Development Initiatives exists to end extreme poverty by Leaving no one behind: Innovative approaches to financing resilience Harpinder Collacott Dubai International Humanitarian Aid & Development Conference & Exhibition March 2016

Most humanitarian assistance is long term in nature US$ BILLIONS Long term (8 years or more) Medium term (3 − 7 years inclusive) Short term (under 3 years)

A third of people in extreme poverty (31%) live in countries that are both environmentally and politically fragile PEOPLE IN EXTREME POVERTY Other Countries 160m Politically Fragile 253m Environmentally vulnerable 322m329m 2014 data

There is a need for better and joined-up data on poverty and vulnerability CHALLENGES Current data on poverty and vulnerability is weak, particularly in fragile and conflict-affected contexts A coordinated response to resilience and disaster/ conflict prevention requires a common understanding of needs and vulnerability Current assessments of needs and vulnerability are not joined up SOLUTIONS Weak data Requires a common understanding Assessments not joined up Generate evidenceStrengthen data Generate evidence on what data collection and innovative methods work in what contexts Strengthen government capacity to collect, analyse and use data

Trends in humanitarian financing in MENA* region *MENA: Middle East and North Africa

DISPLACED PERSONS (MILLIONS) There are now more people displaced in the MENA region than in any other region Middle East Africa, south of Sahara South America South and Central Asia Europe Far East Asia North and Central America Africa, north of Sahara Oceania *MENA: Middle East and North Africa

An increased proportion of international humanitarian assistance is directed to crises in the MENA region *MENA: Middle East and North Africa; oPt: occupied Palestinian territories Funding outside the appeals US$ BILLIONS Revised appeal requirementsFunding inside appeals

Nearly 90% of funding from MENA donors was allocated to crises in the region in 2014 *MENA: Middle East and North Africa 23% 2% 0% 30% 9% 36% 3% 0% 89% 0% 5% 7% 2% 34% 5% 50% Sub-Saharan Africa South Asia Middle East and North Africa East Asia and Pacific Europe and Central Asia Latin America and Caribbean MENA East Asia and Pacific Europe and Central Asia North America Region donors and their recipients by region, % 1%1% 35% 51% 5%5%

Innovative financing mechanisms: protracted refugee crises

Paradigm shift towards resilience-based programming to address long-term needs of refugees Regional Resilience and Refugee Plan (3RP) regional response to the Syria crisis (2014) Dead Sea Resilience Agenda emerging from UNDP Resilience Forum (November 2015) 3RP works closely with the World Bank’s Global Program on Forced Displacement

3RP Case Study: Danish Refugee Council (DRC) placement scheme in Northern Iraq Key lessons: Partnership with local private sector is critical to understanding the local job market and the skills required to access it. It is important to link training programmes with opportunities to mobilise sustainable job opportunities % of participants are still employed after initial two-month period Project engages the private sector to support access to livelihood opportunities for host communities and refugees Job training to develop soft skills for the local labour market

Innovative financing mechanisms: disaster settings

Case study: Africa Risk Capacity (ARC) Background to the ARC: Established in 2014 − a model enabling early action in preparing for drought and building long-term resilience Insured governments use the ARC payout to launch early response activities as set out in their pre-agreed contingency plan. Pooling risk reduces the cost of insurance. Application at the country level 1st payouts in January 2015 totalled US$26 million (in Mauritania, Niger and Senegal) – used to deliver livestock fodder, food and cash to affected populations

ARC has gained momentum and international recognition ARC is considering organisations in support of cohesive government-led risk expansion to insure international management systems Nov/Dec Burkina Faso, Malawi, Mali, Gambia and Zimbabwe joined July 2015 June ARC is recognised at G7 meetings and COP21. Pledges reported are in the region of US$150 million from donors ARC increased membership during 2015 due to a willingness of governments to dedicate domestic resources to disaster funding A UN-led multi- stakeholder initiative anticipate, absorb and reshape (A2R) was launched during COP21 in collaboration with ARC

Financing resilience: the critical role of local and national responses

International humanitarian assistance is eclipsed by India’s domestic spending on disaster risk reduction and disaster relief Total DRR Disaster relief

Development Initiatives Ltd North Quay House Quay side Temple Back Bristol BS1 6FL United Kingdom