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Gerald R Ford School of Public Policy ** Integrated Policy Exercise ** January 2003


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Global AIDS Grants Demand Will Likely Exceed Fund's Size --- Sum Available Is About $700 Million -- Below the $2 Billion Pledged --- Many Poor Nations Won't Get Much, if Anything

 

Asian Wall Street Journal

New York, N.Y.

Mar 7, 2002

--------------------------------------------------------------------------------

Authors: By Michael M. Phillips

Pagination: A8

ISSN: 03779920

 

WASHINGTON -- About 50 countries are expected to submit grant proposals

this week to the new global fund to fight AIDS, malaria and tuberculosis,

but fund officials acknowledge there probably isn't enough money to go

around.

 

The amount of money in the fund is currently about $700 million -- well

below the $2 billion pledged by wealthy nations, foundations and corporations.

Many poor countries in Africa, Asia, Latin America and Eastern Europe might

not get much money, if they get any at all.

 

"What we will receive in proposals will probably go beyond our resources,"

Anders Nordstrom, the fund's interim executive director in Geneva, predicted.

The applications are due Sunday, and winners will be announced April 24.

The "optimistic view," according to one aid official, is that the initial

projects will persuade donors to loosen their purse strings further. "The

pessimistic view is that the powerful countries will feel they've made

their gesture and can now move on to more interesting things," the official

warned.

 

The race for the first round of grants underscores the challenges the

global fund faces. Since United Nations Secretary General Kofi Annan proposed

it last year, the fund has been able to focus world attention on diseases

that kill millions in the developing world.

 

When he called on rich nations to start a global attack on infectious

diseases, Mr. Annan said the fight would require as much as $10 billion

a year. Instead, governments, businesses, foundations and individuals have

pledged about one-fifth of that amount, with no specific promise to fill

-- or refill -- the kitty.

 

The U.S., for instance, has pledged $500 million. While it has appropriated

$300 million, $200 million won't come until fiscal year 2003, which begins

Oct. 1, and only if Congress approves it. The global fund expects to accept

at least one more round of grant applications this year.

 

There is a long list of nations that can apply for the limited resources.

Aid officials have ruled out only the very richest countries, meaning African

nations may have to compete against Russia, Ukraine, China and other better-off

nations for grants.

 

The 50 countries expected to submit grants this week include half the

nations of sub-Saharan Africa. Africa is home to 70% of the people world-wide

infected with HIV, the virus that causes AIDS; AIDS claimed 2.3 million

lives there last year. Malawi, for instance, plans to ask the fund for

$30 million to $60 million for a comprehensive AIDS package, including

voluntary testing, counseling and care that could include some use of life-extending

antiretroviral drugs.

 

"The HIV, TB and malaria problem is enormous in Malawi, and we need more

than we're able to ask for," Biswick Mwale, executive director of the country's

National AIDS Commission, said.

 

However, Mr. Nordstrom said that even if the fund delivers just $800

million this year, it would constitute a 50% increase in the annual global

funding to combat AIDS, TB and malaria in the developing world.

Still, fund officials know they will have to conduct painful triage among

many worthy -- and sometimes politically influential -- candidates. They

said they will reject proposals that aren't likely to produce results,

no matter who the applicant is.

 

"We're only going to fund programs that really make a difference," said

Mr. Nordstrom.