It’s been a
while since the Global Fund was considered a splendid innovation allowing global
health funding to go from millions to billions, at the start of the MDG era. So
it’s sad (though perhaps not entirely surprising) to see that the Global Fund
leadership doesn’t recognize times have changed.
I was
reading Peter Sands’ case, this morning in a Stat Op-Ed,
in which he (rightly) claims the private sector should shoulder some of the
responsibility for improving global health, but fails to draw the obvious
conclusion.
I understand
his argument that the private sector can bring quite some expertise and
resources, in a number of areas (and so global health would indeed be dumb not
to make use of them).
On “SDG era / holistic
global health thinking” (see for example the rather “interesting”
relationship of the GF with Big
Alcohol – till recently? - and Big Soda), the Global Fund is certainly not
a trailblazer anymore (as has been pointed out in detail by many, elsewhere),
with superior service delivery expertise as one of the weak excuses
used for these sorts of partnerships. Let’s hope that with time, the GF will
become wiser in this area.
But here I’d
like to focus on the fact that Sands fails to see the writing on the wall, in
many countries, in terms of mobilizing
resources. He still seems to think corporate “peanuts” will suffice: “ While in
Davos, I called on private sector leaders to mobilize at least $1 billion (i.e. out of 14
Billion) of that target.”
It’s worth
quoting his final paragraph in full:
“…we
also need private sector leadership in mobilizing financial resources. The Bill and Melinda Gates Foundation is
by far the largest of the private foundations supporting the Global Fund, and
(RED) has raised more than $600 million for its fight against AIDS in Africa. Business
leaders should heed Bill Gates’ words that the foundation’s investments in
global health funds (including Gavi, the Vaccine Alliance; the Global Fund; and
the Global Polio Eradication Initiative; [Gates also added the GFF]) are “the
best investments that Melinda and I have made in the past 20 years, and they
are some of the best investments the world can make in the years ahead.” Gates
said these investments have generated returns of 20 times the amount invested….”
So why, on
earth, do Peter Sands (and also Bill Gates, for that matter) then not draw the
obvious conclusion? That it’s high time, for (global health) public-private
partnerships to mobilize a big part of the money via taxing of the private (and
global finance) sector? Put differently, let’s take ‘partnerships' to the next
level π.
I heard
Sands say, in response to a similar quote from Sania Nishtar, at the Davos
session on ‘financial innovation for global health’ that ‘tax’ is “actually his favourite innovation”. Why
not put this, explicitly, on the table then, also at global level (now, Sands & others mainly seem to
consider tax key for domestic revenue mobilizing), for global corporations?
As in: taxing the winners of globalization, and so let them really be ‘stakeholders’
in/towards a better future, and really “shoulder some of the responsibility for
improving global health”.
A suggestion for the replenishment
of the Big Global Health Funds (& then one more)
The same
goes for Bill Gates. If, as he rightly states, replenishment of these Big Four
Funds is very important to prevent global health (outcomes) backsliding in the
years to come, why not seize the current momentum in countries like the US
(with AOC’s tax proposal) or many European countries, where many citizens understand
damned well (and totally agree with) Oxfam’s third
key message in its annual Davos report,
to “End the under-taxation of rich individuals
and corporations. Tax wealth and capital at fairer levels. Stop the race to the
bottom on personal income and corporate taxes. Eliminate tax avoidance and
evasion by corporates and the super-rich. Agree a new set of global rules
and institutions to fundamentally redesign the tax system to make it fair, with
developing countries having an equal seat at the table.’”
Jeffrey Sachs & others made an interesting suggestion
in this regard, a few weeks ago, ahead of the Global Fund Replenishment – “hundreds of the super-rich could easily
pledge $5 billion per year for the period 2020-2022”. But it’s not going far enough (as he linked it
to the Giving Pledge, and refrained from using the word ‘tax’, still a “toxic” term
in Davos I understand). I also don’t understand why it should be limited to the
GF replenishment only.
Why, instead, not explicitly, as part of the SDG
3 Global action plan, foresee taxing of multinationals ( or a similar
proposal) as a way to (help) fund “the Big Four”? And of course, WHO as well, no doubt the biggest
global public health good of all?
It’s not rocket science. All global health leaders of big organizations
actually believe in (more and progressive) taxing (and even Bill Gates does so,
in his latest reincarnation).
The time seems certainly more than ripe. And trust me, if Global Health
fails to do so in the years to come, it will
suffer, funding wise and in terms of legitimacy. That would be a shame. Conversely, global health (funding) could
once again be an inspiration for other (SDG relevant) sectors.
How it needs to be worked out in detail, that’s something for (health) economists, tax experts (and lawyers), I’m not qualified π.
I suspect, though, that the current global health leadership is too
close to Davos men & women to draw this – in my opinion, rather obvious –
conclusion on “global health funding for the new SDG era”… Let’s hope they prove me wrong in the years
to come.