Shock and Gloom — But a Window of Political Opportunity?

The World Bank Group and International Monetary Fund (IMF) Annual Meetings came back in full force and in person Oct. 10-16, with road closures and large black security vehicles once again clogging streets of downtown Washington, D.C. As a veteran of the meetings and a global health and development advocate the week left me in turn feeling depressed, bewildered, and cautiously hopeful.  

Here are my top 5 takeaways:

  • Shock and gloom. The revised projections for global economic growth from the IMF were pretty dire: a sharp slowdown from 6% in 2021 to 3.2% in 2022, and set to decline again in 2023, with inflation rates higher than in several decades and triggering an acute cost-of-living crisis. IMF Managing Director Kristalina Georgieva minced no words about the dangers afoot, saying there has been “shock after shock after shock” leading to historic fragility, a likely recession, and expectations of a global output loss of about US$4 trillion (about the size of Germany’s economy) over the next four years. The new edition of the World Bank’s Poverty and Shared Prosperity report found that since the onset of the COVID-19 pandemic in 2020, progress toward reducing global poverty has essentially halted and global inequality  increased. The headline on the World Bank’s own website — Development in Crisis — pretty much sums it up.
  • What pandemic? There was much hand wringing on what to do about the worsening poly-crises confronting the world today. Among the headlines were the launch of the IMF’s new Food Shock Window and the World Bank’s Second Ministerial Roundtable on Support for Ukraine, while the discussion at the Development Committee focused around two papers on the Food and Energy Crisis: Weathering the Storm and Achieving the Climate and Development Goals: The Financing Question. Notably absent from the conversations and commitments, however, was the ongoing COVID-19 pandemic (and when it did get a mention, it was mostly referred to in the past tense). A few important exceptions were the excellent speeches at the Center for Global Development delivered by three women leaders: U.S. Treasury Secretary Janet Yellen, Indonesian Minister of Finance Sri Mulyani, and German Minister for Economic Cooperation Svenja Schulze, all of whom highlighted the need to increase investments in pandemic preparedness. There was also a spotlight on the learning losses as a result of prolonged pandemic-related school closures.
  • Next generation of protests. Two decades ago, protests were a common sight outside the Spring and Annual Meetings, pressing for debt relief and an end to structural adjustment and globalization. In the wake of major policy shifts like the adoption of the Heavily Indebted Poor Countries Initiative, increased disclosure and stronger accountability mechanisms, and the inclusion of civil society in the Meetings which I was proud to help facilitate over time those protests had largely shifted to constructive dialogue. The protesters were back on the streets (and in the building) this year, once again demanding debt cancellation and climate action further fueled by World Bank President David Malpass’ widely criticized comments during the United Nations General Assembly.
  • A few billion here and there. Recent Annual and Spring Meetings had produced some significant commitments to help countries struggling to cope with the economic impact of the COVID-19 pandemic, namely through a general allocation of special drawing rights (SDRs) equivalent to US$650 billion and creation of a Resilience and Sustainability Trust (RST) at the IMF to be funded by channeling SDRs from wealthy countries to low- and lower-middle-income countries. Georgieva announced that the RST was now operational with US$37billion in pledges (of which US$20 billion has been delivered thus far) and that agreements had been reached for the first three countries — Barbados, Costa Rica, and Rwanda — to receive support from the RST. Also in September, the World Bank formally launched a new Financial Intermediary Fund for Pandemic Prevention, Preparedness, and Response (Pandemic Fund). With less than US$1.5 billion pledged so far and a first call for proposals not slated until late this year or early next, the Pandemic Fund still has a long way to go to reach the annual financing target of more than US$10 billion to close critical preparedness gaps and achieve its transformative potential. We are told more donors and pledges are expected soon, yet discussions on a sustainable financing pathway are some months away. But, on the bright side…
  • Reform is in the air. An undercurrent across the Meetings was that the two Bretton Woods Institutions created in 1944, are no longer fit-for-purpose  in 2022 to address a “world on fire” as the Vulnerable 20 (V-20) group of nations put it at their ministerial. Secretary Yellen set the stage with her pre-Meetings call to action to “rethink our overall development finance strategy” and “evolve our multilateral development bank (MDB) system” to meet this moment of unprecedented global challenges with the highly interconnected threats of climate change, pandemics, and fragility topping the priority list. Variations on this theme were echoed throughout the week by an array of leaders including former U.S. Treasury Secretary Larry Summers, Schulze, and many others. The wonky-sounding Independent Review of the MDB Capital Adequacy Frameworks, commissioned by the G20, gained support for a set of actionable MDB reforms that could unlock hundreds of billions of dollars in additional capital for global public goods. Barbados Prime Minister Mia Mottley also doubled down on her call to leaders from the global South and North to come together and build a movement around the Bridgetown Agenda to modernize the international financial institutions with “the urgency of now”.   The conversation moved beyond the  rhetoric: A coalition of countries led by Germany G7+ Presidency requested the World Bank management to produce a roadmap for reform by December this year.

Will any of this actually lead to significant change? Time will tell, but something feels different. Pandemic Action Network is committed to heed Prime Minister Mottley’s call to action and help build the political will and the movement to make it happen. One thing we are sure of: From the climate crisis to the COVID-19 crisis to the next pandemic, the world can’t afford to wait.   

 

The Pandemic Fund Action Hub

 

The Pandemic Fund Action Hub

Track, Analyze, Engage

On June 30, 2022, the World Bank’s Board approved the establishment of a new Financial Intermediary Fund (FIF) to mobilize new investments that strengthen pandemic prevention, preparedness, and response (PPR) capacities at national, regional, and global levels, with a strong focus on low- and middle-income countries (LMICs). Such a decision — supported by multiple countries and experts — is a crucial step towards a future where pandemics no longer represent a global existential threat.

This nascent Financial Intermediary Fund for Pandemic Prevention, Preparedness, and Response (Pandemic Fund) was established on September 8, 2022, after a group of founding donors agreed on the minimum necessary aspects for its operation. The World Bank hosts the Fund’s secretariat with support from the World Health Organization. Further work and agreements are required to ensure this new financial instrument will deliver on its transformative promise to make the world safer from pandemics. Among these are its focus and scope, structure, operations, governance, and financing, which experts estimate needs to reach a minimum of US$10 billion annually.

Since the process of designing and establishing the Pandemic Fund is moving swiftly, Pandemic Action Network has set up this dynamic resource hub to organize and facilitate access to relevant information. Moreover, this Action Hub aims to inform our partners and any civil society group about key developments and opportunities to mobilize, collaborate and shape the Pandemic Fund’s design and future operations.

Key documents

In this section, you will find public and official documents related to the governance and operation of the Pandemic Fund. Some of them can be preliminary versions or drafts under review by the Fund’s Governing Board.

Fund Pledge Tracker

Pandemic Action Network and the ONE Campaign are keeping a record of the pledges made to the Pandemic Fund. The goal is to better understand its funding sources and sustainability and to promote transparency and accountability through regular monitoring.

Access the Pandemic Fund’s Pledge Tracker

Civil Society Organization (CSO) Consultation Process

For this new Pandemic Fund to be successful and sustainable — and achieve its transformative promise to make the world safer from pandemics — there must be an inclusive approach to the current design process. CSOs must have room to inform the design, governance, priorities, and stand-up process. While we are supportive of the promise of the Fund, CSOs and low- and middle-income countries should be co-creators and decision-makers at every step of the Fund’s design and operation in order to ensure its success. Evidence from other mechanisms where CSOs have played an active role shows their involvement and contributions strengthen their functioning and enhance participation, accountability, and representation of affected communities. 

To catalyze needed progress toward meaningful inclusion, Pandemic Action Network, together with partners, the Center for Indonesia’s Strategic Development Initiatives (CISDI), the Eastern Africa National Networks of AIDS Service Organisations (EANNASO), and WACI Health, managed the official CSO consultation process to the Fund ahead of its establishment.

🗓️ Upcoming Sessions

    • None scheduled; please check back.

📚 Previous Consultation Outcomes

    • October 14, Civil Society & Communities Town Hall: Feedback from October 7, 2022 Pandemic Fund Board Meeting
      The Town Hall provided a readout of the October meeting of the Pandemic Fund Governing Board meeting on October 7, shared updates on decisions taken, tasks ahead, and invited feedback, reflections, and priority-sharing from civil society and community colleagues. The Town Hall also provided updates on formally establishing an active civil society and communities constituency, as well as a Civil Society Technical Working Group to facilitate regular, proactive channels for information sharing, and increase opportunities for experts from civil society and communities to inform technical decision-making around the Fund. 

      Readout & Notes

    • September 15, Civil Society & Communities Town Hall: Feedback from First Pandemic Fund Board Meeting
      During this meeting, interim civil society Board Members Jackline Njeri Kiarie and Elisha Dunn-Georgiou, along with alternate Board Members Nitish Debnath and Olya Golichenko, provided a readout of the first meeting of the Pandemic Fund Governing Board meeting (Sept. 8-9), shared updates on decisions and tasks ahead, and gathered feedback from civil society and communities colleagues.

      Presentation Deck (Sept. 15) | Readout & Notes

    • August 30 & 31, Second Round Consultations | Summary of Proceedings and Key Messages
      This document summarizes the discussions from August 30 and 31 and presents the ideas and recommendations emphasized by CSO participants on the scope and priorities of the PPR FIF. Annexes contain meeting notes, attendee information, and written feedback.

      Summary of Proceedings and Key Messages (Aug 30/31)

    • August 16 & 17, First Round Consultations | Summary of Proceedings and Key Messages
      This document summarizes the discussions from August 16 and 17 and presents crucial ideas and recommendations emphasized by multiple participants on three issues: governing board, civil society engagement, and technical advisory panel. Annexes also contain meeting notes and written feedback provided.

      Summary of Proceedings and Key Messages (Aug 16/17)

📹 Recordings

👥 Participation

Additional figures will be provided soon.

Interim CSO Representatives for the PPR FIF Governing Board

📢 Call for Nominations

Founding contributors in the new Financial Intermediary Fund (FIF) for Pandemic Prevention, Preparedness, and Response (PPR) reached an agreement that its Governing Board should include two voting seats for civil society organization (CSO) representatives. Pandemic Action Network, the Center for Indonesia’s Strategic Development Initiatives (CISDI), the Eastern Africa National Networks of AIDS Service Organisations (EANNASO), and the Platform for ACT-A Civil Society & Community Representatives initiated a civil society-led selection process and issued a global call for nominations to select two interim CSO representatives for the PPR FIF Governing Board on August 26, 2022.

This interim selection process took place on an abbreviated timeframe to ensure that the interim CSO representatives could participate in the first Governing Board meeting, scheduled for September 8-9, 2022. The application deadline was September 2, 12 pm ET, and the eligibility criteria and nomination form remain available for anyone interested.

👥 Selection Committee

The group of organizations and networks facilitating the civil society-led selection process believed it was key that the composition of the Selection Committee reflected regional and thematic diversity. With this in mind, the group agreed to integrate it with seven (7) members. They were:

    • Ashley Arabasadi, Management Sciences for Health
    • Harjyot Khosa, International Planned Parenthood Federation (South Asia Regional Office)
    • Lizzie Otaye, EANNASO
    • Mike Podmore, Platform for ACT-A Civil Society & Community Representatives/STOPAIDS
    • Nahashon Aluoka, Pandemic Action Network
    • Neil Vora, Conservation International/PPATS Coalition
    • Olivia Herlinda, CISDI

⏱️ Timeline

👤 Selected Representatives

On behalf of the Selection Committee, we are pleased to announce that Jackline Njeri Kiarie (Amref Health Africa — Global South) and Elisha Dunn-Georgiou (Global Health Council — Global North) were selected as interim civil society representatives for the new Financial Intermediary Fund (FIF) for Pandemic Prevention, Preparedness, and Response (PPR) Governing Board. Nitish Debnath (One Health Bangladesh) and Olya Golichenko (Frontline AIDS, United Kingdom) will act as alternates. They have all accepted their positions.

This process has aimed to ensure that a diversity of civil society experience, global perspectives, and regional representation inform PPR FIF decision-making, starting from the first meeting of the Fund’s Governing Board, scheduled for September 8-9. These representatives will serve for an interim period of approximately six months until full-term CSO representatives are named through a longer-term, civil society-led selection process. 

While ensuring interim CSO representatives are in place for this week’s first PPR FIF Governing Board meeting required an extremely abbreviated timeframe, 66 submissions were received from 27 countries during the one-week open call for nominations. We are confident that the selected individuals will be strong representatives of the diversity of global civil society, advocate determinedly for community voices and priorities in the PPR space, and collectively demonstrate the vital and constructive role of civil society in global decision-making.

Analysis & Resources

Closing the Gap: Pandemic Fund Tracker

Acting on the lessons learned from the COVID-19 crisis and the recommendations of several expert panels — including the Independent Panel for Pandemic Preparedness and Response and the G20 High-Level Independent Panel on Financing the Global Commons — the World Bank’s Board approved on June 30, 2022, the establishment of a new Financial Intermediary Fund (FIF) to mobilize new investments to strengthen pandemic prevention, preparedness, and response (PPR) capacities at national, regional, and global levels, with a focus on low- and middle-income countries (LMICs). 

This nascent FIF for Pandemic Prevention, Preparedness, and Response (Pandemic Fund) is currently under design. Its strength and potential will depend on its vision, focus, structure, and governance — including transparency and inclusivity in all design and decision-making processes — as well as robust and sustainable funding, which experts estimate needs to reach a minimum of US$10.5 billion annually. 

Now is the time for leaders from around the world to support the Pandemic Fund so that it can deliver on its promise of addressing critical gaps in pandemic PPR and strengthening country-level capacity. Support from a broader base of countries — as well as from philanthropies and the private sector — is necessary for cementing sustained, global investments in pandemic preparedness as a global public good that bring tangible benefits to all and prevent another deadly and costly pandemic. But to fulfill the Fund’s mission, contributions must also be truly additional to financial commitments for other global health and development priorities and programs

Based on publicly-available information and intelligence gathered through our Networks, this tracker aims to record pledges made to the Pandemic Fund, with the goal of better understanding funding sources and sustainability, and promoting transparency and accountability through regular tracking.

Access the Tracker’s Data

Summary Analysis

Last updated December 1, 2022

As of today, the World Bank (WB) claims the Pandemic Fund has raised pledges of US$1.6 billion. So far, we have identified US$1.41 billion that has been publicly announced. Further contributions amounting to US$8.9 billion are needed to reach the US$10.5 billion per year baseline experts have estimated necessary. However, the exact annual financing gap is likely larger considering some contributions announced are multi-annual. The World Bank has not yet disclosed specific data to come up with a more accurate figure. 

19 donors 15 governments, 3 philanthropic organizations, 1 nonprofit organization, and 0 private sector organizations have pledged to the Pandemic Fund. According to the World Bank, seven additional donors committed to contributing, but their pledges have not been announced. 

While it is crucial that as many countries as possible contribute to the Pandemic Fund, G20 and OECD members are essential donors. Because of their roles globally, these countries must set an example in contributing to and sustaining global public goods, such as pandemic preparedness and response. The following map shows the pledge status of such a group of countries.

Financial Intermediary Fund for Pandemic Prevention, Preparedness, and Response Tracker (Pandemic Fund)

Is the tracker's data accurate and up to date? If not, do not hesitate to share any intel or modification suggestions with us.

Methodology

  • Included pledges have been verified either by a government or multilateral website, and/or the World Bank, and/or a credible top-tier news outlet.
  • “Additionality” is defined as additional to existing global health and development spending — the term is used to qualify that the financial resources pledged are new compared to other financial resources already committed to global health, international aid, or other funding mechanisms. Donor-specific budget rules are also considered in the assessment.

More about the Pandemic Fund

Pandemic Action Network Statement on a New World Bank Fund for Pandemic Prevention, Preparedness, and Response

Statement by Pandemic Action Network Co-Founder Carolyn Reynolds on the decision by the World Bank’s Board of Executive Directors to establish a new Financial Intermediary Fund for Pandemic Prevention, Preparedness, and Response: 

“Today’s decision by the World Bank’s Board of Executive Directors to establish a new global pandemic fund is an important step forward to heed the hard lessons of COVID-19 and make the world safer from pandemics. The fund offers the potential to marshal significant new financing to help prevent such a deadly and costly crisis from happening again. As the fund moves from concept to reality, global leaders should seize this opportunity to ensure it is catalytic, inclusive, and accountable. 

“The COVID crisis has shown us that pandemic prevention and preparedness is in everyone’s interest, and it should be everyone’s business. The US$1.1 billion pledged to the fund thus far is still a fraction of the estimated US$10 billion annually that global health and finance experts agree is urgently needed to bolster the world’s pandemic defenses. We urge more governments, philanthropies, and other funders to seize this moment to pandemic proof our collective future by stepping up and investing in this new fund.” 

Launching a New Pandemic Preparedness Fund: A Crack in the Cycle of Panic and Neglect?

Read the full analysis here on csis.org.

We are in a fragile, yet promising moment when it comes to heeding the lessons of the COVID-19 crisis. But a chance to begin to break the cycle of crisis and complacency and strengthen global security is finally within our reach, with the emergence of an international coalition to increase financing for pandemic preparedness. A new CSIS commentary from Carolyn Reynolds and J. Stephen Morrison discusses how the creation of a new Pandemic Preparedness Fund offers a near-term opportunity to mobilize significant new investments that are unlikely to happen otherwise, by using catalytic grant financing to close critical gaps in preparedness. Pivotal decisions remain to ensure that the fund has clearly defined strategic priorities that advance shared security interests; expands the pool of funding available for pandemic preparedness and response by tapping creative additional sources beyond official development assistance; and is steered by a decisive governing body. Strong U.S. leadership and financial commitment, bridging the U.S. administration and Congress, and resting on a durable bipartisan consensus, will be the single most important factor in moving the fund from its infancy into an instrument with the long-term vision, clear and unique purpose, and legitimacy to deliver rapid and sustainable results. Just as the United States led the world two decades ago to launch PEPFAR and the Global Fund to combat the global AIDS crisis, the United States should now lead and rally the world to launch this new fund and help prevent the next pandemic.

Read the full analysis here on csis.org.

 

Call for African Leaders to Support the Pandemic Fund

The COVID-19 crisis has demonstrated the devastating impact that epidemics and pandemics can have on the health, security, and prosperity of Africans. It has accentuated the need for a New Public Health Order for Africa — championed by the Africa Centres for Disease Control and Prevention (Africa CDC) — not in the least because of the gross global inequities in access to medical tools including vaccines, diagnostics, therapeutics, personal protective equipment, and other lifesaving medical countermeasures and supplies that have played out during this pandemic. The COVID-19 pandemic has also underscored the need for Africa to build more resilient health systems and collaborate across borders to be able to prevent, detect, and respond to emerging health threats while addressing ongoing health priorities. 

African civil society organizations (CSOs) have come together to urge leaders of African governments to pledge their support for the proposed new Pandemic Preparedness Fund at the World Bank and to ensure that the Fund advances the aims of the New Public Health Order for Africa through equitable and multilateral support. If well-resourced, the Fund has the potential to be a transformative new source of financing to advance Africa’s health security and to prevent the next pandemic. 

Read the full letter. If your organization is interested in signing on, please reach out to Hanna