Important note: Information in this article was accurate in 2002. The state of the art may have changed since the publication date.
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Wall Street Journal - March 6, 2002
Michael M. Phillips, Staff Reporter of The Wall Street Journal
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," predicted Anders Nordstrom, the fund's interim executive director in Geneva. 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 launch 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 countries 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," said Biswick Mwale, executive director of the country's National AIDS Commission.
But 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.
Write to Michael M. Phillips at michael.phillips@wsj.com
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