By Patricia Mace and Vera Dimoplon
NOTE: For the published version of this op-ed, please click here.
The United Nations High Commissioner for Refugees (UNHCR) is currently facing the largest refugee crisis since its creation. UNHCR, which was created in reaction to the overwhelming amount of refugees after WWII, has seen its mandate expand while its resources have not. With the overwhelming number of refugees, and more expected after Trump’s decision to enter Syria, UNHCR needs to be equipped to deal with the expected increased number of refugees. A funding reform that gives UNHCR the autonomy and ability to effectively deal with crisis situations could not come at a better moment. An effective reform should include: (1) creation of a crisis fund, (2) limiting earmarking ability by donors, and (3) a no refund policy on donated funds.
When the UNHCR was created in 1950, it was supposed to provide international protection to refugees and find sustainable solutions to their settlement. Global instability and international crises have not only increased the number of refugees significantly, but has forced the expansion of the UNHCR mandate as well.
Historically, UNHCR has had issues due to the fact that its budget is almost entirely dependent on voluntary contributions. The United Nations (UN) provides only 2% of UNHCR’s budget to cover administrative costs. The other 98% of UNHCR’s annual budget, which exceeds $1 billion, comes from donor states. The 98% has to be raised annually through the Global Appeal. To become more effective, UNHCR needs a funding scheme that gives UNHCR the necessary leeway to deal with crisis situations without worrying about funding stipulations. It is our recommendation that UNHCR make significant changes to its funding scheme.
1.Creation of a Crisis Fund – Crisis Situations Require Crisis Funds. Due to the very nature of the situations that UNHCR deals with, it makes sense to establish a fund, which will be utilized specifically in response crisis or the new developments of an existing crisis. With 80% of the funds earmarked for specific programs or causes, UNHCR lacks the autonomy to actually deal with crises or new situations as they arise. While donor states should be allowed to contribute funding where they like, 25% of any donated amount will go to the crisis fund.
2.Dictating the Terms – Donor States and Donor Interests. As previously stated, 80% of UNHCR’s voluntary contributions is earmarked for specific causes, programs, or states. Donors are often able to pursue their own agenda and use their financial contributions to flex their own political muscle. This has challenged UNHCR’s legitimacy since it must stay on good terms with the donor states in order to maintain funding for the following year. It is also wasteful because when funds are earmarked below the program and country level it costs more to manage the contribution than the contribution itself.
3.Donated Money is Donated Money – No Take Backs. Donors have been allowed to recall their donations when their contributions are not utilized by UNHCR. This creates more work for UNHCR and goes against the very nature of the cause they are setup to deal with. The UNHCR is mandated to provide assistance to refugees therefore, any funds that it receives should be distributed amongst the projects that support refugees regardless of preferences or an arbitrary timeline set by the donor.
The implementation of these solutions should be done at the annual Global Appeal which is introduced in December. In the Global Appeal, the UNHCR could specify that a crisis fund will serve as an emergency response fund to address those refugee needs that were not accounted for due to unforeseen circumstances.
With the global refugee crisis growing by the day, UNHCR finds itself in a precarious position. However, António Guterres, former UNHCR Commissioner and presently, the United Nations Secretary-General can help revitalize the Refugee Agency. António Guterres is often described as a refugee champion who worked tirelessly to advocate for the needs of the refugees. His new position as a UN Secretary-General, combined with the experience he has working with refugees, gives him the advantage of being able to identify priorities within the refugee crisis and guide the UNHCR to address them adequately.
UNHCR similar to other international organizations has adapted to deal with the changes in the international community. UNHCR has changed its mandate and scope in order to more effectively deal with the change in refugee needs. The funding issue has been an unfortunate, and unavoidable issue for UNHCR to face. By reforming the current system, UNHCR can gain the autonomy and stability it needs to deal with the present refugee crisis.
Reforming International Organizations 