Humanitarian financing report outlines recommendations to overcome growing challenges

Sunday, May 17, 2015
  • Looking Beyond the Crisis shifts the dialogue around humanitarian financing to a new phase
  • World Vision endorses the recommendations included in the report to improve anticipation and analysis, upgrade financing architecture, improve efficiency and reduce transaction costs

17 May 2015 – A report into humanitarian financing shows that the changing nature of humanitarian crises and the widening gap of available resources remains a significant concern, says international aid agency World Vision.

“The level of need is placing a huge strain on the way that the whole sector supports humanitarian emergencies," says Julian Srodecki, World Vision International Technical Director of Humanitarian Grants. “As the report highlights, business as usual is no longer an option.”

According to the Future Humanitarian Financing: Looking Beyond the Crisis report, which was launched 13th May 2015, the worldwide appeals by the international community to address the increasing needs across numerous humanitarian crises have grown to an unprecedented level, $18.7 US billion to assist 74.7 million people in 33 countries. Year on year, UN appeals for humanitarian action keep on rising, and with the Syria conflict unlikely to end soon, this is likely to continue.

The humanitarian funding gap and financing were discussed at a series of Future Humanitarian Financing (FHF) dialogues held in 2014.  These brought together a range of thought leaders from academia, business, NGOs and the UN at both global and field levels.

Currently, more than two-thirds of humanitarian funding each year is spent in conflict-affected and fragile settings. - Julian Srodecki

“The insights generated from these dialogues highlighted the complexity of the issue. Given the diverse nature of the humanitarian landscape this is not surprising,” says Srodecki.

“Furthermore, the future is hard to predict – for example, we couldn’t have anticipated the extensive impact of human suffering and humanitarian needs that emerged in Syria.”

Mr Srodecki adds that conflict-affected and fragile settings pose a number of challenges for humanitarian funding.

“Currently, more than two-thirds of humanitarian funding each year is spent in conflict-affected and fragile settings. We expect there will continue to be significant demand for humanitarian assistance in these challenging environments.

“The costs of providing assistance appear to be increasing and the current financing framework is under huge strain.”

Grounds for optimism: economic growth, global connectedness, new technologies, innovation and managing risk and building resilience. 

However, Mr Srodecki stresses there are also grounds for optimism.

“Economic growth, increasing global connectedness, new technologies, innovation in financing and business practices, and emerging global norms around managing risk and build resilience were all identified by participants in the cross-sector dialogues as sources of hope.

“This report goes beyond outlining the current concerns around humanitarian financing, to propose practical recommendations that have the potential to transform the current system. The steps to diversify the current system, better support national response organisation, improve efficiency and reduce transaction costs represent a practical way forward for the humanitarian sector.  The report helps to shift the dialogue around humanitarian financing towards identifying and refining possible solutions, which is crucial in ensuring we are prepared to address the needs of future humanitarian crises.”

The FHF initiative was instigated and led by World Vision International, CAFOD (Caritas England and Wales), and the UN Food and Agriculture Organization (FAO).

ENDS

Notes to editors:

  • Julian Srodecki, Technical Director of Humanitarian Grants from World Vision International is available for interviews, please contact Tanya  Penny: Director of Global Humanitarian Communications and Information Management with requests +971 50 550 5803 (GMT+3) or Tanya_penny@wvi.org
  • World Vision child-focused disaster management is dedicated to working with children, families and communities to reduce the impact of disasters. For more information, visit www.wvi.org/disaster-management .
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