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FC 182/2 Rev.1 E November 2020 FC 182/2 Rev.1 E FINANCE COMMITTEE Hundred and Eighty-second Session Rome, 29 – 30 October 2020 WFP Management Plan (2021–2023) Queries on the substantive content of this document may be addressed to: Mr Manoj Juneja Assistant Executive Director, Resource Management Department, and Chief Financial Officer World Food Programme Email: [email protected] Documents can be consulted at www.fao.org ND540Rev1/e 2 FC 182/2 Rev.1 EXECUTIVE SUMMARY The “WFP Management Plan (2021–2023)” is submitted to the Board for approval. The Executive Summary of the “WFP Management Plan (2021–2023)” is included within the main document presented to the Committee for its review. GUIDANCE SOUGHT FROM THE FINANCE COMMITTEE The Finance Committee is requested to review the “WFP Management Plan (2021–2023)” and to endorse it for approval by the Executive Board. Draft Advice In accordance with Article XIV of the General Regulations of WFP, the FAO Finance Committee advises the WFP Executive Board to approve the draft decision as outlined in the document “WFP Management Plan (2021–2023)”. Executive Board Second regular session Rome, 16–20 November 2020 Distribution: General Agenda item 5 Date: 11 November 2020 WFP/EB.2/2020/5-A/1/Rev.1 Original: English Resource, financial and budgetary matters For approval Executive Board documents are available on WFP’s website (https://executiveboard.wfp.org). WFP Management Plan (2021–2023) Executive summary Prior to the onset of the coronavirus disease 19 (COVID-19) pandemic, it was estimated that nearly 168 million people would need humanitarian assistance and protection in 2020, the highest figure in decades.1 In addition, the 2020 Global Report on Food Crises2 further cautioned that a further 11 million people were classified as being in crisis or worse based on the Integrated Food Security Phase Classification (ICP) for food insecurity.3 The COVID-19 emergency has exacerbated existing vulnerabilities, affecting the capacity and behaviour of local, national and international actors and undermining social and economic resilience. As a result, an additional 183 million people are on the brink of slipping into the crisis phase if faced with additional shocks.4 The COVID-19 pandemic comes at a time when food security and food systems are already under strain. The socioeconomic impact will affect the cash flow and financial liquidity of producers, small and medium-sized agribusinesses and financial institutions owing to inhibited production capacity, limited market access, loss of remittances, lack of employment and unexpected medical costs. It is also likely that the pandemic will have significant repercussions for the delivery of 1 United Nations Office for the Coordination of Humanitarian Affairs. 2020. Global Humanitarian Overview 2020: December 2019. https://reliefweb.int/report/world/global-humanitarian-overview-2020-enarfrzh. 2 Global Network Against Food Crises and Food Security Information Network. 2020. 2020 Global Report on Food Crises. https://www.wfp.org/publications/2020-global-report-food-crises. 3 IPC Technical Manual Version 3.0, at pp. 27-61 (describing the classification of severity). http://www.ipcinfo.org/ipcinfo- website/ipc-overview-and-classification-system/ipc-acute-food-insecurity-classification/en/. 4 Global Network Against Food Crises and Food Security Information Network. 2020. At pp. 2 and 23. Focal points: Mr M. Juneja Mr E. Rowe Assistant Executive Director Director Resource Management Department Corporate Planning and Performance and Chief Financial Officer tel.: 066513-4165 tel.: 066513-2885 Ms B. Ka Deputy Director Corporate Planning and Performance Division tel.: 066513-3415 World Food Programme, Via Cesare Giulio Viola, 68/70, 00148 Rome, Italy WFP/EB.2/2020/5-A/1/Rev.1 2 humanitarian assistance. Wealthier countries may divert resources to support their own COVID-19 response efforts, affecting budgets for assistance. Compounding this worrisome outlook, signs of an impending near-global climate event, such as an El Niño or La Niña, call for more preparedness to avoid further exacerbating malnutrition and food insecurity in countries that may be affected. The global situation has increased pressure on governments and humanitarian actors, including WFP and its partners, to mobilize resources to meet escalating operational requirements. Unlike most of the crises that WFP has responded to throughout its history, the impact of the pandemic is directly affecting countries that constitute the organization’s donor base as well as those where it operates. WFP is addressing these multiple challenges by stepping up its efforts within the broader international community and establishing common services that enable humanitarian response even when borders are closed and global transport is threatened; seeking innovation in the response to food insecurity at all levels of society while striving to protect gains made; and scaling up operations in response to requests from governments and communities for support that enables them to meet urgent needs while recovering from crisis and enhancing resilience to withstand future compound crises.5 The management plan (2021–2023) projects that, in order to reach 101 million beneficiaries in 2021 – a 15 percent increase from those indicated in the 2020–2022 management plan – the organization requires USD 12.3 billion to meet operational needs. The strategic and programmatic shifts set out in the WFP Strategic Plan (2017–2021) are now firmly embedded in WFP’s planning processes. The next generation of country strategic plans is increasingly revealing the transformative programmes and partnerships required to achieve the ambitious transition towards programmes that build on emergency assistance in ways that save lives and change lives. A forecasted funding gap of USD 4.9 billion (40 percent) in 2021 will reduce WFP’s ability to achieve its strategic vision and global commitments and limit its ability to assist all affected people adequately. The projected gap for 2021 continues to be most pronounced for crisis response-related activities, resulting in the prioritization of life-saving assistance for populations devastated by conflict, displacement or drought. Such prioritization risks the loss of opportunities to leverage operational partnerships, support national systems for building resilience and social cohesion and address the systemic drivers of crisis, resulting in higher long- term costs to the international community as development gains disappear. In line with the recent strategic evaluation of funding WFP’s work,6 and to address the persistent gap between contribution levels and operational requirements, WFP is taking decisive action to mobilize increased resources and seeks to identify a range of new funding sources while continuing to protect and diversify its funding base. WFP is focusing on private sector sources, international financial institutions, innovative financing and enhanced United Nations partnerships while enhancing advocacy for predictable and flexible funding. 5 WFP’s adherence to the Organisation for Economic Co-operation and Development-Development Assistance Committee (OECD-DAC) Recommendation on the Humanitarian–Development–Peace Nexus puts in place an overarching commitment to reducing risks, vulnerabilities and humanitarian needs over time. https://www.ircwash.org/resources/dac- recommendation-humanitarian-development-peace-nexus. 6 WFP/EB.A/2020/7-C and WFP/EB.A/2020/7-C/Add.1. WFP/EB.2/2020/5-A/1/Rev.1 3 The management plan (2021–2023) presents WFP’s planned programme of work and the proposed core resource allocations from the programme support and administrative (PSA) budget required to support its operations. It also sets out proposals for funding from the PSA equalization account.7 WFP operational requirements In 2020, WFP and its partners are responding to 17 concurrent emergencies worldwide. WFP is currently responding to seven Level 3 emergencies, those in the Democratic Republic of the Congo, Nigeria, South Sudan, the Syrian Arab Republic, Yemen and the central Sahel region (Burkina Faso, Mali and the Niger) and the COVID-19 pandemic. In addition, WFP is responding to ten emergencies classified as Level 2. The full scale, scope and timing of the impact of the COVID-19 pandemic are still unfolding in WFP’s countries of operation, creating unprecedented uncertainty for projected needs in 2021. WFP’s projected operational requirements for 2021 will be updated towards the end of 2020. At the time of writing, the operational requirements for 2021 represent a 17 percent increase compared with the 2020 original programme of work. The conflicts in Burkina Faso, Somalia and the Syrian Arab Republic require expanded responses that meet increased levels of need, while economic shocks and drought in Zimbabwe have pushed millions of people into unacceptable levels of food insecurity. Globally, emergency needs in more than 43 countries are projected to increase compared with 2020. WFP’s first responsibility of responding to emergencies and saving lives is reflected in its crisis response requirements of USD 9.5 billion, which amounts to an increase of 22 percent since 2020 and accounts for 77 percent of overall requirements. Through the resilience building and root causes focus areas, which account for 23 percent of overall requirements, WFP is simultaneously making progress in improving people’s ability to handle shocks and investing in government capacities to support people, with the long-term aim of reducing
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