Important note: Information in this article was accurate in 2003. The state of the art may have changed since the publication date.
Mail & Guardian (Johannesburg) - July 18, 2003
The fund hosted its first appraisal meeting in Paris this week to brief these countries on its progress after 18 months in existence.
The meeting came at a crucial time for the credibility of the fund after United States President George W Bush bypassed this financial mechanism when allocating only $1-billion of the $15-billion (over five years) earmarked for HIV/Aids to the fund.
The meeting discussed the fund's allocation of $1,5-billion to more than 150 programmes in 92 countries.
"This meeting is part of a long-term, sustainable strategy," said Jon Liden, director of relations at the fund. He said 27 ministers were presented with feature reports on in-country progress resulting from the fund's grants. They also explored innovative forms of financial support for the fund in the future. Liden said the meeting was not aimed at securing pledges, but rather assessing the progress of the fund as the fastest growing development agency to deal with the three epidemics.
In January when Bush promised $1-billion to the fund in 2004, it was with the view that the European countries would match his donations.
Liden said the EU has pledged far more than the US for 2004. "They [EU] don't want to be told what to do." He says the EU is monitoring the US and will not get caught up in a pledging-match with them.
Activists say Bush's allocation of just $1-billion undermines the fund, a United Nations initiative that flies in the face of multilateralism when dealing with epidemics.
"President Bush believes that unilateral approaches are better. His HIV/Aids effort is directly undermining the international partnership called the Global Fund. The fund has a lower overhead rate, allows for purchase of generically manufactured drugs and it will deliver resources much faster," said Paul Zeitz, executive director of Global Aids Alliance.
He said the Bush plan is to bypass the fund in favour of US agencies. "These agencies have an overhead rate of 25% to 35%; they are very slow and they are frequently required to buy American products."
Aids experts in South Africa say the fund is the "best-placed and most appropriate mechanism" for distributing resources to prevent and treat HIV/Aids.
"Ironically, the fund is in serious need of pledged and other funds. If the fund does not receive adequate and sustainable funding, the global fight against HIV/Aids may become unsustainable," said Fatima Hassan, of the Law and Treatment Access Unit.
She said the fund is committed to allocating significant money for anti-retroviral treatment and prevention efforts, whereas the Bush pledge appears to focus on prevention and sexual abstinence messages ù with only a small proportion of the funding earmarked for treatment.
"In addition, groups that promote termination of pregnancy as a viable option and those who work with commercial sex workers will not be allowed to receive any funding from the Bush allocation [the "global gag rule"]. Simply put, many organisations that are in need of funding will not qualify at all."
Liden says the fund is trying to convince American lawmakers that although they support the bilateral initiatives, more money should be channelled through the fund while they are waiting for these bilateral mechanisms to be in place. "We are up and running. The US is funding 14 countries while we have funded 92 countries."
In a video message UN Secretary General Kofi Annan stressed the significance of the body, saying it is the "main tool to scale up against the three epidemics".He said the fund was set up in record time and needs substantial resources.
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