By Karl Hofmann, President and CEO, PSI
Private capital is needed to test and develop proof that existing health solutions can be adapted to a developing world context. Once this proof is established, the solution has the power to unlock the large-scale government funding needed to dramatically improve health across the developing world.
As demonstrated in a new report released this week by PSI’s Impact magazine and Devex, in partnership with Fenton Communications, the landscape for global health financing has changed dramatically. High-income governments that provide foreign aid for health have steadily increased their support over the last decade. That support is now leveling or shrinking due to budget constraints. Governments are under increased pressure to reduce risk and ensure that all public funds for foreign aid are invested in solutions that guarantee results.
As a result, corporations, foundations and philanthropists are now taking an active role to help protect the progress already made against serious threats to health and economies like HIV, malaria, tuberculosis, pneumonia, and lack of access to family planning, which remain as urgent as ever. They are providing private capital to fund the type of innovation that governments cannot afford to advance on their own.





