REPORT ON USE OF FLEXIBLE FUNDING - UNHCR

REPORT ON USE OFFLEXIBLE FUNDINGIN 2018JUNE 2019

2UNHCR REPORT ON USE OF FLEXIBLE FUNDING IN 2018

ContentsIntroduction 4UNHCR’s flexible funding Sources of flexible funding 68The importance of flexible funding 10Allocation and expenditureof flexible funding Flexible funding by region Africa The Americas Asia and the Pacific Europe The Middle East and North Africa Global programmes 1419202224262830Visibility 34Conclusion 38Annexes 40Left: At 250 square kilometres, and with a population of well over quarter of a millionpeople, Bidibidi is the world’s largest refugee settlement. All of its residents are from SouthSudan and two-thirds are children below the age of 18. Uganda, which hosts one of theworld’s largest refugee populations, has over a million registered South Sudanese.Uganda’s progressive refugee policy is unique – it allows refugees to live a normal life justlike Ugandan citizens, including freedom of movement, the right to work, access toeducation and healthcare and the allocation of land to build homes and farm crops. UNHCR/CHARLOTTE ALLANCover Image: Malak, eight years old, and her brother Muntasir, three years old, fled withtheir father from Hudaydah to Dhamar Governorate, in Yemen. UNHCR is responding tothe humanitarian crisis in Yemen, providing emergency assistance to those forciblydisplaced by the conflict. UNHCR/ARWA AL SABRIUNHCR REPORT ON USE OF FLEXIBLE FUNDING IN 20183

UNHCR /CHRIS MELZERIntroductionA Rohingya girl carries a bag of rice to her family’sshelter in Kutupalong camp, south-east Bangladesh.4UNHCR REPORT ON USE OF FLEXIBLE FUNDING IN 2018

IntroductionINTRODUCTIONIn the course of 2018, conflict, persecution and civil strife uprooted millionsof people, in harrowing circumstances. In many parts of the world, thepolitics around refugee and migration issues became more acrimoniousand polarized, with direct consequences for the lives of many refugees whowere denied refuge, separated from family members, or pushed back tosituations of danger.Yet at the same time, a groundswell of solidaritywas evident. Long-standing host countries stoodfirm in their commitment to protection principlesand humanitarian values, and people across allwalks of life came together to welcome andsupport refugees, including in countries whereofficial policies became more restrictive.Stretching around the world, the operationalenvironment facing UNHCR and its partners wascomplex. It impacted all people of concern toUNHCR—refugees and asylum-seekers, returnees,stateless persons, and internally displaced people.It went from sudden-onset emergencies toprotracted crises, some of them entering theirfourth decade, in which UNHCR safeguardedfundamental rights, responded with lifesavingsupport, and worked to build better futures forpeople of concern.UNHCR’s budget in 2018 grew to 8.220 billion,and the funds available to it came to 4.710 billion.That included 4.141 in voluntary contributionsfrom donors, of which 1.372 billion, or 33%, wasflexible— 617.4 million in unearmarked funding,and another 754.6 million as softly earmarked.These funds were critical throughout the year—particularly at the beginning of the year—toUNHCR operations, and to its global programmes.They supported the bedrock of UNHCR’shumanitarian and solutions work worldwide.This report acknowledges the generosity ofthose donors which provided UNHCR withflexible funding. It goes into detail and addsdepth on how UNHCR used this valuable fundingto kick-start emergency responses, to bolsterunderfunded operations, and to enableoperations to implement their programmesas fully as possible.To all donors—governmental and private—ofunearmarked and softly earmarked funding,UNHCR extends its most sincere thanks.UNHCR REPORT ON USE OF FLEXIBLE FUNDING IN 20185

U N H C R / S A N T I A G O E S C O B A R -J A R A M I L LOUNHCR’s flexible fundingTwo Venezuelan children play near the San Miguel International Bridge on the Ecuador-Colombia border.6UNHCR REPORT ON USE OF FLEXIBLE FUNDING IN 2018

UNHCR’s flexible fundingUNHCR’SFLEXIBLE FUNDINGUNHCR defines two main types of funding as flexible:softly earmarked funding, and unearmarked funding.Softly earmarked funding allows UNHCR touse it across the range of countries, activitiesor themes in a given region or situation inaccordance with identified priorities. UNHCRreceived 754.6 million in softly earmarkedfunding, a slight decline of 3% from the 768 million received in 2017.Unearmarked funding is contributed withoutrestrictions on its use. It allows UNHCR criticalflexibility in how best to reach refugees and otherpopulations of concern who are in the greatestneed and at the greatest risk. Unearmarkedfunding came to 617.4 million. Overall, this was anincrease of nearly 5% on the 588.7 millionreceived in 2017. Some 56% of UNHCR’sunearmarked funding was received in the firstquarter of the year, a vital indication of timelinessand providing the Office with valuable flexibility.Timeliness of funding 20184.5004.00027%3.5003.0002.50040%2.000USD prilUnearmarkedMayJuneSoftly earmarkedUNHCR REPORT ON USE OF FLEXIBLE FUNDING IN emberTightly earmarked7

UNHCR’s flexible fundingSources of flexible fundingSweden16% 98.2 millionAll other donors27% 166.2 millionUNHCR received 617.4 millionin unearmarked fundingPrivate donors in Italy3% 21.2 millionEspaña con ACNUR13% 82 millionThe top ten donors of unearmarkedfunding provided 451.2 million,or 73% of all unearmarked fundsPrivate donors in JapanNetherlands8% 47.1 million4% 24.2 millionDenmark4% 25.5 millionJapan4% 26.5 millionUnited Kingdom7% 45.3 millionPrivate donors in theRepublic of Korea 6% 38.7 millionNorway7% 42.5 millionUnearmarked funding 8Government donors 392.2 million 64%Private sector 225.1 million 36%Of the private sector unearmarked funding, 138.4 millioncame from five of UNHCR’s National Partners. This was theequivalent of 62% of all unearmarked contributions from theprivate sector, and 22% of all unearmarked funding receivedin 2018UNHCR REPORT ON USE OF FLEXIBLE FUNDING IN 2018

UNHCR’s flexible fundingGermany18% 132.9 millionUNHCR received 754.6 million insoftly earmarked fundingUnited States of America62% 467.4 millionThe top two donorsprovided 600.3 million, or 80%Sweden 2% 18.6 millionUNO-Flüchtlingshilfe 2% 17.8 millionDenmark 2% 17.6 millionAustralia for UNHCR 2% 17.3 millionFinland 1% 11.3 millionNorway 1% 9.3 millionEspaña con ACNUR 1% 7.6 millionJapan 1% 6.6 millionAll other donors6% 48.3 millionSoftly earmarked funding Government donors 682.5 million 90%Private sector 72.2 million 10%Of the private sector softly earmarked funding, 51.8 millioncame from five of UNHCR’s National Partners. This was theequivalent of 72% of all softly earmarked contributions from theprivate sector, and 7% of all softly earmarked funding receivedin 2018UNHCR REPORT ON USE OF FLEXIBLE FUNDING IN 20189

UNH CR/GEORGIN A GOODW INThe importance of flexible fundingBurundian schoolchildren in their outside classroom at Jugudi Primary School in Nyarugusu RefugeeCamp, Kigoma Province, western Tanzania. There are over 1,100 primary schoolchildren and 200pre-school children at Jugudi school for Burundian refugees.10UNHCR REPORT ON USE OF FLEXIBLE FUNDING IN 2018

The importance of flexible fundingTHE IMPORTANCE OFFLEXIBLE FUNDINGCrises are pushing people of concernto UNHCR into multiple locations,over greater and greater distances.In 2018, UNHCR had 16 situations, in all five of itsregions, with the majority of them occurring inAfrica. All together, these situations involved 71operations, and accounted for over 6 billion ofUNHCR’s budget and over 3 billion of itsexpenditure. A central challenge to UNHCR inresponding to such situations is the continuedtrend of increasing earmarking. Country-basedearmarking has increased almost four-fold inabsolute terms since 2012, from 397 million to 1.662 billion in 2018. While this kind ofearmarking provides some flexibility, it does notprovide the flexibility of unearmarked or softlyearmarked funding, and is a step away fromcommitments made by donors under the GrandBargain. Although in dollar terms the amount offlexible funding increased in 2018, the year sawthe continued decline in flexible funding as apercentage of overall funding.For cases when an emergency has repercussionsthat go beyond the borders of the country inwhich it originated, UNHCR uses the term“situation” for its advocacy, planning, budgetingand fundraising. Situations are interlinked, onecrisis generating impacts in another, or with theimpacts felt far away. Crossing borders andsometimes continents, situations reflect theoperational complexity of today’s displacementcrises, and the concomitant difficulties UNHCRand its partners have in planning and responding.Levels of earmarking 2012 - %50%Softly earmarkedUNHCR REPORT ON USE OF FLEXIBLE FUNDING IN 201860%Earmarked2870%80%90%100%Tightly earmarked11

The importance of flexible fundingFlexible funding 2018Unearmarked 15%Total 4.184 billionSoftly earmarked 18%Other 67%1.4 billion1.2 billion1 billion800 million600 million400 million200 million0Jan 1stQ1Increasing earmarking has operational impact andis costly, often resulting in complex and additionalreporting requirements that add expense andchallenge to UNHCR’s financial and operationalsystems. Unlike flexible funding, earmarked fundsrestrict UNHCR’s ability to be a needs based actor.If the proportion of flexible—especiallyunearmarked—funding continues to decrease anddonor preferences do not align with UNHCR’s ownprioritization, the capacity to respond to identifiedneeds also decreases. As partial fundingnecessitates stricter prioritization, this scenariocreates extra challenges for UNHCR in pursuing aprogramme approach.12Q2Q3Q4Flexible funding on the other hand, particularlyunearmarked funding, greatly facilitates UNHCRbeing able to kick-start an emergency response,bolster forgotten or under-resourced crises, andenable the fullest possible implementation ofprogrammes. They enable UNHCR to plan andmanage its resources efficiently and effectively asflexible funding supports all programmatic areas—including innovation for the future of the Office’sresponse—and has a positive impact on the manyachievements of the Organization, contributing tothe collective success in every life that istransformed and saved.UNHCR REPORT ON USE OF FLEXIBLE FUNDING IN 2018