EU aid boss criticizes unfair humanitarian funding

The European Union’s top aid official wants “more fair responsibility sharing” from humanitarian donors, arguing for the need to explore linking countries’ contributions to their economic weight. Janez Lenarčič, the EU commissioner for humanitarian aid, attended the World Economic Forum annual meeting in Davos, Switzerland, earlier this month with two aims. First, to expand the public donor base, and second, to explore opportunities for private sector investments to help meet growing needs. The United Nations estimates humanitarian needs of $51.5 billion in 2023 — up 25% from a year before. Less than 47% of last year’s needs were covered. The European Commission is the third-largest humanitarian donor, behind the United States and Germany, and in 2021 it released a policy document in which it vowed to step up engagement with both traditional and emerging donors. “We, the traditional public humanitarian donors, are overwhelmed. We can't cope,” Lenarčič told Devex in Davos, recalling that the 10 biggest donors provide more than 80% of global humanitarian funding. “This is not sustainable, this is not fair, something needs to be done. So we are looking into various options.” At Davos, he met top officials from the World Bank and World Health Organization, as well as David Miliband from the International Rescue Committee. Lenarčič’s office told Devex there has been “moderate interest” from private sector representatives in how to do more on humanitarian aid, but that they are dissuaded by the level of investment risk in conflict-torn humanitarian settings. The commissioner has ideas of his own. For public donors, “I think we could look into the possibility of trying to achieve more fair responsibility sharing for humanitarian aid that would be in line with the economic weight of the countries. Not unlike the U.N. peacekeeping operations scale of contributions, for instance, which is roughly following the U.N. principle, capacity to pay.” Lenarčič did not single out countries, but pointed out that “especially those who export or produce energy, could probably do more, especially in view of the record profits that they recorded last year.” As for private sector engagement in humanitarian aid, he said there was skepticism in the sector about how to reconcile investors’ interest with the humanitarian principles of humanity, neutrality, impartiality, and independence because “these investments expect returns.” “But that's where the money is,” Lenarčič said. “And I think we could check if things can work.” The European Commission is funding two pilot projects, one on water infrastructure in Jordan and another focused on employing refugees in Uganda. Lenarčič said both have seen considerable participation from the private sector thus far for now but he will keep an open mind. “We’ll see if it works,” he said. The World Economic Forum itself has produced numerous reports on the topic, listing humanitarian investment opportunities. Others say the humanitarian funding gap could be met elsewhere. Oxfam argued in a report at this year’s forum that “a tax of up to 5 percent on the world’s multi-millionaires and billionaires could raise $1.7 trillion a year, enough to lift 2 billion people out of poverty.” Lenarčič acknowledged these “legitimate questions” but argued that “Taxation and other things — these are questions for other people. But what we are saying is that there is a huge amount of money out there looking for places to invest. We're trying to see whether this can be matched [with humanitarian needs].”