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2021 | Book

Introduction Read chapter Read first chapter

Innovative Humanitarian Financing

Case Studies of Funding Models

Author: Maram Ahmed

Publisher: Springer International Publishing

Book Series : Palgrave Studies in Impact Finance

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

Humanitarian crises have become more frequent, complex and protracted. If current trends continue, it is estimated that by 2030, humanitarian assistance costs could increase to $50 billion per year. By then, two-thirds of the world’s poor are at risk of living in conflict-affected countries. To bridge the gap, humanitarian organizations are increasingly utilizing innovative financing tools such as impact bonds, faith-based finance and other innovative financial products and services to mobilize greater funding to address humanitarian needs. This book is among the first to assess a set of innovative financing mechanisms that have been transforming the humanitarian sector and explores their key opportunities, challenges and future prospects. This book will be of interest to academics, practitioners, humanitarian organizations and policy makers involved in humanitarian financing and to the humanitarian sector in general.

Table of Contents

Frontmatter
Chapter 1. Introduction
Abstract
As the humanitarian funding gap widens, more humanitarian organizations are using innovative financing mechanisms to expand their funding sources and tap new pools of funding. Although it is argued that the mobilization of innovative humanitarian financing tools can help close the funding gap and provide much-needed financing for humanitarian crises, there is limited research and understanding of how these funding tools work, the opportunities they offer, their challenges in addition to how they fit into the wider humanitarian funding landscape. This chapter introduces the book’s overall purpose, arguments, research design and contemporary relevance. The main aim of this chapter will be to give a brief background on the emergent field of innovative humanitarian financing.
Maram Ahmed
Chapter 2. Humanitarian Funding in Crisis and the Rise of Innovative Humanitarian Finance
Abstract
Every year as the number of humanitarian crises increase, the gap between humanitarian needs and funding available to address those needs further widens. This chapter will review some of the reasons as to why humanitarian funding is in crises to further understand why innovative humanitarian financing is on the rise. The first part of the chapter will discuss some of the key challenges facing the humanitarian sector such as environmental issues, conflict, humanitarian issues and forced displacement. The second part of this chapter will discuss some of the key issues and trends in the overall humanitarian financing landscape.
Maram Ahmed
Chapter 3. Innovative Vaccine and Immunization Funding: Advance Market Commitments
Abstract
One of the top infectious disease killers of children under the age of five globally is pneumonia, with most mortality occurring in low and middle-income countries. Vaccines are considered to be important for public health and an effective tool to reduce preventable deaths, for example, pneumococcal conjugate vaccines (PCVs) have helped reduce severe childhood pneumonia and other pneumococcal diseases. However, the market for and the development of vaccines targeting diseases in developing countries has been disproportionately slow. This chapter will evaluate the effectiveness of innovative health financing sources in particular, advance market commitments, as viable funding mechanisms for global health initiatives such as vaccine and immunization programs through a case study of the Pneumococcal Vaccine Advance Market Commitment Program and more specifically, the development of the 10-valent pneumococcal conjugate vaccine.
Maram Ahmed
Chapter 4. Performance-Based Financing
Abstract
A type of financial mechanism that is expected to support and facilitate more private sector funding into the humanitarian sector is performance-based financing (PBF). This mechanism has been increasingly implemented in low and middle-income countries, as well as used in fragile and humanitarian settings. This chapter will examine the use of PBF in the humanitarian sector. It will give a brief overview of this funding mechanism, briefly analyze new trends as well as the opportunity, challenges and future prospects of PBF. Additionally, this chapter will evaluate the world’s first Humanitarian Impact Bond issued by the International Committee of the Red Cross (ICRC). It will assess the viability of this instrument and what kind of impact it can deliver in comparison with traditional funding approaches.
Maram Ahmed
Chapter 5. Islamic Social Finance
Abstract
In early 2017, Kenya experienced one of the worst droughts in the country’s history and at the peak of the drought, it was estimated 2.7 million people were in need of humanitarian assistance. The International Federation of the Red Cross and Red Crescent (IFRC) joined forces with the Kenya Red Cross and other aid groups to pioneer a drought-assistance program in southern Kenya. This chapter will assess the use of traditional faith-based mechanisms such as Islamic social finance tools and its increasing role in humanitarian action. This chapter will outline what the key instruments are, discuss what types of sustainable solutions they can provide and assess what the future role this traditional mode of financing can play in the humanitarian sector. Lastly, this chapter will extrapolate the lessons learned from the IFRC Drought-Assistance Program that utilized this mode of financing.
Maram Ahmed
Chapter 6. Expanding Access to Financial Services
Abstract
As climate-induced disasters are on the rise, the concept of building resilience to climate change has recently been at the forefront of development and adaptation conversations. Moreover, it has been suggested that an effective way to enhance the climate resilience of marginalized communities is through expanding access to financial services. The aim of this chapter is to explore to what extent enhancing financial inclusion, and in particular Islamic financial inclusion, through the expansion of access to financial services, can increase resilience to climate change. A case study will be conducted on the Program for Resilient Systems (PROGRESS) that was part of the wider Building Resilience and Adaptation to Climate Extremes and Disasters (BRACED) program implemented in Wajir, Kenya by humanitarian organization Mercy Corp.
Maram Ahmed
Chapter 7. Disaster Risk Insurance
Abstract
There are often early warning signs available prior to an extreme weather event taking place and these early warning signs provide a crucial window of opportunity to respond to and reduce both the potential impacts of an extreme weather event and disaster risks. There has been an emergence of innovative risk financing mechanisms providing financial security against disasters. This chapter will evaluate the use of innovative sovereign disaster insurance mechanisms for humanitarian intervention. It will give an overview of this type of risk financing instrument and its potential to incentivize risk management and build resilience against disasters. Also, this chapter will assess the role of the African Risk Capacity and in particular, focus on the case of Malawi when the country experienced extreme weather events in 2015/2016, to evaluate the effectiveness of this risk financing mechanism and the lessons that can be learned from the Malawi case.
Maram Ahmed
Chapter 8. Harnessing Digital Financial Solutions
Abstract
Digital financial solutions come in many forms such as electronic vouchers through mobile devices or cards, debit cards, prepaid bank cards and mobile phone-based wallets etc.…. They are increasingly being used in humanitarian settings to provide financial services to crisis-affected populations. Furthermore, they also help crisis-affected populations receive aid faster after a crisis occurs. This chapter will explore the opportunities of using digital financial solutions in humanitarian contexts.
Maram Ahmed
Chapter 9. Conclusion
Abstract
Weaving together these chapters, the conclusion reiterates the book’s overall arguments, findings and contributions. It will also provide a road map of priorities and policy strategies needed for further development of the emerging innovative humanitarian financing field.
Maram Ahmed
Backmatter
Metadata
Title
Innovative Humanitarian Financing
Author
Maram Ahmed
Copyright Year
2021
Electronic ISBN
978-3-030-83209-4
Print ISBN
978-3-030-83208-7
DOI
https://doi.org/10.1007/978-3-030-83209-4

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