Scale of humanitarian crises demands partnerships with private sector

Expert panel of Chief executive officer (CEOs) and humanitarian leaders concluded at the World Economic Forum (WEF) Annual Meeting that the humanitarian crises are so enormous, protracted and complex that the traditional donor-aid agency model of humanitarian response can no longer cope.

Lasting solutions will only come through partnerships with the private sectors, they said in a statement issued by the WEF.

The statement said that one in 50 people on the planet needs humanitarian protection or assistance, the average amount of time that people spend as refugees has climbed to 17 years and the dynamics of conflict and natural disaster have become increasingly complex.

"Every month, we do more in critical crisis situations and every month, the situation is worse. We are increasingly aware that we need to work together in a very different way," President of the International Committee of the Red Cross (ICRC) Peter Maurer was quoted as saying.

Corporates were embracing the challenge, not in the old philanthropic way, but through projects that create shared value.

"You can't solve a 17-year refugee problem purely by philanthropy. We have to use our technology and our people to create a self-sustaining solution," President and Chief Executive Officer of Mastercard, US, Ajay S. Banga said.

In Jordan and Lebanon, Mastercard has worked with the United Nations World Food Programme to provide aid money on charge cards so that two million refugees can buy the items they need through shops in their camps, rather than relying on grain distribution.

This innovative approach has led to resource efficiencies of 20 to 30 per cent and Banga is not looking to make a profit but if the losses are too great, then the project will not be sustainable.

Meanwhile, Jordan has led the way in creating new ways to help refugees stand on their own feet as the country is hosting 650,000 Syrian refugees, 90 per cent of whom are in host communities.

The government lobbied the World Bank for over a year to secure soft loans to conduct development activities that would benefit both refugees and their host communities.

With the European Union, Jordan negotiated a preferential trade deal so that Jordanian manufacturers employing a certain number of refugees would pay little or no duty on many of their exports to the EU for the next 10 years.

In 2015, the World Economic Forum began working with leaders from across sectors to develop a coherent conversation around humanitarian issues, starting at the 2016 Annual Meeting.

This year, the Annual Meeting's humanitarian programme seeks to inspire future-looking analysis to inform policies and interventions on issues such as the role of technology, data and connectivity as well as education, skills and innovative financing.

Many of these efforts are driven by the Global Future Councils on the Humanitarian System and on Migration.

The goal is to mobilise a public-private community of practice to scale solutions and gain clarity on key challenges and opportunities that will disrupt the humanitarian and migration systems in the coming 10 to 15 years. - BERNAMA