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Past Event

A Global Economy and Development and Global Health Initiative Event

Funding Global Health Needs: Will the Global Fund Debt Conversion Make a Difference?

Africa Growth and Development, Global Economics, Foreign Debt, Development, Global Health

Event Summary

Despite recent increases in official development assistance, financing needs for AIDS, tuberculosis and malaria are still lacking. Health spending on these and other issues remains far lower than required to meet the health-related Millennium Development Goals by 2015. To address these critical financing needs, many within the international health community are advocating the use of global fund debt conversion, a mechanism designed to convert old government debt into new resources to tackle HIV/AIDS, tuberculosis and malaria.

Event Information

When

Wednesday, February 28, 2007
2:00 PM to 4:00 PM

Where

Stein Conference Room
The Brookings Institution
1775 Massachusetts Avenue, NW
Washington, DC
Map

Contact: Brookings Office of Communications

E-mail: events@brookings.edu

Phone: 202.797.6105


On February 28, the Brookings global health financing initiative hosted a discussion on the global fund debt conversion proposal and its pilot program, Debt2Health, with featured speaker Ngozi Okonjo-Iweala, Brookings distinguished visiting fellow. Participants included Brookings scholar Homi Kharas; Paul Zeitz, co-founder and executive director of the Global AIDS Alliance; and Kingsley Chiedu Moghalu, head of global partnerships at the Global Fund to Fight AIDS. David de Ferranti, director of the global health financing initiative, moderated this discussion.

Transcript

DAVID DE FERRANTI: We and the world start with a funding gap for health that has been variously estimated, but there is one thing that is agreement on, and that is that it is big. Bill Gates has said that if the shortfall in world funding is about $50 billion per year to reach the Millennium Development Goals for health as is commonly suggested, that even with his resources plus Warren Buffett's, all of that money would only fill the gap for 18 months and then everyone would be right back to the same problem again. So even substantial resources are not substantial enough.

The Global Fund raised and committed $7 billion from 2002 to 2007 and has received total pledges of $9.8 billion through 2008. And while these are not small amounts of money, that amount in the global fund is nowhere the estimated need of $15 billion per just for the three diseases that concern it, and I know that the Global Fund is very aware of these issues.

Bottom line, it will take financial cleverness and a long-term commitment of substantial new funds to close these gaps, and therefore we have not only a financial gap, but we have an ingenuity gap. We need to be ingenious. And there are ideas that are recently launched that are showing us some possibilities. The International Finance Facility for Immunizations, IFFI, and the Advanced Market Commitment, the AMC for New Drugs, recently launched, and the French Airline, these are all new undertakings, relatively new, trying to stretch the available dollars so that they can have a more beneficial impact for health. And now today we discuss another idea, the Global Fund Debt Conversion, and I hope that it will not only find ideas that are important for the financing gap and the ingenuity gap, but also improve or solve our knowledge gap.

Participants

Featured Speaker

Ngozi Okonjo-Iweala

Nonresident Senior Fellow, Global Economy and Development

Introduction and Moderator

David de Ferranti

Senior Fellow, The Brookings Institution

Panelists

Homi Kharas

Senior Fellow, Global Economy and Development, Wolfensohn Center for Development

Kingsley Chiedu Moghalu

Head of Global Partnerships, Global Fund to Fight AIDS

Paul Zeitz

Co-founder and Executive Director, Global AIDS Alliance

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