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 © rights reserved. © 2014 2014 Development Development Finance Finance International, International, Inc. Inc. AllAll rights reserved. 2 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. © 2014 Development Finance International, Inc.TM All rights reserved. 3 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 7 Domestic Fundraising 8 Additional Procurement Mechanisms © 2014 Development Finance International, Inc.TM All rights reserved. 4 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 © 2014 Development Finance International, Inc.TM All rights reserved. National Commission for Immunization and Epidemiology (NCIE) National Immunization Fund • Does not substitute traditional funding • Offers little flexibility to use funds for other needs 5 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 © 2014 Development Finance International, Inc.TM All rights reserved. • 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 6 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. 7 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 © 2014 Development Finance International, Inc.TM All rights reserved. 8 www.dfintl.com Global Headquarters Asia Regional Office India Office Africa Regional Office 4630 Montgomery Ave. Suite 300 Bethesda, MD 20814 United States 1 301 986 1226 11/F Net One Center Bonifacio Global City Taguig, Metro Manila 1634 Philippines 632 818 1156 6th Floor, Wing A Westend Towers Waiyaki Way, Nairobi Kenya 254 20 421 4206 9th Floor Spaze i-Tech Park Tower-A1, Sector-49 Sohna Road, Gurgaon-122018 India 91 124 676 8688