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Gerald R Ford School of Public Policy ** Integrated Policy Exercise ** January 2003
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A Gerald R Ford School of Public Policy ** Integrated Policy Exercise ** January 2003
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Global AIDS Fund Near Bankrupt, Activists Warn Last Updated: October 10, 2002 01:59 PM ET Print This Article http://www.reuters.com/news_article.jhtml?type=search&StoryID=1561236&fromEmail=true# GENEVA (Reuters) - The Global Fund to fight AIDS, the UN-backed scheme launched last year to combat major infectious diseases, could be bankrupt within months if billions of dollars are not added to it, an activist group said on Wednesday. The Washington-based Global AIDS Alliance said cash pledged so far for next year was a little over one quarter of the $4.25 billion Fund officials feel will be necessary. "The Fund faces de facto bankruptcy in just 4 months when new requests for funds will pour in," Alliance global director Paul Zeitz said in a statement. The Fund, which has so far amassed pledges and donations totaling $2.1 billion from governments and private donors, is already committed to paying out around $1.6 billion over the next 5 years to help countries fight AIDS, malaria and tuberculosis. But a second round of requests for help from countries worst affected has been submitted for approval by experts of the Geneva-based Fund, which was set up at the behest of United Nations Secretary-General Kofi Annan. No figures have yet been released, but sources close to the Fund told Reuters that the requests were likely to be even greater than in the first round, which was held earlier this year. In launching the Fund, Annan said some $7 to 10 billion would be needed each year from all sources, not solely the Global Fund, to keep the AIDS pandemic in check. The US activists said they had seen a financing plan, to be debated by an executive board meeting of the Global Fund on October 10-11, which spells out its needs for 2003-2004. Next year, the Fund would require a further $4.6 billion, of which only $300 million had so far been promised in the multi-year donations. Fund officials declined to comment on figures. "This data makes clear that the Fund faces a severe financial shortfall. If this shortfall is not rectified, there will be a failure of many (AIDS) programs," the Alliance said. The activists said it was up to the G7 group of the world's most industrialized states, along with other rich states, to shoulder the bulk of the financial burden. The United States, which has so far pledged $500 million, must boost its contribution to $3 billion over the coming 2 years, or 35% of the total, they said. © Copyright Reuters 2002. All rights reserved. Any copying, re-publication or re-distribution of Reuters content or of any content used on this site, including by framing or similar means, is expressly prohibited without prior written consent of Reuters. Quotes and other data are provided for your personal information only, and are not intended for trading purposes. Reuters, the members of its Group and its data providers shall not be liable for any errors or delays in the quotes or other data, or for any actions taken in reliance thereon. © Reuters 2002. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world. |