Funding Formula Stage 1
Building capacity: The funding environment
1. The new funding environment
Official Development Assistance (ODA) is changing! And it is important for us to understand the shifting funding environment. New cooperative partners, funding mechanisms and emerging donors – such as the Arab nations, the Global Financing Facility and the private sector – means that traditional ODA is being transformed, probably permanently.
Although great progress has been made in many parts of the world, the model of North-South development assistance is now outdated. Since the Paris Declaration on Aid Effectiveness in 2005, all countries now engage in global cooperation and development. The Declaration resolved to:
- strengthen partner countries’ national development strategies
- align aid with partner countries’ priorities
- enhance accountability of donors and partners
- streamline activities to avoid duplication
- reform and simplify donor policies
- define measure and standards of performance
Donors are now committed to empowering partner countries to drive their own development agenda; they are actively encouraging a wide range of stakeholders to contribute. This is positive for IPPF – a golden moment – as civil society participation is central to achieving this goal.
2. Implications for IPPF
IPPF is a global service provider and a leading advocate of sexual and reproductive health and rights for all; we are also a worldwide movement of national organizations working with and for communities and individuals. Many international development donors – governments, bilateral donors, and foundations – have generously supported IPPF over many years with core funding. However, as this funding is changing, IPPF’s core income is no longer predictable or secure for three main reasons:
- there is a trend away from traditional donor-funded models, for example, core funding
- there is a need for IPPF to raise additional funds to reach its service delivery objectives
- the global health landscape is increasingly crowded and competitive
For IPPF to realize its goals, we must source new ways of financing our work, while ensuring long term resilience and sustainability.
This is a golden opportunity for IPPF to explore innovative funding options. IPPF’s Secretariat and all its Member Associations are required to invest in Resource Mobilization, and to develop and implement a Resource Mobilization strategy. With this in mind, the Funding Formula has been updated to help ensure that we make the most of the new funding environment.
3. Other resources
For more information see:
- IPPF’s publication Financing Demystified: see figure 1 for an interesting graph to show who really pays for sexual and reproductive health services http://www.ippf.org/sites/default/files/ippf_financingdemystified_1.pdf
- information about flows of Official Development Assistance (ODA) https://data.oecd.org/oda/net-oda.htm
- flows of ODA to individual countries: use the dropdown menu to find your country: https://public.tableau.com/views/OECDDACAidataglancebyrecipient_new/ Recipients?:embed=y&:display_count=yes&:showTabs=y&:toolbar=no?&:showVizHome=no