In progress at UNHQ

GA/9502

COUNTRIES PLEDGE $121 MILLION TO MEET UNHCR 1999 NEEDS, ESTIMATED AT $842.1 MILLION

13 November 1998


Press Release
GA/9502
REF/1162


COUNTRIES PLEDGE $121 MILLION TO MEET UNHCR 1999 NEEDS, ESTIMATED AT $842.1 MILLION

19981113 High Commissioner for Refugees Says Progressive Reduction of UNHCR Budget Has Left Her Office Unable to Meet Some Needs of Refugees and Displaced

The international community pledged approximately $121 million for the 1999 needs of the Office of the United Nations High Commissioner for Refugees (UNHCR) estimated at $842.1 million, during a meeting this morning of the Ad Hoc Committee of the General Assembly for the Announcement of Voluntary Contributions to the 1999 Programmes of UNHCR.

The United Nations High Commissioner for Refugees, Sadako Ogata, said that over the last three years, the UNHCR had progressively reduced its financial requirements, from $1.4 billion in 1996 to $995 million in 1998. However, annual contributions had failed to meet those targets, leading to the repeated readjustment of budgets established on the basis of needs to match funding projections.

"It is important, however, to strike a balance between the limitations imposed by decreasing funds, and the very broad range of needs we would like to address", Mrs. Ogata said. "I am very concerned that this balance is tilting -- year after year -- towards funding imperatives, rather than the needs of refugees. We are increasingly compelled to reduce the scope of our activities beyond the actual decrease in refugee problems and beyond what is reasonably to expect from my office, even if we depend on voluntary contribution."

Mrs. Ogata said reducing its budget had left the UNHCR not able to meet some of the real needs of refugees, returnees and other displaced persons. The cost in human terms had been great, she said.

Opening the meeting, the Assembly President Didier Opertti (Uruguay) said the complexity and magnitude of the current refugee problem made its solution beyond the response capacity of any single nation or organization. The collective responsibility of the international community must be reflected in cooperation, collaboration and partnership. The international community

had the principles, legal instruments and operational capacity to deal with the concerns of UNHCR. What was needed now was adequate financial support.

Pledges were made by representatives of Switzerland, Algeria, Thailand, Hungary, United States, China, Belgium, Turkey, Sri Lanka, Ghana, Malaysia and Austria.

Benin, Greece, Monaco, Netherlands and Portugal informed the Committee in writing that they were making pledges for the needs of the UNHCR.

Representatives of Norway, Denmark, Germany, Japan, Sweden, Republic of Korea and South Africa said that their countries were unable to give exact figures to be pledged today and would provide them at a later date.

Opening Statement

President of the General Assembly, DIDIER OPERTTI (Uruguay), said that this year's session of the Executive Committee of the UNHCR had focused on the topic of international solidarity and burden-sharing in all its aspects. Many of the important messages that came out of the session had been reiterated in the Third Committee (Social, Humanitarian and Cultural) debate this week. Strong support had been expressed for the humanitarian principles of asylum; family unity; the right to return; and for finding durable solutions, including local integration, resettlement and voluntary repatriation in conditions of safety and dignity. However, it was recognized that promotion and implementation of those principles required commitment on the part of the entire international community.

The debate had shown, he continued, that the complexity and magnitude of current refugee solutions were beyond the response capacity of any single nation or organization. The collective responsibility of the international community must be reflected in cooperation, collaboration and partnerships to assist refugees, displaced persons and others in need of international protection. Many delegations had noted that developing countries bore a disproportionate share of the burden of hosting refugees or reintegrating returnees and could only provide services with international support, which could take the form of financial, material, political and moral assistance. Every phase of refugee assistance -- from emergency response, to care and maintenance, to durable solutions -- depended on multi-faceted actions encompassing political, economic, social, environmental and other factors, therefore, involving the full range of international, regional, national and local actors.

The international community had the principles, legal instruments and operational capacity to deal with people of concern to the UNHCR. What was needed was adequate financial support. For next year, the Office of the High

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Commissioner would require $842.1 million to meet, in 1999, the minimum needs of protection and assistance to refugees. The contributions to be announced today would help create a solid financial base for those activities next year. They would have a direct impact on the lives of an estimated 24 million persons.

SADAKO OGATA, High Commissioner for Refugees, said that the resolution of some long-standing refugee problems during the last three years had allowed UNHCR to progressively reduce its financial requirements, from a peak of $1.4 billion in 1996, to $1.2 billion in 1997, to $995 million in 1998. Those goals had not, however, been fully met, as overall contributions in 1996 totalled $970 million, and in 1997, $807 million. As a result, budgets established on the basis of needs had been repeatedly readjusted to match funding projections.

While funding levels must be taken in account when planning and budgeting for the organization's programmes, she said, it was important to strike a balance between limitations imposed by decreasing funds and the very broadening range of needs. "I am very concerned that this balance is tilting -- year after year -- towards funding imperatives, rather than the needs of refugees", she said. The UNHCR was increasingly compelled to reduce the scope of its activities beyond the actual decrease in refugee problems.

The evolution of the UNHCR general programme budget in 1998 was a good indication of the difficulties the organizations faced, she continued. Realizing that the initial target of $440 million might be difficult to fund, the UNHCR made considerable budgetary cuts, froze some of its reserve funds and actually operated on a budget of $370 million. That had affected the organization's work in very concrete terms, so that it had been unable to meet some of the real needs of refugees, returnees and other displaced persons. The UNHCR would get to the end of the year with barely sufficient funds to cover the most vital priorities. The cost in human terms had been great. The Organization would be left with a net shortfall of approximately $3 million by 31 December 1998, which meant that it would start 1999 with hardly any pre-financing capacity for its general programmes.

Some operations under special programmes were severely underfunded, such as in Afghanistan and in West Africa, she added. Targets were far from being met in key operations in the Great Lakes region, and in Bosnia and Herzegovina. In some cases, the shortfall had persisted even after the UNHCR drastically reduced its activities. In Rwanda, for example, where returnees constituted 25 per cent of the population, the UNHCR had to suspend unfinished housing and school construction schemes.

She noted that by the end of the year, her Office will have reduced staffing levels by about one thousand posts, since 1996. Such a large

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retrenchment did not go without serious impact on the morale and effectiveness of all staff and on the Office's implementing partners. It was, therefore, imperative that during this difficult transition period, support given to the UNHCR be as substantial and constant as possible so that refugees and other displaced persons did not unduly suffer. Abrupt funding reductions were not helpful and had not allowed the organizational reforms to be consolidated at all levels.

Last year, the UNHCR had issued a global appeal, setting out its general and special programme requirements for 1998, she said. The same would be published for next year by mid-December. The UNHCR was also working with its Executive Committee to review the organization's budget structure, in order to address some of the shortcomings and artificial distinctions that had developed between the general and special programmes. She expected that exercise to lead to an enlargement of the UNHCR's core programmes.

She asked Member States to take into consideration, when pledging, the lack of the Organization's pre-financing capacity for 1999 and the resulting cash needs during the first months of next year. The UNHCR's effectiveness depended not only on the level, but also the quality of funding. Two key aspects should be kept in mind when planning contributions: flexibility and predictability. Flexibility was indispensable in responding to emergencies and changing needs. The fact that contributions to the UNHCR were almost entirely voluntary, required considerable fund-raising efforts on its part that constantly motivated it to improve the quality of its work and help focus the world's attention on refugee problems.

Closing Remarks

In concluding remarks following the announcement of pledges, Mrs. Ogata thanked the Member States for their contributions. The effort of those delegations that had pledged contributions in spite of austere budgetary constraints were very much appreciated. She expected the overall pledges made this year to be lower than last year as one of the large contributors from the previous year had not pledged today. She estimated the overall contributions at $21 million. The content of the pledges needed to be analyzed. Also, the pledging conference format and timing needed to be re-examined, as noted by several Member States.

She welcomed a clear indication from Member States as to how it should go about pledging and getting wide support in the future. She reiterated the importance to the UNHCR of predictable funding to meet its cash needs at the beginning of 1999. She expressed her appreciation for the Member States commitment to the plight of refugees.

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Pledges Announced Local Currency US$ Equivalent

Switzerland 13 million Swiss Francs 9,700,000.00

Algeria 50,000.00

Thailand 15,000.00

Hungary 30,000,000.00

United States 82,600,000.00

China 250,000.00

Belgium 60 million Belgian Francs 1,764,705.88

Turkey 150,000.00

Sri Lanka 7,600 Swiss Francs 5,671.64

Ghana 5,000.00

Malaysia 20,000.00

Austria 5 million Austrian Schillings 431,034.48

Benin 1,500.00

Greece 300,000.00

Monaco 9,500.00

Netherlands 25,537,634.41

Portugal 225,000.00

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For information media. Not an official record.