Somalia - Humanitarian Funding Not Keeping Pace With Rising

UNCLAS SECTION 01 OF 02 NAIROBI 000708 SENSITIVE SIPDIS AIDAC USAID/DCHA FOR EKVITASHVILI DCHA/OFDA FOR ACONVERY, KCHANNELL, DCHA/FFP FOR JBORNS, JDWORKEN, PMOHAN AFR/EA FOR CTHOMPSON, JCICCARONE STATE FOR AF/E AND PRM USUN FOR DMERCADO BRUSSELS FOR PBROWN GENEVA FOR NKYLOH USMISSION UN ROME FOR HSPANOS E.O. 12958: N/A TAGS: EAID PHUM PREL PREF SO SUBJECT: Somalia - Humanitarian Funding Not Keeping Pace With Rising Needs NAIROBI 00000708 001.2 OF 002 -------------- Summary -------------- ¶1. (SBU) At the end of March 2009, contributions to the U.N.-led Common Appeals Process (CAP) stood at $251 of the $918 million requested for humanitarian operations in Somalia. Food aid accounts for $200 million of this received amount, leading to an imbalance in the response. Several sectors have received no funding so far. Virtually no livelihood assistance is targeted to the severely drought-affected central regions. Despite increased needs, donors forecast lower funding levels this year. Significant additional needs have cropped up, including expanded water trucking, return of displaced persons to Mogadishu, rehabilitation of Mogadishu Port, and ongoing treatment for severely malnourished children. USG humanitarian funding is frozen and could stop as debate over the need for an OFAC license hinders the USG's ability to respond to the ongoing humanitarian crisis. End Summary. ¶2. (SBU) At a recent humanitarian donor briefing, United Nations (U.N.) and non-governmental organization (NGO) officials provided an update on humanitarian funding through the annual U.N.-led Common Appeals Process (CAP) which is the primary mechanism for donor funding to humanitarian operations for Somalia. ¶3. (SBU) During March 2009, contributions increased significantly from $173 million to $251 million of a requested $918 million for ¶2009. These contributions represent 26 percent of requested needs, slightly less than the 27 percent level of funding for CAPs worldwide. [Comment: Funding via USAID's Office of Foreign Disaster Assistance (OFDA) for NGOs is provided outside the CAP mechanism.] Although overall levels of assistance have increased relative to this time last year, the CAP also increased from the $641 million in 2008 in response to a 56 percent increase in Somalis requiring humanitarian aid (from 1.8 to 3.2 million over the course of the year). ¶4. (SBU) However, the funding received is heavily skewed towards food aid, which represents 79 percent ($200 million) of the total. Non-food aid sectors received the remaining 21 percent ($51 million). ¶5. (SBU) Further, several non-food sectors have received no funding, including shelter/non-food items, education, and security. Critical sectors, including water, sanitation, hygiene (WASH),and health are funded at two percent and three percent respectively. Poor water, sanitation and health practices, as well as limited access to health care impede recovery from malnutrition. USAID's separate fund streams for emergency food aid (primarily via USAID's Office of Food for Peace) and non-food aid (primarily via USAID/OFDA) contribute to this globally recognized problem. ¶6. (SBU) After food (which is funded at 33 percent of requested levels),nutrition is the next best-funded at 23 percent, followed by agriculture/livelihoods at nine percent. UN/NGO officials point out that due to donor earmarking on projects, virtually no livelihood assistance is targeted to the severely drought-affected central regions. We are saving lives but not livelihoods which will necessitate more costly, longer-term humanitarian interventions to cope with the deepening impoverishment of this population. ¶7. (SBU) Although the humanitarian situation has not changed dramatically from last year, UN/NGO officials lament that donor resources are not keeping pace with needs. In part, this is due to currency depreciation (especially for European donors) and the fact that many donors received supplemental funding last year for the global food and fuel price increase which allowed for a robust humanitarian response. Donors are not anticipating the same levels of funding this year. ¶8. (SBU) The various sectors continue to skate by on carry-over NAIROBI 00000708 002.2 OF 002 funding from 2008 and through various mechanisms such as the U.N.'s Central Emergency Revolving Fund (CERF) designed for quick responses by U.N. agencies and NGOs, and the U.N.'s Humanitarian Response Fund (HRF),designed primarily to fund small-scale activities by local Somali organizations. Officials caution that using (or rather abusing) these mechanisms to compensate inadequate funding will reduce flexibility to respond to unanticipated needs later in the year. ¶9. (SBU) These officials further noted that the CAP planned for a reduction in water trucking - an expensive and unsustainable live-saving activity - but due to the continued severity of the drought, water trucking is increasing to nearly 700,000 Somalis. Further, the Transitional Federal Government (TFG) has prioritized the return of nearly one million displaced persons to Mogadishu, which will require significant aid to rehabilitate war-damaged structures, restart basic social services, and rebuild livelihoods. WFP has requested USAID funding to rehabilitate Mogadishu Port, in order to improve the delivery of humanitarian aid and commercial shipments, which would also increase TFG tax revenue. On the nutrition front, U.N. officials estimate that only 20 percent of severely malnourished children are receiving treatment. Under-funding of an already inadequate response will have repercussions on the well-being of these children for a lifetime, hindering their ability to contribute to Somalia's future. ¶10. (SBU) USG humanitarian funding is currently frozen as USAID, the Department of State, and Department of Treasury discuss the need for a waiver from Treasury's Office of Foreign Assets Control (OFAC) in light of the USG's designation of al Shabaab as a terrorist organization. The possibility of assistance via al-Shabaab can be minimized but not eliminated completely. USAID has forecast that humanitarian aid could be halted if a waiver cannot be obtained. That would have a devastating impact on the 3.2 million Somalis in need of life-saving assistance. RANNEBERGER