Transcript Air ticket tax - World Health Organization

UNITAID
Innovative Financing Mechanism
Denis Broun
Executive Director
Innovative Financing Mechanism
 80% of UNITAID funds from Air ticket tax
•
•
•
•
•
•
•
•
•
Cameroon
Chile
France + multi year commitment
Republic of Korea
Madagascar
Mauritius
Mali
Niger
More countries soon
 Applied to all fights departing from countries
•
Amount can vary and decided by government
»
»
1 euro domestic economy
to 40 euros business international
•
Neutral (all companies) No negative impact
•
Norway – Co2 emission tax
 20% multi budgetary contributions
•
•
•
•
•
UK + multi year commitment
Spain
Cyprus
Brazil + multi year commitment
Gates Foundation
Over US$ 2 billion raised since 2006
The Air Ticket levy
Applied to all fights departing from countries
Amount can vary and decided by government
• Around $US 1 domestic economy
• Over $US 40 business international
Neutral (all companies)
=
One adult or 2 child, life saving malaria
treatment
One HIV test kit for a pregnant mother
One week HIV treatment for a child
One day of treatment for a patient on second
line combination
One week first line TB treatment
UNITAID only achieves impact by enable its partners
Government, Pharma
Companies, Gates
Foundation, NGOs
Global Fund, Bilaterals,
World Bank, WHO
Country governments,
NGOs
$4B+
$2B+
~$300M
Early stage
product
development
Reformulation
and adaptation
Registration
and policy
for quality
products
Global
market
management
Source: Partner survey, February 2011, n=31, UNITAID’s Strategy 2010-2012 Document, Dec 2009
Delivery of
products
Market Impact Framework
Case for Intervention
Public
Health
Problem
Identified
Commodity
Access
Issue
&
Market
Shortcomings
Identified
Pathway from market to public health impact
Market
Impact
Market
Intervention
-Local/int'l prcm't
-price
- quality
- availability
- delivery
Public
Health
Impact
UNITAID is one of several market players
Coordination is critical: Global Fund (including MDC), PEPFAR,
PMI, USAID TB, WHO, Stop TB, UNAIDS, RBM, GDF, etc.
Non-UNITAID
Interventions
UNITAID
Interventions
Policy, regulation, economics,
guidelines, innovation, politics
Supply
(Sellers)
Demand
(Buyers
and
consumers)
Market
Shortcomings
Market
Shortcomings
Market
Dynamics
www.unitaid.eu
Innovative spending
Value for Money

 Money goes further
– User friendly (FDC) Efficacy/Quality/Price
– Transaction cost (below 4 per cent)
 Investing in products of proven public health benefit
Value for money



• More medicines purchased and delivered
= more lives saved
 Creating and improving markets
• Incentives for manufactures to enter or develop market
• Better prices negotiated – purchases made for many countries
high volumes
• Market impact dimensions vary by product; can include:
– price,
– quality,
– availability and
– timely delivery
 Positive Externalities
• Market benefits and results achieved by UNITAID available to all
HIV-AIDS Medicines provision to
low income countries
10% Branded
Medicines
Africa
TRIPS
2014
India
TRIPS
2005