Kaiser Daily HIV/AIDS Report-Fri, 20 Jul 2001
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*G8 Leaders to Formally Unveil AIDS Fund, as Russia Announces $20M
Contribution
*Germany and Britain Object to Bush's Proposal to Increase World Bank
Grants to Developing Nations
*Funding International Tuberculosis Programs Could Extend Lives of
HIV-Positive People, New York Times Editorial Says
Global Challenges
G8 Leaders to Formally Unveil AIDS Fund, as Russia Announces $20M
Contribution
As the G8 summit opens today in Genoa, Italy, leaders of the world's
most industrialized nations are this evening expected to "formally
unveil" the Global AIDS and Health Fund, intended to battle HIV/AIDS,
malaria and tuberculosis in the developing world (Knox, Agence
France-Presse, 7/20). The Wall Street Journal reports that the fund,
first proposed by United Nations Secretary-General Kofi Annan, could
be "the most promising measure to come out of the talks," which are
also expected to touch on debt relief, the Japanese recession and
global warming. However, the Journal notes that current contributions
to the fund -- which the newspaper places at $1.7 billion -- still
"fal[l] short of calls" by Annan, who has estimated the fund needs
be- tween $7 billion and $10 billion to be effective (Rhoads et al.,
Wall Street Journal, 7/20).
Meanwhile, Russia announced earlier today that it will contribute 600
million roubles (about $20 million) to the fund, though the nation is
"better known these days for receiving international aid than giving
it," Reuters reports. With an "explosion" of HIV/AIDS cases in recent
years, Russia and nearby Ukraine have the "fastest-growing" epidemics
in Europe (Reuters, 7/20). Russia is among the nations attending the
G8 summit, along with Germany, Italy, France, Canada, Japan, Britain
and the United States.
Debt Relief
The Journal also reports that President Bush will likely "lobby"
other G8 leaders to support a plan, announced earlier this week, to
provide a larger share of financial assistance to developing nations
through grants rather than loans (Wall Street Journal, 7/20). Speak-
ing on Tuesday at World Bank headquarters, Bush proposed that the
bank provide up to 50% of its assistance to developing countries
through grants, thus allowing the countries to "alleviate the debt
that burdens" their economies. Proponents of debt reduction say it
would help the countries allocate more funding toward HIV/AIDS and
other health initiatives (Kaiser Daily HIV/AIDS Report, 7/18). How-
ever, Bush has said that he will not offer additional U.S. funds to
the World Bank, and "critics contend" that without such a funding in-
crease, moving away from loans will leave the bank with less money to
distribute (Wall Street Journal, 7/20).
Opinion Reaction
An editorial in the Washington Post calls Bush's focus on poverty al-
leviation "admirable," but says that the president must "now back his
words with action," adding, "A renewed fight against poverty will
cost money." The editorial says that while Bush "may be correct" that
the World Bank should move from loans to grants, the United States
and other wealthy nations must contribute more money to make such a
shift possible. In addition, the editorial calls for increased U.S.
donations to the global AIDS fund, conceding that while the nation
gives "nearly $1 billion a year in AIDS assistance through other
channels," the $200 million it has pledged to the AIDS fund is not
enough. "If the United States, accounting for nearly a quarter of
world output, were to give its proper share, it would double current
spending," the editorial concludes (Washington Post, 7/20). Simi-
larly, in a Toronto Globe and Mail op-ed, Harvard Center for Interna-
tional Development Director of International Health Amir Attaran says
that low funding levels for HIV/AIDS are "intolerable." At the G8
summit, leaders will "probably agree on statements such as 'AIDS is
one of the biggest health problems in the world,'" Attaran says.
"Trouble is, the G7 leaders .. mouthed just these words about AIDS in
1987," he adds, noting that "these same .. countries have given al-
most nothing [to fight AIDS] since 1987." Attaran concludes, "The
next few days in Genoa will be a unique political test for G8 lead-
ers. HIV/AIDS is now the most numerically lethal pandemic in 650
years, surpassed only by the Black Death plague of 1347. .. Business
as usual, if it consists of talk and a few pennies, will within two
years make this the worst pandemic in human history. If the G8 lead-
ers care about their historical legacy, they must take notice" (Atta-
ran, Toronto Globe and Mail, 7/20).
Germany and Britain Object to Bush's Proposal to Increase World Bank
Grants to Developing Nations
German and British officials, whose countries rank second and third
after the United States as contributors to the World Bank's Interna-
tional Development Association, said on Wednesday that they oppose
President Bush's proposal that the World Bank increase up to 50% its
grants to developing nations, the Washington Times reports (Curl,
Washington Times, 7/19). A number of lawmakers, AIDS groups and Afri-
can groups have called on international lending institutions such as
the World Bank and the International Monetary Fund to forgive the
debts of developing nations, stating that debt reduction would help
the countries allocate more funding toward HIV/AIDS and other health
initiatives (Kaiser Daily HIV/AIDS Report, 7/18). But British Depart-
ment for International Development spokesperson Beverly Warmington
said, "The World Bank is actually a bank and there are development
agencies to give grants. It's important that the World Bank work
alongside them instead of compete with them." She noted that Austria,
Denmark, Finland and the Netherlands also are "strongly opposed" to
increasing grants instead of loans. Michael Hofmann, director general
for Germany's Ministry of Economic Cooperation and Development, added
that without pledging additional U.S. financing to the bank, Bush's
statement is inadequate. "If we would have such a high amount of
grants involved, that would mean that all of us would have propor-
tionally to increase our contributions. If it doesn't increase the
liability of donor countries, where should the money come from?" Hof-
mann said.
Bush spokesperson Ari Fleischer said that the president is not seek-
ing additional U.S. funds from Congress. White House officials said
that the president's proposal would not cost donor nations any more
money for the first 10 years, but as loans to developing countries
already have a 10-year grace period for repayment, the "real cost" of
Bush's plan "would come well after he is out of office," the Times
reports. The World Bank currently lends $6 billion per year to devel-
oping nations through the IDA, with less than 5% of those funds going
to grants for developing countries. Bush wants to increase the grant
amount to $3 billion annually. After Bush announced the plan in a
speech at World Bank headquarters on Tuesday, bank officials said
that donor countries, particularly G8 nations, would have to "dra-
matically increase their contributions to the IDA" to fund a "capital
increase" for the association. Currently, the United States contrib-
utes $803 million to the IDA, while Germany provides $423 mil- lion
and Britain $281 million (Curl, Washington Times, 7/19).
Opinion
Funding International Tuberculosis Programs Could Extend Lives of
HIV- Positive People, New York Times Editorial Says
Funding international tuberculosis programs is "urgent," a New York
Times editorial says, encouraging the House of Representatives to ap-
prove increased funding for the programs as part of the foreign ap-
propriations bill it is considering this week. The bill provides $70
million for international TB programs, but "[f]ar more" funding is
needed because of the increased prevalence of drug-resistant TB
strains that could infect more people and drive up the cost of treat-
ment. TB infects more than a third of the world's people; however,
90% of those infected do not show manifestations of the disease
unless their immune systems are weakened by HIV/AIDS, the editorial
states, noting that TB is the "leading killer" of those with AIDS and
that more than 40% of HIV-positive Africans have TB. "That suggests a
simple and cheap way of prolonging the lives of millions of AIDS suf-
ferers -- cure their TB," the editorial states. The editorial says
that curing most non- drug-resistant strains of TB costs "as little
as" $10 per person, but "upwards" of $20,000 per person to treat
drug-resistant strains. "A little money now can control this ne-
glected killer before we face a global epidemic of a version that has
outrun our ability to treat it," the editorial concludes, citing a
new World Health Organization fund that will supply TB drugs to coun-
tries that can use them "properly" (New York Times, 7/19).
The Kaiser Daily HIV/AIDS Report is published for kaiser network.org,
a free service of The Henry J. Kaiser Family Foundation, by National
Journal Group Inc.c 2001 by National Journal Group Inc. and Kaiser
Family Foundation. All rights reserved.
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