Friday, July 24, 2009

Reuters/Guardian: Record budget shortfall for UN aid agencies

Thanks to Michael Bear for highlighting a Reuters news release and a Guardian analysis on the Humanitarian Relief blog.

Reuters reports that both the global economic downturn and the drastic increase in needs in Pakistan have contributed to a record funding gap of $4.8 billion.
Yet some 43 million people need assistance this year, up from 28 million in 2008.
While there have been no large natural disasters so far in 2009, the global downturn has amplified needs in impoverished countries, and especially in those in protracted crisis such as Afghanistan, the Democratic Republic of Congo and Sudan.

This situation is not likely to improve, as the 2009 contributions of the major donor countries had already been set before the economic crisis had hit them.
However, the main problem is one of political will rather than lack of money. As Conor Foley in his Guardian analysis points out,
It would cost around 1% of the money thrown at western banks in the last six months to bridge the current humanitarian deficit. Yet politicians will continue to play a game of cynical brinkmanship over where the money should come from, confident that it will be the UN itself that gets blamed for the resulting deaths and human misery.

For more figures on how the economic crisis has affected other humanitarian organisations, see another blog entry by Michael Bear.

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