Humanitarian Relief is Big Business
Relief is much bigger than development
The relief and development sector has become more relief than development.
This is a very bad outcome, and one of the reasons why so little in the relief
and development sector is sustainable, and so little has durable value.
In a humanitarian crisis, it is difficult to back away from “saving lives” to doing
those things that will set the stage for progress in the future. This is
understandable, and laudable ... but still a reason why development has
become lower priority in so many places faced with crisis.
Donors are able to avoid soft questions about why so little is being done for
development, but are much less able to avoid the hard questions associated
with fund crisis response when major newspapers and the TV news have
death and destruction in the headlines.
Rescue and relief versus development
Relief and development are two very different activities. Relief is clearly
needed when there has been a disaster, but it is NOT development. It merely
helps to keep people alive and to some extent mitigate the value destruction
that has taken place. Development is about making progress from a rather
unsatisfactory socio-economic status quo to something better, using resources
in ways that create incremental socio-economic value.
Natural disasters
There are four types of natural disaster that have been in the news in recent
years: (1) famine; (2) tsunami; (3) earthquake; and, (4) weather. The
international community has created humanitarian response mechanisms to
respond to natural disaster and mitigate the effects. This books refers to the
relief and development sector rather than the development sector, because in
large part relief gets more attention than development, to the detriment of
sustainable socio-economic progress.
The growth of relief as a component of the relief and development sector is a
symptom of failure. In all but the most severe situations, natural events
should be capable of being handled by local resources, with modest
international intervention, but that is not how things have developed.
And there are man-made disasters
Man made disasters are also in the news. There are many, many examples
with war and violence heading the list. War and violence causes chain
reactions that impact people in all sorts of ways. In my own case, I have seen a
lot of the results of population displacement both into refugee status and also
as internally displaced people (IDPs), and I am disgusted that this can happen
to human beings. Why are these horrible results allowed to happen in a world
that we like to call civilized. But when we look at the cause of war and
violence, it is largely caused by greed, and the rich and powerful exerting
their might to have even more and to diminish the possibilities of others to
challenge their situation.
It should be noted that violence is very widespread, and facilitated by easy
access to weaponry of all sorts and ammunition. Violence is a part of too
many political systems, and too much of economic activity as well, especially
activities that have been made illegal such as the illegal drug trade,
prostitution and human trafficking.
Planning for emergency relief
The international relief and development sector probably does better planning
in the emergency relief mode that it does for development. In an emergency
people are dying and the procedural red tape becomes less of a problem.
Much more effort can go into planning physical activities and getting the
resources in the right place to do things that are useful.
There are amazing stories of incredible performance by emergency workers.
There is a lot to learn from the performance of the organizations engaged in
emergency response.
Identify, Budget, Do, Account
The High Commission for Refugees (UNHCR) is probably my favorite UN agency.
They do a lot of good things very quickly and with some outstanding results. They
have some excellent staff that know what they are doing, and are able to identify what
needs to be done almost instantly, get a basic budget to get going, do critical things to
keep people alive, and then account for the way funds were used.
On one assignment, I was asked to critique the UNHCR way of doing things. The
expectation was that I would propose that UNHCR used a more effective
(cumbersome) planning process more in keeping with the other UN agencies. Rather
I suggested that the UNHCR process would be better applied into the other agencies.
Someone pointed out to me that UNHCR had purchased gas at some $2.00 a gallon,
and that UNDP was in the process of procuring gas at $1.25 a gallon, considerably
cheaper. The key fact missing was that UNHCR had arranged to have their gas
available 24 hours into the crisis, and UNDP still had not got any gas into the area
almost four months later. For fully four months UNDP had been using UNHCR gas
because UNHCR gas was the only gas available.
Needless to say, UNHCR is not perfect. They have been challenged by all sorts of
pressures from the local and international system, but in spite of everything, I
consider them to be an amazing organization.
Accounting and accountability
The accounting and accountability in the relief arena ranges from pretty good
to very bad. When I was working closely with UNHCR, the systems they
were using had many of the characteristics that I look for in good management
information systems, including strong feedback and processes to quickly learn
from experience.
But most of the other organizations seem to have weak accounting and almost
no meaningful accountability, and little capacity for institutional learning.
Three major natural disasters that have taken place in the past three years: (1)
the tsunami in South Asia; (2) the Katrina and Rita hurricanes in the USA;
and, (3) the earthquake in Pakistan. In all three cases the global public
responded with great generosity, especially in the case of the tsunami. An
enormous amount of money flowed into the relief and development sector ...
into all sorts of organizations, and in very large amounts.
Nobody knows how much or how little flowed out to do the work needed to
provide help to needy beneficiaries.
Tsunami Accounting and Accountability
People who reported back to me from various places in the tsunami affected area
were angry at how so much money could do so little ... they reported on the number
of new white Toyota Land Cruisers that quickly arrived on the scene, and relief
visitors doing surveys and preparing reports ... but actual fund flows to beneficiaries
were not so much to be seen.
Friends told me of how effective the Indian army seems to have been in all sorts of
remote areas ... and doing very worthwhile practical work ... army engineers
rebuilding bridges and helping to fix fishing boats.
But I was also told of how funds intended for tsunami affected areas in Sri Lanka were
allocated to projects in Colombo. Money is fungible ... and without good accounting
and a system for accountability, essentially anything goes.
I have not been able to find out much about how several billion dollars that were paid
into the relief and development sector organizations in connection with the tsunami
were actually used ... nobody is doing the overall accounting. After some very public
announcements, I thought that PriceWaterhouseCoopers was going to help with this,
but I was wrong about that ... seems it was more PR than serious help.
There does not seem to be a single major organization that has the sort of
information that allows for a full accounting for expenditures, the activities
funded, and the results achieved.
Value destruction in disaster
The socio-economic impact of natural disaster is huge. The value of the relief
assistance that comes in after a disaster is substantial, but tiny relative to the
terrible value destruction that takes place as a result of major natural disaster.
Putting things back together consumes a vast amount of scarce resources, and
slows down the progress that otherwise would be made.
I have visited a number of places where natural disasters have struck ... years
later the scars are everywhere. Some buildings get rebuilt, but many do not.
Each building that is not rebuilt probably has a family financial disaster, or
worse, associated with it. Much of this never gets into the record, and is
forgotten.
But it does not appear that important lessons are drawn from disaster. We are
more and more living in areas prone to disaster ... we live closer to the coast
... we live more and more on flood plains ... we have major cities growing on
earthquake fault lines ... and so on.
And we have man-made disasters
War is a terrible man-made disaster, and associated with tremendous value
destruction. Value destruction takes place at all levels, both in the destruction
of physical infrastructure and in the killing and maiming of people and
families.
When the value analysis is done, man-made disasters like war destroy value
for a huge part of society ... but not every part of society. There is enough
fortune making in war for the value of war to be propagated and believed ...
enough to make rational analysis about war seem wimpy.
There is a need to stop bad things ... but offensive war is rarely the best way
to do it. I am reminded of the efforts of Mohatma Ghandi in India that
eventually ended the British rule over India, and the impact of Martin Luther
King in the USA that helped make progress in US Civil Rights.
And I think that we can do a lot to stop bad things by being active in
supporting good things. People do not kill themselves in suicide bombings
because they are seeing good things happening all around them ... but because
there is a lot of stuff that has made them mad. Sectarian violence does not
happen because society is happy ... but for some other reason. Somewhere
there is greed ... and somewhere somebody, or some group, is going to
become rich and powerful because of the mayhem.
But Ghandi and Martin Luther King were bigger than guns and bullets ... and
they won.
We have to do the same in the face of war, violence and insecurity, and stop
man-made disasters.
How to do emergency relief better
The first stage of disaster is rescue. In this first stage, it is reasonable to
mobilize at the very fastest pace possible, and to do everything that is possible
to save life, and minimize human injury and trauma.
But this stage does not last long ... just hours or at most a couple of days.
After the immediate rescue phase, the work should be managed so that it is
done in the best possible way ... and at least cost. This is possible, up to a
point, using the back of an envelope and prior experience, but it is much
better done with decent information ... management information.
Some steps have to be taken so that the idea of good accounting in the relief
and emergency environment is not outright opposed by experienced staff in
the field. They complain noisily, and quite reasonably, when they do not have
enough resources to do what needs to be done, but the basics of management
information needed so that resources are allocated optimally is not done.
I argue that the failure to have decent accounting and a good understanding of
what things cost is a part of the reason that they do not have the resources
needed ... there are links between the accounting and the allocation of
resources both this time round and the next time round.
How to mitigate value destruction from disaster
As a society we are building and living more and more in places that are prone
to disaster ... on flood plains, along unprotected coastlines, in areas prone to
forest fires, and so forth. Doing less of this would be sensible.
Being prepared is also a sensible thing to do ... at the family level, and at the
community level, area level and national level. Having quick access to
immediately needed resources is a big help.
Some disasters should never happen
There are a lot of disasters that should never happen. Most important of these
are disasters associated with war and violence, and those associated with
famine.
War and violence is a result of societal failure ... local, national and
international. War and violence is an unacceptable outcome, a failure of the
relief and development sector and leadership at all levels. Much more thought
should be given to why war and violence might happen, and steps taken to
change the underlying societal situation. This is not “conflict resolution” but
conflict avoidance. It is sadly missing in what one can see of present day
international geopolitical dialog.
Conflict avoidance is not easy ... but it is important. Conflict can arise very
rapidly and it is tough to keep in check. I have seen arising conflict in a
number of situations over a long period of time.
Madagascar
In 1978 around 2,500 immigrants from the Comores working in Madagascar had their
throats slit. This all took place in one night, around Majunga.
I was in Madagascar some years later. An Asian trader killed a Malagache child who
was getting in the way in the store ... and almost instantly riots broke out all over the
country. Asian properties were burned. People feared a repeat of the 1978 massacre.
Asian women and children left the country. France coordinated an evacuation of the
expatriate community. Police and army deployed and were assisted logistically by the
Asian traders ...
And calm eventually returned.
The lesson learned is that terrible outcomes can happen very quickly ... that people
need to be paying attention to societies grievances and seeing to it that there is some
semblance of fairness.
Crop failures are going to happen, but famine should never happen. The
world has food resources that are embarrassingly large, yet global leadership
has not been able to figure out how famine can be avoided. Both national and
international leadership must take blame ... and the global public should not
be tolerant of this abysmal failure of the international system.
Failed Food Security
I was in Ethiopia and around the Sahel in the famine of the 1980s. It was not pleasant
... it is something one does not easily erase from memory. How to avoid a recurrence
of famine was very much on the relief and development agenda, and food security
was a priority.
Some progress was made in getting information that would alert the relief and
development community to potential famine risks ... the Famine Early Warning
System (FEWS) is part of this initiative ... but relatively little was done in a tangible
practical way to make it easy to move from knowing about the problem to doing
something about it.
“I know I am hungry ... but please, help me to get something to eat”. The relief and
development sector, national and international has done a rather poor job of solving
the hunger and malnutrition problem. We know there is famine and hunger, but most
of the time, practical and timely help is not on the agenda.
The food and agriculture sector in the “north” has been a great success over a
very long time, but agricultural progress has not helped everyone everywhere
to eat enough. Some places in the “south” have more productive agriculture
because of the so-called “green revolution”, but there are still very many
millions (perhaps nearly 2 billion people) who are poor and hungry. This is a
systemic problem with multiple dimensions, but it should be possible to solve
in modern times ... except that powerful interests could well prefer that the
present status quo is maintained because, simply, this is a very profitable
situation.
It should not be too difficult to get a lot more management information about
agricultural performance and food flows ... and to identify what it is that is
making it so difficult to get meaningful food security. Without having the
hard facts, I would expect the constraints are largely due to the critical failure
of community level economics, and an inability of “south” government to be
of material assistance, and an unwillingness of the “north” to be engaged in an
effective way prior to it being “politically” advantageous ... that is until after
there are images of dying people on the TV.
Military resources in disaster situations
Military resources are of great value in disaster situation. The military are
better equipped than most civilian agencies to do physical work in very
difficult circumstances, and they have a command and control structure that
enables them to do the work in an organized manner.
Military in Disaster Situations
In the South Asian tsunami disaster, the performance of the Indian Army in helping
coastal communities was very effective, including a lot of temporary bridge building
and repairing and moving fishing boats. In the Pakistan earthquake, the Pakistan Army
mobilized resources and provide physical help rapidly in remote areas. In refugee
camps in Africa, the US Army has been deployed to get water organized.
The military are good at doing physical things ... the army engineers routinely do
amazing things in difficult conditions. They are excellent in crisis, and they can
mitigate disaster effectively.
But the army is too costly for development building.
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