New Study Identifies Alternative Options for Funding HIV Programs

BETHESDA, Md., Sept. 23, 2014 /PRNewswire/ -- Donor funding for HIV programs has flattened in recent years, threatening to stall the progress of HIV programs worldwide and presenting new challenges for low and middle-income countries where HIV prevalence is high. A new paper published in BMC Public Health identifies strategies for funding HIV programs that do not depend on donors.

The study, conducted by researchers at Abt Associates and funded by the U.S. Agency for International Development and Abt Associates, examined potential non-donor funding sources for national HIV responses in 17 low- and middle-income countries through literature review and Global Fund documentation.

Among different options, the authors found that countries are mainly using four non-donor funding sources for national HIV programs:

• Earmarked levies, which are tax revenues exclusively allocated for a certain cause;   
• Concessionary loans that have low interest rates and deferred payment schedules from sources such as the International Monetary Fund, World Bank, regional development banks, and other financing institutions; 
• Debt conversion, where creditors forgo a portion of their claims on the condition that a beneficiary country invests an agreed amount in its national health programs; and
• Risk-pooling schemes, such as health insurance, where health services would be covered, or special social assistance programs that help people living with a particular illness, including HIV.

The report provides a number of country examples and concludes that domestic sources of funding are important alternatives to consider and might be able to replace donor HIV funding in specific country contexts.  

"Given the reality that donor funding for HIV programs is flattening, both countries and donors should create a financial sustainability plan before committing any donor funding for HIV programs and activities to ensure their sustainability," said Dr. Itamar Katz, the study's lead author and a former senior associate at Abt.

The authors note that not all options will fit every country, and that no one solution would cover the entire funding needs of a nation to respond to HIV. They underscore the need for HIV programs to reduce costs by becoming more efficient and prioritizing services. They conclude that successfully mobilizing resources for HIV programs will require close collaboration with other sectors, particularly with the Ministry of Finance, to ensure that the new financing mechanism aligns with economic growth and that HIV investments yield higher social benefits.

To view the full article, visit:
http://www.biomedcentral.com/1471-2458/14/956

About Abt Associates
Abt Associates is a mission-driven, global leader in research and program implementation in the fields of health, social and environmental policy, and international development. Known for its rigorous approach to solving complex challenges, Abt Associates is regularly ranked as one of the top 20 global research firms and one of the top 40 international development innovators.  The company has multiple offices in the U.S. and program offices in more than 40 countries. www.abtassociates.com.

SOURCE Abt Associates