Learn more about the new model for natural disaster responses.

1. A
New
Model
For
Natural
Disaster
Response
By
Dr.
Ngozi
Okonjo-­‐Iweala

2. • The
world
is
at
a
cri/cal
juncture.
• We
are
experiencing
the
highest
level
of
humanitarian
need
since
the
Second
World
War
brought
on
by
conflict,
climate
change,
rapid
urbaniza/on
and,
in
part,
the
legacy
of
a
rigid
development
model.
• In
this
interconnected
world,
our
problems
are
shared
and
so
must
our
solu/ons
be.
In
that
spirit
Ban
Ki-­‐moon,
the
United
Na/ons
secretary-­‐general,
is
convening
the
first
World
Humanitarian
Summit
on
23
and
24
May
in
Istanbul.
• During
this
seminal
mee/ng,
5000
leaders
from
government,
business
and
humanitarian
organiza/ons
will
gather
to
map
a
way
forward.

3. • In
our
respec/ve
roles
at
the
African
Risk
Capacity
(ARC)
and
the
World
Food
Programme
(WFP),
the
Secretary
General’s
main
call
to
ac/on
–
to
work
differently
towards
ending
need
–
is
at
the
heart
of
what
we
do.
• We
are
working
to
support
the
African
con/nent
as
the
region
finds
ways
to
manage
the
effects
of
extreme
climate
events
and
compe/ng
demands
for
limited
humanitarian
dollars.
• ARC
was
established
as
a
specialized
agency
of
the
African
Union
(AU)
to
help
African
states
develop
risk
management
systems
to
cope
beer
with
natural
disasters
including
drought,
floods
and
tropical
cyclones.
The
concept
was
to
establish
the
first
sovereign
insurance
pool
on
the
con/nent.

4. • This
new
approach
has
challenged
the
status
quo
of
how
natural
disaster
response
should
be
managed.
• Countries
that
previously
had
been
forced
to
seek
outside
help
in
the
face
of
a
disaster
now
receive
dedicated
resources
in
the
event
of
a
payout.
They
put
the
funds
into
ac/on
through
pre-­‐cer/fied
plans.
• There
are
many
advantages.
Assistance
can
be
delivered
more
quickly
through
ARC
than
wai/ng
for
the
interna/onal
donor
system
to
react.
At
the
same
/me,
the
reliance
of
African
governments’
on
external
emergency
aid
is
reduced,
and
their
self-­‐sufficiency
increased.
• ARC
is
a
prime
example
of
how
donors,
African
governments,
humanitarian
organiza/ons
and
the
private
sector
can
cooperate
to
move
the
con/nent
away
from
the
tradi/onal
system
of
handouts.

5. • First
envisaged
and
then
nurtured
by
the
World
Food
Programme,
the
ARC
was
quickly
embraced
by
the
AU,
which
saw
a
chance
for
the
con/nent
to
help
itself
manage
climate
risk
in
a
cost
effec/ve
manner.
• The
Rockefeller
Founda/on
provided
ini/al
funding
to
research
and
assess
the
concept,
before
other
donors,
including
Sweden,
Switzerland,
the
US,
Saudi
Arabia,
IFAD
and
Rockefeller
provided
ongoing
financial
support
for
ARC’s
opera/ons.
The
United
Kingdom
and
Germany
have
commied
more
than
$200m
in
returnable
risk
capital
to
ARC
Ltd
–
the
scheme’s
mutual
insurance
company
–
to
ensure
its
commercial
viability.
• The
first
couple
of
years
have
been
very
encouraging.
• To
date,
32
African
countries
have
become
members
of
ARC,
and
seven
have
joined
the
insurance
pool.
Those
seven
have
paid
premiums
of
$42m,
demonstra/ng
the
commitment
by
sovereign
treasuries
towards
managing
their
climate
risk.

6. • ARC
is
demonstra/ng
that
reac/ng
rapidly
to
extreme
weather
situa/ons
saves
lives
and
protects
livelihoods.
• In
2014,
payouts
totaling
$26.3m
were
made
within
weeks
to
Mauritania,
Niger
and
Senegal
following
poor
rainfall
in
the
Sahel.
Those
funds
were
used
to
support
the
livelihoods
of
more
than
1.3
million
people
through
delivery
of
livestock
fodder,
food
and
cash
to
affected
popula/ons
based
on
pre-­‐approved
con/ngency
plans.
• But
the
coverage
supplied
by
ARC
has
so
far
only
provided
10
percent
to
30
percent
of
total
disaster
funding
requirements.
Now,
ARC
is
working
with
humanitarian
partners
to
launch
Replica
Coverage.
• This
will
see
interna/onal
organiza/ons
and
NGOs
replicate
ARC
member
states’
insurance
policies,
thereby
effec/vely
doubling
coverage
available
for
vulnerable
popula/ons.
• WFP
and
the
Start
Network
–
a
global
coali/on
of
NGOs
–
have
agreed
to
act
as
replica
partners
for
ARC
members.
At
a
stroke
this
could
double
the
$180m
of
drought
coverage
that
countries
were
able
to
purchase
last
year
on
their
own.

7. • Replica
partners
will
receive
matching
payouts
when
the
policy
triggers.
This
is
a
win-­‐win.
In
/me
the
fund
is
intended
to
become
self-­‐sustaining.
• We
are
bringing
the
Replica
programme
to
the
world’s
aen/on
in
Istanbul,
though
we
an/cipate
that
full
replica/on
of
ARC’s
growing
poreolio
will
take
several
years.
• Transforming
how
aid
is
delivered
will
not
happen
overnight,
but
we
must
not
shy
away
from
taking
bold
steps.
At
the
same
/me
we
can
increase
the
power
of
humanitarian
dollars
allocated
for
natural
disasters
in
Africa.
• By
2020,
ARC
aims
to
reach
30
countries
with
$1.5bn
in
coverage.
Including
the
Replica
scheme,
ARC
will
indirectly
insure
more
than
150
million
Africans.
This
represents
half
the
G7’s
global
target
under
the
InsuResilience
ini/a/ve,
which
aims
to
generate
coverage
for
400
million
vulnerable
people.

8. • ARC
and
the
Replica
ini/a/ve
reflect
the
vision
of
the
World
Humanitarian
Summit
that
the
world
needs
to
be
beered
prepared
for
natural
disaster
and
more
resilient
to
climate
shocks
that
impoverish
vulnerable
popula/ons
and
distress
their
na/ons’
economies.
• It
is
a
model
whose
/me
has
come.
Through
the
ARC,
African
governments
have
chosen
to
help
themselves.
Through
Replica,
donors
and
humanitarian
organiza/ons
can
join
these
na/ons
to
see
what
a
collabora/ve,
innova/ve
approach
to
humanitarian
financing
could
mean
for
the
world’s
most
vulnerable.

9. • To
Learn
more
about
Dr.
Ngozi
Okonjo-­‐Iweala,
please
visit
the
following
sites:
• hp://ngoziokonjoiweala.net
• hp://ngoziokonjoiweala.org
• hp://ngoziokonjoiweala.info