Globalizing Solidarity: The Case for Financial Levies

"Innovative financing mechanisms have demonstrated their potential for securing additional resources for distribution to low-income countries. The success of the air ticket solidarity levy, as well as the governing body of revenue (UNITAID, International Drug Purchase Facility) has shown it is possible to meet long-term needs through non-traditional financing mechanisms."

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From page 32...

"The UNITAID governance example When considering issues of governance, UNITAID provides a good example. It was launched in 2006 with the aim to scale up access to treatment for HIV /AIDS , malaria and tuberculosis for the poorest people in developing countries by lowering the price of quality drugs and diagnostics and accelerating the pace at which they are made available. This relied on stable and predictable financial source generated by the air-ticket solidarity levy.

UNITAID composes of the Executive Board, the Consultative Forum and the Secretariat. The most important organ is the Executive Board. The Board is UNITAID s decision-making body, responsible for establishing objectives, action plans and partnerships. The Board consists of eleven members, including five representatives from founding countries (Brazil, Chile, France, Norway and the United Kingdom), one from Africa chosen by the African Union, one from Asia, currently from Korea, two from civil society (NGOs and communities of people living with the diseases), one from foundations, and one from WHO. This Board is chaired by Philippe Douste-Blazy, the former Foreign Minister of France.

As far as the composition of the Board that includes two NGO members concerned, it can be regarded as unique, since it could guarantee the voices of civil society are heard at the core of decision-making.

UNITAID has also created the Consultative Forum in May 2007 so that voices of countries, NGOs, companies and other stakeholders outside the Executive Board can be heard in the Board. There were 40-50 people participated in the first Consultative Forum together with all board members, exchanging information and views with each other.

Together with its Constitution that expresses transparency and accountability as core principles, UNITAID is more democratic, transparent and accountable than other conventional international organisations.

Several countries already introduced the air-ticket solidarity levy with a progressive scale based on destination and class. These include Chile, the Ivory Coast, France, the Republic of Korea, Madagascar, Mauritius and Niger which allocate all or a share of the revenues to a drug purchasing facility (UNITAID) aimed at combating the major pandemic diseases affecting the developing world. Others, like Brazil contribute by budget contribution based on air travel. About 170 million of the contributions to UNITAID originated in revenues from the airline ticket levy."