PAHO Urges Greater Use of Strategic Fund

The Pan American Health Organization (PAHO) is encouraging its member countries to take advantage of financing and technical cooperation available for acquiring essential supplies and medicines through the PAHO Strategic Fund.

First created in 2000, the fund helps countries with planning and procurement of supplies and medications that are considered essential to the maintenance of public health. The fund provides technical cooperation to help ensure efficiency in the procurement process, adherence to high quality standards, and, in general, a timely and adequate supply of essential medicines and supplies.

By purchasing supplies and medicines in large volumes directly from manufacturers, the fund is also able to negotiate lower prices for these goods.

In addition, the fund-—which is officially known as the Regional Revolving Fund for Strategic Public Health Supplies—-has developed special policies in coordination with the Global Fund for AIDS, Tuberculosis, and Malaria to help beneficiaries comply with the Global Fund's administrative requirements.

Through the Strategic Fund, PAHO staff provide advice and training for country health officials on assessing their needs for essential medicines and supplies and planning their purchases. Research by PAHO has found that some member countries have inadequate practices for planning and procurement of essential goods.

The fund also helps beneficiaries by providing lists of reference prices and prequalified suppliers, whose products and manufacturing practices adhere to PAHO/WHO standards.

Over the past five years, the Strategic Fund has purchased $24 million of essential public health supplies on behalf of four countries in the region. In 2004, PAHO's Directing Council called on member countries to make greater use of the fund.

To promote greater use of the fund, PAHO recently organized a workshop in Honduras for staff from Central American ministries of health and organizations that are principal beneficiaries of Global Fund projects. Additional workshops are planned for the Caribbean and Andean countries before the end of 2005.

PAHO's Revolving Fund for Vaccine Procurement operates in a similar fashion and has provided extensive support to PAHO member countries in acquiring vaccines, syringes, and cold chain equipment.