E-DRUG: The Global Fund rejected In-kind donations of health goods and
medicines
---------------------------------------------------
[The best news in years! Moderator]
Dear Friends
On Friday November 6th the Global Fund Board, meeting in India, came to
the following decision: to approve donations of services to the Global
Fund; to further investigate donations of non-health products; and to
REJECT donation of health products, including medicines. The decision
is the culmination of 5 years' debate about the desirability of
donations of medicines (otherwise known as IKD, or In-Kind Donations).
The decision was based on solid evidence that: developing countries did
not want donation via the Global Fund, that donations will have a
negative market impact and therefore damage competition - a proven
mechanism for achieving affordable prices. Furthermore, there was no
assurance that companies would donate the needed medicines on a
sustainable basis.
The decision will be welcomed by those that have argued the case against
donations, including those responsible for procurement and provision of
essential medicines in health services - in the public and the
faith-based, non-profit sector. The negative impact of donation for them
have been: dependence on unsustainable supplies; often inappropriate
supply-side led decisions about medicine selection; hidden costs of
'free' goods; proven inefficiencies of donated drugs in emergencies;
impact of unwanted goods on supply chain management and storage
facilities - and much else.
The decision is therefore in itself an important landmark. It should
also be celebrated for other related achievements. The protracted and
costly process of debate proved that some important and divisive issues
could be resolved by joint work between NGOs and the private sector,
including pharmaceutical companies. Civil society played a crucial part,
insisting on the use of evidence, which was produced by technically
expert consultants, jointly appointed. At the end of the day,
pharmaceutical companies and the US who were often personally and
honestly committed to the donations system accepted the evidence and
supported the decision.
Actual wording of decision point below
Best wishes