What is the Global Fund ?
At the end of the 1990’s, AIDS, tuberculosis and malaria were directly responsible for the death of 6 million people each year, in the poorest countries. Thanks to an unprecedented political mobilisation in the field of Health with the adoption of the Millennium Development Goals (MDGs) and the inclusion of the fight against pandemics in the agenda of the main global summits, the international community committed to raise massive funding and to promote a radically new approach as to development aid in health in favour of affected countries in their effort to fight against AIDS, tuberculosis and malaria.
In the endeavour to put an end to these epidemics that posed a risk to the development and stability of many countries, the Global Fund to fight AIDS, tuberculosis and malaria was created in 2001, with an aim to attract, disburse and monitor the use of additional resources, over and above existing local funding sources.
In the last 16 years, remarkable progress has been achieved in terms of reducing the morbidity and mortality linked to the three diseases: incidence has been cut by 30 to 50%, depending on regions.
However, these epidemics remain major public health threats.
Principles of the Global Fund
Since its creation, the Global Fund has been governed by a set of principles that guide and structure its strategy and working modalities. These founding principles make it a model institution in terms of its international governance. They also define the strategic and management direction of the Global Fund.
A partnership organisation
Since its inception, the Global Fund has been a unique financial mechanism, able to mobilise public and private resources globally to fight 3 of the most deadly infectious diseases in developing countries : AIDS, tuberculosis and malaria.
Working through partnerships is at the core of the Global Fund model. Its innovative character in the fields of development and global health is based on associating governments, civil society organisations, the private sector as well as affected communities with its governance. Such partnerships exist at all levels of the Global Fund, e.g. with :
- Civil Society
- National coordination bodies
- The private sector
- Technical development partners
- Donors
- The network of Friends of the Global Fund
Resources and investments of the Global Fund
Every year, the Global Fund mobilises and invests nearly US$ 4 billion in programmes.
Allocation of resources
The funding model offers beneficiaries predictability and flexibility. It gives access to funding according to a flexible timeframe, where the implementation of projects is aligned on national strategies. Interaction and dialogue between project holders and partners are permanent, all along the grant and implementation processes, to achieve the best possible impact locally and globally.
The allocation of grants is needs-based. Every 3 years, the funding model decides on the amount that each country needs for the triennium according to its morbidity rate and its own financial capacity.
Financial resources of the Global Fund
The Global Fund raises funds across all sectors: from governments and the private sector, from foundations and individuals. Governments are the first donors to the Global Fund, contributing to around 93% of its resources. Financial contributions from the private sector are also significant, particularly through co-investments in projects.
Financial contributions to the Global Fund
The Global Fund raises contributions from governments and partners every 3 years. Funding cycles, known as « replenishments », were decided by its Board in the early years of the Fund, allowing the organisation to ensure the predictability of its funding model. Replenishment’ conferences take place every 3 years, where donor countries and partners pledge for the next 3-year cycle. The 6th replenishment conference of the Global Fund took place in Lyon on October 10, 2019.
Innovative Financing
Confronted with the magnitude of needs to eradicate the epidemics, the Global Fund seeks to diversify its sources of funding and to increase the impact of its investments and of national health plans. It develops initiatives and original partnerships that generate innovative financing, that come on top of traditional bilateral commitments :