Donor Approaches to Risk in Fragile and Conflict Affected States. Case Study: Somalia
The study is based on background reading, and interviews carried out in Nairobi and by phone and email during April 2013. Interviews targeted multilateral and bilateral donors to Somalia as well as NGOs. Somalia offers important lessons on risk management in peacebuilding and development work in conflict-affected areas. Risk assessments have gained a high profile given concerns that aid funds could unintentionally support Al-Shabaab, a political and military organisation designated as a terrorist group by many OECD governments. The risks of non-engagement, heightened both by recent widespread famine and by the perceived need to support the current government, also drive decisions and practices on risk management. Somalia’s participation in the New Deal for Engagement in Fragile States further encourages aid agencies to work with the government.
This case study is divided into two parts. The first part discusses broad donor responses to risk in Somalia. This includes a profile of main types of risk confronting donors in Somalia, analysis of how donors approach these risks in their programming, and explanations of these responses to risk. The second part discusses practical approaches to risk management observed in Somalia. Three approaches are highlighted in this case study including: (1) using country systems and strengthening public financial management, (2) using specialised risk management services to monitor fiduciary and corruption risks, and (3) managing risk remotely where security concerns limit access.
Burke, A. Donor Approaches to Risk in Fragile and Conflict Affected States. Case Study: Somalia. The Policy Practice Limited, Brighton, UK (2013) 17 pp.