GAVI, IFFIm & Vaccine Bonds Overview International Finance ’14 Michelle Han 132SIS48

The Issue  Every year 1.7 million children die from preventable diseases (GAVI)  One child dies from a vaccine-preventable disease every 16 seconds (WHO)  Children in low-income countries are nearly 18 times more likely to die before the age of five than children in high-income countries. (WHO)  2 largest killers for children under 5 years old: Pneumonia and diarrhea

Immunisation Better health Better education Productive workforce More money to spend or save Better off families and communities

 Global Alliance for Vaccines and Immunization  International organization created in 2000  “creating equal access to new and underused vaccines for children living in the worlds poorest countries” (GAVI)

Help strengthen basic health services in poor countries  Buy bicycles for transportation  Set up rehabilitating clinics  Train and pay health workers  Provide cold storage for vaccines

Public-Private Partnership Developing Countries Vaccine/Pharm aceutical Industry Donor Governments Other Private Sectors Civil Society

 International Finance Facility for Immunisation  Launched in 2006  A development financial tool to speed up the availability of long-term funds for health and immunisation programmes through GAVI

How does this work?  Government gives long-term pledges to sell vaccine bonds in capital markets making large volume of fund immediately available for Gavi programmes  World bank = financial adviser and treasury manager

How does this work?  Government make payment to IFFIm based on legally binding grants to GAVI Alliance (the UK, France, Italy, Norway, Australia, Spain, the Netherlands, Sweden, South Africa and Brazil)  IFFIm issues vaccine bonds in international capital market (Middle East, Africa, Europe, Latin America and the US )

How does this work?  Treasury Manager on behalf of IFFIm manage bond proceed until needed for Gavi- approved programs.  IFFIm repays bondholders using funds provided by donor agreed binding grant payment obligation.

Model (IFFIm)

“First aid-financing entity in history to attract legally binding commitments of up to 20 years from donors and offers the predictability that developing countries need to make long-term budget and planning decision about immunisation programmes” (GAVI)

Results  IFFIm vaccine bonds raised more than US $4.5 billion in immediately available cash resource from around the world  6 million deaths averted (GAVI)  Since 2000, GAVI support has contributed to the immunisation of an additional 440 million children. (WHO/UNICEF)

Characteristics  Committed  Predictable  Makes long-term planning  Cost effective  Public-private partnership  Immediate funding  Drives out death and illnesses

Questions?