Revealed: international aid to crises, including covid, marred by delays, debt, and deficits

People in PPE in the Democratic Republic of the Congo

People in PPE in the Democratic Republic of the Congo

New study, released by the Centre for Disaster Protection, shows consistent failure to prepare international aid before disasters strike, even when we can see a crisis coming, is putting lives at risk.

The briefing is being released ahead of a London meeting of G7 Foreign and Development Ministers on 3rd May to discuss how to ‘Build Back Better’. It analyses the international financial response to a number of recent disasters, including covid-19, earthquakes, droughts, and floods, and shows how the world currently pays for crises sets a very low baseline for that agenda:

Delays

  • Just 2% of international aid and loans used for covid-19 were agreed and ready to go in advance of the crisis, despite experts warning of a global pandemic. 2.3% on average for other recent disasters.

  • Analysis of other disasters shows that, even after 6 months, most of the funding (59%) had not been committed, hampering relief and recovery efforts.

Debt

  • 92% of covid-19 funding was given as loans. As a result, international support didn’t make it to the poorest countries most in need.

  • Over half (53%) of funding committed to other disasters was in the form of loans. While using debt to pay for disasters is a useful option for some countries, for the poorest countries it can limit the amount of money available for crisis response

Deficits

  • For countries recently hit by cyclones, just 18% of the funding needed for recovery had been committed by donors 18 months on, despite agreement that the international community would support countries experiencing climate-related crises.

  • Two months after the world was alerted to massive droughts in Kenya just 11% of aid had been committed despite the crisis being forecast months in advance.

  • Meanwhile for the Lesotho drought, that figure was just 1% after two months.

Today’s briefing combines research by the Centre for Disaster Protection on covid-19 with the findings of a joint study with Development Initiatives to be released in full later in May, that explores the international financial response to nine other recent disasters, including floods, cyclones, and droughts, to determine to what extent the problems with the covid-19 response are indicative of wider system failures.

Daniel Clarke, the Director at the Centre for Disaster Protection, said: 

“We can predict most disasters, including pandemics. So why does the world always scrabble around for money to help after troubles arise? It's slow, expensive, and costs lives.

“It’s time for the G7 to ditch the disaster begging bowl and agree a new approach to paying for crises that looks forward, not back. This weekend’s Ministerial is a chance for leaders to honour the tragedies of the past by choosing to better manage the crises of the future. 

“With climate change, population shifts, and rising conflict set to make the world more, not less, dangerous, we need to act now before even more lives are devastated by disaster.”

UN Humanitarian Chief Mark Lowcock said:

“Millions stand on the brink of starvation because of COVID, climate change and conflict. It could not be clearer that we all need to work smarter, not just harder, if we are to help them.

“Taking action before crises hit is a smart investment. It saves lives and money – and it’s far more dignified for the people we’re helping.”

Bijay Kumar, Executive Director, Global Network of Civil Society Organisations for Disaster Reduction (GNDR) said:

“When those with the best access to respond when disasters strike, have the least access to funds in order to do so, it is clear things are not working as they should. 

“Covid-19 has been a stark reminder that donors must make necessary reforms to ensure that funding for emergency response is channelled to where it is needed – the frontline – before a disaster hits.”

Alongside this report, the Centre is releasing a Statement of Support signed by over 40 leaders from across the development, humanitarian and private sectors endorsing the Crisis Lookout coalition's three asks of the G7 ahead of the Leader’s summit in Cornwall in June:

  • Predict crises better by creating a new ‘Crisis Lookout’ function to improve engagement with disaster risk information and support the prioritisation of crises globally, regionally, and nationally.

  • Prepare response better by agreeing to make pre-arranged finance the primary way to pay for crises by 2030, so that funding gets where it is needed faster, with greater impact.

  • Protect vulnerable people better by supporting an initial group of ‘pathfinder’ countries to ensure that we ‘leave no one behind’ through better prediction of, and coordinated protection from, crises.

For more information on the Crisis Lookout coalition and to view a short introductory video visit www.crisislookout.org or www.twitter.com/crisis_lookout.

ENDS

Notes to editors

Today’s findings come after more than 200 NGOs warn in open letter to world leaders that 270 million people face hunger, starvation or famine around the world, following a 40% increase in humanitarian need since the pandemic.

A full media briefing is available here.

To discuss these finds and arrange interviews please contact Dani McCarthy dmccarthy@disasterprotection.org

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Joint Statement calling for G7 action on disaster risk finance