2023-Public-Sector-Perspectives

John Finnigan Head of Global Development Organizations, Citi Abbie Howe Global Public Sector Banking, Citi Responding to Humanitarian Crises: Navigating Through Ongoing Uncertainty T he scale of the humanitarian crisis impacting many parts of the world in recent years is daunting. The United Nations Office for the Coordination of Humanitarian Affairs notes that as of October 31, 2022, the number of people in need of humanitarian assistance as a result of conflict, climate change and natural disasters, and public health emergencies has increased by 18% since December 2021, reaching 324 million people across 63 countries. 1 In recent years, Afghanistan, Haiti and Ukraine have been among the countries most impacted by humanitarian crises. The return to power of the Taliban in Afghanistan in August 2021 has exacerbated what was already a perilous situation for many people. Similarly, the takeover of parts of Haiti by armed gangs in September 2022 has intensified the country’s existing humanitarian challenges. The invasion of Ukraine by Russia in February 2022 has created a new humanitarian crisis in what was a prosperous and stable European country, and deeply impacted neighboring countries. These three different, but equally acute, humanitarian crises has prompted a swift response by NGOs and other international humanitarian agencies. Their provision of food, shelter and financial support to refugees and other affected people has helped to save countless lives. Overcoming the operational challenges associated with supporting vulnerable people in conflict zones or destabilized political environments is a formidable task. However, it is only achievable if the necessary funds can reach those countries so that local suppliers of food, shelter and logistics (as well as staff engaged in operations) can be paid. The roadblocks to achieving this are often significant; banking infrastructure may be out of action or severely restricted, while sanctions and anti-money laundering and other measures may limit international banks’ room for maneuver. In such circumstances, banks working to support NGOs and multilateral organizations require a detailed understanding of the situation on the ground, close relationships with multilateral organizations, national governments, regulators and other relevant parties, and a determined and innovative approach to problem solving. The three recent examples that follow – Afghanistan, Ukraine and Haiti – demonstrate the diversity of approaches that are necessary if NGOs and other international humanitarian agencies are to be able to do their critical work. Chris Tynan Global Public Sector Banking, Citi 1 https://reliefweb.int/report/world/global-humanitarian-overview-2022-october-update-snapshot-31-october-2022 Citi Perspectives for the Public Sector 5