The CIHA Blog tends to be critical of the argument that what Africa needs is more foreign private sector investment in humanitarianism in Africa (see here for the most recent criticism), given issues of loss of control by local actors as well as the repeated imposition on them of development frames from outside. This piece demonstrates the growth of private sector involvement in humanitarianism and argues for an alternative perspective. We welcome, as always, your comments.
Looking into Private Sector Involvement in Humanitarianism in Africa
by Joelle Wyser-Pratte
The involvement of the private sector in humanitarianism action in Africa has risen steadily in the last decade and is likely to play an even bigger role in post-2015 development agenda. Mamissa Mboob of the newly created Private Sector Section at the UN Office for Coordination of Humanitarian Affairs (OCHA) says “in the face of diminishing resources and increasing disasters and crises”, it is imperative to bring in innovative resources as the humanitarian system is stretched to its capacity. It is becoming clearer that no single entity can implement humanitarianism in Africa.
Researchers and practitioners have said before that aid agencies and corporations have entered into partnerships without a clear idea of goals or knowledge about which values are shared and which are divergent. Instead, each side presses its own comparative advantage, leading to one-off ventures that leave little lasting impact. The aim of private sector involvement, however, is to create a sustained and positive impact. Therefore, both aid agencies and corporations must take a step back to assess the impact of such partnerships and set forth best practices.
Private sector growth in humanitarianism
Public–private partnerships have been part of development work for decades. However, they are a newer phenomenon in humanitarianism aid. The private sector started its involvement in the humanitarian sector in the 1990s, growing in earnest in the last 15 years. The Indian Ocean tsunami is a clear illustration of private sector involvement in humanitarianism.
Many large corporations stepped up to the plate in the wake of the tsunami disaster with corporate donors like Walmart donating millions of dollars to the cause as well as products to help the aid and relief effort. Yet Walmart frequently has been criticized in the U.S. for its low-wage labor practices, and more recently in Bangladesh for refusing thus far to contribute to the fund for victims of the Rana Plaza fire disaster, so its humanitarian efforts have been selective.
Research published by Development Initiatives in 2012 indicates private funding as a share of the total humanitarian response grew to 32 percent in 2010 from 17 percent in 2006. Large UN agencies like the World Food Programme (WFP), the UN Refugee Agency (UNHCR) and the UN Children’s Fund (UNICEF) have in recent years formed well-staffed units dedicated to engaging the private sector. The private sector has become the WFP’s seventh-largest donor.
Overall, humanitarians have largely failed to leverage the private sector. The Humanitarian Futures Programme (HFP) report of 2011 at King’s College, London, described commercial contributions as a “niche phenomenon” that is still entirely ad-hoc and opportunistic.
According to Development Initiatives, 56 percent of NGO income in 2010 came from private donors, and only 8 percent of UN humanitarian agencies’ budgets were funded through private money. Furthermore, more than three-quarters of private funding came from individuals. This shows that private companies and foundations remained entirely untapped. We see that the private sector’s involvement or contribution has not been maximized.
Critics of corporate philanthropy should, therefore, think twice. Large corporations like Intel have supported educational causes, including Educate Girls Globally, by providing not only just computers and software but also by making major monetary donations as well. The money that Intel has been able to give to this program has made a massive difference in India and the Dominican Republic, providing classrooms with the educational tools that they need to educate women around the world as well as give them access to new learning resources and software. Without these large-scale corporate sponsors, Educate Girls Globally may take longer to raise money and generate an impact within communities around the world. Attracting large corporate sponsors like Intel, who offers consistent philanthropy efforts to educational causes the world over, can change the outlook for a charity almost overnight.
Challenges facing the private sector involvement in humanitarianism
There is a lack of understanding, a large degree of mistrust and a “culture clash” between the humanitarian and private sector. It seems the private sector and the humanitarian system do not know how to talk to each other. NGOs see corporations as the “bad guys”, as being part of the problem, not the solution. Beneficiaries, on the other hand, can be skeptical of aid delivered by commercial entities.
But there is light at the end of the tunnel. Interest is growing from both sides: humanitarians are eager for diverse sources of funding and innovative approaches, skills and technologies, which the private sector is eager to contribute. The private sector sees investment in disaster risk reduction as essential for business continuity. It is from this view that we see the private sector, not the humanitarians, taking the first step in forging partnerships with humanitarians.
Another major challenge that faces charities hoping to attract private sector involvement comes from charities that have a religious affiliation or involvement. There are many cases in which religious groups are hesitant to reach out to the private sector to look into possible donations, potentially because of religious values and ongoing religious practices. Ultimately the focus of charity should be on creating positive change, regardless of any affiliations that a charity may have. If they are able to do good work and change a community around the world for the better, they should have no inhibitions about reaching out to the private sector for potential donations.
The private sector involvement should be more than just a cash cow
The private sector involvement in humanitarianism is often viewed as a cash cow. It should be less about money and more about skill and capacity. A shift from cash assistance and in-kind donations to sharing technical expertise and other core competencies is really needed.
Joelle Wyser-Pratte is an active board member in several nonprofit organizations that focus on children education and overall well-being. Joelle has traveled to many countries, including the Dominican Republic and India, and personally works with her organizations to better the lives of many children in developing countries. Visit Joelle’s Wikipedia page for more info.