Asian Development Bank Becomes Key Global Health Funder Amid Declining Aid
Multilateral development banks (MDBs), including the Asian Development Bank (ADB), are increasingly becoming primary sources of funding for global health initiatives as traditional bilateral aid and grant funding decline. This shift is driven by a significant contraction in global health grant aid, with a 12% decrease in 2025 and a further 5% in 2026. Major donors like the United Kingdom and the United States have reduced their assistance, leading to a substantial funding gap. In response, organizations like the Global Fund are engaging in 'blended finance' models, partnering with MDBs such as the Islamic Development Bank (IsDB) and the ADB to leverage grant capital with concessional lending. This new approach aims to provide multi-year, scalable capital for foundational health infrastructure, digital systems, and workforce expansion, which traditional short-term grants often cannot cover. Experts note that development assistance for health from regional development banks grew by an estimated 32% ($270 mil...
