Global Fund “finds” about $1.6 billion in additional funding for 2012-14

Global Fund News Flash: Issue 01
Posted on Thursday, 10 May 2012

Extract (full text)
Available Funding
We start with a piece of very good news: a financial forecast by the Global Fund surprised everyone by finding that about $1.6 billion in additional funding will be available in the 2012-14 period for investment in projects that save lives. There were many factors that piled up on the plus side of the ledger, but most of the reasons grew out of tough choices that the Board made last year. A back-to-basics approach, focusing on the core business of managing grants, with common sense management, has created a situation where good things happen. Many of our friends noticed. Some got more generous. Others found they could speed up existing plans to make a donation. Still others jumped in for the first time. What the new forecast means is that in addition to the $616 million in funding for existing programs, known in Global Fund-speak as the ‘Transitional Funding Mechanism,’ there is another billion dollars for new grants. This has no effect on the $7 billion in grants that were already approved and scheduled to be disbursed over the next 18 months or so. But it means we can now help fund new projects that are designed to meet the most pressing need for service. Our mission statement sums it up best: We are investing the world’s money, to save lives.

Transformation in 90 Days
Gabriel Jaramillo, who became General Manager in February, 2012, reported to the Board of the Global Fund at its meeting today about the transformation he has led in his 90 days on the job. The place is not really the same as it was before he arrived. A full 245 jobs were eliminated. And 189 new positions were created, almost all in grant management. Net-net, it’s only an 8 percent drop. But inside the building, it felt like an earthquake. Now that the aftershocks have died down, the change is evident. It’s all about grant management. The division reset its priorities, with three ‘High Impact’ teams that concentrate on the countries with most of the disease burden, meaning the ones that require the most intensive work. Two other teams concentrate on smaller countries so every region gets the attention it needs. A reorganization like this can create more cohesion, by breaking down internal barriers. Plus, new executive committees make for better oversight and course correction. Jaramillo’s approach is that common sense rules.