Innovations in Corporate Global Citizenship: Responding to the Haiti

COMMITTED TO IMPROVING THE STATE OF THE WORLD

Innovations in Corporate Global Citizenship: Responding to the Haiti Earthquake This report was prepared by Mary Bridges; Robert Greenhill, Managing Director and Chief Business Officer, World Economic Forum; and Ian Rogan, Project Manager, Corporate Global Citizenship, World Economic Forum

The views expressed in this publication do not necessarily reflect the views of the World Economic Forum.

World Economic Forum 91-93 route de la Capite CH-1223 Cologny/Geneva Tel.: +41 (0)22 869 1212 Fax: +41 (0)22 786 2744 E-mail: [email protected] www.weforum.org

© 2010 World Economic Forum All rights reserved. No part of this publication may be reproducted or transmitted in any form or by any means, incl uding photocopying and recording, or by any information storage and retrieval system. Foreword

The unparalleled disaster in Haiti required an unprecedented response. In the following report we present examples of corporate global citizenship in Haiti following the tragic earthquake of 12 January 2010. The purpose of doing so is to highlight the increasing role of the private sector in contributing to innovations in humanitarian assistance through tri-sector partnerships. We also identify remaining gaps and hope that this report, through raising awareness of these gaps, will help to eliminate them as responses to future disasters. In addition, we would like to stress the importance of continued private sector engagement in Haiti as the nation begins the challenging process of establishing long-term and sustainable economic development.

In the January 2008 issue of Foreign Affairs, Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, presented the Forum's vision for corporate global citizenship. In the article, Professor Schwab called on the private sector to act as a fellow stakeholder in society by working in partnership with governments and civil society to address key global societal challenges.

The provision of humanitarian assistance following natural disasters is a key global societal challenge where there has been steady growth in partnerships between government, civil society and the private sector. The growing size and complexity of natural disasters means that humanitarian assistance will not be fully effective unless it leverages the power of the private sector. The private sector will not be fully effective in humanitarian disasters unless it uses it capabilities to enable and amplify the effectiveness of humanitarian agencies and governments in doing their work.

The Forum has worked to aid the acceleration of private sector engagement in the provision of humanitarian assistance because of its belief that the private sector possesses distinct capabilities and assets that complement and enhance the work of governments and relief organizations. The Disaster Resource Partnership (DRP) comprised of Members of the Forum’s Engineering & Construction Industry Partners Programme and Logistics Emergency Teams (LET) from Members of the Forum’s Logistics and Transport Industry Partners Programme are two examples of industry- driven initiatives facilitated by the Forum to provide post-disaster relief and recovery. This report on Haiti is a further development of work in this area, and is part of the Forum's commitment to the recovery and long-term reconstruction of Haiti.

We are extremely grateful to and would like to thank the members of our steering committee whose oversight was invaluable. I would also like to extend my gratitude and thanks to Mary Bridges and Ian Rogan for their significant contributions, and to Olivia Bessat for her insight and effort.

Robert Greenhill Managing Director and Chief Business Officer World Economic Forum

1 Steering Committee

Catherine Bragg, UN Assistant Secretary-General for Humanitarian Affairs and Deputy Emergency Relief Coordinator, United Nations Office for the Coordination of Humanitarian Affairs (OCHA), Geneva Paul Collier, Professor of Economics, Department of Economics, University of Oxford; Director, Centre for the Study of African Economies, United Kingdom Bekele Geleta, Secretary-General, Int ernational Federation of Red Cross and Red Crescent Societies (IFRC), Geneva Robert Harrison, Chief Executive Officer, Clinton Global Initiative, USA Simon Maxwell, Senior Research Associate, Overseas Development Institute, United Kingdom; Chair, World Economic Forum Global Agenda Council on Humanitarian Assistance and Denis O’Brien, Chairman, Digicel Group, Ireland Jonathan Reckford, Chief Executive Off icer, Habitat for Humanity, USA Josette Sheeran, Executive Director, United Nations World Food Programme (WFP), Rome Rose Verdurmen, Director, TNT Moving the World, Netherlands

2 From Hurricane Katrina to the tsunami in South- range in commitme nt from one-shot, fund-raising East Asia to the 2008 earthquakes in China, the events to committed partnerships for global world has seen an increasing number of natural problem solving. The concrete examples of disasters affecting human populations in recent engagement following the Haiti earthquake help years. The 7.0 magnitude earthquake that struck provide context for the overall spectrum of Haiti on 12 January 2010 created unprecedented activities. challenges for the international community and aid agencies typically involved in responding to such Rather than offering an analytical framework of emergencies. The quake killed approximately engagement methods, this report presents a set of 220,000 people, destroyed the homes of 1.9 million case studies as a foundation to identify emergent and affected a total of 3 million1. Efforts to alleviate themes and persisting gaps in private sector immediate suffering were complicated by the fact engagement. It draws on interviews with chief that Haiti, already the poorest nation in the Western executive officers, philanthropists and leaders of hemisphere, lacked the infrastructure or national humanitarian agencies, as well as a survey of World resilience to administer many relief services Economic Forum Members. From the case studies independently. In response to the crisis, aid presented, several lessons emerge that could prove agencies have requested approximately US$ 1.5 helpful in structuring linkages, improving corporate billion in funding2, and long-term reconstruction is global citizenship and better aligning future estimated to cost US$ 11.5 billion3. collaboration.

Responding to these challenges and improving the Assessing these themes will become increasingly lives of affected Haitians will require the involvement important in the coming years as demands on both of not only governments, international institutions humanitarian agencies and the private sector and nongovernmental agencies. The crisis in Haiti continue to escalate. Already, natural disasters also presents challenges for the private sector and affect 250 million people a year on average and that the way it approaches corporate global citizenship. number is likely to grow in the future. According to Companies, private individuals and foundations the Global Humanitarian Forum, 40% of the total have played a role in responding to natural increase in natural disasters since 1980 can be disasters for decades, but, in recent years, attributed to climate change, and in the next two involvement between these entities and decades, the annual number of weather-related humanitarian actors has become even more disasters may be three times higher than in the last pronounced and essential. 30 years4. Because these disasters disproportionately affect developing nations and “The humanitarian sector has always received cash populations that already rely heavily on aid, and in-kind contributions from the private sector,” partnerships says Catherine Bragg, UN Assistant Secretary- between the “For us, Haiti was by far the largest General for Humanitarian Affairs and Deputy private sector and Emergency Relief Coordinator at the United Nations humanitarian outpouring from the private sector. Office for the Coordination of Humanitarian Affairs actors will be Donations were up 30% from the (OCHA). “What has changed is the mentality. We essential to relieve now look to the private sector as implementing suffering, improve tsunami.” partners. And they - the private sector - want to be livelihoods and – Nancy Roman, Director of part of the doing.” rebuild following Communications, Public Policy, future disasters. Communications and Private Responses to the earthquake in Haiti underscored Partnerships; World Food Programme, this dynamic, as the private sector not only acted By examining this Rome as a dono r but as a “doer” alongside humanitarian process in Haiti, partners. This report identifies innovative ways in decision-makers which the private sector enhanced the efficiency of on all sides can and raised awareness about humanitarian work, as take advantage of innovations and new partnership well as improved livelihoods and increased long- opportunities that improve the efficiency of relief term national resilience in Haiti. These activities fit activities and the long-term sustainability of within a larger framework of private sector reconstruction. engagement in development activities, which can 3 Innovations in Private Sector Engagement streamline operations. These measures proved hugely important during the crisis because the • Long-term Commitments – Many of the urgency of response offered little time to following case studies provide accounts of organize staff and refine processes. breakthroughs that resulted from engagement in Haiti. However, these innovations were made Remaining Gaps possible by months, if not years, of internal process improvements and relationship building. • Matching Needs and Capabilities – Currently, These institutional commitments positioned no commonly accepted centralized platform or humanitarian and private sector actors for swift clearing house exists to match needs of and efficient responses in Haiti. Though the humanitarian agencies and the capacity of particular shelter solution or Facebook private sector donors. Because there is no application might be a novel response, the agreed-upon intermediary, many potential agencies and companies that tended to be donations that have the potential to meet some most effective during the crisis work consistently of the persisting needs of the aid community are in non-emergency times to increase their not put to work. capacities to respond. • Limited Absorption Capacity for Donations • Long-term Partnerships – The scope and – Following a crisis, humanitarian first- scale of the crisis in Haiti was so overwhelming responders typically receive an outpouring of that actors had little time to identify and vet new offers for help, particularly after a disaster as partners or experiment with new methodologies. extreme as the Haiti earthquake. This spike in Instead, many of the most effective collaborative activity produces tremendous demands on the efforts between the private sector and NGOs humanitarian sector to channel good intentions were enabled by long-term relationships and from the privat e sector, when, instead, these multiyear histories of coordination. agencies need to devote the bulk of their resources to crisis response. Both humanitarian • Technology – The private sector can provide and private sector actors report that waiting until customized, cutting edge technological after the crisis to offer help, particularly with in- solutions that improve the efficiency of aid kind donations, is almost always too late. operations in terms of: Organizations must prepare themselves during  Raising funds non-crisis times to establish pathways for swift  Disseminating information and effective responses.  Generating economic opportunities • Marshalling Private Sector Expertise – The • Platforms for Engagement – The private sector has management, organizational effectiveness of partnerships can be amplified and sector-based experience that could be by intermediaries and processes that used to improve the efficacy of aid agencies. standardize rules of engagement between While advances have been made in leveraging companies and aid agencies. this expertise, gaps persist in several fields in particular in information technology, supply- • Research and Development – Aid agencies chain management, construction, technical that showed foresight in R&D – i.e. advising and programme management. experimenting with partnerships and methods of private sector collaboration – were able to draw • Broadening Conceptions of Partnerships – on a broad range of options for fund-raising, Many non-governmental actors have worked to increasing awareness and delivering services to increase or diversify types of partnerships with Haitians in need. This range of options amplified the private sector in recent years. Agencies that the impact of humanitarian aid. incorporate private sector partners in the course of regular problem solving and planning often • Lessons Learned – Businesses and find greater willingness from these partners to humanitarian actors that routinely evaluate and provide assistance. Likewise, private sector improve processes had invested resources prior actors that identify and commit to long-term to the earthquake to improve coordination and NGO or UN agency partners - as opposed to 4 engaging in multiple “one-off” projects - typically offices, claimed the lives of staff and hobbled the achieve their corporate citizenship goals more ability of all agencies experienced in delivering aid efficiently. to Haiti, including the Haitian government, the United Natio ns, the Red Cross and the NGOs • Building Long-Term Resilience – A challenge operating in the Port-au-Prince area8. for all entities involved in improving livelihoods in Haiti will be to shift focus from short-term Given its proximity to major markets, Haiti has a lifesaving to long-term rebuilding and increasing number of potential avenues for economic the nation’s resilience. Aid agencies report reconstruction – as a garment manufacturer and greater ease in getting the attention of private centre of agricultural production, for example. sector donors in time of crisis. However, efforts However, at the time of the earthquake, few in the coming months and years must transition multinational companies had significant exposure or from needs such as providing temporary shelter experience in Haiti, given its small market and and clean water to focusing on long-term impoverished consumer base. Rebuilding the nation capacity building and reducing dependence on will require generating economic opportunity, using the donor community. According to Simon the corporate sector as a long-term partner and Maxwell, Senior Research Associate at the increasing the ability of Haitians to create Overseas Development Institute, “The quality of sustainable businesses and exports. relief efforts should be judged not just by lives saved, but by whether people are left better Context: Private Sector and Humanitarian prepared for the next disaster.” Assistance

Context: Haiti and Earthquake “Since 2000, the whole area [of private sector engagement with humanitarian aid] has been Prior to the earthquake, Haiti served as home to revolutionized,” said Luk Van Wassenhove, more than 1,000 officially registered aid agencies. Academic Director of INSEAD Social Innovation These agencies and other non-governmental Centre. organizations provided approximately 90% of basic services to the population5. More than half of Haiti’s Corporate global “Most companies don’t have a 9.7 million people lived on less than US$ 1.25 per citizenship has base in Haiti, so it’s not obvious day, and ne arly 20% of the population was become a growing estimated to be food-insecure6. Both natural area of interest for that they sho uld go in and help set disasters and political instability had further the private sector up. . . . [The response is Haiti] is undercut the nation’s resilience: in 2008 alone, the in recent years. completely need-based, which is country saw three hurricanes, political unrest, Consumers, spiking food prices and a tropical storm7. The shareholders and how it should be. It’s a test on the central government has lacked the resources and employees have system, and it’s a test of coordinating capacity to rebuild infrastructure, grow increasingly the economy and provide basic serv ices to much of demanded that commitment.” the population. large companies – Luk Van Wassenhove, Academic not only generate Director of INSEAD Social Innovation These already tenuous conditions were further profits, but also act Centre, France destabilized when a 7.0 magnitude earthquake as responsible struck 17 kilometres from the capital city, Port-au- stakeholders in Prince, on 12 January 2010. The quake marked the global affairs. Numerous aid agencies have reported first time the international community had been marked increases in corporate engagement, in called on to respond to a natural disaster in an terms of donations and support for natural disaster urban setting on such a scale. The population responses. With climate models predicting even density and the destruction of buildings, roads, more extreme events in the coming years, the electrical systems, telecommunications and other frequency of natural disasters is likely to increase, basic infrastructure produced tremendous and the crisis in Haiti marks an important moment challenges. The earthquake damaged nearly all to assess the status of corporate engagement and major entry points to the country, including the to identify emerging themes and principles. airport and shipping entrances. It also destroyed 5 Like the tsunami in South-East Asia and Hurricane development has been established. As the needs Katrina in New Orleans, the earthquake for immediate relief in Haiti recede, opportunities for necessitated immediate action to save lives and the private sector to provide effective support will stabilize the country. In such crisis situations, aid increasingly focus on the revitalization of the agencies note that the most effective way for nation’s economy. outside entities to help is by providing cash. The private sector not only has cash available, but it Coordinating and directing efforts of the numerous also has access to customers, employees and stakeholders is one of the greatest challenges in other corporate partners to increase the reach of responding to natural disasters. In 2005, the fund-raising. international community articulated a general framework for responding to disasters, the Hyogo In-kind donations are also a way for the private Framework for Action10. Hyogo emphasized the sector to support aid operations, but for such importance of national actors and local ownership assistance to be targeted and effective, of disaster risk reduction, and its guidelines considerable effort must be invested on both sides pertained to a wide range of entities, from to ensure donations match needs. Unsolicited in- governments to the NGOs to the scientific kind donations can actually undercut the efficiency community. The framework specifically addressed of humanitarian activities because such donations the private sector in its call for “the establishment of require money, staff time and r esources to process. public-private partnerships to better engage the For example, aid agencies received unsolicited private sector in disaster risk reduction activities.” items such as lawnmowers to arid regions, mouldy bread and high-heeled shoes to send to disaster How these partnerships should be structure d and settings. These unwanted goods can increase the activities they are best equipped to take on has logistics bottlenecks at port terminals and in been the subject of much discussion. The World customs, and in the case of the tsunami, the Economic Forum - in its Annual Meetings in Davos- Indonesian government had to spend US$ 6 million Klosters, Switzerland and through the activities of to dispose of unusable pharmaceutical and medical its Global Agenda Council on Humanitarian donations9. Assistance - has worked to identify and promote best practices, by offering the challenge paper, “A Humanitarian actors also note that in-kind New Business Model for Humanitarian Assistance?” donations require significant capacity to absorb and and in conjunction with UNOCHA, “Guiding channel properly. Personnel time is required to Principles for Public-Private Collaboration for manage relationships, identify matches for Humanitarian Action”. donations and ensure execution. In terms of cultivating these ties to the private sector, “there is This report offers a set of case studies that outline a certain critical max,” says Paul Conneally, Head of concrete innovations that have emerged in the early Media and Public Communications Unit for the phases of relief and recovery for Haiti. The goal is to International Feder ation of Red Cross and Red promote dialogue that encourages companies and Crescent Societies. “Dealing with partners can be a humanitarian actors to work together to amplify significant percentage of time”. Particularly following their effectiveness when disaster strikes. The case a crisis, resources of humanitarian actors are studies are grouped into several categories: already strained. Whereas cash donations can almost always be put to work, in-kind donations • Platforms and Intermediaries and offers from new partners can be too time- • Technological Innovation consuming to manage effectively. • Heightened Impact through Relationship Networks Private sector actors must also determine at what • Expansion of Levers point in the post-disaster response they plan to • Process Improvement and Expertise Transfer enter. While logistics and shipping companies have the staffing and resource flexibility to help From these categories, guiding principles and a set immediately following a crisis, a company that of remaining gaps have emerged to improve future specializes in construction or engineering can have engagement. a greater impact once a roadmap for long-term

6 Global Agenda Council on Humanitarian Assistance

1. A new Business Model for Humanitarian Assistance

Because of the combination of the likely increased frequency of extreme events and the importance of the pressure from slow onset change, the World Economic Forum’s Global Agenda Council on Humanitarian Assistance has developed a new approach to humanitarian response more focused on pattern and structures - the Vulnerability and Protection “Business Model”, linking the broader context of poverty, vulnerability and poor governance, engaging actors further in the relief effort, around the following key dimensions:

• A comprehensive risk framework The first requirement is a comprehensive risk framework. Humanitarian actors often find themselves having to engage in an enterprise of risk management with incomplete information about how things will unfold. They must plan to be ready for events for which they cannot plan. • A reworked balance of spending between response and prevention and recovery The second requirement is to rework the balance between disaster response and the upstream and downstream issues of prevention and recovery. More resources are needed both to reduce risk in the first place, and red uce the risk of relapse after the event. • A big investment in national and local capacity for response, prevention and recovery The third requirement is to enhance the capacities, readiness and resilience of exposed societies so they can better handle extreme events. Ensuring that civil society and local communities are involved will make it possible to identify and meet the differential needs of groups (differentiated e.g. by gender, age and social class). • Fuller engagement of the private sector The fourth requirement is to engage the private sector more fully, not just as a source of donations but also as a source of key expertise, skills and technologies, during and after disaster.

• Linking the humanitarian to broader social and economic development issues The fifth requirement is to link the huma nitarian concern to broader development issues, strengthening social safety nets and supporting resilience. • Regional and international readiness to address cross-border humanitarian issues Finally, cross-border challenges will grow. Regional organizations backed by the UN need to be able to mediate and mitigate these problems as they arise.

2. Furthering partnerships to improve local resilience

Building on its new Business Model, the Global Agenda Council is pushing forward the idea of developing more tri-sector partnerships, involving the private sector, humanitarian actors (international and local) and national/local authorities. Such partnerships would be locally driven, nationally coordinated and globally supported.

The council’s vision is that humanitarian assistance should become increasingly embedded in locally owned and managed programmes, and encourage local resilience. These will identify and manage risk, react promptly to emergencies of whatever kind and make an effective link to recovery, rehabilitation and further risk reduction. A global initiative is needed to support all actors, sharing knowledge and resources, and putting the finance and technology in place.

7 I. Platforms and Intermediaries The three companies that comprise LET -Agility, TNT and UPS - hold regular, often weekly phone The following two examples offer situations in which calls to ensure preparedness when emergencies an intermediary helped broker and normalize strike. The companies de signate staff members to linkages between humanitarian workers and the be involved in humanitarian responses and share private sector. These third-party platforms demand costs for administering joint trainings. LET long-term commitments and require both sides to engagement is defined around first-responder devote resources and staff time; yet, the payoffs of activities, working with WFP to relieve bottlenecks working through them was clear in Haiti in terms of in the supply chain during the immediate aftermath efficiency, scale and speed. of a disaster. Though all of the companies have relationships with other humanitarian agencies and O ne hallmark advantage of such intermediaries is provide other forms of support for development, that they help build trust among humanitarian LET activities are defined specifically around short- partners and corporate actors. By requiring each term relief parameters and guided by the WFP. side to engage prior to a crisis, they establish a foundation of familiarity and raise awareness about LET coordination was tested during disasters in the resources available to each entity. Following a South-East Asia – Myanmar, Indonesia and the crisis, this type of trust Philippines – and the situation in Haiti was even “We’ve never had such private and the knowledge is more dire with tremendous logistics challenges. especially important. Millions11 of pounds of food, medical supplies and sector engagement and interest Just as companies other equipment needed to be transported into as we saw in Haiti.” can waste valuable Haiti following t he earthquake. Damage to Port-au- – Olaug Bergseth, Resource time t rying to pair Prince’s seaport meant that, for 10 days, all Mobilization and Relations resources, such as supplies had to enter the country via one runway at Management; International cargo space or the airport or overland from the Dominican Federation of Red Cross and Red construction materials Republic12. Crescent Societies, Geneva to appropriate agencies, humanitarian While none of the LET companies maintained a actors can be significant business presence in Haiti, UPS’s simultaneously overwhelmed by well-intentioned, operations in the region were most established. In but poorly timed offers, as well as stymied by conjunction with LET, UPS and TNT sent personnel challenges that could be solved with the help of the to Haiti to coordinate on the gro und operations in private sector. Intermediaries aggregate needs and Santo Domingo, oversee warehouse operations and resources and normalize communication such that improve efficiency of supply transfer. “TNT and UPS responses can be swiftly marshalled. were the boots on the ground,” says Frank Clary, Agility’s Senior Manager of Corporate Social Case Study: Logistics Emergency Team Responsibility. “My role was coordination, communication and project management”. In 2007, several logistics companies began a series of discussions regarding emergency support for This coordination enabled WFP to establish, at no natural disasters. Three companies formalized the cost to humanitarian agencies,: creation of Logistics Emergency Teams (LET), with • dispatching 607 truckloads from Santo the coordination of the World Economic Forum, to Domingo to various destinations in Haiti support the activities of the United Nations’ • transporting almost 2,000 metric tons of food Logistics Cluster. This cluster represents a group of • transporting nearly 15,000 metric tons of non- UN and partnering humanitarian agencies that rely food items heavily on logistics for emergency relief operations. • delivering supplies to 52 different organizations The Logistics Cluster is led by the World Food • seconding four professional LET staff for a total Programme (WFP), which can call on LET following of 20 weeks to manage emergency logistics a natural disaster for pro bono shipping services coordination13 and logistics capacity.

8 “The advance preparation associated with LET In the aftermath of the “Haiti was our finest hour in really paid off in our work in Haiti,” says Kimmo devastating 2008 Laine, TNT Project Manager. Laine, who has been hurricane season, the terms of member uptake and involved in LET since its formation, describes the Clinton Global speed of response. . . . We think reason for ongoing coordination with partners and Initiative staged a call companies are taking stock [of the reason for entering in a crisis: “We don’t do this to action that brought for the sake of TNT. We do it on behalf of our together a group of corporate social responsibility partnership with WFP.” public and private programmes] and sometimes sector actors in an The ongoing commitment of these three effort to better emergencies can be catalytic.” co mpanies, combined with a structure for regular coordinate relief – Frank Schott, Global Program planning, training and process improvement, activities in Haiti. By Director, NetHope, USA contributed profoundly to the immediate delivery of the time of the aid in Haiti. While logistical coordination presented earthquake in January one of the greatest early challenges to the crisis 2010, members of this Haiti Action Network had response, LET activities loosened many of the developed dozens of new partnerships, and as a supply bottlenecks and helped ensure that life- result, some were able to be more effective and saving shipments arrived at the scene of the better coordinated in their response. Inveneo was emergency. already working with the Clinton Global Initiative prior to the earthquake, and CGI helped Inveneo and NetHope secure shipping capacity with UPS so that its equipment was included with early deliveries following the quake.

While none of the technology used in Haiti was entirely new, NetHope coordinated with its partners to link software and devices in unprecedented combinations that boosted wireless bandwidth over a larger and denser urban setting. This increase in bandwidth enabled humanitarian actors to communicate with one-to-many technologies, such as e-mail, rather than simply one-to-one via satellite Case Study: NetHope phones. The result was a dramatic reduction in communication cost and an increase in the NetHope represents a similar forum for ongoing efficiency of relief activities. collaboration among NGO and private sector partners. Founded in 2001, NetHope is an NetHope also raised US$ 600,000 in cash and US$ interagency collaboration of 30 leading international 2 million in donated equipment for NGOs in Haiti, NGOs that works closely with these agencies and and activities included donating laptops to corporate partners such as Microsoft, Cisco and hundreds of incoming humanitarian staff, among Intel to address technology-related problems in the other services14. The organization’s pre-existing developing world. Much of the organization’s work relationship with technology companies allowed it focuses on disaster relief, and as part of this focus, to build up an inventory of previously donated NetHope was among the early responders to the equipment, and it was able to send this equipment Haiti earthquake. to actors in Haiti much more quickly than if all equipment had to be procured after the crisis. And The quake produced virtually a total breakdown in now that the situation has been stabilized in Haiti, communications in Haiti, according to Frank Schott, NetHope is working to train and improve skills of NetHope Global Program Director. NetHope Haitian IT professionals through workshops and worked with corporate partners and Inveneo, a online education, as well as to turn over non-profit that provides information and management of the IT infrastructure to local communications technology to the developing operators, who can create sustainable businesses world, to restore Internet connec tivity for 15 NGO in information technology. members and five allied agencies in Haiti. 9 “NetHope’s collaboration is unique,” says Frank Case Study: World Food Programme and Schott. The organization “pools resources from its Online Games members and the private sector and then uses those assets (cash, product, expertise) … broadly The World Food Programme (WFP) maintains a across the humanitarian sector. It’s efficient for the wide range of partnerships with corporations and NGOs, and it’s efficient for the corporate partners.” has focused in recent years on expanding the way As Schott explains, corporate partners find in which it engages partners with its work. When tremendous value in the fact that their engagement WFP decided several years ago to improve its with NetHope supports a wide network of NGO technological infrastructure, the private sector partners active in Haiti because this reach helps seemed to be a natural partner for rethinking and distribute risk inherent in a single partnership and bolstering its online presence. WFP worked with increases the scale of impact. Zynga, a US-based game developer for portals such as Facebook and the iPhone. Zynga already Guiding Principle: Intermediaries that provide boasts 40 million users a day for games such as regular conduits for relationship building between FarmVille and Zynga Poker and, in 2009, it began NGOs and private sector partners are invaluable working with WFP to develop applications that when disaster strikes. Partnerships with these would raise funds and awareness for WFP entities require commitment, staff time and activities. resources, but the long-term payoffs are tremendous in terms of: WFP and Zynga piloted a small fund-raising program for Cameroon during the holiday season of • greater efficiency 2009, and when the earthquake struck Haiti several • larger scale of impact weeks later, WFP quickly saw that the legal • more opportunities to customize meaningful agreements and relationships were in place to outlets for corporate social responsibility speed several Haiti-related programs through development. Two days following the quake, Zynga II. Technological Innovation launched campaigns on Facebook that generated US$ 1.5 million within five days and reached more As both business executives and humanitarian than 300,000 users. Traffic routed to WFP’s website leaders acknowledge, the immediate aftermath of a by these games was so large that WFP servers disaster is hardly the time to experiment with new were briefly overloaded. technology. Demands for saving lives, delivering food and providing shelter are too great. However, “The Zynga partnership was spearheaded just as the devastation caused by the earthquake in Haiti we had completed a year and a half of hard work required creative thinking and a willingness of into transforming our website into a dynamic certain partners to implement solutions in bold platform for global hunger,” says Nancy Roman, combinations. Director of WFP’s Communications Public Policy and Private Partnerships Division. “By moving in Humanitarian and private sector actors that worked new and creative ways right after the earthquake during non-crisis times to encourage creative struck, we were able to capitalize on the outpouring thinking and experiment with new technology were of concern and generosity, and generate greater better equipped to respond to some of the awareness about hunger among new groups of unprecedented needs that emerged in Haiti. While people.” these technological innovations in the following cases were novel, they emerged from foundations These donations helped support WFP emergency of disciplined, concerted efforts by the private food assistance in Haiti and increased awareness of sector and humanitarian actors that predated the WFP activities with a different demographic of earthquake by months, if not years. potential donors. At the end of the campaign, Zynga gave paye rs of its Farmville game - which itself raised US$ 1 million - a virtual “high energy

10 biscuit” that made avatars work twice as fast in the This communication partnership became even more game. According to the WFP, this bonus provided technologically advanced as IFRC and Voilà “a great educational outreach opportunity about the continued to collaborate: together, the partners work we do,” in addition to greater traffic to WFP’s developed technology for an SMS gateway, which website. allows real-time, location-based information distribution by identifying cellphone numbers active Case Study: Red Cross and SMS Campaigns at different network towers. Voilà developers created an online portal that allows IFRC staff, and The International Federation of Red Cross and Red potentially other humanitarian actors, to scroll over Crescent Societies (IFRC) maintains a wide range of a Google map overlaid with mobile phone tower programmes and partners for its disaster-response information. Operators can isolate particular towers activities. One area of particular innovation in near a clinic or vaccination site and send a text response to the earthquake in Haiti centred on message to all subscribers active at the given IFRC communication with beneficiaries. The IFRC tower, notifying them about the health update. secretariat together with national societies had prioritized this issue for years and worked to Such real-time, geographically targeted information, improve coordination with private sector partners which is amplified through word of mouth such as television, radio and newspaper outlets in exchanges, vastly improves the IFRC’s ability to disaster-affected areas. These partners helped provide emergency services. According to IFRC’s distribute vital infor mation to the community and Head of Media and Public Communications Unit, increased the way in which IFRC received feedback Paul Conneally, these campaigns helped generate from beneficiaries. turnout at vaccination sites that exceeded expectations and improved the efficiency of IFRC Traditionally, following a severe natural disaster, operations. “We had not taken full advantage of IFRC would enlist volunteers to distribute mobile technology until Haiti,” says Conneally. “Haiti pamphlets and post flyers, and to create radio was a catalyst in terms of use of mobile phones in spots to alert the community about dates and beneficiary communications.” locations of vaccinations and other medical services. This labour-intensive method is often the This technology is not simply designed to push best way to reach population s affected by a natural information to beneficiaries; it also offers ways for disaster. However, in Haiti, IFRC engaged with beneficiaries to send feedback and register to Voilà, a mobile provider with over one million Haitian receive information about specific topics, such as subscribers, to create an innovative programme to women’s health or malaria. IFRC considers this improve information delivery. two-way communication to be vital to improving its relationsh ips and delivering service, and Voilà and During the first 10 days following the earthquake, IFRC are continuing to pilot the system. Once it is Voilà worked with IFRC to distribute messages to refined, IFRC plans to work with providers in other the database of Voilà subscribers. More than one disaster-prone regions such as South-East Asia to million SMS messages a day were sent for the 10 offer the SMS gateway at no cost and ensure that days following the earthquake, containing such alert systems are in place before a disaster. information in Creole about emergency treatment, The potential of this technology to provide early vaccinations and other IFRC programmes. Voilà warnings and better distribute information following also helped IFRC establish an information hotline, in a disaste r represents a tremendous breakthrough in English and Creole, which allowed mobile phone the potential of humanitarian and private sector users to call at no cost to receive information about collaboration. vaccinations, basic hygiene, water and sanitation, malaria, HIV awareness, and condom distribution Case Study: World Vision and Automated Food points. The hotline re ceived as many as 100,000 Distribution calls in a single day in the weeks following the earthquake. World Vision, a Christian humanitarian organization founded in 1950, committed several years ago to improving the efficiency of its food aid provision. In

11 2006, it began working with a Canadian technology devices, and staff members were deployed for firm, FieldWorker, to reduce cumbersome implementation. A limited number have been put paperwork processes for logging and processing into use in two resettlement areas. “The initial food distribution. After several months of feedback from the ground is very positive,” says developing software and vetting systems internally, Otto Fark as, World Vision’s Director of Humanitarian it launched a one-year pilot programme to test & Emergency Affairs, Resource Development and mobile technology involving hand-held scanners Collaborative Innovation. “The field workers love the and bar-coded identification cards. This system ease of the technology, and the beneficiaries are combined hardware from Intermec, a US-based also very receptive of the new technology and the company specializing in mobile computing systems, biometric ration cards that will allow real-time and FieldWorker’s software, which World Vision identification and data use.” licensed at a reduced rate. Despite the improved efficiency, deployment of the programme in Haiti was significant ly delayed due to backlogs at customs and the inability to clear the equipment at the port. However, World Vision hopes that its experience drawing on the private sector for best practices in information processing can be used to help other NGOs. According to Farkas, World Vision plans to offer this technology to other humanitarian agencies as a way of standardizing and automating many aid services. The op portunity to use the technology in Haiti, where it is expected to improve service to over 500,000 beneficiaries, will prove invaluable in refining and demonstrating the benefits of such technology.

“Humanitarian actors shouldn’t wait for the next disaster,” says Craig Tyndall, FieldWorker General The result was a system that drew on best Manager. “Disaster is the worst time for innovation practices from the private sector and was because people simply don’t have time.” customized to meet the needs of humanitarian agencies: food aid recipients were issued bar- Guiding Principle: Foresight in experimenting with coded identification cards, and aid workers could technology and testing collaborative development scan these cards with hand-held, wireless paid off in responding to the crisis in Haiti. While the compute rs. The device would automatically disaster left little time for radical new ideas, calculate rations and log food distribution at the humanitarian agencies and private companies that particular site. were nimble and had prior records of adapting to new ideas were able to roll out new solutions that World Vision determined that the pilot study - improved efficiency of operations. which covered 20,000 recipients in Kenya and Lesotho in 2009 - was a vast improvement over III. Heightened Impact through Relationship the time-consuming paperwork: it reduced Networks registration time from approximately three minutes to less than one minute. It also reduced errors in While many relationships between humanitarian accounting for food distribution and decreased agencies and private sector entities are bilateral in insensitivity towards illiterate beneficiaries. nature, businesses typically maintain close ties with other businesses. One of the most powerful ways Based on these promising early results, World that private sector actors can support humanitarian Vision leaders wanted to implement the automated activities is by drawing on their networks of solution in Haiti. Intermec donated dozens of partners, including suppliers, competitors,

12 collaborators, investors and other non-profits. By link databases, according to Jacquelline Fuller, acting as ambassadors to others, businesses can Google.org Advocacy Director, and it was launched effectively relay the needs of humanitarian partners, within 36 hours. vouch for the legitimacy of projects and translate the benefits of With Google providing a common, back-end “We’re looking to adopt industry humanitarian work technology, aid agencies could embed the ”People best practices. NGOs can to those in similar Finder” on their websites; this common platform cultures. allowed for records entered on different sites to borrow innovation [from the feed into a centralized pool of information. More private sector], which offers In addition, private than 50,000 records were entered related to Haiti15, sector entities can and the program was so successful that Google benefits on a larg e scale.” increase the offered People Finder for the Chile earthquake as – Otto Farkas, Director of efficiency of their well, which has generated more than 75,000 Humanitarian & Emergency Affairs, response by records16. By using its unique market position and Resource Development and making technological expertise, Go ogle contributed a novel Collaborative Innovation, World collaboration with solution that helped a wide network of partners and Vision, United Kingdom humanitarian collaborators. actors part of the cour se of regular Additional interventions also grew out of Google’s business. Work with such agencies in non- close contact with the aid community. In particular, emergency times allows for greater clarity when a dedicated “crisis response team” inside Google disasters strike about the ways in which all parties recognized the tremendous need for high-quality, can work together to meet the needs of the downloadable maps so that humanitarian actors affected area. Attempting to build these could plan relief activities following the quake. The relationships in the aftermath of a crisis can result in company worked with GeoEye, a vendor of satellite delayed responsiveness and reduced efficiency. imagery, to ensure resources such as satellites were being directed to capture current, high-quality Case Study: Google’s Person Finder imagery of Haiti. Google made this information readily available online by adding layers to its Google’s activities following the earthquake in Haiti Google map of Haiti that included GeoEye’s satellite were not linked specifically to a recipient NGO or data. Additional layers to the map draw from UN agency; yet, it was able to leverage unique sources such as the US Geological Survey and the elements of its business, as well as its wide US National Oceanic and Atmospheric network of contacts, to impact the delivery of Administration and allow users to customize humanitarian aid in Haiti. While many of Google’s information sources that would be relevant to first- activities were innovations in terms of prior disaster responders. These activities, which leveraged responses, its activities grew out of years of Google’s relationships to private sector and relationship building with partners in the public and humanitarian partners, enabled more efficient humanitarian sectors. distribution of aid in Haiti.

One of the most striking innovations related to Haiti According to Fuller, Google determines its crisis was Google’s “Person Finder” tool. Previous response based on a matrix of factors. “Google disasters such as Hurricane Katrina and 11 wants to approach disaster response in a September clarified to those in the first-responder systematic and strategic way,” she says. “In community the need for a centralized system to between disasters we’re evaluating our role and track missing persons. This need persisted in the thinking about how we can help even more.” tsunami and other disasters, and following the Haiti earthquake, the US State Depa rtment organized a Case Study: Shelter Kits and Habitat for conference call for certain NGOs and members of Humanity the technology community to discuss synchronization of these databases. Google Following the earthquake, Habitat for Humanity engineers volunteered to build a common tool to worked with UN and governmental partners to

13 assess strategies for providing housing. These f ive-year, sustainability-related project, so the partners determined that, instead of focusing on the relationship was a natural outlet for coordinating distribution of tents, which offered short-term fixes earthquake assistance. Home Depot donated without a long-term strategy, the more effective supplies equivalent to US$ 140,000 and helped response would be to distribute “shelter kits”. This channel requests from suppliers to find ways to type of aid would encourage families to make support crisis response. These suppliers, which necessary improvements in long-term housing, manufacture products such as duct tape and rather than rely on tents, which would leave hammers for Home Depot, typically lack their own communities vulne rable during Haiti’s upcoming philanthropy arms and, instead, consult Home rainy season. Habitat announced its intent to Depot about ways to help. Because Home Depot distribute kits, which include supplies such as channelled these inquiries to Habitat, the overall buckets, rope, gloves and hacksaws, to 21,000 level of support and donations of goods for families.17 Habitat’s shelter kits was greatly amplified.

While shelter kits were a component of the aid Guiding Principle – Private sector actors are often response to typhoons in Asia, Habitat had never better situated to engage and communicate with before coordinated such a response on a large competitors and partner companies. By serving as scale. According to Jonathan Reckford, Chief an ambassador to their networks of partners, Executive Officer of Habitat for Humanity, “While we companies can have a catalysing effect in helping receive a lot of ‘prefab’ construction ideas following humanitarian aid. a crisis, we are very sensitive to the fact that we don’t want to impose solutions on the local IV. Expansion of Levers community.” By giving Haitians the tools to rebuild homes themselves, Habitat assessed that resulting Many of the interventions in Haiti did not represent reconstruction would be more geographically and headline-worthy breakthroughs in terms of culturally appropriate. engagement methods, but were nonetheless meanin gful to demonstrate unprecedented levels of This deluge of individuals and companies offering involvement by the private sector. Many companies different housing str ategies had an unintended, reported that interest from employees in supporting deleterious effect on Habitat’s work: as Executive humanitarian efforts increased steadily following Vice-President Mike Carscaddon explains, the non- Hurricane Katrina and the Asian tsunami, and this profit “spent huge amounts of time just trying to interest, combined with growing awareness of work through responses to those requests.” corporate citizenship responsibilities, prompted Because the majority of offers came from sources many private sector actors to experiment with that had not developed long-term relationships with different kinds of fund-raising and disaster-relief the NGO, they were activities. Employee giving campaigns, two-for-one “We try to work with NGOs and often poorly suited to donation matching, and paid time off for the needs in Haiti. By volunteering with disaster relief agencies are all non-profits pre-crisis to build contrast, Habitat was different types of responses companies have capacity.” ab le to draw on announced following natural disasters. The severity – George Durham, Program support from two pre- of the earthquake in Haiti prompted many Manager for Global Community existing corporate companies to activate their full portfolio of Affairs, Microsoft, USA partners - Whirlpool successful programmes. and Home Depot - which facilitated Because there are so many possible interventions assembly of its shelter available to companies and because the number of kits. natural disasters is likely to increase in the years Whirlpool has worked with Habitat since 1999 – ahead, it will become increasingly necessary for donating funds and appliances as well as private sector actors to clarify what levers are coordinating employee volunteering. Following the appropriate in what situation. Developing standards earthquake, the company opened its Atlanta and explicit decision-making protocols to guide warehouse as a location to assemble the kits. engagement can clarify timing, scale and intent of a Home Depot was already a Habitat partner on a company’s involvement in humanitari an work; this

14 clarity helps humanitarian actors calibrate The drive was t he largest outpouring of expectations and improve the efficiency of employee support that MasterCard has seen to responses. date.

Case Study: MasterCard • Employee-Driven Volunteering and Activism: MasterCard helped convene and publicize MasterCard has a history of involvement in benefit concerts to support Doctors Without responding to humanitarian crises caused by Borders. In addition, employee volunteers natural disasters. Its activities related to the helped collect supplies in a donation drive earthquake in Haiti “leveraged best practices from associated with a Haitian church near the the tsunami,” according to Carmen Vega, Director company’s corporate office. Regional teams in of Global Corporate Philanthropy at MasterCard Latin America and the Caribbean coord inated Worldwide. The company reactivated initiatives that additional donation programmes, telethons and succeeded following the tsunami, such as two-for- volunteering days to support local churches, one employee matching, as well as created new rotary clubs and school rebuilding programmes outlets for donations and volunteering. This in Haiti. response did not necessarily represent an innovation from a technological or partnering Case Study: Digicel standpoint. However, by increasing the “levers” of response, MasterCard was able to coordinate a While many companies featured in this report more flexible and robust level of support for victims lacked significant, if any, business exposure in Haiti of the disaster. prior to the earthquake, Digicel is the largest mobile telecommunications operator in the Caribbean and As Vega explains, typically the company’s derives approximately 12.5 % of its revenue from philanthropic work focuses on the themes of Haiti. Since launching operations in Haiti in 2007, financial literacy and education. The magnitude of Digicel has been active in supporting NGOs and crisis in Haiti and the tremendous outpouring of philanthropic activities, from constructing and employee interest prompted MasterCard to widen supporting schools through its Haiti Foundation to the breadth of its philanthropic efforts and sponsoring community building NGOs. coordinate the following outlets in support of various NGOs: The earthquake not only damaged Digicel’s business infrastructure, but it also claimed the lives • Waiver of Interchange Fees: Typically, credit card of employees and their family members, and transactions involve a small fee, paid by the destroyed hom es and properties of its customers. acquiring bank to the cardholder’s bank, to Because of Digicel’s on the ground view of the compensate the cardholder’s bank for damage and strong relationships with both the transaction costs and associated risk. private and public sector in Haiti, the company’s MasterCard’s large role in the market and strong response was customized and wide-ranging to pre-existing relationships with banks made it meet the needs of customers, employees and well-positioned to negotiate among parties communities. Several highlights include: regarding this fee. The interchange waiver had been used successfully in previous disasters • Free Credit to Customers: To ease and, following the earthquake, MasterCard communication among friends and family processed 1.3 million donations for Haiti-related members following the earthq uake, Digicel charities. The waiver made US$ 2.4 million, provided US$ 10 million in free credit to its 2 which ordinarily would have gone to interchange million subscribers. This allowed people, without fees, available to designated charities for use in homes and without access to their banks, to humanitarian work. keep in contact with friends, family and relief agencies. • Employee Matching: MasterCard launched a two-for-one employee matching programme, • Support for Local Government: The company which raised tens of thousands for relief in Haiti. prepaid its taxes to increase revenue and allow

15 for greater government spending to rebuild from The drawback to this type of engagement is that it the crisis. It also made available a 300-person requires careful planning and often considerable transition facility for the ministry of education, lead-up time. In the immediate aftermath of a which lost its offices, to enable the coordination disaster, conditions are often so hectic that careful and administration of education in Haiti. consideration about seconding private sector expertise imposes too much of a burden on NGOs • Employee Support: Digicel offered a wide range and UN agencies. As a result, many of the most of support programmes to employees, including successful cases of knowledge transfer involved providing loans and grants to rebuild houses, pre-existing relationships among partners and long- doubling January salaries an d distributing tents term commitments from both humanitarian and in addition to other goods. The company also private sector actors to focus on similar ends. provided 19,000 tents to non-employees. Case Study: McKinsey • NGO Support: The company distributed almost 50,000 free handsets to NGOs to facilitate For decades, McKinsey & Company has been communication and coordination with field known for its ability to assess large organizations workers. It also gave cash donations to the and suggest strategies for improving performance NGO Concern Worldwide and directs support capacity. The company has a long track record of for other causes based on projects that build offering pro bono services and working with NGO long-term capacity. and UN agency clients, and several of these engagements were already enhancing the Guiding Principle – Regardless of the level of effectiveness of humanitarian actors in Haiti when engagement or exposure to the market affected by the earthquake struck. “McKinsey supported a natural disaster, multinational companies have a Habitat’s recovery planning efforts during Katrina,” range of options at their disposal for marshalling aid says Jonathan Reckford, CEO of Habitat. Reckford and supporting humanitarian efforts. To ensure explained that the relationship continued in Haiti: effectiveness, companies should use clear and McKinsey analysts worked in parallel with Habitat consistent standards regarding speed, scale and staff in Haiti to reduce bottlenecks in selecting the intent of their humanitarian engagement. Explicit families, distributing supplies and managing acknowledgement of these parameters can help systems. dictate the levers of action necessary, as well as when and to what degree each should be Following the earthquake, McKinsey increased its activated. commitment by an even greater degree in engaging with Haitian Prime Minister Jean-Max Bellerive and V. Process Improvement and Expertise former US President Bill Clinton, co-chairs of the Transfer Interim Haiti Reconstruction Commission (IHoRC), t assist in the design and creation of the commission. “When you introduce new While humanitarian agencies report that The Commission was created by Presidential technology, it could be a bit cash donations are Decree on 21 April 2010, in the wake of the shocking for people used to often the best way for devastating earthquake that struck at the heart of outside donors to add Port-au-Prince on 12 January 2010. doing things their own way. How value, several cases you manage it - that becomes illustrate the unique The IHRC will coordinate and oversee recovery and potential of reconstruction efforts in Haiti. It is designed to the biggest challenge.” relationships empower the Haitian government and people in – Craig Tyndall, FieldWorker structured on leading Haiti’s long-term recovery and development, General Manager, Canada knowledge transfer. while harnessing the cooperation and confidence of Private sector Haiti’s international partners. The IHRC is charged expertise in areas such as risk assessment, as well with continuously developing and refining Haiti’s as general management efficiency can be used to development plans, assessing needs and gaps for amplify the impact of humanitarian agencies. investments, and ensuring that the implementation of development plans is coordinated, effective and

16 transparent, and delivers real change in the lives of • Directing interest: The earthquake devastated the Haitian people. many of the basic resources in Port-au-Prince, which would normally allow the capital city to The IHRC will undertake the expeditious planning, host potential investors and companies. The coordination and implementation of development lack of hotels, the difficulty of navigating the projects and priorities, including reviewing and airport and barriers to securing office space approving projects and programmes funded by complicate even basic business meetings. bilateral and multilateral donors, NGOs and the McKinsey helps coordinate with partners to private sector. In fulfilling its mandate, the IHRC will channel interest from the private sector and expedite the issuing of licenses, perm its and connect would-be donors and investors to needed approvals to accelerate the construction of opportunities in Haiti. hospitals, schools, power generation systems, ports and other economic development projects. “Having any real impact in a situation like this requires significant and sustained commitment, The IHRC is modelled on successful reconstruction from both the institutions and the people involved,” agencies elsewhere in the world, including in the says Lynn Taliento, a partner at McKinsey, who is Badan Rehabilitasi dan Rekonstruksi (BRR), which helping to lead the firm’s Haiti team. “This particular operated in Indonesia after the 2004 tsunami where constellation of challenges, and the historic McKinsey played a similar role. opportunity that this represents, is not one we’ve ever experienced before – no one has. This is full- A team of McKinsey staff is helping the parties on, full-contact engagement because if we don’t structure and launch the commission such that it invest the necessary energy and time, we can’t will have the greatest chance of succeeding in expect to succeed.” improving the livelihoods of Haitians. Several relevant features of the commission are actively Case Study: Swiss Re focused on private sector engagement, which will be essential in restoring long-term economic vitality Following the earthquake, global insurer Swiss Re of the nation: assessed ways in which it could leverage its expertise in assessing risk and modelling rebuilding • Designating IHRC staff to focus on private alternatives. David Bresch, Head of Swiss Re’s sector engagement: McKinsey is helping the Sustainability and Political Risk Management, had commission designate personnel to focus on previously worked with a glo bal consortium of fostering relationships and increasing partners to prepare the “Economics of Climate commitments from the private sector. The goal Adaptation” report. The analysis offers a framework is to coordinate commitments and donations to evaluate ways in which countries can become from various corporate entities and foundations, more economically resilient in the face of climate and ensure that private sector activities fit within change. The report examines three climate change the commission’s larger reconstruction plans. scenarios and projects losses as a percentage of GDP for several case study countries. • Leveraging partner expertise: In the process of working with the commission, McKinsey has Initially, the analysis did not include Haiti as one of been able to draw on its relationships with other th e eight assessment locations, but following the private sector actors to gain much-needed earthquake, Swiss Re assessed alternatives for areas of expertise. For example, it has called on offering expertise and playing a role in Haiti. Bresch PricewaterhouseCoopers and Hogan & Hartson, and his team created a preliminary hazard map, and these companies have offered legal and using Swiss Re’s proprietary assessment model, accounting expertise to draft more robust which depicted certain vulnerabilities related to bylaws and improve the organizational design of climate change and natural disasters. Swiss Re has the commission. the capacity to deepen this analysis in a more thorough report that would outline the economic viability of reconstruction alternatives. Such a plan,

17 according to Bresch, would help illustrate how to that improves local livelihoods for the long-term will better prepare for climate risk: “Haiti is not only require better coordination on several fronts. exposed to earthquakes - it also sees devastating floods, landslides and cyclones.” The rebuilding • Need for a Centralized Broker – Both NGOs strategy should take these risks into account to and leaders in the private sector have expressed increase long-term resilience of the country and its frustration that potential donations are often economy. wasted and existing needs are slow to be filled following a While Swiss Re has made its hazard map available, humanitarian “The biggest gap is in the second phase of the analysis identifying local crisis. Several coordination. There’ s lots of adaptation alternatives has not been launched brokers or because the company lacks a mandate that clarifies third-party capability and resources out local partners and input. Such articulation from local clearing there, but we’ve seen way too decision-makers is necessary to ensure the analysis houses have much chaos every time we have is correctly targeted and relevant to those who emerged that would implement it. “We need a clear mandate in attempt to a crisis.” order for us to operate in a multistakeholder match – Catherine Bragg, UN Assistant environment,” Bresch explains. Swiss Re’s analysis capacity with Secretary-General for Humanitarian can be as detailed as identifying specific needs. Affairs and Deputy Emergency geographic coordinates for a school or hospital, but However, in Relief Coordinator, United Nations until the long-term vision for reconstruction is time of crisis, Office for the Coordination of clarified in Haiti, this type of analysis would lack better central Humanitarian Affairs, Geneva relevance or focus to have the necessary impact. coordination could As Bresch points out, Haiti is still emerging from produce more immediate disaster relief, and the type of analysis effective results and help match would-be Swiss Re offers addresses questions on a much donors with those in need. longer horizon. As the public sector, private sector and humanitarian actors continue to assess their • Sustained Relationships – Many new role in Haiti, a coordinated vision for reconstruction partnerships and innovations emerged during will be essential. the response to the earthquake, and these ties offer a powerful foundation to continue coordination and demonstrate greater Guiding Principle – The private sector has nimbleness in future responses. Ensuring such tremendous abilities to guide smart reconstruction. contact remains in place will re quire structured However, matching this potential with willing forums for interaction. A broad range of partners partners in Haiti, who are capable of acting in a way will be required to ensure that focus remains on that is consistent with the long-term vision for the the long-term goals of restoring the resilience of country, requires coordination, better articulation Haiti as an economy and vibrant member of the and strong partners poised to deliver long-term international community, and on improving the impact. ability of actors to respond efficiently to future crises. Remaining Gaps • Ongoing Process Improvement – The These stories offer compelling examples of ways in earthquake had a catalytic effect in terms of which the private sector has engaged with increasing opportunities for partnerships and humanitarian actors to meet shared challenges and demonstrating success of such public-private deliver aid. However, a wide range of gaps remain engagement. Building on this foundation in the for improving future coordination. Climate forecasts future will require all parties to evaluate internal and risk modelling provide little doubt that the decision-making structures to sustain such international community will be called upon again - coordination in the future. Cisco, for example, and often - to help administer aid to nations in reports conducting a “lessons-learned” process need. Doing so quickly, efficiently and in a manner following its engagement in disaster response,

18 and this process of evaluation and analysis has • It has the trade advantage of duty-free access enabled it to streamline internal bottlenecks and to American markets for many exports improve the efficiency of its dedicated response team. Such evaluations are also useful in terms In January 2010, the World Economic Forum, the of strengthening partnerships: working in non- Clinton Global Initiative and the United Nations emergency times to establish protocols for announced that they would work in partnership to disaster response with partners can position all assist in Haiti's long-term economic development. players to be more effective in the aftermath of a The partnership calls on the private sector to invest crisis, even when the d emands of that crisis the time and organizational energy required to result in unprecedented needs and challenges. generate long-term business opportunities in Haiti. As the Interim Haiti Reconstruction Commission • Need for a Long-term Reconstruction Plan (IHRC) charts its roadmap of priorities for rebuilding, – As Haiti transitions from the immediate, short- the involvement of the private sector will be term relief needs, the private sector can and essential to create jobs, generate economic must play a role in restoring livelihoods and potential and increase the nation’s resilience to ensuring the long-term sustainability of Haiti’s respond to future disast ers. In particular, the growth economy. Whether as an exporter of garments, of small to medium enterprises will need to be agricultural products or other goods, Haiti has fostered, and the private sector can play a valuable the potential to generate economic growth role in catalysing this growth. through trade with developed economies. It will need private sector partners committed to building the skills of Haitians, investing in facilities and infrastructure, and remaining patient as the nation emerges from crisis.

Next Steps

While a number of success stories emerged in the immediate aftermath of the Haiti earthquake in terms of companies and humanitarian actors partneri ng in innovative ways, the challenges that lie ahead for long-term reconstruction will require focus, flexibility and long-term commitments from Already, examples of such partnerships are the parties involved. Though the earthquake emerging: In March, the Coca-Cola Company decimated much of the nation and resulted in announced a US$ 3.5 million investment to boost colossal setbacks in bolstering national resilience, the incomes of mango farmers in Haiti18. The five- the focus of the international community and the year “Haiti Hope Project”, done in partnership with availability of funding suggests good reason for the Haiti an government, the Inter-American optimism. In 2009, Oxfo rd University economist Development Bank (IDB) and TechnoServe, will Professor Paul Collier presented a report to the provide business advising services to help 25,000 United Nations that outlined several concrete ways mango growers increase the efficiency of crop to realize Haiti’s economic potential. The report production, as well as offer technical assistance, “Haiti: From Natural Catastrophe to Economic capital investment and research and development Security” argued that the nation “has far more to support the development of a sustainable mango favourable fundamentals than the ‘fragile states’ juice industry19. Coca-Cola announced its with which it is conventionally grouped.” Among contribution would include 100% of profits from its these advantages are: “Odwalla Haiti Hope Mango Lime-Aid,” which also helps raise consumer awareness. • Geographically, it sit s in a region that is relatively free of conflict Likewise the MasterCard Foundation announced it • It lacks stark ethic divides that characterize would donate US$ 4.5 million in funding to many fragile states Fonkoze, the largest microfinance institution in Haiti,

19 which helps 200,000 clients with services ranging economic experts such as Collier have advocated from small business loans to educational priorities such as decentralizing economic activity programmes. The funding will provide 4,000 loans from Port-au-Prince to lessen the risk of future and business services to rebuild or create new natural disasters. Experts have also emphasized the enterprises. In addition, it will offer 1,000 women in importance of focusing reconstruction activities to extreme poverty the funds for livelihood emphasize employment and training for local investments, such as a goat or chickens. According workers. As Haiti’s government and its international to Funkoze, agricultural and small-scale commercial partners clarify reconstruction priorities for the endeavours represent t he backbone of Haiti’s nation, the private sector will be called upon not economy, and restoring the businesses of women only to fund, but also to implement the strategies. traders is “critical to the country’s long-term As with coordinating relief activities, ensuring the recovery.” 20 success of such collaboration will require strong partnerships, patience and long-term commitments These programmes represent activities that enable on the part of all actors. Haitians to rebuild livelihoods and create sustainable economic opportunities locally. A number of factors remain highly ambiguous in terms of priorities for long-term reconstruction:

20 Footnotes

1 UN OCHA: Haiti Revised Humanitarian Appeal – 18 Feb 2010 2 UN OCHA: Haiti Revised Humanitarian Appeal – 18 Feb 2010 3 http://news.bbc.co.uk/2/hi/8596080.stm 4 Global Humanitarian Forum. 2009. The Anatomy of a Silent Crisis: Climate Change Human Impact Report 5 “Haiti: From Natural Catastrophe to Economic Security: An Update for Davos,” Paul Collier, 27 January 2010 – services: healthcare & education. Also Collier call – World Economic Forum Global Agenda Council, May 2010 6 UN OCHA: Haiti Revised Humanitarian Appeal – 18 Feb 2010 7 UN OCHA: Haiti Revised Humanitarian Appeal – 18 Feb 2010 8 UN OCHA: Haiti Revised Humanitarian Appeal – 18 Feb 2010 9 Interview: UN OCHA (Bragg) 10 UNISDR (2005) Hyogo Framework for Action 11 UN OCHA: Haiti Revised Humanitarian Appeal – 18 Feb 2010 12 UN OCHA: Haiti Revised Humanitarian Appeal – 18 Feb 2010 13 Joe Ruiz (UPS) – e-mail 14 Frank Schott (NetHope) – email confirmation 15 http://haiticrisis.appspot.com/ 16 http://chilepersonfinder.appspot.com/ 17 http://www.habitat.org/disaster/active_programs/Haiti_emergency_shelter_kits.aspx 18 http://www.thecoca-colacompany.com/presscenter/nr_20100331_haiti.html 19 http://www.thecoca-colacompany.com/presscenter/nr_20100331_haiti.html 20 http://www.fonkoze.org/docs/Fonkoze_MEDA_Release_4-20-10.pdf

21 The World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas.

Incorporated as a foundation in 1971, and headquartered in Geneva, Switzerland, the World Economic Forum is impartial and not-for-profit; it is tied to no political, partisan or national interests. (www.weforum.org)