WHAT IS INNOVATIVE FINANCING?
Innovative financing refers to a range of non-traditional mechanisms to raise additional funds for development aid through “innovative” projects such as micro-contributions, taxes, public-private partnerships and market-based financial transactions Innovative financing focuses on new sources and new instruments for raising revenues. One of the main problems facing health system financing is the fact that current donor funding is neither sufficiently predictable nor sufficiently large enough to support reaching the health Millennium Development Goals. Even if efforts to improve the effectiveness of current aid for health are successful, a sharp increase in resources is required. Innovative financing solutions have multiplied in recent years to respond to this need for funds for global health. With their openness to both market-based solutions and use of new media tools to raise funds, projects such as MASSIVEGOOD are pushing the boundaries of “traditional” development aid.
Innovative financing involves non-traditional ways to support fund-raising by tapping into new resources while engaging investors beyond the financial dimension of transactions in order to deliver financial solutions for development problems on the ground. Innovative financing focuses on new sources and new instruments for raising revenues. It encompasses different aspects of financing—from additional funding to the effective use of funds. One of the main problems facing health system financing is the fact that current donor funding is neither sufficiently predictable nor sufficiently large enough to achieve the health Millennium Development Goals set by the United Nations. Even if efforts to improve the effectiveness of current aid for health are successful, a sharp increase in resources is required. To achieve this, the Millennium Foundation aims to inspire and empower citizens to join a movement to help the world’s most vulnerable populations. The organization hopes to achieve this
