 Good morning everyone and welcome to this press conference from the 47th annual meeting of the World Economic Forum here in Davos Thank you for being here in the room. Welcome to our live audience on camera. And of course a warm welcome to our panel here today This press conference is dedicated to the question of the future of humanitarian payments. What is the future of human and parent humanitarian payments? looks like and we have a wonderful panel here today that has interesting things to say from from various angles as you can imagine And while you all might know who's joining me on the panel, I'll still Introduce them to you for the sake especially of our online audience as well. To my immediate left. We're joined by Stephen O'Brien He's the Undersecretary General for Humanitarian Affairs and Emergency Relief Coordinator of the United Nations Office for the Coordination of Humanitarian Affairs. The short version is Ocha Yes, right at the center of our panel here today. We're pleased to be joined by Arthur and cousin She's the Executive Director of the United Nations World Food Program in Rome and last but not least We're joined by Mats Granried. He's the Director General of GSMA Representing the mobile phone companies of this world Humanitarian payments without further ado Stephen. I'd like to invite you to share with us Your view on why this is an important issue and what we can gain from this technological solution, please. Well, thank you very much indeed and With my fellow panelists were delighted to be here to be with you in Putting forward the very important Principles on public private cooperation in humanitarian payments as a result of working with the World Economic Forum so We're very glad to have this chance to mark the launch of of the World Economic Forum's principles on public private cooperation in humanitarian payments Meeting growing humanitarian need around the world and reaching those worst affected by conflict and natural disasters with rapid Effective assistance to save lives and safeguard dignity is one of the greatest and most all consuming challenges we face So large that no one of us can do it alone And we have to harness all the partnerships and collaboration are possible So rising to this challenge means harnessing that collective expertise using all available Technologies and approaches and building on lessons learned from across different fields and industries Together we must be relentlessly innovative Building on what works and demanding the highest level of response for those most impacted by crisis For Humanitarians, this means reaching out to private sector actors to build strategic partnerships and learning from their great wealth of experience So I would like to thank the World Economic Forum for their leadership in drafting these principles on public private cooperation In humanitarian payments They will enable us to harness the best private sector expertise and the latest technological advances to better serve affected people They build on existing initiatives to put in place a strong framework for collective action on cash-based assistance the specialized agencies Notably the World Food Programme led by Arthur and cousin on my left and UNICEF and UNHCR In particular have led the way in our overall coordinated approach And over the past year through the World Humanitarian Summit and the Grand Bargain humanitarian actors Committed to deliver more humanitarian assistance in the form of cash Systematically considering cash-based assistance alongside more traditional response modalities and adapting our systems to enable the use of cash wherever appropriate The United Nations Secretary General's agenda for humanity recommends that and I quote Where markets and operational contexts permit cash-based programming should be the preferred and default method of support There is an overwhelming evidence for the effectiveness of cash-based assistance when used in the right contexts in Ethiopia cash-based assistance was found in one study to be up to 30 percent more efficient than traditional food aid in Lebanon an IRC study found that 80 percent of effective people preferred cash-based assistance and in Somalia two and a half times more aid reached beneficiaries through cash versus food As cash transfers become an increasingly significant component of humanitarian response We need to work with those who are experienced in delivering funds rapidly in challenging contexts in a way which empowers and protects the recipient Digital payments have the potential to deliver a wide range of benefits including speeding and scaling up implementation increasing transparency improving program cost effectiveness and reducing the potential for fraud and security incidents They can also link program participants to a range of financial services as well as to longer term national-led social safety net systems Humanitarian need has never been greater and as needs grow rapidly the resources we have to address them cannot keep up in 2017 the humanitarian system Seeks twenty two point two billion dollars to reach more than ninety three million people with life-saving assistance And last year we received just over half of the resources needed to meet these basic survival needs So it is clear that continuing with business as usual will not work and that innovation and alternative options are critically required Making progress on this front demands that humanitarian and private sector speak out a common language These principles seek a to create that common language by laying out a shared set of guidelines jointly elaborated by humanitarian and private sector actors to facilitate strategic dialogue partnership opportunities and joint ways of working and They also make clear that private sector actors are not just service providers rather They can offer technical expertise knowledge and experience to help us figure out where people in need are How best to reach them and how to address their most pressing needs coordination and dialogue between humanitarian actors and private sector payments Providers must be more systematic must begin earlier and result in real improvements for those affected by crisis and the humanitarian principles of humanity neutrality in Partiality and independence and the needs of all affected people wherever they are whoever they are However their need arose and whatever their survival and protection needs. They should all Guide or every single one of our joint endeavors So these principles on public private cooperation will help guide both humanitarian and private sector actors as we scale up principle Effective and innovative partnerships for humanitarian payments So I now call upon the humanitarian community and the private sector to put these principles into action When implementing digital payments programs so that together our efforts can have the greatest impact on those most in need And more important than that now we have to hear what it really sounds like from the ground and for people affected by crisis Thank You Stephen Ethering when we see Pictures in on television on in newspapers about the work that your organization does One sees food distribution, right? That's the traditional way. How's depict it? So How's this payment humanitarian payment the digital payment version? How's that relevant for your work? explain to us why Why you're involved? Well, thank you very much for that question because and you're absolutely right when Crisis strikes when conflict occurs and there is no and there is no food available WFP provides food and we will continue to do that because you can't eat a mobile transfer But when markets come online and food is available We provide the cash assistance that will allow those who have been affected by the crisis who do not have the financial resources To afford that available food We make that food accessible to them by providing mobile transfers But what's really exciting about this is it also becomes an opportunity for us to build what? becomes a database of information of those who are the most vulnerable in the country and I'll give you an example right now we're working with the Kenyan government to take the database that WFP has and Transfer that over to the Kenyan government so that they can use that as the basis for their social protection program and Alternately provide the financial benefits to through the government to that same population To support their food security needs for the longer term And so we need to ensure that as we are building these networks that support to mobile transfers of Money that that also Becomes the basis for supporting the country's Financial system as well because what we want to build is a country that is stronger For on a has a stronger financial footprint for reaching those who are most vulnerable Even after a crisis so imagine then the next time a crisis occurs in Kenya We can simply use the government's database to target immediately exactly whose needs allows us to serve faster more effectively more efficiently Thank You earth are in Matt's so from what earth are in is saying this sounds We're not just talking about a different way of payment But we're talking about the systems change in how we get help Humanitarian help to the people who need it most Talk to us a little bit about the role of connectivity and how that can help to make these payments faster and more secure Yeah, so GSMA then is an organization an umbrella organization for all Mobile operators globally and it's roughly 800 mobile operators on this planet and The reach that these 800 mobile operators have collectively is quite impressive almost five billion unique subscribers Subscribes to the services from these mobile operators So mobile operators certainly plays a an important role in daily life But also plays a huge important role in times of disasters We know from research that we have done that refugees which is not very difficult to understand refugees Prioritize connectivity sometimes before food because it is so important to understand where are my relatives What's happening in the planet? Where can I go? Where should I not go? So finding Wi-Fi spots finding connectivity finding charging stations is really critical And I think the mobile industry we take this very very serious especially at this day and age We launched last year something called the the humanitarian connectivity charter, which is a Charter that aligns the industry We have today hundred mobile operators in 75 different countries that have signed up to this charter and it's alignment It is a preparedness. It's sharing best practice. So when disaster strikes, we will be a little bit more prepared We will know in advance what we should be doing and of course mobile payment is is one part of that as well We have a mobile money initiative in many parts of the world and that is certainly one area What can we that we can contribute? If I may when when we talk about connectivity it as a baseline a basis a base tool that is required for us to transfer through mobile technology the other Requirement is the policy environment a regulatory environment enabling environment that allows those mobile operators To provide data to the humanitarian operators to ensure that we can use their access To meet the needs of those we serve so it is it is critical that we In in partnership with the mobile operators the humanitarian community is working together to not only develop the connectivity to the To the last mile to ensure we can serve those but that we're also working with the governments to provide the appropriate regulation Regulation so that the enabling environment is in place at the time the crisis occurs to allow us to Maximize the opportunity that these relationships create. Thank you So let me put you on the spot there at the end because we do have 40 50 heads of state and government here We have more than 300 ministers here and maybe Steven will chip in and help you there What is it that the governments need to do most urgently? Most urgently is exactly that we need to have governments that recognize the opportunity that This tool this connectivity and regulation regulatory environment together can provide for disaster preparation Every government is looking to mitigate the impact of disaster Regulate having the appropriate regulatory environment in place is one of those tools That's often forgotten when you think about what is necessary to allow a government to effectively support the needs of their people after a crisis And I just add that one of the most difficult things that governments Find to be able to persuade their own people to invest in with their taxpayers money is in preparation in prevention in advance of the facts of a crisis occurring and That's where this becomes so important because you heard from earthlands very real example how Tapping into the regulatory framework tapping into the technological expertise already proven by the industry Means that so much of the work that you need to have done in order to be most effective to create the biggest impact for people In need in a crisis is in place. It's simply too late to invent it when the crisis is Thank you Steven and Matt's you would be the first private sector representative in Davos who doesn't say Governments need to move faster and go further. So I see you want to add to that, please? Governments need to move faster But I was also going to say back to the earthlands comment on on the governments, but I When disaster strikes, it's too late. That's exactly what Steven said big data Will of course play a huge role going forward on collecting Whereabouts of people Ebola for instance if we would have had a better preparedness, we would have avoided a bit of that crisis So I would urge governments and regulatory bodies to make sure that we have policies in place So when disaster strikes that we can share data across border sometimes between mobile operators Sometimes we don't want to share data between different operators. That is our problem But sharing data between one country another country is very difficult It is very sensitive and I think that now is the time to come together and solve that issue before we have a next pandemic and one line when preparedness does cost money, but Preparedness is a down payment on a response and it provides a discount on recovery And so having governments Prioritized preparedness whether it's through regulation or providing the type of code and support for connectivity Will provide an opportunity for them to reduce the cost of actually responding when a disaster or crisis occurs Thank you So that actually built a good bridge because we asked our audience on social media before for questions And one question that that came in was about data protection And you breeze breeze on that and that's because they say okay These are the most vulnerable people and we're collecting their data and potentially you can locate them in these crisis areas So what can be done to limit the risks associated with that? Well, I think that the mobile operator community. We are heavily regulated and In literally all countries across the globe I I feel Very comfortable in knowing that my data is being sort of saved and stored with my carrier And I know that that is protected I would be less comfortable if I would use a so-called over-the-top player an internet player Where I do not know where that data will be ending up So I think from from a mobile operator perspective I feel very confident that we know where the data is and we are bound by regulation We're bound by having a continuous customer relationship. So we take these privacy Issues extraordinarily serious extraordinarily serious and when it comes to The whereabouts of individuals I think it is the important thing here is to make sure it's an anonymized So you cannot you just look at the big pictures not looking at what where is nuts and where is Stephen etc But it's the big picture that we need to look at it needs to be anonymized Mobile operators are heavily regulated. So I feel very comfortable in that side But we take it serious exactly what to say. These are people that are most vulnerable And we don't want to come across as naive or anything like that. But we know what's what what is at stake here? Thank you Can I just add that we know from experience that even some people who are moving across borders can sometimes be very Nervous about registering because they're worried about where that data will end up and as 80% of Humanitarian need across our planet today is being generated by man-made and protracted crisis of conflict Then you have even more potential for people being nervous about where they could be identified because of perceptions not necessarily reality perceptions of Being partisan to to some side of a conflict or another And so I think the fact that this is already so heavily invested in by the industry and that it is not something which the Public realm has been given the donated amounts in order to reinvent that all of its own We have this partnership where we can tap into what has already been a very strongly Regulated position and particularly where you get this anonymization So we get the benefit of all that data which earthen is so rightly Said is so powerful in projecting where you can get to meet people's needs But at the same time without the risk of privacy And we need to continue to have that debate and to assure people that that's the case to give them Confidence in the way that this is utilized So how many years do I have to wait before I can invite the three of you back to this panel? And do you answer the question and say yes digital humanitarian payments are the norm? Well, I can tell you that between 2010 and 2016 we have had a three-fold increase in the amount of cash-based transfers at WFP And we are the largest providers of cash-based transfers in the humanitarian system And so if you look at every 18 months you have exponential change in with technology I would expect that as within the next 18 months to two and a half to three years that you will see Significant changes in how we operate as humanitarians in the disposition of assistance I may say that it is WFP Which has been the the lead on this because as the from the coordinators perspective looking across the piece It's been that huge six year Exponential experience just helped to accumulate into where we are today And that's why we're we're here because you you don't get to this confidence of having a charter having An ability to have this public-private partnerships set out in a in a confident way Unless you're building upon the reality of the experience on the ground Which is what in particular WFP with its reach and its enormous scale has been able to help lead as we coordinate This of something as a tool for us all to be able to have access to right and what makes it great is that What we're seeing is then Stephen mentioned this in his opening comment is that across the UN We are looking at interoperability across our systems and in Conversation with the international NGOs as well It's how do we share that interoperability with them while protecting the data of those that we serve to ensure That as a community of actors all of the exponential changes that provide us with the With the ability to perform more effectively is shared and to the benefit of those who need our services Okay, thank you. Do we have any questions from the room? if not Yes, the gentleman in the back. There's a microphone if you could state your name and organization for the sake of our online audience Please my name is Ken Choi. I'm from my journalist from chosen daily newspaper Korea I presume that this payment you're talking about is giving Age to these these refugees or these people were displaced. Is that correct? This this payment that yes, that's that's one group of recipients of support. We also provide cash-based transfers and to through mobile technology in In drought situations in Madagascar, for example, where there's no access to food because of El Nino We're providing a cash-based transfer. So it is becoming more of a tool that we use where there are markets that are working That allow us to provide the provision of humanitarian assistance through cash allowing the beneficiary then to Prioritize what foods they want as opposed to us bringing in food And the question I try to ask is like there are a lot of North Korean refugees in China And I mean Chinese market is perfectly functioning. They have all these financial assistance You know systems and and phone systems and mobile operators and so on but Most of these hundred thousand North Korean refugees. They use someone else's phone You know, they don't have their own back and count. They don't have you know any registry They don't have anything at all. They're using all these things off the market So I'm just wondering how you would be able to reach these people to give the actual benefits of these digital payments and so on So I'm presumed this will be the case with in many other parts of the world as well Thank you Ken. So the question is how do you reach people who don't have? Well, I think again, earthworms should answer But they be absolutely clear. This is where appropriate. It's context specific and that's exactly And and earthworm makes the point very powerfully, which I'd like to emphasize You have to have functioning markets So where you do as you've pointed out then it would be up to earthworm and all her expert team to make an assessment Where the cash is an appropriate response to meet those needs That's an interesting question about the when they don't have Their own phones and what we find ourselves doing working with the mobile technology community is We have chips the phone That's what they're called, right? Well sim cards sim cards. Thank you I use a blackberry But you still have a sim card I still have a sim card and what we do is we distribute the sim card and the sim card has a unique identifier on it That we can record the beneficiary information on to relate it to that sim card number And then they can use that sim card in anyone's phone to access their benefits Without the phone number It's the actually the sim card that we load the data on to that we load the cash on to and you can Do the technical part but you're absolutely right that that you know the sim card has a unique number But it's also linked to the it's also linked to the phone number itself So I think the mobile carriers here we play the enabling role We have you know a vast amount of different solutions And I think what you are describing is a very intelligent way of handing out sim cards Because then we don't need to know necessarily what your name is we just need to know your phone number And that is another way of reaching you, right? But that phone the sim card is probably embedded at the phone number of the local mobile operator Well, it could be any mobile operator that that is sort of the beauty of it Again, we're just an enabler in in this case So this sim card if they have it in china or korea it works anywhere It works anywhere Yeah, if it is on the sort of prevailing technology standard Which is now becoming unanimous over the global Thank you very much. We have time for one last question and I'd Kindly ask my panelists for short answers as we are already a bit running over time, but please This is thomas eifert from we not site on yena austria This question is for the wfp because i'm wondering Governments and donors more reluctant to hand over cash to you that the ultimate list of you then let's say Wheat or sugar or flour anything that they might have easy more easy access that they were willing to part with more readily than with cash well while The majority of our donors today provide us with cash And they provide us with cash contributions as opposed to food contributions. We still have Countries that provide in kind contributions, but the majority of of The resources that we receive from donor countries is in cash And then the expectation is that we are going to make the right decision about what is the appropriate modality for the assistance that we provide and the governments have given us that authority But what they require from us is that we have the systems in place to protect whatever the intervention is The cash or the food that it is not used for inappropriately and that is received by the person who is actually the target In person in need of those benefits Quick one, please. Yes, of course So because I think what I've seen in lebanon is that you have all experienced A beneficial situation for the local economy, right? So can you elaborate on that maybe very much? So thank you very much for that opportunity the you're absolutely right And we have a card in in lebanon that We load benefits on not just for wfp Education benefits from unicef the world bank puts on cash support benefits onto one card And what it does is it allows the the refugee who receives that card to purchase what they need from the local market And they all live in host communities and the host communities that they live in are also poor communities and when we talk to store owners and Storekeepers and those areas they say that they are able to increase the number of people that they hire Both from for as refugees as well as local local hires That because of the significant financial impact that our contributions have On the local economy and that makes the The acceptance of the refugees ever more possible because they are not seen as a burden on the community But an opportunity for that community Thank you very much author and thank you to all my panelists here today. Thank you for watching and thank you for being here Uh, I think it's a very important topic and we'll report back In uh at next stables. Thank you very much. Thank you Thank you