Standing Committee of the Executive Committee
of the High Commissioner's Programme (30th Meeting)
29 June - 1 July 2004

NGO Statement on
Overall Programmes, Budgets and Funding for 2004, and Projections for 2005
Agenda Item 3

Thank you Mr. Chairman.

This statement is delivered in behalf of NGOs

We would like to start by thanking you Mr. Chairman for leading the way on NGO-UNHCR partnership issues at the Geneva-level. Through frequent consultations with NGOs you have strengthened our relationships with UNHCR and even preceded, or shall I say put in practice, the conclusions of the Secretary-General's Panel of Eminent Persons on Civil Society and UN Relationships led by President Cardoso.

The Chairman of the UNHCR Staff Council recently said in a meeting on staff security that UNHCR was closer to its NGO partners than to any other UN Agency or large inter-governmental organisations. This comment was based on a series of career-long observations in the field, especially in emergency situations. In this statement we hold the view that, indeed, humanitarian NGOs have a lot more in common with UNHCR than most people think.

What applies to staff security also applies, mutatis mutandi to our respective programme, budget and funding arrangements. Similarly to UNHCR, NGOs work on the basis of needs (with the notable exception of a few agencies spearheading rights-based programming), they are dependent on voluntary contributions and work on the basis of strict budgets.

I will review these three main areas briefly (programmes, budgets and funding):

First, with regard to programmes, we welcome UNHCR's efforts to join the group of organisations that strive to design, implement and monitor projects on the basis of needs as opposed to resources. Unlike other organisations that do not work on the basis of needs or rights but are only accountable to their governing bodies, UNHCR and NGOs view themselves as being accountable to the people they serve. The needs and rights-based approaches are symptomatic of a great leap towards a world order that is not solely based on the uncontested and sovereign will of nation states, but on universally agreed principles and norms. In a major departure from past practices, refugees are now acknowledged as rights-holders and subjects not only of national law, but also of international law.

With regard to NGO participation in UNHCR's planning process: in countries such as Kenya, UNHCR Representatives have done an outstanding job in consulting with and listening to what NGOs had to say on programmatic issues. They have recognised that our field workers are very close to the people they serve and are well placed to provide input in needs-based assessments. In other countries consultation with NGOs has been seen as a "tick off in the box" at best, or as a way to regain control over NGOs that are funded separately. NGOs called at short notice to meetings did not feel that they could meaningfully participate.

Another disappointment for us is that few NGOs see an interest in taking part in what is largely seen as an internal UNHCR process. They have not yet realised that they can play an increasingly strategic role in UNHCR's governance. While we have been copied on relevant UNHCR documents such as internal IOM/FOMs from the High Commissioner, it might be useful for senior UNHCR management to write to key NGO partners at the highest level to galvanize our support to this process. This is a battle for the hearts and minds of NGO staff as much as it is for that of UNHCR staff. We need to change perceptions. We need to make our colleagues realize that ALL concerned will benefit from greater engagement based on procedures reflecting coherence, transparency and predictability.

Secondly on the UNHCR budget - Whereas the UNHCR-NGO partnership cannot be subsumed to a merely legal or financial relationship - some of the best examples of collaboration include the joint design, implementation and monitoring of projects. Our concern is that while the number of NGOs partnering with UNHCR has remained constant, the UN refugee organisation spends less and less on implementing projects in partnership with NGOs. Statistics compiled by the NGO Liaison Unit are quite interesting in this regard.

While some are pushing for UNHCR to take an abstract coordination role as opposed to providing direct services and being involved in service-delivery, many refugees in the field are relying on UNHCR to deliver programmes for refugees, IDPs and stateless persons. We believe that UNHCR should keep its feet firmly on the ground and continue to implement programmes directly, including for IDP protection, where appropriate. We as NGOs have a vested interest in a strong UNHCR - We realise that UNHCR derives most of its strength from the programmes it implements. UNHCR is strongest when it has staff on the ground implementing programmes in partnership with NGOs.

On another budget issue, we applaud UNHCR for putting in place a flexible and adequate mechanism in the form of Category II of the Operational Reserve. This has allowed critical additional earmarked funding to be channeled to the field where it is most needed.

In its aide-memoire on Budget and Funding Issues, UNHCR states that some investments in management and administration as well as programme support costs (such as staff security and information technology) are "part of the cost of doing business". We would hope that what is true for UNHCR is also true for its partners. When provided with only 5% of "Headquarters Support Costs", International NGOs find it increasingly difficult to continue working with UNHCR while the vast majority of other donors provide overhead costs at 7 or even 10%. Many NGOs continue to face challenges and obstacles in implementing UNHCR programmes due to such restrictive programme rules as salary capping. The fact that national NGOs cannot even apply such overhead costs restricts their ability to carry out programmes. NGOs and UNHCR should work more closely together to improve the grant management process at the field level including sub-project agreement negotiations and timely disbursement of funds.

Lastly - on funding issues. The needs-based approach is a useful tool not only for planning purposes but also for advocacy and fundraising purposes.

NGOs have not yet realised how important this change of paradigm (from resource to needs-based) is and how much this is going to impact the way we work together.

While some NGOs may have felt neglected in the past or considered as mere implementers, they now have an opportunity to concretely influence decision-making within UNHCR. This new approach can also be a powerful tool to attract additional funding for refugee operations, especially for forgotten crises.

There are many examples of successful joint fundraising exercises on which we need to capitalize. This will require commitment and hard work from all concerned. Yet this is not an end in itself and will only benefit UNHCR and its partners if this is seen as bringing about change in programme delivery. As such we would recommend that joint monitoring missions be put in place to ensure that any changes be fed into future planning cycles. In this regard, we welcome further NGO participation in evaluations carried out by the Evaluation Policy and Analysis Unit (EPAU).

To conclude Mr. Chairman,

We find that Mr. Hegenauer's empirical observation is accurate and that it is supported by numerous examples of UNHCR-NGO commonalities, not least the fact that "private voluntary agencies" are mentioned in the UNHCR Statute whereas none of the other traditional partners are. Among all UN agencies, UNHCR has arguably the most intense and vibrant relationship with humanitarian NGOs.

Our main message to the 30th Session of the Standing Committee is thus that NGOs have a vested interest in a sound and robust UN refugee organisation. We are here today because we are friends of this organisation. Or as Barbara Hendriks, [the UNHCR Goodwill Ambassador] would say, as family members. As such we can agree to disagree and allow ourselves to put forward constructive criticism --as any family member would do. We now call on other family members to honour their commitments to UNHCR and pledge their support for the remainder of 2004 and 2005.

Thank you.