Welcome to this technical briefing. I am sure that the number of people that have found the time to come reflects the growing interest in this initiative.

The main purpose of this meeting is to listen to a variety of views. The views of those that might be users of the Fund, as well as of those that may make financial contributions to it.

Let me start though with some background information.

First and foremost, the Fund is a response to the many calls made by leaders in developing countries for a significant increase in resources to combat the challenges of TB and malaria, and the unprecedented threat posed by HIV/AIDS.

We know that however you measure it, there is a gross mismatch between any reasonable estimate of need and the availability of current resources.

Of course countries can do more with their own resources, but there are limits. We know too that donors can do more through existing channels – and let me stress that there is no intention that these be replaced.

What we need is a mechanism that brings additional and complementary resources to bear on these urgent health problems.

That, then is the starting point.

Next, we must be clear that any action to combat HIV/AIDS and other communicable diseases needs to be set within a wider context of national development processes (such as PRSPs) and other nationally-led actions to achieve the Millennium Summit goals. As I said yesterday in my speech, the Fund has to be seen in a broader development framework.

Ladies and Gentlemen,

Whilst the idea of creating a global fund has only recently hit the headlines the ideas have been brewing for some time.

Some work began after the Okinawa Summit last year. The challenge was to come up with new financial mechanisms to increase the flow of international resources to developing countries, without a commensurate increase in transaction costs. More cash – new ways of doing business.

Lots of ideas have been floated. But a consensus has gradually developed that a single fund, initially with a narrow focus on HIV/AIDS, TB and malaria is the best starting point.

This does not mean that water and sanitation, or better maternal health, or reducing tobacco advertising are not important for reducing poverty. It merely means that we have an opportunity to leverage a significant increase in resources if we seize the opportunity provided by what is – in my experience – an unprecedented level of political support for support for addressing communicable diseases.

Broadly speaking then, what is envisaged is an international fund, with close UN involvement at all levels, which is open to government and private donors. It will be an innovative and equal partnership between developing countries, funders and the multi-lateral system. To make this partnership effective, early involvement of developing countries in planning for the Fund is now critical.

A number of important principles have guided our thinking to date. In your comments you may wish to add others, but in my view these represent an important starting position:

• First of all - additionality: the Fund should not replace existing funding or mechanisms, but add value in terms of resources and outcomes to what is already happening.

• It must support national level decision-making and leadership and, at the same time, ensure transparency and accountability.

• In addition, the Fund should support on-going national development processes, such as PRSPs, sector programmes, and national HIV/AIDS strategies.

• It should promote voluntary and private sector participation: full involvement of civil society both in the preparation of submissions and in the implementation of programmes is essential.

• Success will depend on multi-sectoral action: drawing on high-level national political support.

• Next, the Fund should make a positive contribution to increasing the coherence and effectiveness of development assistance – mainly through strengthening existing government-donor co-ordination mechanisms.

• It has to be fast moving and innovative: encouraging new ways of working, and ensuring that funds are disbursed both rapidly and wisely.

• Streamlined management is critical: applications for funding should not require new and elaborate planning processes. This is the last thing that either donors or countries need. In the same vein, review criteria should be transparent and consistently applied.

• Of course, one size does not fit all: the way fund works at country level must be geared to different national contexts.

• The Fund must focus on results: successive tranches of funding should reward good performance.

• It should operate in the context of international agreements: including TRIPS and the safeguards included in it.

• And lastly, if the Fund is to help in delivering equitable health outcomes, it must operate with equity in mind: equity in process and equity in allocation of resources.

Ladies and Gentlemen,

The Global Fund will be an alliance of partners. And the breadth of this alliance should be reflected in the way it is governed and managed at country and global level.

A small Executive Board, representing all constituencies (developing country governments, donor governments, foundations, corporate donors and other private sector bodies, civil society and NGOs, UN agencies and Bretton Woods institutions) will initially establish the Fund and the governance structure.

The Executive Board will determine strategic priorities and criteria for decision making, while a small Secretariat will carry out the day to day execution of the Board’s recommendations.

The Board will also require access to high quality technical advice covering both technical and development issues, and drawn from a wide range of sources, north and south.

Beyond these basic features, however, much remains to be decided.

So before opening the floor, let me say a few words about next steps.

There are key events coming up. The UNGASS in June and the G8 summit in July. So we need to work speediliy to make sure that rapid operationalization is a real possibility. We hope there will be many pledges for the Fund over the next three months – to follow the pledge made by the US last week. We need to give others confidence that a viable mechanism can be put in place as soon as possible.

While it will be for the Board to put in place the governance arrangements that will initiate the Fund, it is vital that the recommendations on which it acts grow out of a wide process of consultation. These consultations need to be with the governments and civil societies of those countries that will use the Fund, the governments and the civil societies of those countries that will contribute to the Fund, the private sector and foundations who are encouraged to contribute, and international agencies. This process will be taking place at a number of different fora – including this Assembly – over the next few months.

The timetable is necessarily a tight one. You might say that we are going to have to sail in the boat, while we are still building it. But the world is not going to wait while we get every detail in place.