Transcript Slide 1

Innovative Financing Mechanisms:
Best Practice to
Bridge Funding Gaps for Health
Dr. Rupa Rai Maitra
November 2014
Financial stretch to meet
health MDGs in 2015
Every year nearly 22.6 million infants
don’t receive basic vaccines. Most of
them in Africa
With rapidly changing burden of disease,
vaccines compete for limited
resources with other priorities
New sources of funding − traditional & innovative − are
needed to guard hard-won gains and support the introduction of
breakthrough vaccines
TM
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Innovative Financing Mechanism (IFM)
is defined as non-traditional applications of ODA,
joint public-private mechanisms, and
flows that either support fundraising by
tapping new resources or
deliver financial solutions to
development problems.
WHO Taskforce Working Group 2, 2009.
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TYPES OF INNOVATIVE FINANCE MECHANISMS
1
Debt for Development
2
Fundraising through PPPs
3
International Taxation Schemes
4
Frontloading Instruments
5
Pull Mechanisms for R&D
6
Risk Mitigation Instruments to Fund Outbreaks
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Domestic Fundraising
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Additional Procurement Mechanisms
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DOMESTIC FINANCING: COSTA RICAN LOTTERY
MOH
Costa Rican Social
Security
San Jose Social
Protection Board
Funds from
health budget
Funds from
national insurance
Funds from
national lottery
Approach: Earmark funds
from National Lottery in
support of National
Immunization Program
Objectives: Raise additional
funding to improve
immunization coverage across
the country
Success Factors: National
Commission for Immunization
has independence to partner
and raise funds
• Mechanism demonstrates country’s
ability to implement an IFM to raise
additional funding as donors scale
down
• Funds are earmarked – new vaccine
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National Commission for
Immunization and Epidemiology (NCIE)
National Immunization Fund
• Does not substitute traditional funding
• Offers little flexibility to use funds for
other needs
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GAVI FRONTLOADING INSTRUMENTS – IFFIM
Approach: Long-term donor
resources are provided up
front through the issuance of
bonds
Objectives: Provide stable
donor commitment
Success Factors: Vast highlevel political commitment,
GAVI leadership
Source: GAVI
• Meets immediate funding needs.
• Stable funding for immunization
• Inspiration for other IFMs beyond
vaccines
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• Initial start-up costs, expertise
• Front-loading could reduce donor
capacity to finance in the future
• Assumes that there will be less reliance
on donor funding in the future
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WHAT DID WE LEARN?
Holiday
• Bring
value and additional resources
• Serve to complement ODA and
government funding – not to substitute
them
• More successful with multi-stakeholder
alliances with shared vision, roles and
responsibilities
• Must be built with transparent dialogue
and actions
• Political will is a must!
© 2014 Development Finance International, Inc.TM All rights reserved.
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WHERE DO WE GO NEXT?
• Move from dialogue to actions
• Build on new international platforms set to
mobilize public and private funding
• Capitalize on resource generating domestically,
but yet look beyond tax revenues
• Health Bonds
• Remittances
• Use “UHC momentum” to apply innovative
approaches under national Health Insurance
Schemes
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