According to the UN Office for the Coordination of Humanitarian Affairs (OCHA), donors have provided $86.8 million in funding for humanitarian assistance to Iraq between January 2010 and July 2010.
This represents a significant funding drop since 2003, when billions of dollars were allocated for "reconstruction" and "humanitarian assistance" purposes in Iraq. The United States (US) is now on schedule to complete its withdrawal of half of its combat troops in August 2010 as part of the Status of Forces Agreement to remove all troops by the end of 2011. Accordingly, there are rising concerns about the Multi-National Forces in Iraq (MNF-I) members' commitment to financing Iraq's humanitarian sector in the future.
If the current funding rate continues at the same pace throughout the second half of 2010, then NGOs will be forced to operate with the lowest net funding for humanitarian aid in Iraq since 2006. The future of many UN agencies and NGO operations in Iraq is already threatened as the US, the United Kingdom (UK), and other MNF-I nations substantially decrease donations to Iraq's humanitarian sector.
BACKGROUND OF FUNDING FOR HUMANITARIAN ASSISTANCE IN IRAQ SINCE 2003
The average annual funding for humanitarian aid in post-invasion Iraq has varied remarkably. In May 2003, the UN Security Council passed Resolution 1483, granting the US and the UK an international mandate to continue their occupation and lead "reconstruction" and "humanitarian" efforts in Iraq. According to OCHA's Financial Tracking Service, the peak of donor funding for humanitarian assistance in Iraq reached $3.4 billion in 2003. This generous aid package supported hundreds of INGOs to enter Iraq for the first time in 2003 and 2004, along with private contracting companies. Furthermore, thousands of LNGOs were founded in this period[i].
Insecurity began to threaten NGO engagement in Iraq in late 2003 and early 2004 after insurgents bombed the UN and ICRC headquarters in Iraq and kidnapped dozens of aid workers. These events prompted most INGOs to relocate their international staff from Iraq to neighbouring Amman, Jordan, or Kuwait. From these secure locations, NGOs have implemented remote program management through local staff, some LNGOs, and other partners. This reorganization considerably fractured the international community's humanitarian response in Iraq. By 2006, funding fell to a record low of $49.9 million as insecurity and violence spread. At the peak of Iraq's humanitarian crisis from 2007-2009, funding allocated for humanitarian relief rose from $308.6 million to $588.9 million.
It is notable that the UN did not coordinate or consolidate any large-scale humanitarian appeals for donor funding to Iraq prior to 2008, more than two years after the humanitarian crisis had reached a critical state. In February 2008, OCHA announced the "Consolidated Appeal (CAP) for Iraq," requesting that donors give UN agencies and NGOs approximately $265 million in order to implement basic relief programs in water and sanitation, health, education, and other areas of concern.
In addition to its targeted beneficiaries within Iraq, CAP 2009 also aimed to provide relief for Iraqi refugees. Yet most of the $650 million, non-binding appeal was never received. The actual donor response only covered about 55% of the UN and NGO projects described in CAP 2009. That downward shift in funding has begun to quickly spiral. In 2010, the CAP-which previously prioritized relief for Iraqis within the country-was replaced by the "Regional Response Plan for Iraqi Refugees"(RRP). The RRP appealed for $364.6 million of funding, mainly for Iraqis displaced outside of the country. As of 7th July, only 17% of that appeal has been covered, leaving more than $300 million in need.
OCHA, along with several other UN agencies and NGOs, has also introduced the Iraq Humanitarian Action Plan (IHAP) to fund UN agencies and NGOs' operations in 2010. IHAP's initial request of $193.6 million has recently been lowered to $187.7 million. While the IHAP request is quite modest, projected donations are even more paltry. At the IHAP Mid-Year Review in mid-July 2010, OCHA officials confirmed that new donations came to a total of $22.3 million-about 12% of the total requested funding. OCHA has since decided to terminate some major projects, suspending food aid to more than 1.7 million Iraqis and ending another program to assist more than 22,000 IDPs. The mid-year IHAP report also states that nine out of forty-eight monitoring indicators now report a zero implementation rate of projects as a result of funding shortages. It is anticipated that food, shelter and education sectors will be the hardest hit in terms of humanitarian assistance and development in 2010-2011.
CLOSER LOOK AT THE NUMBERS: DONOR, RECIPIENT, AND FUNDING TRENDS IN 2003 AND 2008-2010
There is no international mechanism requiring all donors to regularly and accurately report their contributions to the Iraqi humanitarian sector. The following analysis is based on data from OCHA's annual "List of all Commitments/Contributions and Pledges" and "Total Humanitarian Assistance per Donor."[ii] While the precision of these figures is not guaranteed, general trends and predictions are discussed.
In 2003, OCHA reported that more than $3.4 trillion in donor funding was available for the Iraqi humanitarian sector. The United States (US) provided nearly eight times more than any other country and has consistently remained the largest donor. The highest contact, valued at $680 million, was awarded to the American company Betchel to develop water, sewage, and electricity plants; Betchel did not begin at least one-third of these projects by the time this contract expired in 2006. The US also allocated more than $200 million to the World Food Programme (WFP), as more than 60% of Iraqis depended on food rations from the central government during thirteen years of UN sanctions. The United Kingdom (UK) provided $186.5 million, donating the most significant funding to the following organizations in decreasing order: the International Committee of the Red Cross (ICRC), the International Federation of Red Cross (IFRC), the United Nations Development Programme (UNDP), WFP, the United Nations Children's Fund (UNICEF) and other organizations. Japan, the third largest donor, contributed most significantly to the IFRC, WFP and UNICEF. Food aid, education and infrastructure development were major donor priorities.
In 2008, far fewer donors contributed about $473.6 million to humanitarian assistance in Iraq. In perspective, there was an 86% decrease in funding since the peak of funding in 2003. However, partially as a result the first coordinated appeal for aid launched by the UN and other organizations in 2008, funding rose from its lowest point of $49.9 million in 2006. The US contributed $224.4 million in decreasing order to UNHCR, WFP and USAID. The Internally Displaced People (IDP) and refugee crisis were added to lingering issues of food insecurity and poor infrastructure. The Government of Iraq (GoI) contributed 10% of net funding in 2008, donating generously to the WFP for food aid. The GoI also contributed to UNHCR, earmarking relief funds specifically for Iraqi refugees in Jordan. The UK and European Commission (ECHO) each contributed over $30 million that was mainly channelled to the ICRC, the United Nations High Commissioner for Refugees (UNHCR), WFP, UNICEF, and the International Organization for Migration (IOM).
In 2009, the US provided nearly $200 million to IOM and UNHCR. The US also funded UNICEF and the WFP, bilateral initiatives like USAID, and NGOs, including the International Medical Corps (IMC) and International Relief and Development (IRD). Following the US, Germany granted more than $10 million to the IOM in 2009. Saudi Arabia, another top donor, provided $5 million to UNHCR. Additionally, ECHO channelled approximately $18.6 million to ICRC and UNHCR. The largest donors provided the most funding to NGOs and international UN agencies addressing the Iraqi IDP and refugee crisis.
While total reported funding in 2009 reached $588.9 million, OCHA has only recorded funding contributions that total $86.8 million from January 2010 to July 2010. It seems that the US, Sweden, Canada, ECHO and the UK are the largest contributing donors thus far. The GoI is currently the main funding source for the WFP food aid programs targeting vulnerable populations, while the US is reallocating funding to more technical and health-related humanitarian initiatives undertaken by the Agency for Technical Cooperation and Development (ACTED), the IMC, and other INGOs. Sweden and other leading donors are funding relief projects for IDPs and refugees through UNHCR and educational, health, and water/sanitation projects through UNICEF. Other major donors include Australia, Denmark and the UK.
CONSISTENT AND INCREASED FUNDING IS IMPERATIVE FOR CONTINUING HUMANITARIAN NEEDS IN IRAQ
Some experts are now considering the extent to which the gradual withdrawal of American presence from Iraq impacts funding prospects for humanitarian relief. As the US draws down its troops and supplies, which should culminate in a total withdrawal by 2012, funds for humanitarian relief operations in Iraq are dwindling at an alarming rate. US funding generally comprised 30-56% of total funding for humanitarian activity post-2003 invasion. However, the US is currently diverting its focus from Iraq towards the war in Afghanistan, as well as relief from natural disasters in countries like Haiti and Chile. Halfway through 2010, the US has only contributed $7.2 million to the IHAP and other humanitarian assistance programs in Iraq; this comprises approximately 8% of the total funding collected so far in 2010. Furthermore, this total is $217.2 million less than US donor contributions in 2009.
The Iraqi government is unlikely to replace the US as a key funder and coordinator of humanitarian assistance. The GoI is still highly challenged by long-term obstacles, including a lack of capacity, persistent insecurity, and an oil-dependent, undiversified economy. The current political stalemate, which continues to endure nearly five months after the Iraqi parliamentary elections were held, has also taken a toll on basic service provisions.
As the GoI lacks appropriate resources and mechanisms to deliver many basic services-including potable water and electricity-the international community must acknowledge the crucial roles of Iraqi civil society and NGOs as they help meet millions of people's basic needs. International NGOs (INGOs) are currently the leading implementation partners for UN agencies in Iraq, providing experience and developing the capacities of Local NGOs (LNGOs) through partnership. Thousands of fledgling LNGOs have also delivered humanitarian assistance extensively throughout Iraq, accepting high levels of risk and adapting to the constantly changing-and often deteriorating-local conditions.
The UN's short-term funding mechanisms-such as CAP and IHAP-were only recently introduced. They are no longer succeeding in securing adequate funding. There is no other international funding mechanism in place solely to collect funding for humanitarian assistance in Iraq. As this funding deficit develops, most International NGOs (INGOs) in Iraq have begun to operate in short term phases; they may negatively affect sustainability. Local NGOs (LNGOs) still lack the necessary capacity, experience and professionalism to operate without INGO assistance. Moreover, according to a survey conducted by NCCI, a marginal number of LNGOs have been established in past years, mainly due to the drastic decline in funding[iii]. In the same survey, LNGOs reported that a lack of funding is the number one obstacle impeding NGO-driven humanitarian assistance in 2009-2010.
A further decline in support for INGOs and LNGOs will have negative consequences, exacerbating ongoing problems whereby basic needs for Iraq's most vulnerable populations-IDPs, widows, children, and other groups are still not met. It is imperative that the international community appropriate more funding for humanitarian relief operations in Iraq in the short and long term.
Notes:
[i] Today around 6,300 LNGOs are officially registered in Iraq, although a majority of these organizations are not invested with considerable legitimacy or capacity to implement projects in their communities. With the exception of Kurdistan, LNGOs did not exist in most of Iraq pre-2003 due to the Ba'ath party's stringent regulations of Iraqi civil society. Many LNGOs in Iraqi Kurdistan were established in the early and mid-1990's following the First Gulf War and imposition of the "No-Fly Zone" that included northern Kurdistan and reduced the Iraqi central government's influence over Kurdish civil society in many respects.
[ii] OCHA provides the most comprehensive, to date list of donor funding based on voluntary donor reporting and OCHA's own funding coordination online at the Financial Tracking Service (www.reliefweb.int/fts).
[iii] This information was taken from the NGO Coordination Committee for Iraq (NCCI)'s "First Findings on NNGO Mapping," which is part of a comprehensive report expected to be issued mid-September 2010.