Partnering for Relief - Optimizing Logistics. An Inter-Agency - - PowerPoint PPT Presentation

Inter-Agency Approach Inter-Agency Approach

Partnering for Relief - Optimizing Logistics. An Inter-Agency Approach: Why and How?!

May 8, 2008

George Fenton,

Inter-Agency Approach Inter-Agency Approach

With the Global (natural) risk hotspots analysis of the World Bank, future emergency response needs can be assessed

The World at Risk Mortality risk hotspots and top 20 recipients of humanitarian relief (1992-2003)

Sources: Natural Disaster Hotspots Global Risk Analysis – IBRD/World Bank, University of Columbia, International Research Insitute for Climate prediction, Center for International Earth Science Information Network, Development Economics Research Group, Center for Hazards and Risk Research, Hazard Management Unit World Bank, International Center for Geohazzards, EM-DAT, CRED

Inter-Agency Approach Inter-Agency Approach

While humanitarian needs are unpredictable there is an increasing trend of disasters

More historic data available Population growth in high risk areas & increasing frequency

• f disasters

Inter-Agency Approach Inter-Agency Approach

About $12 Bn / year spent on emergency response - largely government funded directly or via UN, NGO’s or Red Cross

Source: OECD – DAC, Global Humanitarian Assistance report, Good Humanitarian Donorship Project, Annual reports, interviews

Donor Governments Public in donor countries Corporations UN Red Cross ICRC/IFRC/local International NGO’s Government of affected nation Local NGO’s Affected Population

~ $10 Bn/yr ~ $2 Bn/yr ~ $1 Bn/yr ~ $7 Bn/yr - Bilateral ~ $3 Bn/yr ~ $2 Bn/yr ~ $12 Bn/yr ~ $2 Bn/yr

ROUGH ESTIMATES ROUGH ESTIMATES

DONORS RELIEF AGENCIES

Inter-Agency Approach Inter-Agency Approach

Donor funding overall is still growing at 5% per year of which Africa remains the largest recipient

~5% growth p.a. Donor Funding of the Major Donors (members of the OECD Development Assistance Committee) 1995 -2003

Inter-Agency Approach Inter-Agency Approach Top 20 Emergency Relief Agencies (>$ 95 Mn /yr) Top 20 Emergency Relief Agencies (>$ 95 Mn /yr)

Main international relief agencies spend ~$600 Mn/yr on average

• n both emergency & development aid

2900 1508 1400 1265 1027 772 639 603 588 544 522 402 374 364 308 179 147 142 113 95

WFP WHO UNICEF World Vision UNHCR Save the Children Alliance IOM ICRC CARE International CRS MDM Oxfam International MSF Cordaid IFRC IRC Mercy Corps OCHA

Emergency Relief Activities Emergency Relief Activities Food Food Shelter Shelter WASH WASH Medical Medical

UN NGO Red Cross Program Expenses 2004 (Mn USD)

Expenses of these

• rganizations include

grants to each other Source: UN, NGO annual reports, interviews UNFPA Concern

Inter-Agency Approach Inter-Agency Approach

Many parties involved in emergency response which poses serious challenges to the coordination and efficiency of aid

DONORS

Government Corporations UN Non Governmental Organization’s Red Cross

Emergency Response USAID ECHO DFID JICA World Bank UNHCR WFP FAO WHO UNICEF ICRC IFRC

Local Red Cross

SCHR WEF Booz Allen

TNT

… WVI Oxfam CRS IRC SCA MSF CARE

Local Red Crescent

RELIEF AGENCIES PUBLIC PRIVATE

OCHA ICVA OHCHR UNJLC UNDP IOM

Level of involvement

Fritz Institute UN-HABITAT

US UK EU Japan UNFPA DEC DGIS NL …

Governments of affected nations

Inter-Agency Approach Inter-Agency Approach

The challenge is to increase efficiency (do more at less cost) and effectiveness (faster) of disaster responses Agencies increasingly see value in developing a concept called the Humanitarian Response Network (HRN) which could act as an information management hub.

Inter-Agency Approach Inter-Agency Approach

The HRN would aim to….. – Improve response times to help more victims – Improve cost efficiency of the response to do more with the same funding – Reduce the complexity of the emergency response – Increase coordination between all stakeholders and support linkages with the corporate sector – Promote improved logistics preparedness and supplies pre-positioning opportunities

Inter-Agency Approach Inter-Agency Approach

The Humanitarian Response Network would be able to make

• ptimal use of each sector’s expertise

Corporate sector expertise Warehousing & Planning Warehousing & Planning Transportation & Customs Transportation & Customs Distribution to affected population Distribution to affected population Procurement Procurement NGO Expertise NGO Expertise UN Expertise Feedback mechanism on needs and situation Feedforward mechanism on stock and situation Information Information UN Expertise

Inter-Agency Approach Inter-Agency Approach

The advantages to pre-positioning relief supplies are:

• Improvement of response times (<48 hours)

– Direct access to relief goods / Faster access to airlift

• Better coordinated logistics response mechanisms

– Common first-wave pipeline for response (supply better fit to demand) – Limit number of organizations bringing in goods

• Central access to up-to-date information

– Central planning of logistics – Up-to-date information / common needs assessments

• Access to funding

– Access to CERF to pre-finance operations awaiting appeals – Access to free NFI (donated product) for first response

Inter-Agency Approach Inter-Agency Approach

…as well as in cost efficiency

• Low cost warehousing operations

– Shared use of warehouse capacity / better stock turnover

• Freight cost reductions

– More efficient use of transport resources – Greater bargaining power

• Better procurement of goods

– Relief goods and support goods are procured in larger quantities leading to lower prices – Cost reductions due to standardization – Better conditions in Long Term Agreements – Possibilities for virtual stock and higher priority in times of scarcity

Inter-Agency Approach Inter-Agency Approach

Proposed Organizational Structure

Governance Governance

• The HRN would be a logistics preparedness

and response platform:

• There is a need for INGO groups to form

potential components of the HRN

• The UNHRD currently offers space in a

network of warehouses

• Each organization signs individual

MOU’s with UNHRD

ERD ERD Location Location HRN HRN UNHRD UNHRD MOU MOU’ ’s s

Inter-Agency Approach Inter-Agency Approach

Governance Governance ERD ERD Location Location HRN HRN

Five important procedures and protocols need to be established: – – Decision-Making Procedure Decision-Making Procedure – – Procurement protocol Procurement protocol – – Cost Allocation protocol Cost Allocation protocol – – Operations protocol Operations protocol – – Activation protocol Activation protocol

UNHRD UNHRD MOU MOU’ ’s s

Issues of Governance