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Who Will Finance Countries' Pandemic Response: Pandemic Fund, WHO Or A New Entity? – Health Policy Watch

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Who Will Finance Countries' Pandemic Response: Pandemic Fund, WHO Or A New Entity? – Health Policy Watch
COVID-19 screening in Bangkok, Thailand: Financing future pandemic preparedness and response is unclear.

Many practical questions about how the pandemic agreement will be implemented – including how to finance countries’ pandemic prevention, preparedness and response (PPPR) – seem likely to be ceded to the Conference of Parties (COP).

According to the latest pandemic agreement draft, a “Coordinating Financial Mechanism” will support the implementation of the pandemic agreement and the International Health Regulations (IHR) (see Article 20).

“There’s a key debate with Article 20 within the negotiations about whether the coordinating mechanism should be hosted by the Pandemic Fund, the World Health Organization (WHO), or whether a new entity should be created,” Professor Garrett Wallace Brown, chair of Global Health Policy at the University of Leeds, told a Geneva Global Health Hub (G2H2) media briefing on Tuesday.

“There’s seemingly little appetite for a new institution, and there is a strong narrative being promoted for the Pandemic Fund in order to decrease fragmentation,” added Wallace Brown, who is director-designate of new WHO Collaboration Centre for Health Systems and Health Security.

The Pandemic Fund’s Priya Basu has made a strong bid for her entity to become this mechanism, telling Devex this week that a new fund to support PPPR would mean “duplication”.

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Professor Garrett Wallace Brown, chair of Global Health Policy at the University of Leeds

But Wallace Brown said that “final decisions about the details of the coordinating mechanism are being offloaded to the Conference of the Parties (COP), which I think is a wise decision given the circumstances”. 

“There are only nine negotiating days left and there are lots of details to work through. But I think it’s only wise if the COP is representative, inclusive, proportional to risk and deliberative, meaning a move away from business as usual.”

In conversation with delegates involved in the Intergovernmental Negotiating Body (INB) thrashing out the pandemic agreement, Wallace Brown said that “what they want to do is make the wording strong enough to show that there’s a commitment to a coordinating mechanism and a commitment to financing those”.

In addition, they were “being somewhat more clear about what types of financing and what types of mechanisms would be housed underneath that, but offshoring those details for 12 months – I’m suggesting 24 months – to try to work out exactly how that is done”. 

Domestic funds?

According to the draft, the financing mechanism would include a pooled fund for PPPR, and may include “contributions received as part of operations of the [Pathogen Access and Benefit-Sharing System], voluntary funds from both states and non-state actors and other contributions to be agreed upon by the Conference of the Parties”.

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G2H2 co-chair Nicoletta Dentico

However, G2H2 co-chair Nicoletta Dentico warned that poorer countries were mired in debt and debt cancellation should be a consideration to help these countries.

“Fifty four low-income countries with severe debt problems had to spend more money on debt servicing than on the COVID disease in 2020,” said Dentico, who heads the global health justice program at Society for International Development (SID).

“Contrary to the WHO Framework Convention on Tobacco Control, the [pandemic agreement] text opened for the final negotiations stubbornly ignores the repeated calls for legal safeguards that are indispensable to immunise the treaty implementation and financing from vested corporate interests,” added Dentico.

Mariska Meurs from the Dutch health NGO WEMOS, warned that “domestic funding for pandemic prevention preparedness and response must not undermine other domestic public health priorities”. 

“The draft pandemic treaty text worryingly includes ‘innovative financing mechanisms’, which often means using public funds not for heath, but to attract private-for-profit investors. Instead, the pandemic treaty should embrace the most obvious and fair avenues for funding pandemic prevention, preparedness and response: global tax justice and debt cancellation”.

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“But undermining other domestic public health priorities is exactly what we’ve seen happening under COVID-19. We’ve witnessed the shifts in global and domestic funding and how funding for basic health care has gone down,” warned Meurs.

“The text, as it lies before us now, does not acknowledge or try to remedy this.”

Mariska Meurs from the Dutch health NGO WEMOS

“The draft pandemic treaty text worryingly includes ‘innovative financing mechanisms’, which often means using public funds not for heath, but to attract private-for-profit investors. Instead, the pandemic treaty should embrace the most obvious and fair avenues for funding pandemic prevention, preparedness and response: global tax justice and debt cancellation,” said Meurs.

Pandemic Fund ‘black box’

Low and middle-income countries are more in favour of the pandemic financing mechanism being housed in the WHO “because they see it as being more representative” than the Pandemic Fund, said Wallace Brown.

But donors “are less keen because they see it as a mechanism that would give them less control of how funds are spent”.

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However, for the Pandemic Fund to become the PPPR mechanism would require “radical changes” not “minor tweaks as we’re currently being told”. 

Some of the problems with the fund, are that it only focuses on three elements of PPPR and this “creates vertical silos”, and there is no explicit guidance in the fund’s governance framework on “how equity will be addressed in either the fund process or with reference to prioritise beneficiaries of programmes”, according to Wallace Brown.

In addition, the first round of funding was eight times over-subscribed but the selection process “was not clear”.

“Applications that met the scorecard threshold for funding had to be rejected, and it remains unclear exactly how the governing board made their final decisions,” he added.

Describing his personal view on the way forward as “agnostic”, Wallace Brown said he had been studying the Pandemic Fund for a while and “think it’s a bit of a black box”. 

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However, the WHO would need capacity building to become the mechanism 

“They do handle funds, they have the contingency fund for emergencies. They are able to make funding available to people and have processes for that, but they don’t have it at the same scale as a World Bank,” he said.

“Or there could even be a third entity. So at the moment, I’m remaining agnostic. I think there needs to be better analysis, better evidence to decide what works and what doesn’t work” – and these kinds of details “won’t be decided in nine days”.

Image Credits: Prachatai/Flickr.

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Finance

When should kids start learning about money? Advice from local financial advisor

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When should kids start learning about money? Advice from local financial advisor

When should kids start learning about money, and preparing for adult expenses like rent, car payments, and insurance?

It’s a question asked recently by an ARC Seattle viewer.

We took the question to Adam Powell, Financial Advisor at Private Advisory Group in Redmond. Powell talked with ARC Seattle co-anchor Steve McCarron to share insights on the right age to form money habits, common financial mistakes parents unknowingly pass down to their children, and practical tips to set kids up for long-term financial success.

Find more ARC Seattle stories on our YouTube page.

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Soft-saving era? Gen-Z embraces new financial trend that puts experiences over long-term planning

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Soft-saving era? Gen-Z embraces new financial trend that puts experiences over long-term planning

LOS ANGELES (KABC) — Many Gen-Zers are adopting a financial approach that prioritizes quality of life in the present, a trend that’s being called “soft saving.”

Bob Wheeler, a CPA, described the mindset as a shift in how young adults balance their current lifestyle with longterm planning.

“It’s really a financial approach of ‘I want to make sure I have a good quality of life, and I’m thinking about the future,’ but not as much as the present,” Wheeler said.

For many Gen Z consumers, that can mean spending more on experiences – like vacations or concerts – rather than saving for major purchases like a car or home.

Wheeler said the approach can offer emotional benefits.

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“I think there are definitely benefits, I mean, less anxiety, feeling like life is what you want it to be, fulfillment, versus saving for later on,” he said.

Still, financial experts caution against ignoring longterm stability. Wheeler encouraged young workers to take advantage of employer-sponsored retirement plans.

“They’re not going to do the max. They’re going to do enough to make sure they’re getting the match from your employer, so maybe they’re doing 3% or 5%. Maybe they’re not maxing out their IRAs. Maybe they’re doing $2,500,” he said.

He also stressed the importance of building an emergency fund, typically enough to cover six months of expenses.

“I want people to enjoy their life now because tomorrow is not promised,” Wheeler said. “I also just really reiterate to them ‘and you need to have some money set aside because we don’t know.’”

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But saving for a home may not be practical for everyone. In some places, renting can be cheaper, and tenants avoid maintenance costs.

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Local M&A advisory firm Matrix acquired by banking giant Citizens Financial – Richmond BizSense

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Local M&A advisory firm Matrix acquired by banking giant Citizens Financial – Richmond BizSense

Matri x Capital Markets Group is now a division of Citizens Financial Group. (Image Courtesy Citizens Financial Group)

Matrix Capital Markets Group is used to helping businesses line up mergers and acquisitions.

For its latest transaction, the Richmond-based M&A advisory and investment banking firm was itself the subject of the deal.

Matrix was acquired last week by Rhode Island-based banking giant Citizens Financial Group.

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Matrix, along with its nearly three dozen employees, including 20 in Richmond, are now operating as a division of Citizens, within the $226 billion bank’s investment banking arm, Citizens JMP Securities.

Financial terms of the deal were not disclosed. It involved an asset purchase that bought out Matrix’s 15 shareholders.

The deal ends Matrix’s 38-year run as an independent firm, a notable streak in an industry where consolidation of smaller firms into larger ones is common.

Matrix was founded in Richmond in 1988 by Scott Frayser and Jeff Moore and has since hit its stride by building a niche in handling deals for companies in the downstream energy and convenience retail sector.

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The firm has been run in recent years by president Spencer Cavalier and Cedric Fortemps, co-head of the firm’s largest investment banking team.

Fortemps said Matrix began to search for a larger acquirer last year.

Cedric Fortemps

Cedric Fortemps

“The board decided to see if we could find a partner and a transaction that could build on what we’ve built thus far,” Fortemps said.

Matrix enlisted investment banking firm Houlihan Lokey to help in the search and negotiate on its behalf, along with the law firm Calfee as its legal advisor.

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Fortemps said Citizen rose to the top of the pack of suitors in part due to JMP Securities’ track record of acquiring smaller firms like Matrix.

“They have acquired four other firms very similar to ours. Seeing the successes they had with those groups… the playbook is really to let the firms continue to operate the way they had,” Fortemps said.

Matrix’s Richmond office in the Gateway Plaza building downtown will continue to operate, as will its second office in Baltimore.

The Matrix brand will continue to be used for the time being but will eventually be phased out.

Fortemps said the firm’s success and particularly its growth in recent years has been fueled by its expertise in working deals for downstream energy clients – such as wholesale fuels distributors, propane and heating oil distributors – and convenience store and gas station chains.

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Matrix’s rise in that sector began in 1997, when it hired Tom Kelso, who lived in Baltimore and owned a heating oil fuels distribution business. Kelso, who would eventually serve as the firm’s president prior to Cavalier, had a vision to launch an M&A firm for that industry.

“It took seven to eight years to grow it but eventually we were able to get a reputation of really high quality work and those successes on smaller transactions resulted in us being considered for larger deals,” Fortemps said.

Today, 21of the firm’s 26 investment bankers work on the team that handles deals for those industries. It controls about 40% market share for the M&A market for those sectors, Fortemps said.

The firm closes nearly two dozen transactions a year over the last five years and has closed 500 deals since its inception.

The typical value of its deals is more than $20 million, though the transactions it has closed over the last three years in the energy and convenience retail sectors have grown to $140 million per deal, Matrix said.

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Its largest deal to date was closed last year, involving the $1.6 billion acquisition of convenience store chain Giant Eagle.

Matrix also works deals in other industries such as lubricants distribution, automotive after-market suppliers and car washes, as well as outdoor recreation and the marine industry.

After decades of representing buyers and sellers in M&A, Fortemps said the Citizens deal was a new experience for the Matrix team: being the target of the transaction, rather than the ones facilitating it.

“It certainly made me appreciate everything our clients have to go through on the other side of the table,” he said.

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