The World Bank on Thursday approved the creation of what could be a landmark fund to help lower- and middle-income nations prevent and prepare for future pandemics.
“If COVID has taught us anything, it’s that the world needs to be better prepared,” Mamta Murthi, a World Bank vice president, told reporters.
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The money: The prevention, preparedness, and response financial intermediary fund, or FIF — which is effectively a trust fund that pools public and private money — is getting off the ground with more than $1.1 billion pledged, though this is only about 10% of the $10.5 billion that the bank and the World Health Organization say is needed annually.
These initial pledges will hopefully “crowd in” more donations, Murthi said. “Success breeds success.”
A similar view was expressed by the U.S. Treasury, which said that it can be difficult to attract investments before donors know where their money will go. The U.S. has pledged $450 million of the initial promised contributions, with the European Commission planning to give a similar amount.
“WHO will play a central role in the FIF, providing technical leadership for its work in close collaboration with the World Bank to realize this ambitious vision,” said Dr. Tedros Adhanom Ghebreyesus, WHO’s director-general, in a statement.
Governance structure: Both donor and recipient countries were involved in the bank’s decision, according to Murti, and the scope and structure of the FIF’s operations and board are still to be determined.
“This is still a work in progress, with the goal of coming up with a structure that is effective,” she said. Talks are underway to see how civil society could also be involved, she added.
Timing: For money to get out the door, the FIF will have to approve proposals from governments.
“We are really hoping this will spur project proposal development by countries,” Murthi said of the bank’s vote. “It’s extremely important [that] this be country-led and -owned.”
Authorized implementing partners include United Nations agencies and multilateral development banks. Organizations like Gavi, the Vaccine Alliance and the Global Fund to Fight AIDS, Tuberculosis and Malaria are also being considered, subject to a fiduciary review, Murthi said.