History of the Fund in details
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History of the Fund in details
UNITED NATIONS SECRETARY GENERAL KOFI ANNAN CALLS FOR A "WAR CHEST" TO FIGHT AIDS AND OTHER INFECTIOUS DISEASE LINKED TO POVERTY.
BY THE END OF THE LAST CENTURY, developments in different arenas coalesced to create an unprecedented force demanding new investments in public health. New knowledge about the scale of epidemics - especially malaria and tuberculosis - and a deeper understanding of the complex causal links among poverty, development and disease, pushed international issues of public health to the center of the world's development agenda.
At the same time, the global community began to appreciate more fully the horrendous devastation caused by HIV/AIDS in parts of Africa, the Caribbean and Asia and the potential for even greater catastrophic consequences should the epidemic take root in the world's most populous nations. Moreover, new lifesaving medicines for people living with HIV were priced out of reach for more than 90 percent of those who most needed them. This untenable moral situation fueled a global movement to reduce the cost of essential medicines backed by an appeal that such commodities be seen as global public goods rather than commercial products.
Leaders around the world -- in development, economics, public health and the community of non-governmental organizations, representatives for people living with HIV, the World Health Organization, the World Bank, UNAIDS and bilateral donors - took these issues to heart, seeking ways to increase global spending on public health.
THE GLOBAL FUND - FROM BLUEPRINTS TO BUILDING IN 18 MONTHS
2000
JULY THROUGH DECEMBER
JAPAN PUTS THE TOPIC ON THE GLOBAL AGENDA in Okinawa at the 2000 G8 summit. Most agree that, although existing bilateral and multilateral development institutions play important roles, no single entity could channel the large volume of new resources necessary to combat these three primary diseases.
The G8 Summit in Okinawa, Japan is followed by a meeting of health experts in December and leads to an important agreement among leaders of industrialized countries that significant new action is required to address the global health pandemics of HIV/AIDS, tuberculosis and malaria.
AN INNOVATIVE PUBLIC PRIVATE PARTNERSHIP TAKES OFF
The Global Business Coalition for HIV/AIDS, UNAIDS and the United Nations Fund for International Partnerships join forces with the active non-governmental community to spearhead support for the cause by engaging the private and philanthropic sectors in discussions with heads of state that culminate in commitments - both financial and "in-kind."
APRIL
ADDRESSING THE AFRICAN SUMMIT ON HIV/AIDS in Abuja, Nigeria, United Nations Secretary General Kofi Annan exhorts world leaders to raise more money to fight the triple public health pandemics and create a single global fund dedicated to the battle against AIDS and other infectious diseases. He also requests financial commitments from governments of the Group of Eight leading industrial countries to help establish this fund.
African nations commit to raise domestic health spending to 15 percent of their national budgets.
THE UNITED NATIONS FUND FOR INTERNATIONAL PARTNERSHIPS engages the United Nations Foundation to receive private sector contributions for a global fund and track pledges from donor countries in advance of the establishment of the official organization. The United Nations Foundation sets up a web site with related toll-free numbers and agrees to maintain a special account for private contributions to the Global Fund.
JUNE
UN DECLARES COMMITMENT TO A GLOBAL FUND TO FIGHT INFECTIOUS DISEASE
At the United Nations General Assembly Special Session on HIV/AIDS - UNGASS - heightened political momentum fuels the decision to pursue a comprehensive, coordinated global response to the AIDS crisis. Member-states adopt a powerful "Declaration of Commitment" and specifically endorse the call for a global fund.
PARAGRAPHS 90 AND 91 STATE:
"Support the establishment, on an urgent basis, of a global HIV/AIDS and health fund to finance an urgent and expanded response to the epidemic based on an integrated approach to prevention, care, support and treatment and to assist Governments, inter alia, in their efforts to combat HIV/AIDS with due priority to the most affected countries, notably in sub-Saharan Africa and the Caribbean and to those countries at high risk and mobilize contributions to the fund from public and private sources with a special appeal to donor countries, foundations, the business community, including pharmaceutical companies, the private sector, philanthropists and wealthy individuals;
"By 2002, launch a worldwide fund-raising campaign aimed at the general public as well as the private sector, conducted by UNAIDS with the support and collaboration of interested partners at all levels, to contribute to the global HIV/AIDS and health fund."
To jump-start the multilateral response to this crisis, the United States pledges the first public funds - US$ 200 million - while France pledges US$ 150 million.
170 ministers of health and finance meet in Brussels, Belgium to determine how this funding effort will unfold within countries.
JULY
DONOR GOVERNMENTS PLEDGE US$ 1.5 BILLION TO A GLOBAL FUND
At the G8 summit in Genoa, its leaders endorse the creation of a global fund that will serve as a "war chest" in the battle against diseases related to poverty.
United Nations Secretary General Kofi Annan receives the Philadelphia Liberty Medal and pledges his prize of US$ 100,000 to underscore his personal commitment to this pressing global crisis.
To date, a total of US$ 1.5 billion is pledged to the Global Fund.
JULY THROUGH OCTOBER
A CLIMATE OF URGENCY AND INNOVATION DEFINES THE EARLY EFFORTS OF THE GLOBAL FUND
Plans are developed, discussed and implemented, gradually building a framework in which the Global Fund to Fight AIDS, Tuberculosis and Malaria - as it comes to be called -- will conduct its business. At the same time, the toll exacted upon human life continues relentlessly, as thousands of people die daily from each of these three, preventable diseases. To this day, the same sense of urgency and innovation permeates the Fund and shapes its culture.
A transitional working group of 17 members, chaired by Dr. Chrispus Kiyonga of Uganda, is established to guide the overall effort for a new international institution over a four-month period and serves as early-stage architect for helping the organization evolve from a mere concept to a functioning reality.
A SMALL, INTERIM SECRETARIAT IS SET UP IN BRUSSELS, BELGIUM
A transitional secretariat is established to lend technical support to these efforts as well as to manage the day-to-day operations of the nascent fund. A skeleton staff of workers, seconded from governments, international organizations and the private sector, work in parallel to carry out the day-to-day tasks of this start-up enterprise, housed in Brussels, Belgium and led by Paul Ehmer of the United States Agency for International Development (USAID).
International consultations are conducted with all vital constituencies including international organizations, governments from donor countries as well as from nations burdened by the diseases, concerned members of civil society, and organizations from the private sector - both business and philanthropic.
The Global Fund creates a founding framework document that outlines operating principles designed to help achieve the goal of encouraging an effective, comprehensive, sustainable response that would be integrated into local contexts and owned on national levels.
A grant-making institution is designed to fund proposals from a broad representative group of stakeholders within countries. Plans to manage the disbursement of funds to local programs are developed.
NOVEMBER
Bill Gates, founder and chief executive officer of the Microsoft Corporation, pledges on behalf of the Bill & Melinda Gates Foundation US$ 100 million to support the Global Fund.
OPERATING SYSTEMS AND GUIDELINES ARE DEFINED
The transitional working group holds its second meeting to define guidelines for the operations of the Global Fund. The group (a) examines/identifies the purpose, scope of work and guiding principles as well as the structure and composition of the board that will govern all activities; (b) assesses fiduciary arrangements; (c) establishes guidelines for governance in keeping with all legal requirements; (d) crafts programmatic and financial guidelines for itself and for countries; and (e) develops criteria to measure progress and technical reviews.
The official website is launched.
An NGO consultation is organized in Brussels and attended by 70 people representing organizations from all regions to help guide the development process of the Global Fund by providing input from each constituency.
PARTNERSHIPS - GLOBAL & LOCAL - ARE LYNCHPIN TO WIDE, LASTING IMPACT
The transitional working group agrees that the governing board of the Global Fund will include representation from each constituency vital to its operations. Members identify themselves as representing donor and developing countries, philanthropy, communities living with disease, the nongovernmental community or the private sector.
The Global Fund models its operations on those of a philanthropic institution. It will review proposals and award grants based upon their potential to remedy HIV/AIDS, tuberculosis and malaria.
Regional consultation meetings are held: Malawi is the host for Africa; Thailand is the host for Asia; Russia is the host for Commonwealth of Independent States; and Brazil is the host for Latin America and the Caribbean.
DECEMBER
The third meeting of the transitional working group is held. It adopts procedures related to governance, country processes and eligibility, selection of members for the technical review panel, accountability, fiduciary and legal issues. It also decides to locate the Secretariat in Geneva and agrees on procedures for selecting countries for board membership; managing the oversight committee; procuring access and delivery of drugs; tieing disbursements to grantee performance; and for how best to establish guidelines, and conduct communications and resource mobilization.
PRIVATE SECTOR LEADERS JOIN THE INTERNATIONAL COMMUNITY & NGOS TO COMBAT THE TRIPLE PANDEMICS
The World Economic Forum hosts a private sector consultation meeting attended by more than 35 representatives from corporate foundations and business enterprises around the world. As members of this public/private partnership, forum participants decide to provide ongoing guidance to the management of the Global Fund to ensure efficiency of operations and accountability.
2002
RAISING CAPITAL INVESTING RESOURCES MEASURING PROGRESS
JANUARY - FEBRUARY
INTERIM STAFF MOVE TO TEMPORARY HEADQUARTERS IN GENEVA
The transitional secretariat moves from temporary headquarters in Brussels, where it had been located since the previous August. As the Global Fund secretariat, provisional operations are set up at the International Conference Centre 9 rue Varembe - under the interim leadership of Dr. Chrispus Kiyonga of Uganda as chair of the board, and Dr. Anders Nordstrm of Swedish SIDA as interim executive director.
THE GLOBAL FUND IS OFFICIALLY ESTABLISHED AND ANNOUNCES ITS FIRST "CALL FOR PROPOSALS"
In Geneva the Global Fund holds the first meeting of its board, chaired by Dr. Chrispus Kiyonga of Uganda and vice-chaired by Mr Seiji Morimoto of Japan. The Board meeting, held on January 28, becomes the birth date for the Fund.
Members of the board are appointed; they adopt operating procedures and by-laws and construct a framework on which the Global Fund will function as an institution. This agreement is outlined in the Fund's founding framework document.
Now legally established as a private Swiss foundation located in the canton of Geneva, the Fund issues its first request for proposals to every country in which the triple threats of HIV/AIDS, tuberculosis and malaria severely endanger the quality of everyday life for its citizens.
FEBRUARY - MARCH
Consultants are hired to supplement a small interim staff. About 30 people start working to lay the groundwork for the Global Fund, including establishing systems and protocols to manage the receipt and screening of proposals that will be evaluated by the technical review panel.
THE GLOBAL FUND UNDERTAKES A SEARCH FOR AN EXECUTIVE DIRECTOR
A search is undertaken to identify candidates for the executive director of the Global Fund:
700 incoming applications are reviewed; 12 candidates are interviewed as finalists.
700 NOMINATIONS TO THE TECHNICAL REVIEW PANEL, STACKED FIVE METERS HIGH, MUST BE VETTED WITHIN 4 WEEKS
MARCH
The first round of grant applications is due. Responses far exceed expectations: an interim Secretariat works around the clock to screen more than 300 applications, underscoring the urgent needs of so many on the frontlines of the battle.
A 17-member technical review panel - comprised of disease experts as well as cross-sector development experts - is appointed to review and evaluate proposals for funding from the first round of potential grantees. Chaired by Professor Michel Kazatchkine of France with Dr. Alex Coutinho of Uganda as vice chair, the panel must review within two weeks, 204 grant proposals and recommendations that request more than US$ 5 billion in funding support over a five year period.
APRIL
A PUBLIC LAUNCH OF THE GLOBAL FUND FEATURES UN SECRETARY GENERAL KOFI ANNAN
The Fund establishes an administrative services agreement with the World Health Organization to perform its administrative services and a trustee agreement with The World Bank.
The Columbia University School of Public Health hosts the second meeting of the board of directors of the Global Fund. The board approves its first round of grants to 36 countries, valued at US$ 616 million payable over a period of two years. The board announces the appointment of Richard Feachem as executive director of the Fund.
WORK LOAD EXPANDS - TEMPORARY STAFF MANAGE HEIGHTENED EXPECTATIONS
Staff of the Global Fund diminishes to fewer than 10 employees as consultancy contracts expire and seconded personnel return to their original posts. At the same time, day-to-day operations of the Fund become increasingly demanding as responsibilities multiply substantially.
JULY
RICHARD FEACHEM TAKES HIS POST AS EXECUTIVE DIRECTOR
His leadership brings new focus to issues relating to policy, disbursement arrangements, procurement policies, infrastructure, staff, budgeting, resource mobilization and governance.
THE INTERIM STAFF OF THE GLOBAL FUND ANNOUNCES ITS SECOND "CALL FOR PROPOSALS"
The Global Fund also reviews and fine-tunes its guidelines; accelerates work to develop grant agreements for grantees from round one; and establishes systems to disburse grant funds in an accountable manner.
THE GLOBAL FUND ENHANCES CORE ROLES OF THE SECRETARIAT
Portfolio managers are hired to negotiate and oversee the implementation of grant agreements; procedures for financial and programmatic accountability are instituted; and an external relations team is created to maintain communication with donors and other stakeholders as well as to step up resource mobilization.
AUGUST
By this date, US$ 2.1 billion is pledged to the Global Fund, almost US$ 500 million of which has already been transferred to the Fund by the governments of Ireland, Italy, Kenya, Switzerland, the United Kingdom, the United States and Zambia, as well as by private individuals, foundations and corporations.
Funds follow from Belgium, Canada, Germany, France Japan and Sweden.
Work begins on: (1) finding premises to permanently house the Global Fund Secretariat in Geneva and (2) negotiating grant agreements and disbursements with four "start-up" countries: Ghana, Haiti, Sri Lanka and Tanzania. Secretariat staff visit the "start-up" countries to help with preparations and to solicit feed-back that will help them fine-tune preliminary procedures for other approved round-one grants.
SEPTEMBER
GRANT APPLICATIONS ARE DUE FOR ROUND TWO
The Secretariat, now better equipped to manage the process, screens grant applications in preparation of the Technical Review Panel.
OCTOBER
THE DOOR OPENS FOR POOR COUNTRIES TO BUY LARGE VOLUMES OF BOTH GENERIC AND PATENTED MEDICINES
The board holds its third meeting and establishes a drug procurement policy: drugs of assured quality will be purchased at the lowest possible prices.
NOVEMBER
THE GLOBAL FUND SIGNS ITS FIRST TWO GRANT AGREEMENTS
Near the end of its first year of operations, with systems, procedures and policies now operational, the Global Fund signs the first grant agreements in two approved, "start-up" countries. Ghana, the charter grant recipient, is allocated a total of US$ 900,000, and Tanzania, the second recipient, signs grant agreements worth US$ 12 million.
DECEMBER
Haiti becomes the third country to sign grant agreements with the Global Fund. Sri Lanka becomes the fourth. In Haiti, Fund support substantially expands an experiment to provide antiretroviral drugs to a small number of Haitians living with HIV. The total value of these signed grant agreements is US$ 52 million, payable over a two-year period.
Staff from the Global Fund secretariat travel to countries with pending proposals. Their goal is to ensure that local country coordination teams - known as Country Coordinating Mechanisms - and other entities - known as Principal Recipients - will manage the Fund resources on the ground, finalize work plans and corresponding budgets.
THE GLOBAL FUND BUILDS UPON LOCAL INFRASTRUCTURE IN COUNTRIES AWARDED GRANTS
Global Fund staff work with local experts on the ground, so called "Local Fund Agents," to assess the capacities of Principal Recipients. Principal Recipients are nominated through the Country Coordinating Mechanisms based upon certain minimum criteria for their ability to successfully implement the approved grant proposals.
The Global Fund team responsible for South-East Asia, East Asia and Oceania holds a five-day meeting in Manila, the Philippines, to complete ground work that will measure local absorption capacity for funds.
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Close consultation with the World Bank Group and the Development Assistance Authority of the Orgaisation for Economic Co-operation and Development ensure coordination with similar sector-wide poverty reduction strategies undertaken by the donor community.
JANUARY 2003
THE GLOBAL FUND MOVES INTO PERMANENT HEADQUATERS AND THE BOARD HOLDS ITS FOURTH MEETING
THE BOARD:
- approves its second round of grants, committing almost US$ 887 million to 60 countries over a two year period. More than 60 percent of the funds are dedicated to the fight against HIV/AIDS.
- elects Tommy Thompson from the United States as its chair to succeed Dr. Chrispus Kiyonga of Uganda. Dr. Suwit Wibulpolprasert of Thailand is elected vice-chair, succeeding Mr. Seiji Morimoto, of Japan.
By this time, more than 30 new grant agreements have been signed and over US$ 5 million is disbursed to Ghana, Haiti and Tanzania.
Other countries such as Argentina, Cambodia, China, Honduras, India, Indonesia, Laos, Madagascar, Malawi, Panama, Ukraine and Zimbabwe also fall into line to begin receipt of cash disbursements .
THE PRESIDENT OF THE UNITED STATES PLEDGES US$ 1 BILLION IN SUPPORT TO THE GLOBAL FUND FOR FISCAL YEARS 2004/08 A minimum of US$ 200 million is pledged for fiscal year 2004, pending approval by the U.S. Congress.
MARCH
The Global Fund announces its third call for proposals in six languages - Arabic, Chinese, English, French, Russian and Spanish. Proposals are due May 31, 2003
THE GLOBAL FUND MOBILIZES FUNDS FOR ITS NEXT ROUND OF GRANTS RAISING US$ 229 MILLION
The Global Fund projects that it will need US$ 1.6 billion by the end of 2003 to underwrite its next round of grants to be approved in October and keep the pipeline open to high quality proposals.
THE GLOBAL FUND HARMONIZES POLICIES AND PROCEDURES WITH OTHER INTERNATIONAL DONORS
A Board committee on monitoring, evaluation, finance and audit (MEFA) is designated to work with the Secretariat to fine-tune its approach to performance-based funding through dialogue with grant recipients and in close coordination with the World Bank and other development partners. The Fund further adjusts its proposal guidelines based on feedback from applicants.
NON-GOVERNMENTAL ORGANIZATIONS RALLY SUPPORT FOR THE GLOBAL FUND
Advocacy and activist nongovernmental organizations from around the world convene a meeting in Paris, France to begin a coordinated campaign for full funding of the Global Fund.
MAY
THE GLOBAL FUND ANNOUNCES A "REQUEST FOR PROPOSALS" FOR LOCAL FUND AGENTS.
As experts on the ground within countries, Local Fund Agents advise the Global Fund on the manner in which grant resources are managed locally by its Principal Recipients. A tender for these contracts goes out worldwide.
MORE THAN 85 COUNTRIES RESPOND TO THE THIRD CALL WITH 200 PROPOSALS REQUESTING A TOTAL OF US$ 2 BILLION
Prior to processing all of the paper work generated by grants awarded in rounds one and two, the Fund receives this new group of proposals requesting $US 2 billion in support over a two year period, marking its third round of grant making.
31 countries that apply for funds are new applicants; other applicants from previous rounds apply for new categories of funding.
THE GLOBAL FUND AWARDS SIX SECOND DISBURSEMENTS TO COUNTRIES
This represents a milestone achievement in the life of the Global Fund. Founded upon the principle that second and subsequent disbursements of monies only follow the validation of reported results, in six cases to date, the system has demonstrated success.
THE GLOBAL FUND'S ACCOUNT BALANCE HITS US$ 400 MILLION
Remaining funds must be augmented to cover the estimated US$ 600 million in third-round grant proposals expected to be recommended by the Technical Review Panel for Board approval.
The Fund institutes an appeals procedure for a limited number of applicants who have been denied funding in both rounds this year. Colombia appeals its round 2 grant proposal, ultimately successfully.
JUNE
G8 SUMMIT IN EVIAN YIELDS US$ 1.2 BILLION IN NEW SUPPORT FROM EUROPEAN COUNTRIES AND AFFIRMS THE ROLE OF THE FUND
- France increases its pledge to 450 million euros to be paid from 2004-2006;
- Italy increases its pledge by US$ 200 million to be paid by 2006;
- The United Kingdom increases its pledge by US$ 80 million to be paid by 2006-2007;
- The European Commission confirms a minimum contribution of US$ 340 million during 2003-2006;
- New Zealand pledges US$ 700,000 for 2003.
French President Jacques Chirac calls for a $1 billion contribution from Europe to be matched by a similar contribution from the United States and a third billion from the rest of the world. The G8 summit declaration reveals agreement to arrange an International Meeting to Support the Global Fund in Paris in July.
THE GLOBAL FUND IMPLORES PUBLIC AND PRIVATE DONORS TO CONTRIBUTE US$ 3 BILLION
BY THE END OF 2004 IN ORDER TO FULLY FINANCE ANTICIPATED GRANT PROPOSALS IN THAT TIME PERIOD.
At its fifth meeting of the board, the Global Fund endorses accountability arrangements for grant recipients developed by the Secretariat in close collaboration with partners.
July
IN DIVERSE INTERNATIONAL FORA THE GLOBAL COMMUNITY REAFFIRMS COMMITMENT TO THE GLOBAL FUND
The Second Ordinary Session of the Assembly of Heads of State and Government of the African Union in Maputo, Mozambique, the Thessaloniki European Council as well as an International Meeting to Support the Global Fund in Paris in July serve as fora where ministers and corporate executives alike underscore the historic significance of the Fund.
JACQUES CHIRAC, PRESIDENT OF THE FRENCH REPUBLIC, ROMANO PRODI, PRESIDENT OF THE EUROPEAN COMMISSION, TONY BLAIR, PRIME MINISTER OF GREAT BRITAIN CALL ON MEMBER STATES TO CONTINUE THEIR SUPPORT OF THE FUND
These world leaders draw broad public attention to the need to contribute to the Global Fund and where possible, to increase such funding.
