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UN short nearly $5bn for aid projects as global recession hits donations

The Guardian
21 July 2009

The United Nations is warning of a US $4.8bn shortfall in funding to tackle humanitarian crises in the world's poorest countries, as the credit crunch leaves developed world governments with little cash to spare.

Delivering its half-yearly update about emergency fund-raising, John Holmes, of the UN's Office for the Co-ordination of Humanitarian Affairs, said that while the UN's emergency appeals had received more funds than at the same time last year, the economic crisis was exacerbating poverty and increasing need.

"It is clear that the global recession puts pressure on the aid budgets of all donor governments, but of course it puts immeasurably more pressure on crises-stricken people in poor countries," he said.

The UN has raised a total of $4.6bn over the past six months for its humanitarian appeals - but Holmes said it had identified $4.8bn of "unmet needs" - the biggest gap ever.

Holmes compared the shortfall in funding for the world's poorest people with the vast sums spent by the US, UK and other developed countries on bailing out their banking sectors.

"If just a fraction of the hundreds of billions of dollars recently committed by governments to private financial institutions were allocated to humanitarian action, these appeals could already be fully funded, and those in need could be getting the best available protection and assistance, on time," Holmes said.

He singled out Kenya, Palestine and Zimbabwe as states whose financing needs have become more severe over the past six months, and said the UN is keen to raise more resources during the rest of the year.

Holmes said humanitarian needs in just one country, Somalia, had decreased recently - but only because a food aid project had been cancelled due to rising insecurity for the staff working on the ground.

Aid agencies have repeatedly sounded the alarm since the global downturn began last year about the disproportionate impact on poor countries, which often rely heavily on export earnings.

World trade volumes have collapsed over the past six months, and unlike their richer counterparts, governments in the developing world find it hard to raise funds on international capital markets. Only a small proportion of the funding pledged at the G20 summit in London earlier this year to combat the impact of the crisis was targeted at the world's poor.

Italian prime minister Silvio Berlusconi came under international pressure in the run-up to the G8 summit he hosted in L'Aquila earlier this month, after cutting Italy's aid budget.

At a recent conference in New York, organised by the president of the UN general assembly, member-states pledged to offer extra aid, but little has so far been forthcoming.