The past few decades have seen vast improvements in the health and well-being of communities worldwide. Life expectancy and access to health services have improved, and technological innovations have made the prevention and treatment of diseases more mainstream.
However, estimates place a price tag of billions of dollars to meet the needs of the global health burden, and there seem to be increasingly fewer resources to go around. Fiscal budgets are shrinking in an uncertain economic climate, and the private sector grows more risk-averse.
To overcome funding challenges, global health organizations and their donors have developed financing tools, such as the advance market commitment (AMC), debt buy-downs, and pooled funds from tax revenue, that blend capital from the public and private sectors. The result has been great momentum toward models that can maximize impact and potentially generate returns for investors.
To this end, the Milken Institute, with support from the Bill & Melinda Gates Foundation, convened a Financial Innovations Lab® to map current and potential models with the goal of leveraging traditional sources of aid to attract private-sector investment and increase sustainable funding for R&D.
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