History of the Strategic Fund

To achieve equitable delivery of health care services, access to affordable quality medicines and medical supplies is required. Access to quality medicines and health supplies can be facilitated if the selection process takes into consideration factors of quality, efficacy and cost, if transparent price information is available, if procurement mechanisms promote competition, and if planning systems ensure sustainable delivery. 

To assist Member States in the acquisition of quality essential public health supplies at affordable prices, the Director of the Pan American Health Organization (PAHO) established the Regional Revolving Fund for Strategic Public Health Supplies (the Strategic Fund) during the 42nd Directing Council of the Pan American Health Organization, Washington DC, 25th - 29th September 2000.

The Strategic Fund aims to build capacity in drug supply management and procurement programming and planning at the national level. 

The Fund is capitalized through the allocation of a portion of the 3% procurement service charge to the Fund's capital account. As countries purchase through the Fund, the purchasing power of the Fund will increase resulting in lower product prices for participating countries.

In September 2004, the 45th Directing Council of PAHO adopted a resolution CD.45.R7 to promote access to medicines and public health supplies in the Region. As a key element of the strategy Member States endorsed the proposal to strengthen regional procurement mechanisms, including the PAHO Strategic Fund. The Directing Council noted that “the Strategic fund’s development will strengthen Member States capacity in programming, planning and purchasing; it will facilitate the achievement of economies of scale by consolidating product demand and will promote continuity in supply through the development of a cyclical purchasing system”.

Since 2004, the Strategic Fund continues to grow with activities in twenty three countries (23) within the Region.