Funding mechanisms

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Funding mechanisms

In a context where humanitarian needs are continually growing and resources are limited, issues of funding and aid allocation are a central preoccupation of donors, and more broadly, the sector as a whole. Finding innovative funding mechanisms, reinforcing transparency and accountability, and basing decisions on evidence to guarantee that limited resources are used efficiently and effectively, are essential areas of work.

The final objective of the Grand Bargain (the pact signed by the representatives of the 30 main donors and humanitarian aid organisations) is the overall efficiency of the aid sector, based on a series of commitments, the majority of which concern funding methods and the management of resources: more transparency, simplified and harmonized reporting, multi-year funding that makes it possible to link humanitarian and development aid, more direct funding to local actors, etc.

These commitments, combined to efforts to mobilise new resources (with the involvement of private actors, new donors or innovative funding mechanisms, for example) and efforts to use available resources more effectively (by improving donor decision-making mechanisms or the management of aid integrity risks) are essential for the general economy of the aid sector.