Innovative Financing Mechanisms: Best Practice to Bridge Funding Gaps for Health Dr. Rupa Rai Maitra...

Innovative Financing Mechanisms:Best Practice to

Bridge Funding Gaps for Health

Dr. Rupa Rai MaitraNovember 2014

© 2014 Development Finance International, Inc.TM All rights reserved.

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

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New sources of funding − traditional & innovative − are needed to guard hard-won gains and support the introduction of

breakthrough vaccines

With rapidly changing burden of disease,vaccines compete for limited resources with other priorities

© 2014 Development Finance International, Inc. All rights reserved.

3© 2014 Development Finance International, Inc.TM All rights reserved.

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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Additional Procurement Mechanisms

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Debt for Development

Fundraising through PPPs

TYPES OF INNOVATIVE FINANCE MECHANISMS

3 International Taxation Schemes

4 Frontloading Instruments

6 Risk Mitigation Instruments to Fund Outbreaks

7 Domestic Fundraising

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5 Pull Mechanisms for R&D


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

Funds from national lottery

DOMESTIC FINANCING: COSTA RICAN LOTTERY

National Immunization Fund

National Commission for Immunization and Epidemiology (NCIE)

Funds from national insurance

Funds from health budget

• Does not substitute traditional funding• Offers little flexibility to use funds for

other needs

• Mechanism demonstrates country’s ability to implement an IFM to raise additional funding as donors scale down

• Funds are earmarked – new vaccine

MOH San Jose Social Protection Board

Costa Rican Social Security


Approach: Long-term donor resources are provided up front through the issuance of bonds

Objectives: Provide stable donor commitment

Success Factors: Vast high-level political commitment, GAVI leadership

GAVI FRONTLOADING INSTRUMENTS – IFFIM

• Meets immediate funding needs. • Stable funding for immunization • Inspiration for other IFMs beyond

vaccines

• 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

Source: GAVI


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! 7

WHAT DID WE LEARN?


• 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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WHERE DO WE GO NEXT?

Global Headquarters4630 Montgomery Ave.Suite 300Bethesda, MD 20814 United States1 301 986 1226

Asia Regional Office11/F Net One CenterBonifacio Global CityTaguig, Metro Manila 1634 Philippines632 818 1156

India Office9th Floor Spaze i-Tech ParkTower-A1, Sector-49Sohna Road, Gurgaon-122018India 91 124 676 8688

www.dfintl.com

Africa Regional Office6th Floor, Wing AWestend TowersWaiyaki Way, NairobiKenya254 20 421 4206

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