Internationa l Alert.

Annual Review 2006

After the violence stops, how do you make a community whole again?

Understanding conflict. Building peace. o a u We seek to understand the causes of violent b International Alert is an independent peacebuilding r conflict and build lasting peace in communities o organisation that has worked for over 20 years to u m affected or threatened by war. We do this by: lay the foundations for lasting peace and security in t i I s communities affected by violent conflict. Our multi- 1. Working directly with people affected by violent n s

t faceted approach focuses both in and across various i

conflict, supporting their efforts to bring peace e o regions; aiming to shape policies and practices that r n 2. Improving the substance and implementation n affect peacebuilding; and helping build skills and of international policy and practice relevant a capacity through training. Our regional work is t

to peacebuilding i o based in the African Great Lakes, West Africa, the 3. Strengthening the expertise, impact and n South Caucasus, Nepal, Sri Lanka, the Philippines a

public profile of the peacebuilding sector l and Colombia. Our thematic projects work at local,

A regional and international levels, focusing on l e

o cross-cutting issues critical to building sustainable r u International Alert is working towards a world peace. These include business and economy, gender, t r where differences are resolved without resorting governance, aid, security and justice. We are one of v to violent conflict. i the world’s leading peacebuilding NGOs; in 2006 s

i our income was £5.3 million and we had more than o

n 100 staff based in London and our 10 field offices. c o 04 ≥ peacebuilding 11 ≥latin america n t e 06 ≥ our work 12 ≥UK and EU n t s 07 ≥ south caucasus 13 ≥ acknowledgments

08 ≥ west africa 13 ≥ and financial review

09 ≥ the african great lakes 19 ≥ our offices

10 ≥ asia

design www.wave.coop Annual Review 2006 03 © I n t e r n a t i o n a l A l e r t / J e n n y M a t t h e w s it takes time, effort and patience War and violence are with us every day. There are more shown. Dedicate the time and effort, however, and than 30 armed conflicts currently active throughout the experience tells us that the cycle of violence can world, and many others are threatening to erupt. While be broken: communities can learn to count on their each has a unique set of circumstances, all share the same governments and trust the police; citizens can have challenge of moving toward lasting peace. an equal opportunity to make a living; children can Peace does not automatically follow when victory is walk to school without the fear of violence. declared, a cease-fire is reached or a peace agreement It takes a lot of people, working together, to build this is signed. Indeed, when the fighting ends, the real work kind of lasting peace. Whilst it cannot be done by begins. This is the work of making fractured communities outsiders, it does need – and deserve – outside help. whole again: breaking down barriers, rebuilding trust, Through partnerships we can strengthen the capacities giving people a voice. Neglect this process and violence of individuals and organisations so they can contribute returns – as so many failed attempts at peace have to peacebuilding within their own societies. laying the foundations for lasting peace

International Alert works with communities affected In line with our 2006 organisational priorities, we: by violent conflict to end the fighting and build a peace ≥ broadened our current programmes through which will last. Our unique, multi-faceted approach new work in Uganda and Guinea, and extended draws upon our field programmes and our thematic our work elsewhere research to influence decision-making and shape peace processes. We also work to increase the expertise of ≥ strengthened our field presence in Sri Lanka, peacebuilding practitioners and the profile of the South Caucasus and Democratic Republic of Congo peacebuilding sector through training and outreach. ≥ initiated an internal programme to improve 2006 marked our 20th anniversary, celebrating our programme design, monitoring and evaluation evolution and growth from being one of the first ≥ strengthened our financial security through improved international NGOs devoted to building peace, to today grant management, as well as efforts to diversify being a leader in the field of peacebulding. We have built our funding base and secure voluntary income from upon our two decades of experience to embrace new individual donors and the private sector challenges and increase our institutional capacity. ≥ stepped up our advocacy and outreach to audiences in the UK, as well as the EU and UN 04 International Alert © I n t e r n a t i o n a l A l e r t how do you build peace? ‘Peacebuilding’ means societies equipping themselves seen this work in South Africa and Burundi, for example, to manage conflict without resorting to violence. It where communities have been able to face up to the looks different in different contexts – from training local terrible violence and injustices of their past, and make leaders to advising high-level policy-makers – because huge efforts to achieve reconciliation and live peacefully there is no ‘one size fits all’ solution to tackling violence. together. And we are seeing it happen in Liberia today. At the same time, peacebuilding must take a holistic In over 20 years of experience across the globe, approach, examining all aspects of a society’s security, International Alert has become familiar with the socio-economic foundations, political frameworks, devastation that comes with violent conflict. But we justice systems and traditions of reconciliation to identify have also seen that with time, with the courage and factors which are contributing to violence, and others leadership of individuals, and with the support of which can contribute to peace. And it must be inclusive organisations such as ourselves, communities have, of all actors and points of view, including those who are step by step, lifted the threat of war. Peacebuilding often marginalised or forgotten. works, and in the following pages we’ve provided Peacebuilding is a process that transforms societies just a few examples to illustrate how. – not into Utopia, but into functional communities that can exist without the threat of war. It does this by encouraging the attitudes, behaviours and social conditions that make lasting peace possible. We’ve

h ≥ ≥ i Our study on Local Business, Local Peace A dialogue process in the Democratic Republic of g

h provided business leaders in Sri Lanka with Congo provided space for citizens to discuss ways l new ideas for working together in a challenging to build a peaceful future i g environment h ≥ In Colombia, we engaged with oil, gas and mining t ≥ s A meeting in Cyprus allowed groups from companies to help them assess the impact of their f both sides of the Nagorny Karabakh conflict operations on the conflict r o in the South Caucasus to interact, some for ≥ m Training courses in the UK helped those interested the first time since the start of the conflict in peacework to break into a competitive field and 2 ≥ In Liberia, a peace festival promoted reconciliation gain new knowledge and skills 0

0 and understanding between ethnic groups once 6 divided by civil war Annual Review 2006 05

the process of peacebuilding

For countries that have experienced decades of war, peace building these foundations and equipping societies to does not come ready-made with the signing of a peace handle their conflicts without resorting to violence and agreement. A state of peace will not last without strong war. This can be done during a war, once the fighting foundations based on justice, economic equity, security is over, or in order to prevent violence from erupting and good governance. Peacebuilding is the process of in the first place.

JUSTICE & SECURITY RECONCILIATION people feel safe EXCLUSION people learning to live and live without fear side-by-side again FEAR REPRESSION ECONOMIC EQUITY GOOD GOVERNANCE everyone has the citizens trust and INJUSTICE economic opportunity have access to HATRED for a better livelihood their governments

p e a g ce in t b ild he ui u y c ld eb et or ing f r ci ne is the cess o so rst pro ful ones of a peace peace cannot be made on behalf of people, but communities can be equipped with the knowledge and skills to transform their own societies. 06 International Alert

our work

Diamond workers sift gravel in Guinea. Diamond revenues have been used to fuel conflict in West Africa but, today, these natural resources can and should be used to benefit miners and their communities. © I n t e r n a t i o n a l A l e r t Annual Review 2006 07

South Caucasus ≥ Georgia, Armenia, Azerbaijan, including Abkhazia, South Ossetia and Nagorny Karabakh

2006 highlights ≥ Armenians and Azerbaijanis, Georgians and Abkhaz learned about one another and about how people in other conflicts had built peace at a meeting held in Cyprus in December ≥ Peacebuilding in the South Caucasus: What can the EU contribute? recommended priorities for long-term EU engagement in the region, especially greater citizen participation in political and economic life

what does it take to shatter isolation? w When he told his neighbours he was going to the For many directly affected by this conflict, there are o

r Alert meeting, they couldn’t understand how he, few opportunities to reconcile with the other side. k having lost both his father and uncle in the war, Even where close ties once existed, people are unable i n was able to meet with the other side. to reconnect with loved ones across the divide due to a I answered that my father and uncle were heroes – fear, isolation and political barriers. Meanwhile, the c political negotiations proceed without any input from t they defended our land; but I want to build peace. i o I am sure that my father looks down on me and the people who have the most to benefit from peace n approves, because neither we nor those who have – and the most to lose if hostilities reignite. died want war. So said a participant from a small town, close ‘my father and uncle were heroes to the cease-fire line separating Armenians and Azerbaijanis since major hostilities ended in the – they defended our land – but I conflict over Nagorny Karabakh 13 years ago. In want to build peace.’ December, Alert brought together 36 civil society leaders, representing groups directly affected by the conflict. For most, it was the first chance in over 15 years to meet people from the other side of the conflict, which remains unresolved and forgotten by the world’s media.

economy: building regional economic cooperation t h Shared economic interests can be a lever to soften In 2006 the group established seven regional business e societal divisions, providing fertile ground for centres to reach out to local businesses and economic m dialogue between groups that may have different and trade bodies. These efforts have rapidly produced a

t views, but a common need to improve livelihoods. spin-off activities in support of regional economic i c The Caucasus Business and Development Network, cooperation and new business partnerships, for Alert’s main partner in the South Caucasus, created a example between Turkish and Armenian honey and permanent community of business people to share cheese producers. business ideas and information and encourage regional economic cooperation. 08 International Alert

West Africa ≥ Liberia, Guinea and Sao Tome and Principe

2006 highlights ≥ Alert co-organised a regional conference on Diamonds for Development, opened by Liberian president Ellen Johnson-Sirleaf ≥ We worked in partnership with Crisis Group and Search for Common Ground to develop a new project for improving governance in Guinea

how can culture help unite rather than divide? w An Alert-organised As a result of the peace festival, people who saw o

r peace festival held in themselves as a marginalised group and who were k Gbarnga, Liberia, in being accused of causing problems, have now been i n March was the first accepted by other ethnic groups in the country. The

a of its kind to bring Mandingos and the Kpelles are freely interacting c traditional dancers and from all indications the Mandingos have been t i from the four accepted by the Kpelles. This has been echoed o n neighbouring counties by imams and other dignitaries in my community. to perform together, [Before] there was division among marketers, © share stories, live I

n Mandingos were on a separate side of the market t e under the same r

n because they were not free to mix with women from a

t roof and share food. i

o other ethnic groups. As a governor I had received n

a According to some

l several complaints from Mandingo women on the A

l participants, it was e way they were treated. As a result of the festival, r t the first time that that has totally changed. Mandingo drummers played for other groups since the war, which had fiercely divided the country. After the festival, the Mandingos started speaking out on issues which affected their communities. Mohammed Kenneh, Mandingo governor in Gbarnga shares his thoughts on the impact of the festival:

governance: beyond ‘Blood Diamonds’ t h Whilst West Africa is rich in natural resources, At a 2006 Conference in Monrovia, Liberia, big e

m including diamonds, many of its people live in abject corporations, the four governments and the UN were poverty. Worse, diamond revenues have often fuelled brought together with local diamond merchants and a t violent conflict. communities to focus on the human side of alluvial i c But what if more diamond money went directly to diamond mining, putting the diggers, miners and the miners and their communities? Together with the communities in which they work at the heart of UNDP and four governments (Guinea, Liberia, Sierra policy formulation. Leone and Côte d’Ivoire), Alert’s ‘Diamonds for Development’ project aimed to answer that question. Annual Review 2006 09

The Great Lakes ≥ Burundi, Rwanda, DRC and Uganda

2006 highlights ≥ A study and conference set the stage for a new project in Uganda ≥ In DRC, we scaled up our work on governance, reconciliation, gender and civil society capacity-building ≥ In Rwanda, Alert and three local NGOs researched the reconciliation needs of ex-prisoners and their communities

how can we stimulate discourse amongst citizens? w During the wars in the Democratic Republic ‘There were very frank exchanges and admissions o

r of Congo (DRC) from 1996 to 2002, it seemed about distorted impressions in the past,’ says k possible that this divided country would fragment Alert’s Bill Yates, who attended the meetings. i n on a permanent basis. Whilst today the DRC is ‘We think Espace d’Echanges meetings are working a moving towards peace and stability, it remains a and will continue to work in the future – they will c disconnected country. Its size, poor infrastructure t have a significant role in calming down fears and i and history of conflict all make it difficult for people o apprehensions in the DRC, and engaging popular n to communicate across different regions. participation in important peacebuilding issues.’ In 2006, Alert and our local partner SERACOB (Service de Renforcement des Appuis aux Communautés de Base en Afrique Centrale) began ‘Espace d’Echanges will a process called ‘Espace d’Echanges’ to stimulate have a significant role in and support dialogue among a cross-section of Congolese civil society. Two meetings, held in calming down fears and Kisangani in the north and Lubumbashi in the south, included discussions ranging from the government’s apprehensions in the DRC.’ poverty reduction strategy, to the recent elections, to women’s involvement in Congolese politics.

gender: justice for victims of sexual crimes t h In Rwanda’s Gacaca court system, set up after the combating stigmatisation. With local partner e

m 1994 genocide, rape is considered a severe crime. ProFemmes, we lifted participation of women judges Yet many challenges with the system have prevented from 28% to 34% and worked closely with public a t women from filing charges against perpetrators – prosecutors offices around the country, as well as i c because of fear, lack of awareness or financial and with civil society groups, to improve the prosecution time constraints. of rape cases and shed light on the challenges women Alert’s Gacaca project, which wrapped up in 2006, were facing. promoted redress for victims of sexual violence. More significantly, it encouraged women’s active engagement in the justice system by strengthening their confidence and awareness in the process, and 10 International Alert

Asia ≥ Sri Lanka, Nepal and the Philippines

2006 highlights ≥ Our field presence continued to grow as Alert expanded its offices in Kathmandu, Nepal and Colombo, Sri Lanka ≥ Our close partner in Sri Lanka, a unique regional business network called the Business for Peace Alliance, became fully independent

what can local business leaders do? w The network is a unique opportunity to take our o

r work beyond our district. We realised that we had k common issues and if we get together, we’ll become i n a bigger power and our lobbying ability increases.

a We’re also feeling that our work is now valued and c there is more responsibility for us to take these t i

o things forward. n In August, Alert and the BPA co-hosted a seminar ©

I on Local Business, Local Peace , highlighting the n t e

r need for local businesses to join together during a n a t

i particularly difficult time in Sri Lanka’s crisis. The o n

a BPA member continued: l A l e

r The seminar was a significant achievement of what t we have been doing in the last few years... People are Alert has helped to establish the Business for Peace now looking for peace, are looking for ways to stop Alliance (BPA), a local business network that links this war, how to bring these people back to talking, business people from all parts of Sri Lanka, how to minimise the damage to the civilians, getting across ethnic and regional divides, to help improve these people together to discuss our country when the livelihoods and bring peace to the island. As one country is going through a very bad period, so the BPA member acknowledged: timing was perfect.

security: ending killings in the Philippines t h Peace negotiations are frail no matter the In December we co-convened, with Amnesty e circumstances, so when political killings increased in International, a forum that agreed on a number of m the Philippines, with few prosecutions and evidence measures that prompted the international community a

t pointing to official involvement, the prospects for to demand immediate action to investigate and i c peace between the government and the National convict perpetrators. This pressure resulted in the Democratic Front were severely undermined. Philippine government accepting a UN monitoring Throughout 2006 Alert worked with the human mission. In addition, political parties were urged to rights community to advocate for a robust response make human rights a priority so the peace process to the killings. could move forward. Annual Review 2006 11

Latin America ≥ Colombia

2006 highlights ≥ Alert undertook a pilot programme of our Conflict Sensitive Business Practices toolkit with two extractive operations in Colombia ≥ We worked with a group of oil, mining and energy companies in their implementation of the Voluntary Principles on Security and Human Rights with the approval of the Colombian government

why does a partnerships approach make sense? w In unstable environments businesses have to their international experience. In addition, Alert’s o

r be sensitive about how their operations can affect reputation as a constructive international NGO k security, human rights and stability. For this reason, provided the leverage that is often necessary to work i n Alert helps industries such as petroleum and mining with private sector and civil society organisations

a to adopt conflict-sensitive strategies in their work. In in Colombia. c 2006, we worked with our local partner, Fundación t On the other hand, Alert needed a local partner i o Ideas para la Paz (FIP), to help two companies with good field knowledge and capacity, as well as n minimise their conflict risks and impact. FIP’s contacts and good reputation with companies in Giovanni Mantilla explains how the partnership Colombia. FIP was a good fit because of its skills leveraged each of our strengths: and prior work on the implementation of the FIP and Alert planned and carried out all the Voluntary Principles on Security and Human Rights activities together. Alert provided the general with the chosen companies. objectives and the methodology and FIP brought clear ideas on how to train the companies and run the pilots in the Colombian context. Due to their international work in peacebuilding, Alert acted as a benchmark, and they were able to transfer teachings from other cases because of

business: the peacebuilding potential of local business t h Local Business, Local Peace was a global study In autumn 2006 Alert launched the publication e highlighting the often overlooked peacebuilding in cooperation with various partners including m potential of local businesses. Developed and Fundación Ideas para la Paz, Instituto de Estudio a

t researched with partner organisations and business para el Desarrollo y la Paz and Universidad de los i c people from conflict-affected countries around the Andes. The event invited national unions, chambers world, it presents more than 20 case studies where of commerce and other institutions to share their businesses have taken proactive steps to address perspectives on the role of local business in Colombia. violent conflict, highlighting their efforts to support peace processes; to build bridges between divided communities; to alleviate security concerns; as well as the role of women entrepreneurs. 12 International Alert

UK and EU ≥ training, advocacy and outreach

2006 highlights ≥ Peaceworkers UK became part of Alert in September, expanding our professional training and outreach ≥ Submissions to the UN Peacebuilding Commission recommended practical ways to approach peacebuilding – with special reference to Burundi ≥ In October we launched our PeaceTalks Discussion Series to 250 guests at the Ismaili Centre with Jon Snow

how can you build the skills for peacework? w ways that people can get into the field. Glyn Bell o

r attended several of our training courses in 2006, k which led to work as an election monitor in the i n Ukraine. She shares her journey here: a The Peaceworkers courses offered a balanced c t overview both from a humanitarian perspective and i o on how to go about gaining experience in the field. n The sessions were engaging and participatory. Some weeks later I received a call from Peaceworkers asking to put my name forward to be a short-term observer (STO) election monitor in the Ukraine. This

© was a great opportunity to gain field experience and O S

C build up my CV. E An STO visits about 10 polling stations on election The Peaceworkers team at International Alert day, monitors the poll and counting, and possibly the provides practical training courses for people who are tabulation too. Our role is to observe – we do not interested in, or already working in, the prevention, engage in disputes. I think it’s probably one of the management and resolution of violent conflict. best ways to get into peacebuilding work, and this Training to become an election monitor is one of the opportunity alone has made the training that I did with Peaceworkers worthwhile.

advocacy: influencing EU policy on DDR t h A key part of many peace processes is DDR – Our unique advocacy approach builds on our ability e disarmament, demobilisation and reintegration of to access both learning on the ground and high-level m combatants. There may be thousands of ex-fighters, policy networks. In the case of DDR, our assessment a

t many lacking job skills and beset by psychological of local community concerns and challenges shaped i c trauma. Our DDR advocacy strategy with the EU our recommendations, which were incorporated into included an expert seminar in Brussels and a report the EU concept paper on DDR that will guide the that explored how the EU could link DDR with institution’s policy and practice. broader peacebuilding and development initiatives. Annual Review 2006 13

Women’s rights activists donate flowers to riot police at a pro- democracy demonstration in Nepal. In April 2006, Nepali citizens took to the streets as part of the People’s Movement to end the King’s autocratic rule. © S i p a P r e s s / R e x F e a t u r e s 14 International Alert

acknowledgments

staff 2006 We are grateful to all staff, consultants, interns and volunteers in 2006 for their commitment and efforts. International Alert has over 100 staff members based in our London office and in the regions where we work. In addition to the staff listed below, we would like to express our gratitude to all our partners, who were critical to our work. senior management team West Africa programme Jennifer Martin-Kohlmorgen Dan Smith, Secretary General Lulsegged Abebe, Manager Jey Jeyapragash Balakrishnar Andrew Webb, Director of Development Ceutonia Lima Lambert Ngodji (until September) Lisa Schuler Mohsin Baluch Phil Champain, Director of Programmes, Mohamed Yahya Neil Ford Asia, Eurasia and Latin America Sidy Dieye Sheryl Fergus Phil Vernon, Director of Programmes, Great Lakes programme programme design & fundraising PIP and Africa Liz Egan, Manager (until September) Heidi Ober Sue McCready, Chief Operating Officer Judy El-Bushra, Manager James Inglis Asia and Latin America programmes (from September) Julie Leonard Ed Garcia Annie Bukaraba Juliet Schofield Mais Yacoub Bill Yates Peter Raven William Godnick Carolyn Jubert Sarah Dalrymple Sri Lanka Gloriosa Bazigaga unrestricted fundraising Markus Mayer, Country Director Jean-Pierre Kabrigi & communications Lakshman Gunasekera Joseph Kamanzi Chris Wake E.Jayantha Margaret Shava Diarmaid McDonald Manoji Waduge Maria Lange Emily Thomas Mohamed Riyas, Ndeye Sow Emma de Angelis Nawaz Mohamed Tracy Dexter Julia Williams S.P.Nithiyaraj Tony Jackson Mary Wallenfang P.Nivaraj peacebuilding issues programme (PIP) volunteers Randhika de Silva Nick Killick, Manager Adam Afifi Ruwanthi Jayasundare Adam Barbolet Anthony Odigbe S.Aravinthan Aurélien Tobie Antonia Porter Srimal Fernando Canan Gündüz Darren Spain Nepal Charlotte Vaillant Ian Murphy John Clayton, Country Director Charlotte Watson Jack Pascoe (until August) Corene Crossin Jasleen Sethi Natalie Hicks, Acting Country Director Craig Zelizer Kevin Dekyi (from September) Edward Bell Krupa Thakrar Bhasker Kafle Gregorio Bettiza Rebecca Crozier Laxman Acharya Janani Vivekananda Risha Chande Jessie Banfield Lindsay Alexander board of trustees 2006 Karen Barnes Sumit Sharma Philip Deer, Chair (until May) Ujjwal Chalise Lucy Holdaway Maria Olson Richard Dales, Chair (from May) Eurasia programme Michael Page Brendan O’Leary Marc Behrendt, Manager Peter Albrecht Claes Cronstedt Artak Ayunts Salil Tripathi Craig McGilvray Cinta Depondt Samir Elhawary Francis Deng Dessislava Roussanova Sarah Dewe Frida Nokken Diana Klein Tim Wallis Henny van der Graaf Oskari Pentikainen Kamal Hossain finance, IT, HR & facilities Sabina Masimova Leah Levin Zahid Movlazadeh Bilal Patel, Facilities Manager Martin Woollacott Jörn Staby, IT Manager Paulina Lampsa Tracey Deal, Head of Finance Pumla Gobodo-Madikezela Ali Jawad Islam Swanee Hunt Antonia Weston Wigberto Tañada Charles Fekpe Annual Review 2006 15

supporters 2006 International Alert is grateful to all our donors in 2006. The continued support of our core donors remains crucial to the long-term success and impact of our work, allowing us to leverage more restricted funds.

core donors ≥Westminster Foundation ≥Ministry of Foreign Affairs, Italy ≥Department of Foreign Affairs of for Democracy (WFD) ≥Royal Norwegian Ministry of Ireland – Irish Aid ≥The Williams and Flora Hewlett Foreign Affairs ≥Ministry of Foreign Affairs of Denmark Foundation ≥United Nations Children’s Fund ≥ Ministry of Foreign Affairs of Finland NGOs (UNICEF) ≥Netherlands Ministry of Foreign Affairs ≥United Nations Democracy Fund ≥Bread for the World, Germany ≥Swedish International Development (UNDF) ≥Christian Aid Cooperation Agency (Sida) ≥United Nations Development ≥Cordaid ≥Swiss Agency for Development Programme (UNDP) ≥Interchurch organisation for and Cooperation (SDC) ≥US Agency for International development co-operation (ICCO) ≥UK Department for International Development (USAID) ≥MISEREOR Development (DFID) – CHASE ≥OXFAM Novib individuals trusts and foundations ≥Saferworld In 2006 we received many donations ≥Allan & Nesta Ferguson ≥SNV, the Netherlands from new sources. We are grateful Charitable Trust government and to all those individuals who supported ≥ Big Lottery Fund – Community Fund inter-governmental organisations us, including guests at our 20th ≥Comic Relief anniversary celebrations. ≥AusAID, Australia ≥Commonwealth Foundation ≥DFID, UK ≥The Dulverton Trust ≥European Commission ≥Eurasia Foundation ≥Federal Ministry for Economic ≥Ford Foundation Cooperation and Development ≥Institute for Philanthropy – (BMZ), Germany The Network for Social Change ≥Foreign and Commonwealth ≥The International Development Office, UK Research Centre ≥GTZ, Germany ≥Joseph Rowntree Charitable Trust ≥International Labour Organization ≥National Endowment for Democracy (ILO) (NED) ≥Federal Department of Foreign Affairs ≥National Philanthropic Trust (FDFA), Switzerland ≥Rowan Charitable Trust ≥Foreign Affairs and International ≥Sigrid Rausing Trust Trade, Canada (DFAIT)

‘I am very proud to have been associated with International Alert since its beginning. Alert has achieved a huge amount and with your support I am confident that it © D e s will continue building peace m o n d

M around the world. ’ T u t u Desmond M Tutu, Archbishop Emeritus 16 International Alert

financial review 2006 t

r In 2006, our income came mainly from institutional donors: governments, e

a NGOs and foundations. To combat the sector-wide challenge of raising the full

s costs of programme activities, and indirect costs required to support this work, u we successfully implemented new funding strategies. These strategies particularly r

e targeted unrestricted income, upon which Alert relies to cover the full costs of r

’ programme activities. Unrestricted income is also essential for investment (in new s programmes, infrastructure and competence among staff), to provide a degree of r

e stability in a period of adverse funding and to respond rapidly to opportunities p that may present themselves. o

r Thus, in 2006, our income rose slightly to £5.3 million (up from £5.2 million in t 2005). Charitable expenditure in 2006 was also correspondingly higher. Unrestricted income comprised £1.76 million, with a small but growing proportion of this from donations and gifts. To increase financial security and better respond to opportunities, our general unrestricted reserves at the end of 2006 were £281,292 (compared to £168,449 at the end of 2005). Although a substantial increase, additional contributions will be made until the targeted level is reached. Recent system changes, restructuring, capacity building and investment have all contributed to a stable financial picture at the end of 2006. Alert’s balance sheet and cash flow at the year-end are secure, with a good contribution to reserves. And we are confident that this strong trend will continue into 2007.

Craig McGilvray Honourary Treasurer, International Alert

a The figures on these pages are extracted from the full trustee’s report and financial u

d statements that have been audited by Horwath Clark Whitehill LLP, who gave an i

t unqualified audit report on 19th April 2007. The auditors have confirmed to the o trustees that the summarised financial statements contained here are consistent r

s with full financial statements for the year ended 31st December 2006. The trustees’ ’

s report and the financial statements were approved by the trustees and signed on

t their behalf on 19th April 2007 and conform to the 2005 Charity Commission a

t Guidelines (SORP). This summarised financial information may not contain sufficient e

m information to gain complete understanding of the financial affairs of the charity. The full trustees’ report, audit report and financial statements may be obtained from e

n the Secretary General’s office. t

Horwath Clark Whitehill LLP Chartered Accountants and Registered Auditors St Brides’s House, 10 Salisbury Square, London EC4Y 8EH Annual Review 2006 17

balance sheet at 31st December 2006

2006 2005 £’000 £'000 Fixed assets Tangible assets 150 184 Current assets Debtors 442 719 Deposits 399 214 Cash at bank and in hand 358 633 1,199 1,566 Creditors Amounts falling due within one year 333 489 333 489 Net current assets 866 1,077 Total net assets 1,016 1,261

Funds Unrestricted General funds 286 175 Designated funds 145 174 431 349 Restricted 585 912 1,016 1,261 how we spent the money in 2006

5 6 1

≥ 1 Africa programmes 34.5%

≥ 2 Eurasia programme 25.2%

≥ 3 Asia and Latin America programmes 15.2% 4 ≥ 4 peacebuilding issues programme 20.9%

≥ 5 fundraising 2.7%

≥ 6 management and administration 1.5%

2

3 18 International Alert statement of financial activities

The statement of financial activities includes income and expenditure for the year ended 31st December 2006, including all gains and losses recognised in the current and preceding year.

Unrestricted Restricted 2006 2005 Funds Funds Total Total

£’000 £’000 £’000 £’000

Incoming resources Incoming resources from generated funds Voluntary income Institutional grants 1,032 - 1,032 886 Donations and gifts 56 - 56 6 Investment income 24 - 24 14

Incoming resources from charitable activities Mission goal one 427 2,139 2,566 2,603 Mission goal two 202 1,201 1,403 1,533 Mission goal three 21 209 230 187

Total incoming resources 1,762 3,549 5,311 5,229

Resources expended Costs of generating funds 118 - 118 212 Charitable activities Mission goal one 771 2,331 3,102 3,186 Mission goal two 492 1,359 1,851 1,670 Mission goal three 217 201 418 313

Governance costs 67 - 67 70

Total resources expended 1,665 3,891 5,556 5,451

Net movement in funds 97 (342) (245) (222)

Transfers between funds (15) 15 - -

Net incoming / (outgoing) resources after transfers 82 (327) (245) (222)

Funds brought forward at 1st January 2006 349 912 1,261 1,483

Funds carried forward at 31st December 2006 431 585 1,016 1,261

KEY FOR ABOVE TABLE

Mission goal one Working directly with people affected by violent conflict, supporting their efforts to bring peace

Mission goal two Improving the substance and implementation of international policy and practice relevant to peacebuilding

Mission goal three Strengthening the expertise, impact and public profile of the peacebuilding sector © I n t e r n a t i o n a l A l e r t / J o n a t h a n B a n k s o

u United Kingdom DRC – Bukavu Nepal

r 346 Clapham Road 72 Avenue Maniema Anam Marga 18 o London SW9 9AP Commune d’Ibanda Anamnagar f f

i Bukavu Kathmandu c Armenia e P.O. Box 24118

s CRS Armenia Caucasus DRC – Kinshasa 38 Arabkir Street c/o Christian Aid Rwanda 2/2 House Avenue du Commerce 1398 B.P. 7063 Yerevan Commune de la Gombe Kigali Kinshasa Azerbaijan Sao Tome and Principe 137 Zargar Palan Street Kenya PO box 1089 Apt. 16 c/o Amani Secretariat Sao Tome 1005 Baku 1st Floor, Titan Complex Chaka Road Sri Lanka Burundi Kilimani, Nairobi 31 Walukarama Road Avenue Ganza Colombo 03 Kiriri, Bujumbura Liberia 80 Broad Street Monrovia

After the violence stops, it will take patience, dedication, and the work of many people, but communities can be made whole again. Each step forward is a step away from war and towards a more peaceful future. International Alert. 346 Clapham Road, London SW9 9AP, United Kingdom Tel +44 (0)29 7627 6800, Fax +44 (0)20 7627 6900, Email general international-alert.org @ www.international-alert.org International Alert is registered as a charitable foundation in the UK (reg. no. 327553) and as a company limited by guarantee (company reg. no. 2153193). We also have consultative status with the United Nations (ECOSOC).