Humanitarian Relief Initiative

1. Humanitarian Relief Initiative Humanitarian Relief Initiative: A New Model of Private Sector Participation in Global Humanitarian Assistance Presentation to the Health Cluster 24-28 January 2007 Further information available on request: Eric K. Noji, M.D. Global Health Security Partnerships for Humanitarian Relief and Disaster Management World Economic Forum Office: +41 22 534 9247 Mobile: +1 20 250 0598 Email: EricNoji@ekNOJI.com

2. Humanitarian Relief InitiativeCurrent Model of Private Sector Participation in Humanitarian Relief Most companies currently engage with humanitarian crises after the occur by scrambling to determine if and how to get involved. $ Cash Input Disaster Event Company In-kind Input UN Agency • What can our locally based employees do? • Should we contribute cash? To which organization? • Do we have in-kind inputs that we can donate? Are these inputs useful?Which organization do we send them to? • How do we deal with employee contributions? Should we send volunteers? $ Cash Input In-kind Input International / Local NGO Direct Implementation This model is a reactive one, often resulting in: - Potentially inappropriate activities, in which the private sector contributes either inappropriate items (e.g., $1M of clothes to tsunami-affected areas that destroyed the local clothing market) or operates in an inappropriate manner (e.g., conducting relief activities in order to be first in line for ensuing reconstruction contracts), resulting in mistrust and scepticism on the part of humanitarian actors- Less input into priority needs and little leveraging of the core competencies of companies, as contributions are provided in a reactive manner driven by companies themselves, and not through a constructive dialogue with humanitarian actors

3. Humanitarian Relief InitiativeThe World Economic Forum and the Background of the HRI World Economic Forum:The World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas. Incorporated as a foundation in 1971, the World Economic Forum is not a commercial lobby group, but rather an impartial, not-for-profit multi-stakeholder platform with constituents from the public and private sectors as well as civil society.Background of the HRI: • Impetus: The World Economic Forum was approached by UN OCHA, Citigroup, and WFP / UNJLC in summer 2005 • Problem: The group identified the need to develop a more systematic, streamlined, and coordinated approach to address the inefficiencies and ineffectiveness of the current model of private sector participation in humanitarian relief • Private Sector Entry Point: The World Economic Forum was identified as the appropriate global multi-stakeholder platform to facilitate private sector engagement due to its global coverage and experience in the area of public-private partnershipdevelopment(see also Logistics and Transport Humanitarian Workstream [Annex 1] and DRN [Annex 2]) • Humanitarian Community Entry Points: The group identified the newly developed “clusters” as the appropriate point of entry to the humanitarian system, through cluster lead agencies initially and UN OCHA on specific issues,in order for private sector inputs to be targeted to the needs of the larger humanitarian community

4. Humanitarian Relief InitiativeA New Model of Private Sector Participation in Humanitarian Relief Based upon this impetus, the World Economic Forum and the United Nations launched the Humanitarian Relief Initiative (HRI) at Forum Annual Meeting in January 2006. Key Activities of the HRI: • Develop a set of cross-sector and sector-specific guidelines and standards regarding private sector participation in humanitarian relief facilitated by UN OCHA, and through the clusters as appropriate • Facilitate a process of matching humanitarian cluster priority needs with key industrycompetencies resulting in concrete, action-oriented public-private partnerships • Facilitate the establishment of groups of companies committed to industry-level engagement with humanitarian relief (using the LTHW model - see Logistics and Transport Humanitarian Workstream [Annex 1])

5. Humanitarian Relief Initiative1) Development of Guidelines and Standards As a first step of the HRI, the Forum will work with UN OCHA to bring together representatives of the humanitarian community, with some private sector input, to develop cross-sector (cluster) guidelines and standards, in order to create a basic set of “ground rules” for private sector engagement in humanitarian relief. The development of these ground rules will be lead by the humanitarian community, and is meant to address many of the questions and concerns of the community regarding private sector motivations and behaviour. Guidelines and standards to be developed: initial list • A “Code of Conduct” to which companies sign, governing all of their activities related to humanitarian relief • A standard set of guidelines regarding the public relations activities of companies within the context of partnership agreements with humanitarian actors • A standard framework for needs assessments that can be used by humanitarian actors to identify and prioritize their needs, designed to effectively link them to industry core competencies • A standard framework for agreements between the private sector and humanitarian actors, in particular, for line UN agencies as cluster leaders

6. Humanitarian Relief Initiative2) Cluster-Level Work: Logistics and Subsequent Clusters Due to the interest of WFP and the Forum’s previous experience in the area, the HRI chose the World Food Programme, and the Logistics Cluster, as the first cluster for its cluster-level work. Work with WFP began in January of 2006 to identify its priority emergency needs for logistics, and is in the process of expanding to the Logistics Cluster level.It is now time to expand our work to other clusters. This entails agreement amongst relevant clusters, such as the Health Cluster, to engage with the World Economic Forum in the following initial steps: • Agree upon the subset of the cluster that will act as a private sector working group to work with the Forum in this project, including: • Define the key guidelines and standards for engagement with the private sector, including all ground rules and screening criteria deemed necessary • Identify the priority needs of the cluster from the private sector, both through lists of previous donations, but also brainstorming with the Forum • Ensure that the list covers key high priority needs for the humanitarian community, including not only assets, but also key human resource inputs and competencies such as technologies and areas of required innovation • Work with the Forum to match key needs to industry / company competencies and develop the required public-private partnerships between either specific humanitarian actors, or a group / cluster-level as appropriate and possible

7. Humanitarian Relief Initiative Value Proposition to the Humanitarian Community It is estimated that the global private sector has contributed $1.2 to $1.8 billion in in-kind goods and cash to humanitarian response since the end of 2004. It is understood that some level of participation in humanitarian response efforts is an existing and growing part of most global companies’ corporate social responsibility portfolios. Thus, the humanitarian community should expect even more attempts at engagement by the private sector over the years to come. By offering an improved method of private sector participation in humanitarian relief, the HRI offers the humanitarian community the following benefits: • An opportunity to define the terms of engagement with the private sector from the onset through a definition of standards and guidelines as well as key priority needs • A method in which the private sector engages in partnerships led by humanitarian actors, rather than acting alone • An understanding that the private sector will be meeting the priority needs of the humanitarian relief community rather than nonessential elements • Access to the core competencies of the private sector instead of adhoc, reactive contributions • Ability to increase the overall response capacity of the global humanitarian community

8. Humanitarian Relief Initiative Next Steps Based upon this information on the HRI, the main next steps for the Health Cluster to take are the following: • As a group, agree upon the creation of a private sector working group to engage with the Forum on this project • Set a mandate and set of decision rights for the working group, as well as a system for the group to report back to the full cluster • Agree upon a set of deliverables and milestones for the work of this group within the HRI

9. Humanitarian Relief InitiativeAnnex 1: Logistics and Transport Industry Humanitarian Workstream In an effort to further organize the efforts of the private sector in this field, the Forum has been working with the Logistics and Transport industries in the L&T Humanitarian Workstream (LTHW) since the January 2006. In the LTHW, key global industry players are working on an industry-level:1) To develop joint Logistics Emergency Teams that mobilize in response to sudden-onset natural disasters and leverage the different resources and competencies of each of the participating companies according to geographical presence2) To develop industry-wide guidelines and standards in the form of “ground rules” for companies’ work pro-bono work in humanitarian crises, including responsible public relations, transparency, etc.3) To share experience and lessons learnt across companies operating in the humanitarian spaceTo date, four of the largest L&T companies, including UPS, DPWN / DHL, TNT, and PWC Logistics are involved in this workstream. The group expects the first Logistics Emergency Teams to be operational in Southeast Asia by May 2007.

10. Humanitarian Relief Initiative Disaster Resource Network Disaster Risk Reduction Workstream Hazard Reduction Risk Mitigation Response Readiness Disaster Event Relief Recovery Humanitarian Relief Initiative Annex 2:Relation to Other Forum Initiatives and Workstreams The Humanitarian Relief Initiative is distinctly different from the Forum’s other work related to natural and man-made disasters. Humanitarian Relief Initiative (HRI): The HRI is a proactive effort focused on preparedness in which private sector core competencies are matched with humanitarian community needs in advance of disasters. Disaster Resource Network (DRN): The Disaster Resource Network (DRN), a separate entity legally independent from the World Economic Forum, operates in a more reactive model, generally by facilitating contributions by the private sector after a disaster strikes. In addition, the DRN has recently decided to engage with companies primarily from the Engineering and Construction industry, in order to focus its efforts as an organization.Disaster Risk Reduction Workstream (DRRW): The DRR workstream is a newly developed project, awaiting approval by the Forum Managing Board, that focuses on reducing the risks of natural disasters. Examples of such mitigation measures include, improved community and business resilience, improved infrastructure, expanded micro-insurance schemes, and the like.