Red Cross Faces Funding Crunch

February 23, 2009

The Red Cross faces serious shortfalls in funding for humanitarian work in 2009 because donors are being squeezed by the global credit crunch, the head of the world's largest relief network said on Monday.


Red Cross Faces Funding Crunch

Mercy Mission

German Red Cross workers load a mobile medical station and jeeps destined for Haiti after the island was hit by storms and floods in 2008 (Photo: Reuters)

 

The International Federation of Red Cross and Red Crescent Societies (IFRC), a Geneva-based body linking national groups such as the American Red Cross, said aid had been one of the first victims of the economic crisis.

 

"All our major appeals are seriously underfunded," IFRC Secretary-General Bekele Geleta told Reuters during a trip to India. "Although it is too early for us to have a full understanding of the potential funding problems, the signals are not good. No economy can remain unaffected by the world crisis—and it's aid which goes first".

 

The difficulties in finding funds from governments, private companies and individuals have come just at the wrong time, when the impact of climate change was increasingly making itself felt, he said.

 

"If you add to that (funding problem), the fact that the number of disasters is rising due to the growing effects of climate change—then you have a big problem brewing ahead," Geleta said.



South Asia, for example, faces more uncertain monsoons, rising seas and chances of increasing flooding in the Ganges river plains, which hundreds of millions of people depend on for agriculture and drinking water.

 

"In South Asia there is a huge vulnerability...Climate change is increasing the intensity of natural disasters," he added.

 

The IFRC is seeking 265 million Swiss francs (223 million dollars) to assist 150 million people affected by natural disasters, food shortages, and health and humanitarian emergencies in 2009. It was still unclear how much of this appeal had been funded.

 

"For the time being, for 2009, we are OK," Geleta said. "When I say we are OK, I mean that we can just manage to keep our core programs afloat with the previous commitments that governments and institutional donors have made for 2009. But other than that we don't know what will happen in the coming months, or next year."

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The Red Cross fears were preceded earlier this year by U.N Secretary General Ban Ki-Moon, who called on rich nations to do more to prevent the global financial slowdown from adding to the 1 billion people going hungry in the world.

 

Despite the pessimism, Geleta still believed that funds would arrive. "I personally believe donors would continuing supporting the vulnerable, irrespective of the financial crisis," he said.

 

editor: Alistair Scrutton (Reuters)

 

 

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