
“The latest UNAIDS data released this week presents an encouraging picture of new HIV infections at their lowest levels since 1997, a further 1.35 million people receiving treatment in just one year and the possibility that we could eliminate new HIV infections in children.”
“In addition, the Global Fund has adopted an exciting new strategy which aims to save 10 million lives by 2016 and the international community is already embracing new tools and mechanisms to make the money work harder and more effectively. It's exactly the wrong time to have such a regressive response from donors.”
How can we ensure the future of the Global Fund?
The Alliance welcomes the measures that the Board has taken to respond to the findings of the High Level Panel which highlighted major failings within the Global Fund structures around risk management, fiduciary controls and governance.
“Never again must we reach a position where life-saving programmes are cancelled or delayed. The Global Fund must have more effective financial early warning systems in place to ensure they can raise the alarm bell when donor commitments are not being met.”
“It also needs to increase its efficiency by tightening its governance and management systems and to restore confidence among implementing countries and partner organisations, as well as donors.” said Alvaro Bermejo.
Impact on communities living with HIV and AIDS
In 2010, 2.9 million people benefited from Alliance services. The scale of this work would simply not have been possible without the support of the Global Fund.
Those Alliance partners that have grants that are about to end will have to apply to the new ‘transitional funding mechanism’. This mechanism aims to cover those people already on treatment, but not any scale-up.
And new applicants, such as Alliance South Sudan, who were counting on the opportunity to apply for a new grant under Round 11, will need to explore alternative funding for 2012-2014.
A call for action
The Alliance is calling for:
1. Donors to step up and mobilize the resources needed to both support a new funding opportunity to be announced by the Global Fund in 2014 (as part of the mid-term replenishment activity in Summer 2012), and to provide bridge-funding to enable continuity and scale up of services until new Global Fund grants become available.
2. The Global Fund Board to continue to implement its plan to tighten management control around risk management, fiduciary controls and governance (as part of implementing the Consolidated Transformation Plan). This is essential to restore confidence in the Fund from implementing countries and partner organisations, as well as donors.
Read more about the Alliance’s Global Fund portfolio.