Home > English > Communiqués > The Global fund and in kind donationsThe Global fund and in kind donationsJuly 7, 2004
The Global Fund board has decided not to continue exploring the possibility of the Fund
directly receiving in kind donations (IKD). People that have been involved in the discussions years ago about in kind drug donations can only rejoice when hearing this. It seemed already unbelievable enough that the
possibility was being seriously considered!
Indeed, evidence over decades has shown donations of medicines have caused serious problems. Some of the most significant problems with donations have been: drain on
human resources when donations require burdensome record keeping and control measures, products arriving with short expiration dates meaning that they can not be used before they expire, and inappropriate influence on
drug protocols. The list of problems would be too long to write here…
There is one more crucial aspect of IKDs though: they are sometimes used by drug makers as an effective strategy to kill generic
competition. Often times a dominant supplier will drop their price or give a donation until competitors give up, at which time prices rise.
No one is contesting the fact that if NGOs or individuals want to use
donation in answering to their needs and they have the resources to manage a donation this may be a reasonable strategy on a very small scale, but international institutions such as the Global Fund cannot possibly
benefit from an IKD strategy.
It is reassuring after the long debates that have taken place on this during the last months that the Global Fund Board has abandoned the idea of massive donations. Hopefully this
subject is at last closed. More important issues need the GFATM's attention.
Carmen Pérez Casas Pharmaceutical Coordinator Access to Essential Medicines Campaign MSF
