GRANTS
GIVING QUICKLY TO GIVE TWICE When devastating floods hit Pakistan this summer, the revamped
OPEC Fund Grant Program faced its first serious test By Axel Reiserer and Nicholas K. Smith, OPEC Fund
T his summer Pakistan became the latest country to experience how climate change is now an existential threat to humankind. Massive floods, caused by heavier than usual monsoon rains and melting glaciers that followed a severe heat wave, all linked to climate change, left behind a trail of destruction: According to official accounts, more than 1,700 people died, well over 2 million people were left homeless and 33 million people were affected, as a third of the country lay under water. The international community rushed to the scene and promised its support. A joint assessment by the government, World Bank, UN and others estimated reconstruction costs and economic damage to be at least US$30 billion, equivalent to about 10 percent of GDP. Overcoming the catastrophe and building back better will take decades. This made rapid and powerful help all the more important. As the saying goes: “He gives twice who gives quickly.” Thanks to a recent revamp of its Grant Program the OPEC Fund was able to join the international donor community instantly and already in September approved a US$1 million emergency grant for immediate aid to victims of the natural disaster. “We were able to act swiftly and decisively,” says Dr. Walid Mehalaine, who heads the Grants and Technical Assistance Unit at the OPEC Fund. “In an emergency, this is crucial.” Charting a new approach This agility owes much to the reorganization of the OPEC Fund’s grant
operations, one of the many financial instruments in the Fund’s toolbox. The new organization serves two purposes: increase the value proposition and achieve greater development impact and effectiveness through a more unified approach. “In the past, grants were not always linked clearly to operations funded through our other facilities,” Dr. Mehalaine adds. “Also, the environment has changed. Most multilateral development banks are now working in a more integrated manner, offering different types of products and services to their clients.” The Grant Program was reorganized as part of the OPEC Fund’s Strategic Framework 2030, an institutional enhancement with the goal of expanding operations and deepening impact. “We are focusing on interventions and activities which support, add value and complement OPEC Fund operations,” Dr. Mehalaine explains.
In line with this approach, the OPEC Fund recently approved a new Emergency and Disaster Management (EDM) Grants Policy aimed to help partner countries effectively manage natural and human-made crisis and pave the way for a timely resumption of normal cooperation with the Fund. It also has the goal to ensure that EDM grant assistance is better linked to the provision of long-term development assistance by the OPEC Fund and enhance the capacity of partner countries in disaster prevention and preparedness. This also provides the necessary space for emergency support as was the case with Pakistan. Grants play an important role in Official Development Assistance (ODA). According to the Organisation for Economic Co-operation and
We were able to act swiftly and decisively. In an emergency, this is crucial.
Dr. Walid Mehalaine, OPEC Fund, Head of the Grants and Technical Assistance Unit
16
Powered by FlippingBook