Speech: General Manager Says Global Fund Offers Outstanding Value for Money
Gabriel Jaramillo, General Manager of the Global Fund to Fight AIDS, Tuberculosis and Malaria
5 July 2012, Tunis: Conference of Ministers of Finance and Health by Harmonization for Health in Africa (HHA)
Media Release – Extract
General Manager Jaramillo, told a gathering of finance and health ministers that the financing institution offers outstanding value for money by effectively treating and preventing the spread of disease. He said the changing economic climate had forced the Global Fund to change its operations to make grants more strategic, improve efficiency and become more effective overall.
The Global Fund will invest US$8 billion over the coming 20 months, US$5 billion of it in Africa. Mr. Jaramillo said that with productivity gains and more co-investment by countries that receive grants, there is a tremendous opportunity.
“As a former banker, I know a good deal when I see one,” said Mr. Jaramillo. “There is no better deal that investing to prevent these diseases.”
Mr. Jaramillo urged the ministers not to fear the investment necessary just because the up-front costs look high, because maintaining gains is less-expensive than the initial investments.
“Front-end these programs now, put your skin in the game now, because the out-years will be much cheaper as your number of cases goes down,” he said. “Sustaining your programs is much-less costly than you believe, and the return on investment is potentially huge.”
Blog Post: Global Fund Consults on New Funding Model
Strategic planners at the Global Fund are designing a new funding model, and have been seeking suggestions and comments from committee members and some outside partners. In an effort to modify the way countries apply for grants, the new funding model will replace the old ‘rounds-based’ system with a procedure that allows dialogue and early feedback, which should strengthen proposals and increase overall success rates. Early preparation for grant implementation, built-in to the system, is expected to speed up the entire process. Instructions from the Board are to make the funding model more flexible and more effective. Senior staff in the Global Fund’s Strategy Investment and Impact division have been reaching out to partners and committee members to canvass their views, gathering input for the designing the new funding model.
“It’s important that we hear views from different stakeholders,” said Ruwan de Mel, Head of Strategy and Access to Funding at the Global Fund. “We will be consulting broadly over the coming weeks.” A meeting of the Board’s Strategy and Investment and Impact Committee starting 9 July will consider aspects of the new funding model. The principles being followed in the design include a commitment to remaining global while focusing on interventions, countries and populations most in need, and simplifying the grant process while maintaining high standards of technical review. More flexibility on timing, and more predictability on available funding, are other improvements.
Consultations are expected to continue. The aim will also be to figure out how to best forecast true need or demand for support treating and preventing disease, and how other funding models or donor processes might improve the design of an allocation and application process.
Global Fund News Flash: Issue 05
Posted on Tuesday, 03 July 2012: http://www.theglobalfund.org/en/blog/29479/