GLOBAL HIV/AIDS FUNDING and DROP THE DEBT
NEED YOUR SUPPORT

AIDS is devastating Africa, Asia the Caribbean and other regions.   But the funds needed to expand proven, successful programs -- in prevention, care, and treatment -- are still lacking.  The US government is still not contributing its fair share to support these critical efforts. 

And, the US is still dragging its feet on mandating the IMF and World Bank to cancel debts owed it so that scarce funds now spent on debt payments could instead go to the AIDS fight.

==> TAKE ACTION!  Let's send a loud and clear signal to members of Congress that they have some unfinished business to take care of:  significantly increasing funds to stop AIDS in the FY 2002 budget.  Congress is currently in recess.  Once it resumes the session after Labor Day some key AIDS bills are expected to come up for consideration.  Congress needs to hear from constituents on this issue, otherwise these bills will be swept aside in favor of other spending priorities.  Note:  just before the August recess the Senate Appropriations Committee approved $415 million for global AIDS programs of the US Agency for International Development-USAID and a paltry $50 million for the Global Fund for fiscal year 2002 -- we can and must increase these numbers.

MAKE FOUR IMPORTANT PHONE CALLS TO SENATE AND HOUSE MEMBERS DURING THE AUGUST RECESS, (and visit them in their local offices, if possible).  Keep up the calls in September and October.  Watch the news for opportunities to call radio and TV call-in programs and send in letters to the editors of magazines and newspapers. 

1 -- CALL SENATE MAJORITY LEADER TOM DASCHLE: (Home office: 605-334-9596)

Say something like: "I want to thank you for your active work on the supplemental spending bill for fiscal year 2001.  That bill boosted U.S. funding toward the global HIV/AIDS response by $100 million this year." [this will allow the U.S. to spend over $500 million on the global HIV/AIDS response this year]

Now, I am calling to urge higher levels of funding for next year's budget for global HIV/AIDS.  We need to spend more on this than is currently being considered by the Senate.  The U.S. share of the global HIV/AIDS response is between $2.75 and $3 billion given our share of the global economy (close to 30%).  International health experts have determined that at least  $9.2 billion is needed annually to mount an effective response to the AIDS crisis.  I would like to see at least $1 billion as a U.S. contribution to the Global Fund and support for strong U.S. bilateral programs for HIV/AIDS. This should be done without pulling money from other humanitarian and development programs."

"What plans does Senator Daschle have to increase levels of funding for global HIV/AIDS for next year?"

2 & 3 -- CALL YOUR SENATORS AT THEIR HOME OFFICES (Go to: www.vote-smart.org/vote-smart/data.phtml   for contact information)

Urge that they support much higher levels of funding for global HIV/AIDS for fiscal year 2002.

Request to speak with the staff person that handles foreign affairs issues.  Say something like:  "I support higher levels of funding for global HIV/AIDS than is being considered by the U.S. Senate (just before the August recess the Senate Appropriations Committee approved $415 million for the US Agency for International Development-USAID-- and a paltry $50 million for the Global Fund gor fiscal year 2002).  Given the U.S. share of the global economy (approximates 30%), we are well placed to respond financially.  At a minimum, I urge Senator __________ to support a U.S. contribution for the Global HIV/AIDS, TB and Malaria Fund of at least $1 billion.  I would also urge a strong level of support for U.S.  HIV/AIDS programs through USAID.  This increase in funding can be accomplished without taking money from other humanitarian and development programs."

4 -- CALL YOUR MEMBER OF CONGRESS IN THE HOME DISTRICT (Go to: www.vote-smart.org/vote-smart/data.phtml   for contact information or call your local public library)

Urge that he/she support much higher levels of funding for global HIV/AIDS for fiscal year 2002 and action that results in 100% multilateral debt cancellation for impoverished countries.

 ***Note there are different specific requests to make regarding debt, depending on if your Representative is a Republican or a Democrat (see below).

Request to speak with the staff person that handles foreign affairs issues.  Say something like:  "I support higher funding for global HIV/AIDS.  I urge Congressman/Congresswoman_____________ to work with members of the House Appropriations committee to ensure that at least $1 billion is appropriated from the U.S. to the Global Fund for HIV/AIDS, TB and malaria and to give the strongest level of support for U.S. HIV/AIDS bilateral programs through the U.S. Agency for International Development.  Both of these goals can be easily accomplished without taking money from other development and humanitarian programs."

"Congressman/woman____________ can show his/her support for this immediately after the August recess by supporting HR 2069*, the Global Access to HIV/AIDS Prevention, Awareness, Education, and Treatment Act and by voting YES on any amendments to HR 2069 that would increase funding for the Global Fund to $1 billion." (Rep. Barbara Lee (D-CA) is anticipated to introduce such an amendment.  The bill is expected to come to the floor following the August recess.)

***In Support of DROP THE DEBT (the cancellation of debts owed to the IMF and World Bank by the impoverished countries):

(If your House member is a Republican) Say something like: "I would also like Congressman/woman_________________ to sign on to the "Dear Colleague" letter being circulated by Representatives Bachus (R-AL) and Leach (R-IA) which calls for 100% cancellation of the debts owed by the most impoverished countries to the International Monetary Fund and the World Bank.  The letter will be sent to President Bush.  Deeper debt relief means countries have additional resources to tackle poverty and specifically, HIV/AIDS."

(If your House member is a Democrat) Say something like:  "I would also like Congressman/woman________________ to sign on to the "Dear Colleague" letter being circulated by Rep. Maxine Waters (D-CA) which calls for 100% cancellation of the debts owed by the most impoverished countries to the International Monetary Fund and the World Bank.  The letter will be sent to Senate Democratic leadership.  Deeper debt relief means countries have additional resources to tackle poverty and specifically, HIV/AIDS."

***More action ideas:

-- Call in a brief comment to a radio or TV call-in program, emphasizing the need for the US to do its fair share to help stop the epidemic.  That will help raise awareness and put pressure on policy-makers.  Call in to the C-Span cable network's program "Washington Journal" -- look on line for the broadcast times and call-in numbers at www.c-span.org.  Call in to other programs, especially during the periods of "open phones" when they will take a call on any topic.  Make your call relevant to the news by referencing current affairs, like the meaning of "compassionate conservatism."  You might reference the upcoming meeting of the IMF and the World Bank and the planned protests, budget priorities in Congress, etc.

-- Look for opportunities to send in a letter to the editor of a magazine (such as Time or Newsweek) or your local paper.  These letters have an impact on the debate.  When Congress resumes work in Washington the week of September 2 there will be news stories regarding the issues they will be debating, such as prescription drugs, trade, etc.  Use that opportunity to say that key legislation on AIDS is also expected to come up and that the US should contribute its fair share towards an ongoing commitment to stopping the virus.

Sample letter to the editor:

To the editor:

Now that its recess is over, Congress certainly has it's work cut out for it on a range of issues, as noted in your recent article.  But one issue that is expected to come up, and went unmentioned in the article, is that of the global AIDS epidemic.  Critically important legislation to increase the level of US contributions to the fight against this disease, now devastating Africa, the Caribbean and other regions, will be offered by members of both parties this month.  Americans are being misled if they think their government is doing all it can to stop AIDS.  It's time we helped affected countries help themselves by supporting massive expansion of the many effective, though still small-scale, programs to provide prevention, care and treatment.  Politicians often remind us of the importance of teaching civic responsibility, values and compassion to our children.  But a sense of compassion and responsibility that stops at our borders is a limited one indeed.  We can and must do more.

BACKGROUND on HIV/AIDS

More than 36 million people in the world today are living with HIV/AIDS. Of those, some 95% live in the Global South. Sub-Saharan Africa alone is home to over 25 million, or about 70% of the world's cases. Some twelve million African children are counted as AIDS orphans. Fifty-five percent of the HIV-positive people in sub-Saharan Africa are women; six out of seven children who are HIV-positive are girls. An estimated seventeen million Africans have died from AIDS-related causes.

In the midst of these tragic figures, there are hopeful signs. African leadership - political, NGO, and faith-based - have increasingly directed attention to the pandemic. Senegal and Uganda have been notable in the effectiveness of their prevention campaigns. Advocacy efforts from within and outside of Africa have led to dramatic declines in the costs of AIDS medications. But the international community-and specifically the United States--can do much, much more.

The Washington, DC-based AIDS and Health Care Working Group of the Advocacy Network for Africa has argued that, given the place of the U.S. in the world economy, our proportion toward the $9.2 billion [United Nations] needed globally should be at least $2.75-3 billion.  The United States is spending just over $500 million on global HIV/AIDS this year while Congress and the Bush administration are supporting only incremental increases in next year's budget.

A minimum U.S. contribution of $1 BILLION toward the Global Fund for HIV/AIDS, TB and malaria is needed NOW.  Similarly, we should also maintain a strong U.S. bilateral response to the pandemic by funding US Agency for International Development programs at the highest level possible.  None of the increases being proposed for global HIV/AIDS funding from the United States should come at the expense of other development and humanitarian programs.

Why a Global Fund?

In May of this year, Secretary General of the United Nations, Kofi Annan, announced the establishment of the Global Fund on HIV/AIDS, TB and malaria.  Since the Global Fund will serve as an international response-not owned by any single country-it can provide a mechanism that is not subject to the political considerations of some donors.  For example, a multilateral fund program reduces the influence of pharmaceutical companies opposed to the purchase of high quality, affordable WTO**-legal generic medicines. 

The Global Fund is expected to focus on an integrated approach to health care for those infected and affected by HIV/AIDS with emphasis on a continuum of care that includes prevention, care, support and treatment. All efforts should be made to provide the highest level of quality health care possible -including support for comprehensive prevention campaigns, the provision of drugs for pain relief, for the treatment of sexually transmitted diseases and opportunistic infections (such as tuberculosis), and the provision of anti-retroviral therapy.  It is estimated that 5-6 million of world's 36 million people living with HIV/AIDS are in need of treatment.

The Global Fund will provide a way to successfully purchase testing kits, drugs for opportunistic infections, drugs for pain relief, anti-retrovirals and other medical commodities in bulk at reduced prices so that more people can voluntarily know their HIV-status and receive proper care and treatment.

[*HR 2069 is currently the most forward thinking bill on global AIDS [it would authorize $750 million for the Global Fund and $610 million for USAID] for next year's budget.  As an "authorization" bill, it does not have the power to deliver higher levels of funding itself, but it will send a strong message to appropriators that they should consider higher levels if it is passed by the full House of Representatives after the August recess. It's main sponsors are Representatives Hyde (R-IL), Lantos (D-CA), and Lee (D-CA).

DROP THE DEBT

Progress in canceling bilateral debt

Some progress is being made in the campaign to cancel the debt.  Last year, Congress approved 100% cancellation of debts owed the US government by over two dozen of the world's most impoverished countries.  And, Congress contributed to a limited international debt relief program-the Heavily Indebted Poor Country Initiative (HIPC).  A number of Republican lawmakers supported these debt relief measures (the Jubilee U.S.A. Network office can give you a list: call Mara at 202-783-0129 or email districtvisits@yahoo.com).

The IMF and World Bank have not put in their full share

Even after full application of the debt relief program (HIPC), most countries will still owe more to the World Bank and International Monetary Fund (IMF) than to the next 17 biggest creditors put together.  In fact, the World Bank and IMF have relieved less than half of their debts! That leaves the most impoverished countries paying more than $700 million each year in debt service to these institutions. Plus, other countries equally in need, such as Nigeria, Haiti, and Bangladesh, are getting no help at all.

So, this is a matter of equity.  Simple fairness dictates that the Fund and the Bank should be held to the same standards as the G7 (the U.S., Canada, Italy, Japan, UK, France, and Germany), which have agreed to cancel ALL the debts owed them by the most impoverished countries.

This is also a matter of accountability. The Bank and Fund should be held accountable for the debts that they have helped create. The Bank and the Fund have increased debt through a consistent pattern of poor economic advice and unworkable economic conditions (including "user fees" on public health services, primary education and water which further impoverishment) imposed by them as quid pro quos for both loans and debt relief.

The real crisis in impoverished, indebted countries:

More than 5,500 Africans die each day from AIDS.  But $13.5 billion flows out of Africa in debt service each year! Dropping the debt held by the Bank and Fund will help get funds flowing in the right direction.  In the case of Zambia, one of the poorest nations and one severely impacted by HIV/AIDS, debt payments will actually rise, despite participation in the debt reduction program.  Its payments will remain at about one quarter of its national budget -- far too much for a country struggling with AIDS.  AIDS is also a serious problem in Asia, the Caribbean and in Central and South America.

DROP THE DEBT proposal:

The payments on World Bank and IMF debt could, instead, be used for critical development needs, particularly to combat the HIV-AIDS crisis.  The World Bank and IMF should (and can without harming their ability to function) cancel 100% of their loans owed them by the heavily-indebted poor countries, using the institutions' own resources. 

Debt relief is beginning to help:

The money freed up as a result of current debt relief has already begun to help many poor countries.  For example:

-- Tanzania ended fees for grade school this year, and Benin ended fees in rural areas -giving millions of children the chance to go to school.

-- Honduras will offer three more years of free schooling, so that public school students can go up to the ninth grade.  With debt savings, Uganda has put every child in grade school, and will hire more teachers and pay for more classrooms and textbooks.

-- Mali, Mozambique, Senegal, and Cameroon will increase spending on HIV/AIDS prevention, to slow the spread of the pandemic.  But, despite this progress, the total amount of money freed for poor countries to spend on reducing poverty was limited because they were not servicing much of the debts cancelled last year.  They were, and are, paying back much of their debt to the World Bank and IMF, draining funds from poverty reduction and HIV-AIDS programs.

What would deeper cancellation cost?

The cost to the World Bank and IMF would be modest.  The 32 HIPC countries that are expected to qualify for debt relief (23 have qualified as of July 2001) will continue to pay roughly $702 million in annual debt service payments to the IMF and the World Bank, despite their participation in the HIPC program.  The cost to these institutions of cancelling the remaining debt on which these payments are being made would be relatively small.  The debt can be cancelled by (a) covering the loss of annual debt service ($702 million), (b)  making a one-time write off of the outstanding principle ("debt stock") or (c) some combination of these alternatives.

The World Bank could cover its costs with a small portion of its annual net profit (which was nearly  $2 billion last year).  The IMF could use its reserves in its Poverty Reduction and Growth Facility (PRGF) to cover its costs.   Currently, funds accrued in the PRGF reserves are intended to make this facility self-sustaining, thereby removing it from Congressional oversight and further entrenching the IMF's role.  These resources would be better spent on debt cancellation.  Independent analyses confirm that these actions would not jeopardize the institutions' ability to function or their credit ratings.

The IMF and the World Bank must do their part:

The United States and the rest of the G-7 are committed to full cancellation of debts owed them.  The World Bank and IMF should do the same within their existing resources, freeing up money for the most impoverished countries' critical development needs.  Africa is being drained of $13 billion annually in debt service payments. First do no harm means first cancel the debt.

**WTO=World Trade Organization