Blended finance to the rescue? Subsidies, vaccine bonds and matching funds in global health

To close persistent global health financing gaps, policymakers have in recent years promoted the idea of ‘blended finance’, i.e. the strategic use of public funds to attract additional private sector investment. To better understand this trend, this paper studies three major blended finance instrume...

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Main Authors: Felix Stein, Desmond McNeill
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Global Public Health
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Online Access:https://www.tandfonline.com/doi/10.1080/17441692.2025.2468338
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author Felix Stein
Desmond McNeill
author_facet Felix Stein
Desmond McNeill
author_sort Felix Stein
collection DOAJ
description To close persistent global health financing gaps, policymakers have in recent years promoted the idea of ‘blended finance’, i.e. the strategic use of public funds to attract additional private sector investment. To better understand this trend, this paper studies three major blended finance instruments, namely vaccine bonds, advanced market commitments, and matching funds. In doing so, this paper makes two important contributions. On a practical level, it shows that these three blended finance instruments tend to be expensive and of questionable effectiveness. Their high costs favour large corporate actors, private investors and middlemen, while their benefits for potential beneficiaries in low- and middle-income countries and for public donors remain unclear. On a theoretical level, the paper asks why these instruments remain popular in policy circles despite their shortcomings. It finds that blended finance mechanisms proliferate thanks to their seemingly innovative nature, a constant emphasis on urgency or crisis, and the promise of combining market-based self-interest with positive social impact. The paper ends on a call for much greater critical scrutiny concerning blended financing mechanisms.
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spelling doaj-art-296bf5c56d9c48a0a37f5af252e5cedc2025-08-20T03:22:18ZengTaylor & Francis GroupGlobal Public Health1744-16921744-17062025-12-0120110.1080/17441692.2025.2468338Blended finance to the rescue? Subsidies, vaccine bonds and matching funds in global healthFelix Stein0Desmond McNeill1Department of Anthropology, University of Amsterdam, Amsterdam, The NetherlandsCentre for Development and the Environment, University of Oslo, Oslo, NorwayTo close persistent global health financing gaps, policymakers have in recent years promoted the idea of ‘blended finance’, i.e. the strategic use of public funds to attract additional private sector investment. To better understand this trend, this paper studies three major blended finance instruments, namely vaccine bonds, advanced market commitments, and matching funds. In doing so, this paper makes two important contributions. On a practical level, it shows that these three blended finance instruments tend to be expensive and of questionable effectiveness. Their high costs favour large corporate actors, private investors and middlemen, while their benefits for potential beneficiaries in low- and middle-income countries and for public donors remain unclear. On a theoretical level, the paper asks why these instruments remain popular in policy circles despite their shortcomings. It finds that blended finance mechanisms proliferate thanks to their seemingly innovative nature, a constant emphasis on urgency or crisis, and the promise of combining market-based self-interest with positive social impact. The paper ends on a call for much greater critical scrutiny concerning blended financing mechanisms.https://www.tandfonline.com/doi/10.1080/17441692.2025.2468338Global healthblended financeIFFImAMCsmatching fundsSDG 3, SDG 10, SDG 17
spellingShingle Felix Stein
Desmond McNeill
Blended finance to the rescue? Subsidies, vaccine bonds and matching funds in global health
Global Public Health
Global health
blended finance
IFFIm
AMCs
matching funds
SDG 3, SDG 10, SDG 17
title Blended finance to the rescue? Subsidies, vaccine bonds and matching funds in global health
title_full Blended finance to the rescue? Subsidies, vaccine bonds and matching funds in global health
title_fullStr Blended finance to the rescue? Subsidies, vaccine bonds and matching funds in global health
title_full_unstemmed Blended finance to the rescue? Subsidies, vaccine bonds and matching funds in global health
title_short Blended finance to the rescue? Subsidies, vaccine bonds and matching funds in global health
title_sort blended finance to the rescue subsidies vaccine bonds and matching funds in global health
topic Global health
blended finance
IFFIm
AMCs
matching funds
SDG 3, SDG 10, SDG 17
url https://www.tandfonline.com/doi/10.1080/17441692.2025.2468338
work_keys_str_mv AT felixstein blendedfinancetotherescuesubsidiesvaccinebondsandmatchingfundsinglobalhealth
AT desmondmcneill blendedfinancetotherescuesubsidiesvaccinebondsandmatchingfundsinglobalhealth