International Finance Facility

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International Finance Facility
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International Finance Facility (IFF)- Contents

• Need for the IFF
• - Context and origin
• - Advantages
• Development Presidencies in 2005
• Work with World Bank and IMF
• Building support from countries, NGOs and faith
  groups
• GAVI International Immunisation Facility

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Need for the IFF Context and origin

• Extra 16 billion a year pledged at Monterrey
  Summit in 2002
• but extra 50 billion a year needed to meet MDGs
  by 2015 (Zedillo)
• Donors committed to 0.7 ODA/GNI
• but fiscal pressures mean progress is too slow
• MDGs will be missed, starting with the first
  target on gender equality in 2005

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Need for the IFF Advantages

• Frontload Monterrey pledges
• Provide investment today to realise returns now
  and in future generations
• Improve aid effectiveness and donor
  co-ordination
• - focus on poverty reduction
• - untied aid
• - predictable multi-year programmes
• - grants
• - focus on low-income countries
• Allow genuine voice to developing countries

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Development Presidencies in 2005

• 2005 G8 and EU Development Presidencies IFF
  will be central to UK development proposals
  alongside Commission for Africa
• Unprecedented historical decisive unique
• BOND Networking for International Development
• 2004 prepares the ground
• - Visits to donors
• - Technical work with the World Bank and IMF
• - Building support from EMEs and developing
  countries
• - Building support from NGOs and faith groups
• - GAVI Immunisation Finance Facility pilot

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Work with the World Bank and IMF

• 2003 Annual Meetings in Dubai commissioned World
  Bank and IMF to work on financing for development
  issues
• - aid effectiveness
• - aid absorption
• - case for frontloading
• - financing mechanisms, including the IFF
• Interim report at Spring Meetings IFF
  technically feasible and frontloading
  attractive.
• Final report at 2004 Annual Meetings.
• Also working closely with World Bank on possible
  structure of IFF

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Building support for the IFF

• Emerging market economies and developing
  countries
• - Dubai commitment to close consultation on
  financing for development
• - Over 20 EMEs/developing countries endorsed IFF
  at 8 April Financing for Development conference
  in Paris
• NGOs and faith groups
• - Launch of IFF advocacy coalition at 16
  February conference Making Globalisation Work
  for All at the Treasury
• - 9 July Vatican seminar Poverty and
  Globalisation Financing for Development for
  Catholic leaders and NGOs

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International Immunisation Facility

• GAVI and Gates Foundation exploring whether IFF
  principles can be applied to immunisation sector
• UK strong supports proposal for scaled up
  intervention in immunisation on basis that it
  will
• - save lives immediately
• - demonstrate case for frontloading aid
• - show that scaled up spending can be
  results-based
• - deliver low transaction cost systems
  in-country
• - demonstrate feasibility of financial model and
  allow donors to make long-term commitments
• Detailed proposal and balance of programmes
  (systems strengthening, new vaccines etc) looks
  effective