A report from the Overseas Development Institute (ODI) – Britain’s top
international development think tank – says humanitarian responses like Syria’s
refugee crisis can be eased if bosses think of them as business opportunities.
“Most people think philanthropy or forms of Corporate Social Responsibility
(CSR) are the best ways to help, but our research has shown that this is not
the case,” said Steven Zyck, ODI researcher in the Humanitarian Policy Group
and lead author of ‘Humanitarian crises, emergency preparedness and
response: the role of business and the private sector.’
The report, which includes research from Jordan, Kenya, Indonesia, and Haiti,
shows that where private sector companies are making money it’s because they
are increasingly offering quality, in-demand services.
“The private sector has transformed cash transfers, telecommunications and
logistics in humanitarian crises,” said Mr Zyck. “Insurance companies in Asia
and Africa are blunting the humanitarian consequences of droughts and cyclones,
and banks are helping to rapidly transfer money to those affected by disasters.
Businesses are also tackling sanitation and disaster preparedness says the ODI
report.”
“For donor agencies, working with the private sector – especially local
businesses - makes perfect sense as they can also benefit rather than suffer
from increased refugee numbers and humanitarian efforts operating in their
region,” added Mr Zyck.
In Indonesia, insurance companies have provided insurance against dengue
fever for little more than the cost of cigarettes, giving the insurer a
financial stake in the health and wellbeing of communities. In 2013, the
private sector provided emergency relief – the transport of people and goods –
following floods in the capital city Jakarta. Over 20,000 people were
evacuated.
In Kenya in 2011, banks and telecom companies were contracted to deliver cash
transfers to people suffering through the drought and regional insurance companies
have helped to insure households against droughts, helping reduce the need for
humanitarian assistance.
Regional banks in Jordan have
established successful cash transfer programmes that allow Syrian refugees to
access aid from biometric ATMs. The World Food Programme is giving e-vouchers
to Syrian refugees to allow them to purchase food and toiletries in grocery
stores rather than relying on aid packages.
“It is not that the private sector will replace the traditional humanitarian
community, it is about the two sectors complementing each other. The private
sector’s technical expertise and resources offer great opportunities to
innovate and improve services, while humanitarian agencies continue to have
leading insight into what types of aid are needed and how to reach people in
remote communities,” said Mr Zyck.
Some multinational companies already see the potential of operating in war-torn
and disaster-prone areas, such as Unilever, who provide low cost home-based
sanitation, and Orange, who provide mobile money services.
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To arrange interviews with Steven Zyck, the
researcher behind the report please, contact Clare Price on [email protected] / +44 (0)7808 791 265