CHAtroom#27: Contested Aid with Goda Milašiūtė

00:00:01: A warm welcome to the CHAtroom, The Podcast on Humanitarian

00:00:04: Action.

00:00:05: My name is Anne Tritschler and I am a communication lead at the Center for Humanitarian action And today's guest

00:00:12: is my colleague

00:00:13: Goda Milašiūtė who is a research fellow

00:00:16: at CHA.

00:00:18: I invited

00:00:19: her because i'd like talk about one of key projects in the current CHA work plan Intermediary financing mechanisms such as the much-discussed pooled funds and their potential to enable and anchor

00:00:33: local

00:00:33: leadership.

00:00:43: Welcome, Goda!

00:00:44: Thank you.

00:00:46: You're just back from a research trip to Ukraine.

00:00:50: actually... As part of your research, you've traveled to Ukraine couple times.

00:00:55: so before we get into this specifics or for your research perhaps you could start by sharing with us where exactly did it go?

00:01:04: What did you do there?

00:01:06: How was it different from the last time you went there?

00:01:09: Sure, so I went to Kyiv a couple of weeks ago as part my research on local leadership within the Help Localization Facility or HLF which is a funding mechanism that passes funding to local humanitarian actors in Ukraine.

00:01:26: As its aim there's less bureaucracy and more access to funding for Ukrainian humanitarian organizations.

00:01:34: And besides funding, the HLF also aims to shift decision-making power to local civil society in Ukraine.

00:01:40: So basically my research looks at this aspect and so in Kiev I spoke with representatives of organizations which are funded by this mechanism, also the experts who are part of the HLF governance structures.

00:01:58: And also some localization experts in Ukraine. And of course, the situation in Ukraine remains very difficult and I'm more so grateful to everyone who spoke with me.

00:02:06: Who took time and energy to speak with me.

00:02:09: despite the Russian attacks... ...the constant attacks and air raid alerts... ...constant witnessing of loss-of-life and critical infrastructure, sleep deprivation and other difficulties.

00:02:22: And then in a relatively short time you always hear a lot of good work that people are doing, even inspiring stories.

00:02:31: so I think it's... Yeah i'm very impressed by all the works that people do in Ukraine.

00:02:35: My research is evolving as the HLF is evolving because its currently being piloted.

00:02:42: So since last time when I was at Ukraine the organizations which were funded through it the HLF, they have started their project implementation.

00:02:51: So I was very curious to learn about the process and their partnership with the HLF as a mechanism.

00:02:59: And of course in Ukraine this situation is changing a lot as well...I don't know..this time since I went in spring here, a lot of people told me how difficult this winter was because last time I was there it was the beginning of winter.

00:03:10: So yeah, with electricity cuts, the lack of heating, in some cases no water, so yeah you feel this a lot, even when you go for a short time.

00:03:19: And also I'm Lithuanian so i feel very emotional

00:03:23: going to Ukraine and working with the Ukrainian context and people there... There is a lot of solidarity there!

00:03:33: I can imagine, yeah. Okay so maybe when we now look at your project.

00:03:36: what you do is you look at local leadership in funding mechanisms and want to identify criteria that can be used to assess to what extent financing mechanisms are locally led.

00:03:48: Maybe, to start with could you explain our audience

00:03:52: What different financing or funding mechanism are there in humanitarian

00:03:59: action?

00:04:00: Sure!

00:04:00: So maybe I can start by saying that there is no strict definition of what a "funding mechanism" is, so in my current research I use it

00:04:11: as a kind of umbrella term to include both pooled funds, the multi-donor pooled funds and other types of funding facilities like the HLF for example which I just mentioned.

00:04:21: So these funding mechanisms they can be hosted by different types of actors so they can be hosted by local actors For example there are local pooled funds, or they can also be hosted international actors like for example, INGO-hosted funding mechanisms like the HLF or UN-hosted mechanisms like the country-based pools.

00:04:41: So funds and funding facilities are also not the only type of so-called intermediaries.

00:04:47: Maybe I can just zoom out a bit and say that most of our listeners probably know that, but the humanitarian funding in many cases doesn't go directly into the implementing organisation...but passes through some other actors or the so-called intermediary actor.

00:05:06: And so these intermediary actors can either be this funding mechanisms that I just talked about, or they can also be for example single organizations and then in that case different types of single organizations.

00:05:20: So in these cases the so-called bilateral funding are also.

00:05:24: it can be a group of organizations For example a consortium of organizations or network.

00:05:29: Yeah, I hope that makes sense.

00:05:31: Yes, it does.

00:05:33: As part of the latest reform agenda, the Humanitarian Reset, the UN Office for the Coordination of Humanitarian Affairs (UNOCHA) has called for fifty percent of global humanitarian funding to be channeled through these country-based pooled funds in the future.

00:05:50: So why is this such a miracle cure?

00:05:54: Can you tell us?

00:05:55:

00:05:55: So maybe I can start by saying that I don't think that it's a miracle cure, or I mean, it depends, like everything.

00:06:03: It depends.

00:06:04: so pooled funds have the potential to improve

00:06:09: humanitarian action.

00:06:10: So they have the potential to enable more flexibility of funding because this funding is not earmarked for specific areas, like in cases of bilateral funding.

00:06:20: Or this funding can be more predictable because funding is collected in a, so to say, common pot, so there is less fragmentation than in project-by-project donor funding or

00:06:33: Related to that, there is the cost efficiency aspect.

00:06:36: So the transaction costs might be reduced, and I think what's really important also in the case of pooled funds is that pooled funds are or can be a platform for diverse actors to get together, to coordinate, to collaborate, and so the people who are closer to the context, to the crisis context, are also or might be part of the structure which then might also lead to, I mean, in effect, to more effective humanitarian aid because people who are closer to the context they're part of their decision-making.

00:07:09: In this sense or related to this, pooled funds also often discussed as a means to remove barriers to locally led humanitarian action and have more local representation in the pooled fund structures or pass more funding for local organizations.

00:07:25: So in that sense pooled funds can offer new opportunities, in terms of both broadening the donor base and the variety of organizations which receive this funding.

00:07:35: But as with all things, the devil is in the details.

00:07:38: so the questions such who has access to the pooled fund funding and related to that are all applications and new diligence procedures.

00:07:46: So these questions have to be considered.

00:07:48: And also who makes the funding allocation decisions according to which criteria?

00:07:53: Who decides on those criteria?

00:07:55: And who selects or maybe nominates or elects the decision-makers within the pooled funds and then how the strategic decisions related to a pooled fund are made

00:08:06: And by whom?

00:08:08: Many other questions have to be considered to then kind of answer the question if it can be a miracle cure or make it into a cure.

00:08:16: And also maybe last aspect, I think is really important

00:08:20: to keep in mind that UN country-based pooled funds while they have some comparative advantages, they are not the only pooled fund out there and there are also NGO-led funds, including local pooled funds which have their comparative advantages as well, such as the ability to pass funds to smaller grassroots organizations and so on.

00:08:39: So in my view, a diverse intermediary ecosystem is really important.

00:08:43: You also mentioned that not only access to funding but access to quality funding Is essential?

00:08:50: What what does it mean by that?

00:08:52: The quality can be kind of translated into the timeliness dimension.

00:08:59: So in the sense that the funding should be multi-year, if possible, so that organizations can plan and continue their work.

00:09:07: And the flexibility is another aspect which as I mentioned pooled funds have kind of that advantage to enable more flexibility also for organizations to set priorities that better reflect the humanitarian needs especially for local organizations since we also talk about local leadership.

00:09:24: And it is really important to mention that the flexibility of funds is often not adequately passed to the end recipient, so it's really important to keep in mind in all the intermediary structures how this flexibility can be kept throughout when funding travels.

00:09:48: And another aspect related to the quality of funding is funding for overhead or indirect costs beyond the project funding to ensure the organizational sustainability, especially for local organizations.

00:10:02: So that organisations can also plan ahead and not worry about their survival.

00:10:07:

00:10:07: In your first research output you write that when designing a funding mechanism, considerations of power dynamics among different actors within its governance should be central.

00:10:20: How can local leadership be ensured in the mechanisms design?

00:10:24: Yeah, so I think it's a really important question and i think because one area is the design.

00:10:29: we often talk about the kind of projects which are funded from mechanisms, which is of course very important, you know, the access to funding and so on.

00:10:40: But design of mechanism itself is really important too especially because a lot of these mechanisms are hosted by international actors.

00:10:49: So then an aim to have local leadership at least participation or representation aspect within them.

00:10:56: So, yeah I've already mentioned representation.

00:10:59: so local actors of course should be part of the mechanisms governance.

00:11:03: then also the question arises which local actors?

00:11:05: Because there is a tendency to treat local actors as kind of a monolith, but of course it is not the case as with all the actors. The nuance should be kept there as well.

00:11:16: Local actors are also different in size, different in their geographical focus, different in their leadership.

00:11:22: There are local organisations which are women-led or lead by refugees of other marginalised groups that have more barriers within the system even among the local actors.

00:11:34: so I think it is really important to have a representation of diverse local actors within the governance structures and there is the consideration of what kind of powers different actors have within this governance structure.

00:11:47: So for example, donors often have a veto power which of course is a lot of power.

00:11:52: so project review and selection is of course a key part of work on funding mechanisms.

00:11:59: there should be diversity in the committees which make these decisions.

00:12:08: it's important to prevent conflicts of interests and so that kind of both for actors who make decisions, but also the organisations which apply to funding so that they get fair treatment.

00:12:20: And when I say representation ...I imply that these actors, so local actors in this case, have actual decision-making power in this mechanisms because tokenism or... So the practice of inviting local actors or marginalized actors to check the box is a dangerous practice because it creates an impression of inclusion, but it's not really meaningful.

00:12:48: People invest their energy and time without it leading them into some outcome.

00:12:52: so yeah... To have actors there and to have local actors in these structures and ensure that they actually have decision-making power there.

00:13:02: Just one question on this.

00:13:04: Wouldn't it mean that if local actors are included in the mechanisms, then they cannot receive any funding from this pooled fund?

00:13:15: I mean there also different ways to go about that.

00:13:19: so for example when it comes to, of course.

00:13:23: It's really important to separate the actors who make decisions and who apply for funding.

00:13:30: so there is a possibility for actors for example to recuse themselves from decision-making to as I said, preventing conflict of interest.

00:13:40: for example declaring in advance you know kind of recusing themselves from that specific decision is one way to avoid that.

00:13:47: It's a fair question like how can you both ensure the access to funding from organizations and their participation in this strategic or funding allocation decisions?

00:14:02: One specific aspect to your mention is two-way accountability.

00:14:07: Maybe you can explain a little bit what you mean by that?

00:14:11: Sure, so I mean accountability has been quite... big problem, or the lack of accountability.

00:14:18: Accountability is not a problem!

00:14:19: The lack of accountability is a problem in the humanitarian sector and when it comes to local international partnerships.

00:14:27: so maybe I can start with what happens if there's a lack of two-way accountability?

00:14:33: So then there is only the upward accountability, which is reflected, I mean, in local-international partnerships.

00:14:41: that's reflected in local actors being accountable.

00:14:44: So to say "upwards" towards donors and also maybe some intermediaries.

00:14:50: so that's reflected in heavy compliance systems, in upward reporting, in kind of reporting, also based on criteria identified by donors or yeah bye other actors who hold more power in that situation.

00:15:07: So the two-way accountability would mean that it is not only local actors which are accountable or held accountable by donors, but also that donors and intermediaries would be, international intermediaries in this case, they'd be accountable to local actors, sorry.

00:15:22: Some people call it 'horizontal accountability' or there are also other ways to describe it, kind of horizontal accountability would be to avoid this vertical hierarchy.

00:15:35: This is also related to the practice of an equal risk distribution or a risk transfer, because local actors are exposed most security safety operational risks while having little control over strategic decisions and as I just mentioned reporting upwards to the donors.

00:15:55: so it's a bit kind of like a loose-loose situation in some cases.

00:15:59: So that, of course needs to be changed and risk sharing is a practice to avoid that when it comes to unequal distribution, so practices such as joint-risk budgeting or adopting duties of care

00:16:13: There are some really technical things, like rethinking commercial insurance coverage or what I think is very important also engaging in not only preventive but also reactive risk sharing when it comes to non-negligible incidents.

00:16:27: And maybe just to add more broadly, related to accountability.

00:16:31: I mean good communication channels and feedback mechanisms are really important with clear follow-up procedures because it often happens that there is a channel to provide feedback but then it's kind of unclear what happens with that feedback.

00:16:44: so clear follow-up is really important.

00:16:46: transparency relates to that because it's also really difficult to hold someone accountable if you don't know the state of things or what kind of, what the criteria is.

00:16:59: Or you don't have data to prove that this standard... the promises are being fulfilled or not, so that is really important.

00:17:09: And if I can just mention one last thing which I also think it's really important who sets the criteria for all this, like what's good work and what's not?

00:17:17: What's expertise or what's valid experience or what' s not?

00:17:22: I think it's very important also to recognize local actors' expertise and also lived experience in this context.

00:17:30: Well,

00:17:30: looking a little bit into the future after this first output in your research project what comes next?

00:17:38: Maybe you can tell us a little about

00:17:40: that.

00:17:40: I'm sure I can give you a little sneak peek.

00:17:43: so what will come out now or very soon, hopefully, is kind of a short paper on local leadership through humanitarian funds, pooled funds and funding mechanisms.

00:17:55: So in there I operationalize local leadership according to different based on different dimensions which we have also just discussed!

00:18:06: And the main result of my current research will be a report on local leadership within and through the HLF. When I say 'within', I mean the HLF governance, and 'through', I mean projects funded by the HLF.

00:18:20: So this should be published at the end of this year.

00:18:23: One very last question – This is a question that I want to ask all my guests in chat room

00:18:28: from now on.

00:18:31: If you could use some kind magic to stick a post-it note on every humanitarian worker's desk or workstation, what reminder or appeal would you write?

00:18:44: So I knew that you would ask me this, so I could prepare a bit.

00:18:49: And yeah and thought about it for a bit... You'll find some technical recommendations in my papers!

00:18:57: In the context maybe we can all use some inspiration in these times?

00:19:02: So i'd like to share part of quote by Arundhati Roy from her book 'The Costs Of Living' which she encourages us to never simplify what is complicated or complicate what is simple.

00:19:16: To respect strength, never power, above all, to watch, to try and

00:19:21: understand."

00:19:23: So yeah!

00:19:24: This is a

00:19:25: very

00:19:26: nice quote.

00:19:27: I think it's good to keep that in mind.

00:19:30: Thank you very much, Goda.

00:19:32: My pleasure, thank you for having me

00:19:37: And thanks to our listeners for joining us.

00:19:40: Tune in also next time to the CHAtroom, a podcast on humanitarian action from the Centre for Humanitarian Action.

00:19:46: If you have any ideas about who we could invite as a guest or if you have any questions and suggestions, please feel free to email

00:19:54: us

00:19:55: at info@chaberlin.org.