GLOBAL FUND ANNOUNCES NEW ROUND OF FUNDING DESPITE U.S. OPPOSITION

On November 18 the Global Fund to Fight AIDS Tuberculosis and Malaria announced that it would begin accepting proposals for a fifth round of funding in March. Approval of the new round of funding came despite opposition from several donor countries, including the United States. The decision followed a two-day, closed door meeting of the Global Fund's Board in Arusha, Tanzania, attended by Presidents Mwai Kibaki of Kenya, Yoweri Museveni of Uganda and Benjamin Mkapa of Tanzania.

Opponents, including the Bush administration, argued that the three-year old Global Fund should delay issuing new grants because of insufficient contributions. "Let's get the financial house in order before we make new obligations," an administration official was quoted as saying.

U.S. opposition drew criticism from treatment activists, who argued that any delay would cost lives. In addition, the activists pointed out that postponement would be counterproductive, since in previous rounds donors did not begin to commit money until well after the grant approval process was begun.

Tanzanian President Benjamin Mkapa warned Board members that "deciding [not] to launch a new funding round will be difficult for Africans to understand. We can not wait and watch our people die when it is possible to give them a new lease of life."

The Global Fund was scheduled to solicit proposals in June, but a low level of commitment from donor countries prompted Board members to push the date back six months. The American delegation had advocated a further six to twelve month postponement of new funding. The March date set for accepting new proposals is a five month delay. However, it represents a partial victory for supporters of the fund, who worried that cancellation of the new funding round was imminent.

"A new round of proposals will ensure that the Global Fund continues to expand its funding," said Helene Rossert-Blavier, vice-chair of the Global Fund's Board and executive director of the French non-governmental organization, AIDES.

"It's not perfect, but given where we were, it could have been much worse," said Joanne Carter, legislative director for RESULTS, a Washington, D.C. advocacy group. Carter remains concerned, however, about the lack of strong U.S. support for the fund.

Speaking at an APEC summit on November 20, President Bush expressed support for the Global Fund, saying "[I]. urge nations here at this APEC Summit to contribute to [the Global Fund], to help defeat this pandemic. AIDS is the greatest health crisis of our time, and all nations must join in a united effort to turn the tide against this terrible disease."

Despite such rhetoric, the White House budget request slashed the U.S. contribution to the Global Fund in half, from $547 million in FY04 down to $200 million in FY05. Congress exceeded the President's request slightly, setting support for the Global Fund at $250 million. $90 million of FY04 funding will also be carried over. "What we are seeing is a reflection of the administration's policy," Carter said. "They want only $200 million, so Congress has to fight its way up from that."

The Global Fund has approved $3 billion in grants to 128 countries since its creation in January 2002. This average of $1 billion annually falls far short of the $10 billion a year envisioned by UN Secretary General Kofi Annan when he announced the formation of the fund in 2002, and doesn't come close to touching the $20 billion or more a year it is estimated the world will soon need to effectively combat the AIDS pandemic.

The Global Fund's Board approves two-year programs, with an option to renew funding for a further three years if the project achieves its target objectives. Grant proposals are evaluated by an independent technical review panel. Those meeting the requirements are then recommended to the Board for funding. Supporters of the fund argue that this coordinated, multilateral approach to funding AIDS initiatives allows funds to have the most impact.

Jack Valenti, president of the advocacy group Friends of the Global Fight, said the Board's decision "demonstrates why the Global Fund works. Everyone agreed to the principles of fiscal prudence. Everyone agreed on the need for urgent new money. Everyone agreed to a need to focus on making current grants work."

The Global fund will need approximately $2.4 billion in 2005 to carry out its work, including $1.4 billion for renewal of existing grants. So far, donors have contributed about $1.6 billion for the year. After 2005 an estimated $2.7 billion of additional funding would be required.

"The Global Fund is three-years old and as it moves forward, we face the dual challenge of making current grants work as quickly and effectively as possible and raising more money to meet the urgent need to scale up prevention and treatment in countries with acute needs," Richard Feachem, the Global Fund's executive director said.

Sharonann Lynch, of U.S.-based activist group Health GAP criticizes donors for neglecting the Global Fund. "We cannot afford to have the Global Fund dry up," she said. "These donors are basically saying to the world. that what we have is good enough. But 400,000 people on treatment out of 6 million that face imminent death without access to AIDS treatment is not good enough."

+ READ MORE ABOUT PRESIDENT BUSH'S AIDS INITIATIVES

Updated November 24, 2004