	Background

In January 2002, the Global Fund to Fight AIDS, Tuberculosis, and Malaria, was established in Geneva, Switzerland. The Fund is an independent foundation, and its board of directors consists of representatives of seven donor countries and seven developing countries. The Global Fund's efforts are intended to mitigate the impact of infectious disease on countries in need and thus to contribute to a reduction in poverty. Global Fund documents emphasize that it is a financing instrument complementing existing programs and that it is intended to attract, manage, and disburse additional resources, rather than re-channel existing resources. The Global Fund is not a United Nations agency, although it works closely with U.N. agencies, as well as with other aid agencies and NGOs involved in the struggle against the three diseases. Origins

The concept of an independent funding mechanism to fight infectious disease has a number of roots. In October 2001, a Transitional Working Group (TWG) was convened, which included representatives of developing and donor countries, NGOs, the private sector, and the United Nations. However, the Board decided to approve the remaining 37 grants as the money became available in 2006. Final approvals for Round 5 grants were made at its final board meeting in December 2005. The Global Fund will make grants only if it has funds on hand to cover the first two years of the proposed projects—an approach known as the Comprehensive Funding Policy. The policy is designed to avoid disruptions to projects due to funding shortages. This is regarded as a particularly important consideration with respect to antiretroviral therapy, since interruptions in treatment can lead to the emergence of resistant strains of HIV and to the deaths of patients. Funding for the third through fifth years of the projects is dependent on new contributions to the Global Fund by donors. The Global Fund has approved 107 projects for Phase 2 funding totaling $1.1 billion. For more information on programs not approved for Phase 2 funding see CRS Report RL33396, The Global Fund to Fight AIDS, Tuberculosis, and Malaria: Progress Report and Issues for Congress , by [author name scrubbed], The Global Fund to Fight AIDS, Tuberculosis, and Malaria: Progress Report and Issues for Congress .
The Global Fund to Fight AIDS, Tuberculosis, and Malaria, headquartered in Geneva, Switzerland, is an independent foundation intended to attract and rapidly disburse new resources in developing countries for the struggle against infectious disease. The Fund is a financing vehicle, not a development agency, and its grants are intended to complement existing efforts rather than replace them.
The origins of the concept of an independent funding mechanism to fight AIDS and other diseases lie partly in a French proposal made in 1998, in ideas developed in the 106th Congress, and in recommendations made by U.N. Secretary General Kofi Annan in April 2001. President Bush made the "founding pledge" of $200 million for a disease fund in May 2001. The Global Fund was established in January 2002, following negotiations involving donor and developing country governments, non-governmental organizations (NGOs), the private sector, and the United Nations.
As of March 31, 2006, the Global Fund has approved more than 350 grants totaling nearly $5.2 billion for projects in more than 131 countries, of which about $2.1 billion has been disbursed in 127 countries. To date there have been five "rounds" of funding, with the Board approving proposals in April 2002, January 2003, October 2003, June 2004, and September 2005. However, in September 2005, due to a lack of available funding from donors, only a portion of proposals recommended for approval in Round 5 were officially approved. The remaining tentatively approved proposals received final approval in December 2005 after additional contributions were made. The Global Fund will make grants only if it has funds on hand to cover the first two years of the proposed projects—an approach known as the Comprehensive Funding Policy. The policy is designed to avoid disruptions to projects due to funding shortages. This is regarded as a particularly important consideration with respect to antiretroviral therapy, since interruptions in treatment can lead to the emergence of resistant strains of HIV and to death. Funding for the third through fifth years of the projects is dependent on new contributions to the Global Fund by donors.
This report will not be updated. Instead, for up-to-date information on the Fund refer to CRS Report RL33396, The Global Fund to Fight AIDS, Tuberculosis, and Malaria: Progress Report and Issues for Congress, by [author name scrubbed], The Global Fund to Fight AIDS, Tuberculosis, and Malaria: Progress Report and Issues for Congress.