Ladies and gentlemen
Dear friends
Welcome to Switzerland, welcome to Bern. As a country with a long humanitarian tradition, Switzerland is a strong supporter of the ICRC. We have gladly chaired this donor group, and I thank you all for your commitment to our common endeavour.
We are gathering here at a time of multiple crises and mounting humanitarian needs. We have learnt from UNHCR this week that global forced displacement has yet again risen to new record highs. The international humanitarian system is stretched to the limits.
I was recently in Lebanon and previously in Jordan. There we saw for ourselves the tremendous work being done by the ICRC and other humanitarian actors, as well as by the host governments and communities. But we also got a first-hand impression of how big the challenges are – of how difficult it is to give people, after years of despair, something I consider essential in life, and that is hope.
I spoke to refugees who deeply appreciate all that is being done for them but really want one thing above all – to be able to return home to a Syria in peace, to their families and their friends. I spoke to young men and women who as refugees are barred from work but only dream of a job that would allow them to finance their own lives in dignity.
These kinds of personal encounter have reinforced my conviction that helping these people really requires two things: to provide them with the humanitarian assistance they need, but also to move beyond that and address the causes of their plight. We need to address violent conflict, fragility, and developmental and humanitarian challenges comprehensively, and we need to do so by applying all our tools in a well-coordinated and targeted manner.
It is in this spirit that the Federal Council has recently issued a new strategy for Switzerland’s international cooperation. For the first time, this strategy provides a common framework for Switzerland’s humanitarian aid, development cooperation and peace promotion activities. While all these instruments have their distinct roles and are complementary, they are all tied to common strategic objectives: less poverty, more peace, and better prospects.
One of the features of this strategy is its emphasis on stronger cooperation with the private sector. The case for more public private cooperation is simple: On the one hand, a functioning market economy – enterprises, jobs, income – is the major factor of development. Private sector engagement is also indispensable to resolving global challenges. It is no coincidence that all major global frameworks agreed last year – whether the Sendai framework for disaster risk reduction or the 2030 Agenda on Sustainable Development or the Paris deal on climate change – all these frameworks stress the need for private sector involvement.
On the other hand, it is equally the case that business prospects depend increasingly on our ability to resolve these challenges – to have less poverty, more peace, and better prospects. Working together here is a win-win situation.
The Swiss foreign ministry has forged about 30 public-private development partnerships in recent years. Each of these partnerships is different – some focus on strategic dialogue and thematic alliances while others are above all about cooperation on the ground. The issues range from satellite-based risk-reduction support for rice producers in East and South Asia to public-private efforts to reduce the water footprint of companies operating in Colombia and Vietnam.
The overall result of our cooperation with the private sector has been positive. Our objective of expanding this cooperation is not only need-driven but also based on our conviction that there is still much untapped potential. The Swiss private sector is one of the most competitive and innovative worldwide – and this spirit of innovation should guide us as we move forward together.
Let me just mention one growth area that I see – the market for investments for development. These are investments that involve a clear intention to improve the social, environmental and economic conditions within developing countries while at the same time aiming for a market return. Much knowhow has been established on this in the Swiss financial sector lately – according to one estimate, almost one third of the global market for investments for development is managed through institutions in Switzerland. This is a good basis to build upon.
If we look at the situation in the humanitarian field, the growing gap between needs and limited means is a cause for concern. It is also a call for action – a call to think out of the box, to look for innovation, to question old habits and seek new ways of maximising the impact of our efforts.
At the World Humanitarian Summit in Istanbul a month ago, there was a common understanding that today’s challenges are such that no organisation can stem the work alone. I see much potential in humanitarian actors seeking to deepen partnerships with other actors and building new ones. Here again, cooperation with the private sector is of increasing importance.
There are some obvious sensitivities – the independence, impartiality and neutrality of humanitarian actors must not be put into question by public-private partnerships. But it is equally true that humanitarian principles do not per se stand in the way of fruitful cooperation with private companies.
The fact is that the private sector has already accomplished much in terms of responses to humanitarian situations. For example, companies provide financial donations, logistics, transport and other services needed to move food and supplies to the right place at the right time. Another example is company employees volunteering for humanitarian purposes. The Swiss Humanitarian Aid Unit is a corps of 700 people who are on call in time of need. Many of them work in the private sector and bring with them fields of expertise that are invaluable in humanitarian aid. Their commitment to help others makes me proud.
What we should discuss today is how we can bring partnerships with the private sector to the next level. What needs to be done to intensify public private cooperation in preparing for and responding to humanitarian crises?
I wish to make four points on this:
First, we need to do more to break down barriers between the private and the humanitarian sector. We need to create common spaces to develop joint projects and to get acquainted with each other’s working modalities.
A good example is the Global Humanitarian Lab in Geneva that the ICRC, UNHCR and Switzerland with the help of other partners set up in Geneva. This is a platform that enables humanitarian organisations, academia and the private sector to join forces in concrete and hands-on innovation for humanitarian aid.
Current products range from a fully open-source early-warning system for weather-linked disasters to medical instruments like stethoscopes. Both can be assembled using inexpensive components or can even be 3D-printed directly in the field.
Second, we should set incentives to align humanitarian outcomes with private interest. This is about unleashing the creative potential of the private sector and channelling it towards humanitarian impact.
One recent project launched by the ICRC concerns the Humanitarian Impact Bond, whereby specific ICRC operations would be financed by private investors. If the operations achieve the previously agreed measurable outcomes, the private investors would get their capital back plus a premium for the risk they took. Outcome funders would pay for the achieved results and compensate the private investors ex-post. This is an innovative approach which we are interested in discussing and developing further with a set of constructive questions and ideas. I was wondering, for instance, whether patrons – philanthropic actors – could be included in the partnership to cover the premium.
Third, more should be done to harness private sector knowhow and rigour. Let me give you an example: The Ebola outbreak created havoc in fragile countries of West Africa and consumed enormous public resources. The international community learned the hard way that too little was done too late to effectively contain the spread of the disease.
Following this Ebola crisis, it was obvious that investment in prevention should be increased. Switzerland therefore supported the creation of the Pandemic Emergency Financial Facility – a global partnership between the World Bank, governments and the insurance industry. We financed the development of a state-of-the-art risk model that is based on specialised insurance know-how to get this initiative started.
The facility will trigger funding at the early stages of the outbreak of a disease to finance the emergency response of affected governments and organisations such as the WHO or Doctors without Borders. The idea is to respond to pandemic risks before a pandemic breaks out – to the benefit of all.
Which brings me to the fourth and final point: Both the humanitarian and the private sector partners have to be ready to take risks, such as the risk that a project does not produce the desired results, or that a joint venture fails because one of the funding partners backs out. This capacity to take risks also opens up new opportunities.
It is with this in mind that I wish to conclude by commending President Maurer and his team on taking on these risks and proactively pursuing new partnerships. I encourage all of you present here to approach such ideas with an open mind. The more we work together on this, the greater will be the potential for new innovative partnerships.