New York, 19 February 2008 – In January, the UN Office for the Coordination of Humanitarian Affairs (OCHA) initiated an external evaluation of the Central Emergency Response Fund (CERF), pursuant to General Assembly resolution 60/124. The review is scheduled for completion in July 2008, when a report will be issued to the Secretary-General.

Establishing and reviewing the CERF was among the commitments in the 2005 World Summit Outcome, intending to provide more rapid, reliable and predictable humanitarian assistance to people affected by conflicts and natural disasters.

About the Fund

The General Assembly formally established the CERF in December 2005. Designed as an upgrade to the “revolving loan” mechanism established by the GA in 1991, the CERF initiative was launched by former Secretary-General Kofi Annan on 9 March 2006 and was considered by some to be the first concrete accomplishment of post-2005 UN reform efforts.

The pre-existing loan component of the Fund makes $50 million available annually to UN agencies for emergency efforts, based on an indication that donor funding is forthcoming, as loans must be repaid within six months. The revolving loan serves as a “cash-flow mechanism” for humanitarian groups, allowing rapid access to funds before their transfer from donor states.

The new component of the Fund makes an additional amount available in grants – the total amount of the grant component depends on voluntary contributions received, with an annual goal of $450 million. The grants – for use when no other donor pledges are forthcoming – are allocated to UN operational agencies (including UN Development Programme, World Food Programme, World Health Organization, and International Organization for Migration) based on priorities established by the country’s Resident Coordinator.

CERF grants fall under one of two categories (or “windows”):

“Rapid Response” grants, provided for immediate relief of sudden emergencies or rapidly deteriorating conditions in an existing emergency situation – two-thirds of CERF’s funds are used for these grants;

“Under-funded” grants to support activities in existing response efforts that are chronically, inadequately provisioned, or “forgotten crises.” One third of CERF grants are earmarked for such under-funded situations.

As early as June 2006, the new Fund had attracted $256 million in pledges from governments, and preparations for the first disbursements of funds for relief efforts in the Horn of Africa and Cote d’Ivoire were underway.

The GA mandated the Secretary-General to direct the CERF, a task that he delegated to the USG for Humanitarian Affairs and Emergency Relief Coordinator, who is also the head of the UN Office for the Coordination of Humanitarian Affairs (OCHA). Currently this position is held by Sir John Holmes of the United Kingdom.

The CERF also is overseen by a 12-member Advisory Group of independent experts in humanitarian affairs appointed by Kofi Annan in April 2006. The group provides periodic policy guidance and expert advice to the Secretary-General on the use and impact of the Fund and assesses its performance against the objectives set by the Secretary-General. The group has met twice since its inception, most recently on 12 October 2006 when it issued recommendations on how to create “complementarity and synergy” between the CERF, UN bodies, and non-governmental organizations. More information on the Advisory Group is available here.

Funding the Fund

The CERF is funded by voluntary contributions from around the globe from Member States of the United Nations, private businesses, local governments, non-governmental organizations, foundations and individuals.

Since its inception in March 2006, the CERF has received more than US$1 billion in combined pledges (over $244 million) and actual transfers (just under $859 million, as of 15 February 2008).

While the majority of these contributions have come from UN Member States, the CERF accepted its first major corporate donation on 14 December 2007, in the amount of $100,000 from US-based Western Union. The donation came one day after the CERF held its annual High-level Conference, at which countries are urged to donate generously and meet the CERF’s funding targets.

Also on 14 December, a total of $420 million was collected from a diverse group of 70 industrialized nations, developing countries, and private-sector entities. The size of donations varied widely: the United Kingdom, for instance, made the largest contribution of $81.6 million while Ghana, a major beneficiary of the Fund, offered a gift of $5,000 that UN Emergency Relief Coordinator John Holmes called “a physical expression of their gratitude and their commitment to the existence of the Fund.”

Implementation

Since the 2006 launch, CERF grants have contributed to disaster relief in over 60 countries, amounting to millions of lives saved, according to OCHA. An additional $200 million has been disbursed in support of under-funded initiatives in 23 countries, mostly in Africa. In total, as of 19 February 2008, $644.8 million have been disbursed as new initiatives get underway. Most recently, the Fund allocated $104 million in grants for “forgotten crises” on 1 February 2008. In descending order by amount of the grant, the recipient countries are: DRC, Ethiopia, Côte d’Ivoire, Pakistan, Niger, Nepal, Kenya, Afghanistan, Zimbabwe, Burkina Faso, Mali, Cameroon, Republic of Congo, and Burma/Myanmar.

To date, the largest recipient country of CERF money has been the Democratic Republic of Congo (DRC). Between 2006 and February 2008, the DRC received over $90 million to aid people displaced by civil conflict in the country’s eastern regions, representing 14.26% of total CERF dollars disbursed. Sudan ranks a close second, receiving more than $60 million for food, medicine, and human security. More information about disbursements is available here.

Two-year Review

The CERF’s founding resolution requested the Secretary-General to commission an independent review of the Fund.

The review:

Must take place at the end of the second year of the Fund’s operation – i.e. early 2008;

Will assess “both the grant and revolving elements of the Fund, its administration, criteria for resource allocation, actions and responses supported by it and its ability to meet its objectives,” among other topics; and

Will result in a report submitted to the General Assembly at its 63rd Session (2008-2009).

The CERF Secretariat at OCHA has allotted $300,000 for the external review, which OCHA is managing. More details on the evaluation are available here.

Resources

General Assembly resolution 60/124 establishing the CERF (15 December 2006)

Website of Central Emergency Response Fund

The e-Newsletter of ReformtheUN.org is a free service. To subscribe, go to http://reformtheun.org/mailman/listinfo/latestdevelopments. Please forward this announcement widely to individuals and organizations that have expressed an interest in UN reform.