May 03, 2006

How can the Global Fund further improve the replenishment process to secure a more predictable and sustainable flow of resources? What are the most appropriate resource mobilization efforts to complement the replenishment process?

English Forum

How can the Global Fund further improve the replenishment process to secure a more predictable and sustainable flow of resources?

Develop the more structured replenishment framework even further, as it helps reach out to donors more effectively & track the donors better, ‘especially in terms of acknowledgements and replenishment.’
1. Further structure the (voluntary) replenishment process into a more fixed and long-term defined partnership with donors; instead of the donors making contributions as and at when they are involved and when the need arises, it could be stated in the partnership agreement that at every point in time, the donors will make a certain amount available to the fund, if it is not done already.
2. Provide motivational benefits to donors (e.g. ‘promotions’)
3. Focus again turned to ensuring that grants perform effectively, in order to convince donors to provide more, through constant monitoring of the use of resources and comprehensive financial and programme reporting to the funding bodies, and strengthening health (distribution) systems.

What are the most appropriate resource mobilization efforts to complement the replenishment process?

Many express the view that significant additional resources could be obtained from diverse sources. Both rich and poor economies can participate in this effort.
1. ‘Nations with a voluntary taxation system could provide an option on the tax return for taxpayers to contribute to the Global Fund, making a personal connection with the Fund. Individual donations are much easier and do not entail legislative budgetary approval. The reaction to catastrophes in the recent past indicates that individuals want to reach out and to support citizens of the world who are in need.’

2. Government taxes- or levies, on utilities? (water, electricity, etc)
3. The Global Fund should require beneficiary countries to appropriate a fixed minimal percentage of their budget to Health, while it also finances strengthening of health systems (management, governance, etc). The 2001 Abuja agreement by countries to contribute at least 15% has not had positive results because countries lack adequate strategies and policies to implement it, corruption and inadequate government and civil society monitoring mechanisms. (French forum)
4. Apply even more efforts to advocate for debt-relief than is done currently. Debt-Servicing at $14 b annually still represents +500% of some SSA health budgets. (French forum)


French Forum

-Ensuring sustainability in the grant replenishment process within the health sector largely depends on donors and the institution of national policies (for example government, private sector contributions, and citizens’ contribution through taxes, for instance on utilities.

- It would be useful to motivate and convince donors throughout, with tangible results.
- The Global Fund must improve grant management in-country, and formulate an elaborate strategy for in-country presence , with a view to stewarding local partners to contribute towards the Global Fund’s programmes.
- Debt servicing committments still weigh heavily upon some national budgets, especially in sub-Saharan Africa, where some countries still repay an equivalent of five –times their health budgets. Easing the debt burden further will contribute largely to the improvement of the current financing process and model.
- The 2001 engagement agreement by African countries in Abuja to allocate at least 15% of their national budgets to health has not had positive results, l argely because of the inexistence of adequately supportive national policies and strategies.
- Civil society microenterprise and other income generating activities should be supported, in view of the huge, current and potential contribution by the Civil Society towards the achievement of trhe Global ; Fund’s objectives. Besides, all countries must develop mutuality with the civil society in all fundraising activities.
- If model & best practice (proven) local resource mobilization activities are implemented by the Global Fund, tere is a chance of significantly increasing the amount of resources raised. (for example, the World Bank’s (albeit contested) policy on the distribution of oil resources by the Chad and other governments) is one of the many health resource mobilization methods that have had proven results, especially in motivating governments to remain efficient and committeed to teir obligations.

Russian Forum


The basic condition that contributes to financial stability is ensuring transparency, management efficiency, real actions, target oriented approach and motivation.

Individual Contributions:
1. Every potential donor must see clearly how his contribution will be used and what will be the result of his contribution. In other words, we must ensure that the person is aware of the necessary information, and we must guarantee that his investment will be used exactly for the same purpose for which the funds are being raised, and that his particular contribution has helped to solve a definite situation and saved a definite life. The most widespread method of ensuring communication and guarantees is to use information campaigns involving as guarantors persons who are popular and respected in a given community, in a given group.
2. Winning a “prize”. This refers to such cases as “a dream come true” situation (winning a lottery), or reception of tax preferences, or implementation of ambitious plans. One of the efficient means of making a voluntary contribution is a lottery.
The possibility of winning a lottery, which is impossible to win under usual circumstances, represents quite a good motive for a person. The most important thing is to ensure that there is a guarantor of such lotteries. The Global Fund will surely cope with it.
3. Business Contributions. It is necessary to undertake such steps that could enable to involve money of private persons who are ready to invest huge amounts into the projects. E.g., it is possible to raise funds through direct participation of the Global Fund in some commercial projects.

Private Sector Contributions:

1. Tax Preferences: For any businessman the most important factor is stability and dynamic business growth. The tax preferences do work in economically developed countries; however, in the other countries the process of their provision is quite intricate and unreliable. The Global Fund may develop requirements to the guarantor countries for the purpose of implementing the national programs in the sphere of control over the three infections, i.e. obligatory amendment of the tax legislation with regard to the tax preferences for economic agents who make contributions to HIV/AIDS, TB and malaria.
2. An additional source of saving money, and therefore ensuring financial stability, is a zero VAT rate for organizations (including NGOs) implementing projects and subprojects in the sphere of the three infections.
3. Involvement in business projects.
4. Getting a prize (benefit): credit under preferential conditions, free sharing of experiences, training of personnel, etc.

To read and reply to this week's question, please click here:
http://forum.theglobalfund.org/en/viewtopic.php?t=118

Thank You.