Giving Compass’ Take:
• How do we ensure developing countries get the health care they desperately need? The Milken Institute’s report examines new ways to finance drug discovery.
• The report outlines one financial strategy that would spread risk among funders. Will this draw more donors in?
• Looking for a straightforward way to make an impact on global health? The Gates Foundation explains.
The past few decades have seen vast improvements in the health and well-being of communities worldwide. Life expectancy and access to health services have improved, and technological innovations have made the prevention and treatment of diseases more mainstream.
However, estimates place a price tag of billions of dollars to meet the needs of the global health burden, and there seem to be increasingly fewer resources to go around. Fiscal budgets are shrinking in an uncertain economic climate, and the private sector grows more risk-averse.
To overcome funding challenges, global health organizations and their donors have developed financing tools, such as the advance market commitment (AMC), debt buy-downs, and pooled funds from tax revenue, that blend capital from the public and private sectors. The result has been great momentum toward models that can maximize impact and potentially generate returns for investors.
To this end, the Milken Institute, with support from the Bill & Melinda Gates Foundation, convened a Financial Innovations Lab® to map current and potential models with the goal of leveraging traditional sources of aid to attract private-sector investment and increase sustainable funding for R&D.
Read the full article and PDF about innovative financing for global health at The Milken Institute.
With the global health funding landscape broad and diverse, the Lab focused on models that would engage a new tier of investor in terms of both financial capacity and risk appetite for financial products across asset classes.