An Analysis of UNRWA's Financial Sustainability and Donor Contributions from 2000 to 2021: A Comparative Study of Resource Mobilization Strategies رسالة ماجستير

Abstract

United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), provides humanitarian and developmental services to some 5.9 million Palestine Refugees. The agency is dependent on voluntary contributions from donors but has been experiencing recurrent funding shortfalls as early as 1950. Surprisingly, the Agency has not received much attention in the foreign aid literature. Moreover, UNRWA like many Agencies depending on foreign aid invest substantial capital in Resource Mobilization, which is a field is extremely understudied. This research is a the first to explore the role of Resource mobilization in foreign aid literature. The research aimed at providing a comprehensive overview of UNRWA’s financial situation and donors’ contributions to UNRWA in a period of 22 years (2000- 2021), benchmarking against the Resource Mobilization Strategies. Descriptive analyses were deployed using secondary data on UNRWA’s financial situation and contributions received from 93 bilateral governmental donors including the European Union. The research underscored the exacerbating financial situation of the Agency, where the gap between needs and revenues is increasing over time; most severe is the Emergency needs which grow at a compound rate of 21%, but only 50% are resourced. Despite UNRWA’s efforts to strategically mobilize resources, it was found that the impact of the RMS in deriving financial sustainability is limited, with continued high dependency on Traditional Donors while their contributions growth does not align with the need's growth. Regional Partners exhibit more funding potential, but predictability and consistency of their funding was not maintained. More predictable funding growth is foreseen to come from non-governmental donors; however, such growth is only possible in the long term and requires adequate investment. On the other hand, significant V achievement of the RMS was evident in diversification of the donor base, additionally, for a comparable basis it was found that UNRWA’s funding growth aligns with global foreign aid growth reported under Net Official Development Assistance. The research acknowledged the challenging operational climate that could hinder achieving the Resource Mobilization targets, and concluded that, given the funding trend, UNRWA will continue to face exacerbating financial shortfalls and without a political will by the UN member states to sustain the organization, the agency remains very vulnerable for financial shocks that could have an existential impact on UNRWA. It also recommended that UNRWA advocates for funding sustainability and explores other avenues for funding.