WHO Director-General opening remarks at 2015 financing dialogue

5 November 2015

Ambassadors, colleagues in public health, partners in financing the work of WHO, officials from our sister UN agencies, ladies and gentlemen,

A very warm welcome to WHO and to this financing dialogue, which follows approval of the 2016-2017 programme budget.

Since their initiation in 2013, these financing dialogues have matured to become a significant support for more rational and efficient resource allocation within WHO. The programme for the next two days will give you a broad overview of the funding outlook for 2016-2017, indicating areas where funding is assured and others where gaps remain. The overall forecasted level of funding for 2016-2017 is better than in previous biennia.

You will also hear reports on our progress in implementing the basic principles that guide these financing dialogues, namely transparency and accountability, the alignment of financing with agreed priorities, ensuring that funding is both flexible and predictable, and broadening the base of contributors.

On transparency, I believe we are getting better. Later this morning, you will be given a demonstration of the improved web portal. It has two parts, covering both the current biennium and the next one.

It takes transparency and accountability to an unprecedented level. Its user-friendly features let you search in great detail, and drill down for even more detail. You can also download this information. Apart from letting you track financial flows in great detail, the portal also sets out more data on results. Further improvements on the reporting of results are planned.

Today, I am announcing my commitment to make WHO a participant in the International Aid Transparency Initiative. Making this decision initiates a step-wise programme of preparatory work that is already under way.

Before joining the initiative, I want to be sure that WHO has the resources, staff, structures, and information disclosure policy in place to fully comply with the initiative’s standard format for data reporting, right at the start. According to our workplan and timeline, we should be ready to join towards the end of next year.

The alignment of financing with agreed priorities is better, but still needs to improve. Funding is still not evenly aligned across categories and programmes. Predictability has improved. Multi-year financing commitments help.

One clear benefit of conducting these dialogues is that several contributors have given WHO provisional funding allocations, even when parliamentary or board approval was still pending. Advance information on contributors’ intentions helps us pinpoint residual funding gaps. By identifying these gaps, WHO can make a more rational and informed allocation of flexible resources.

I thank the countries, large and small, that have contributed to the core voluntary contribution account. This helps, but we are still struggling to secure sufficient flexible funding.

The 32% of the total budget which is financed with fully flexible funds is stretched to its limits. It is used to support the majority of corporate services and enabling functions. It is further stretched to cover underfunded areas, such as noncommunicable diseases, health systems, and emergency preparedness.

Even in well-funded programme areas, leadership functions and core staff are often not covered by earmarked funds. Flexible funds must fill this gap as well.

Efforts to broaden the base of contributors are progressing slowly. WHO’s top 20 contributors continue to provide nearly 80% of total financing. A broader base of contributors would make this Organization more genuinely owned by its Member States.

You will also be hearing about our efforts to improve the coordination of resource mobilization, looking at challenges faced by contributors and the secretariat alike.

Ladies and gentlemen,

We have moved forward on the commitments I made during the May Health Assembly to reform WHO’s emergency operations. Tomorrow you will hear about the work to date of a group of experts set up to advise WHO on the reform of its emergency programme. The advisory group is chaired by Dr David Nabarro, who will bring you up to date on proposals made so far.

You will also be given an update on the status of the contingency fund for emergencies, the contributions and pledges received, and the gaps that remain to be filled.

Of course, the biggest change for global health follows adoption of the new agenda for sustainable development. This is also on your agenda.

Health is one of 17 goals and has 13 out of the 169 targets. The new agenda uses a deliberately integrated framework that recognizes the multiple interactions that shape development. Health contributes to, and benefits from, many other goals and targets.

Health has much to gain from this integrated approach that makes the multiple economic, environmental, and social determinants of health part of the agenda. This is a sound foundation for the many health challenges that can be addressed only through multisectoral collaboration.

The SDGs have been criticized as utopian, impracticable, unaffordable, and far too numerous. They are, as the declaration itself frankly states, “supremely” ambitious. But they have also been praised for their broad and inclusive approach. In the view of many, the range of issues covered more accurately reflects the factors that governments actually consider when designing policies and making strategic choices.

Universal health coverage is the health target that underpins all others and is key to their achievement. It provides a much needed platform for comprehensive and integrated service delivery, especially as pursuit of the MDGs often encouraged fragmentation. The silo-approach to programme implementation must change.

Consensus is growing that the SDGs will not be primarily financed from aid budgets. Moving forward, countries are expected to make their tax systems more efficient and introduce measures to combat tax evasion and illicit tax flows. This marks a fundamental change in patterns of health financing, with a greater burden placed on domestic budgets, especially in middle-income countries.

We need to keep in mind how much the poverty map has changed since the start of this century. Today, 70% of the world’s poor live in middle-income countries.

WHO is the only agency with the mandate to operationalize all 13 targets within the health goal. With few exceptions, they align well with priorities set out in the 12th General Programme of Work.

One of the overarching questions for this dialogue is this. How much will WHO need to shift gears in its ways of working and financing in order to implement the new agenda?

I look forward to hearing your views.

Thank you.