Inter-Agency ApproachInter-Agency Approach

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

May 8, 2008George Fenton,

Inter-Agency ApproachInter-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 andtop 20 recipients of humanitarian relief (1992-2003)

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

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While humanitarian needs are unpredictable there is anincreasing trend of disasters

More historic data available

Population growth in high risk areas

& increasing frequency of disasters

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About $12 Bn / year spent on emergency response - largelygovernment 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 CrossICRC/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

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

~5% growth p.a.

Donor Funding of the Major Donors(members of the OECD Development Assistance Committee)

1995 -2003

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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 averageon both emergency & development aid

29001508

1400

12651027

772639603588

544522

402374364308

179

14714211395

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 ActivitiesEmergency Relief Activities

FoodFood ShelterShelter WASHWASH MedicalMedical

UNNGORed Cross

Program Expenses 2004 (Mn USD)

Expenses of these organizations include grants to each other

Source: UN, NGO annual reports, interviews

UNFPA

Concern

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

DONORS

Government

Corporations

UN

Non Governmental Organization’s

RedCross

EmergencyResponse

USAID

ECHODFID

JICA

World Bank

UNHCR WFP

FAO

WHO

UNICEF

ICRC

IFRC

Local Red Cross

SCHR

WEF

Booz Allen

TNT

… WVIOxfam

CRSIRC

SCAMSF

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

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The challenge is to increase efficiency (do more at less cost) andeffectiveness (faster) of disaster responses

Agencies increasingly see value in developing a conceptcalled the Humanitarian Response Network (HRN) whichcould act as an information management hub.

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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

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The Humanitarian Response Network would be able to makeoptimal use of each sector’s expertise

Corporate sector expertise

Warehousing& Planning

Warehousing& Planning

Transportation&

Customs

Transportation&

Customs

Distributionto affectedpopulation

Distributionto affectedpopulation

ProcurementProcurement

NGO ExpertiseNGO ExpertiseUN Expertise

Feedback mechanism on needs and situation

Feedforward mechanism on stock and situation

InformationInformation

UN Expertise

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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

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…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

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Proposed Organizational Structure

GovernanceGovernance

The HRN would be a logistics preparednessand response platform:There is a need for INGO groups to formpotential components of the HRN

The UNHRD currently offers space in anetwork of warehouses

Each organization signs individualMOU’s with UNHRD

ERDERDLocationLocation

HRNHRN

UNHRD UNHRD MOUMOU’’ss

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GovernanceGovernance

ERDERDLocationLocation

HRNHRNFive important procedures and protocolsneed 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 MOUMOU’’ss

Issues of Governance