The hulo humanitarian cooperative reacts to the sudden suspension of US humanitarian funding for foreign countries

In March 2024, we reported in Défis Humanitaires on the recognition received by hulo (HUmanitarian LOgistics) with the 2023 InnovAid humanitarian innovation prize awarded at the European Humanitarian Forum (EHF) on 18 and 19 March 2024, and the publication of its 2024 impact report. This is an opportunity to take stock of the issues addressed by this humanitarian cooperative, which was created in June 2021 in the wake of the RLH (Humanitarian Logistics Network) and now brings together 16 humanitarian organisations.

However, with US President Donald Trump’s decision on 20 January to freeze US funding for humanitarian and development aid abroad for at least 90 days (in particular through the USAID/BHA agencies), there has never been a greater need to accelerate economies of scale in the humanitarian system, whose very survival is at stake in this episode. It’s time to analyse the consequences and challenges of this crucial moment – when logistics are at the heart of the humanitarian engine threatened with running out of fuel – again with Jean-Baptiste Lamarche, Managing Director of hulo :

• DH: Hello Jean-Baptiste. First of all, as the head of a humanitarian organisation, what is your reaction, and that of hulo more broadly, to the decision taken by the US President on 20 January?

For hulo, with its 16 member organisations, including Bioport and Atlas Logistique in particular, as for all humanitarian actors, this decision is staggering. What we thought was an impossible scenario, the humanitarian sector’s worst nightmare, is happening before our very eyes. The consequences of such a decision are disastrous: funding collapses overnight, cash flow is unable to absorb a shock of this magnitude, projects are abruptly halted, leaving entire teams without work and, above all, vulnerable populations without the support they depend on. This is an extremely hard blow for the entire sector and for communities around the world.

• DH: What humanitarian impacts do you think we need to be prepared for, particularly in terms of global food security, epidemic risks, population movements and migration? Is there not also a risk of pressure being put on humanitarian actors who are still in a position to respond to needs, as well as on non-American donors, whose attitude and policies we do not know?

The direct impact on populations is likely to be immense and, more generally, we risk a global imbalance and multidimensional aberrations.

In terms of food security, the sudden reduction in funding could exacerbate precariousness in already fragile regions, accelerating nutritional crises and exposing millions of people to hunger.

In terms of health, the suspension of certain programmes could lead to a resurgence of epidemics, particularly in areas where medical infrastructures are heavily dependent on international aid. Diseases that can be prevented by vaccination or basic treatment could resurface, jeopardising years of progress in public health.

As for population migration and displacement, the domino effect is obvious: the deterioration in living conditions in certain areas will force thousands, if not millions, of people to seek refuge elsewhere, heightening tensions at borders and in host countries.

Finally, it is feared that the humanitarian actors who are still operational will be put under extreme pressure. With fewer people on the ground, demand will explode, making coordination and resource allocation even more complex.

The response of non-American donors will be decisive: will they compensate for this vacuum or, on the contrary, revise their commitments downwards for fear of a political chain reaction? This uncertainty adds further instability to a sector that is already under strain.

• DH: You are the head of a humanitarian organisation. The leaders of humanitarian organisations will have to, and are already having to, make difficult and painful decisions as a result of the US administration’s decision. What is your view and analysis of this aspect of managing the current crisis?

Faced with this crisis, we are being forced to take some extremely difficult decisions, which run counter to our commitments and our mission. The reduction or abrupt cessation of certain programmes is a painful reality, with direct consequences for the populations we support and the teams working in the field.

The main challenge is to prioritise and cushion the impact as much as possible. This means identifying the most critical programmes, trying to optimise certain funding, looking for new partners and strengthening coordination and pooling with other humanitarian actors.

Internally, we also have to manage the human impact within our own organisations. Our teams are in shock, faced with major uncertainty. The need to be transparent and to offer prospects, however limited, is essential to maintain the confidence and commitment of those who remain mobilised.

Finally, this crisis is forcing us to rethink our funding models and organisational structures, where there is still plenty of scope for optimisation in the sector.

• DH: Would you say that this decision by the US administration is an absolute ‘first’, or is there a parallel with certain previous situations, such as during the COVID 19 pandemic?

It’s not an absolute ‘first’ in terms of a crisis, but it’s a breakthrough on an unprecedented scale. Parallels can be drawn with previous crises, notably the COVID-19 pandemic, which had already revealed the fragility of humanitarian funding and dependence on certain donors. During that period, many programmes were suspended or redirected to health emergencies, leaving other crises underfunded.

What makes this situation different is that it is taking place at a time when humanitarian crises are already on the increase, and needs are exploding. Unlike the COVID period, when emergency funding was mobilised, we are now facing a net collapse in financial support with no immediate prospect of compensation. This is forcing the humanitarian sector to urgently rethink the way it operates and its sources of funding.

Pooling resources appears to be one of the most pragmatic and effective solutions to this crisis. In a context where funding is becoming brutally scarce, breaking down silos, avoiding unnecessary duplication and increasing solidarity between humanitarian actors is becoming a necessity in order to optimise the impact of remaining resources.

By pooling resources – whether in terms of logistics, infrastructure, purchasing, information systems or even specialised human resources – organisations can reduce their operational costs while maintaining a reasonable level of intervention. This allows every available euro to be allocated where it is really needed, rather than being diluted by parallel structures or administrative inefficiencies. Bioport and Atlas, members of hulo, are two pooling players who have been providing international and local logistics services for over 30 years, and are fully mobilised to bring their solutions to humanitarian organisations as part of the management of this crisis.

In addition, this approach strengthens the collective resilience of the sector. Rather than competing for dwindling funding, NGOs and humanitarian actors need to work even more closely together, pooling certain support functions and concentrating on their specific added value. The hulo cooperative has shown that humanitarian logistics and supply chains create more value and impact through cooperation than through individual management.

In this crisis context, this should even encourage the sector’s leaders to initiate a structural transformation towards greater collaboration between their structures in order to adapt to difficult contexts such as these.

• DH: What role can and should a cooperative like hulo play in this process? What directions for innovation and what levers for pooling do you want to push and develop ‘as a matter of urgency’? What practical tools can be used to ensure that, as you say, ‘pooling creates value’ even more, and to enable the continuation of activities that are vital to the millions of people around the world who depend on humanitarian aid?

Hulo and its members, particularly Bioport and Atlas, are positioning themselves as catalysts for solutions to this crisis, by accelerating and extending the pooling of resources and capacities among humanitarian organisations. The humanitarian economic equation, dependent on mainly public funding, requires rigorous management and maximum optimisation to ensure the best use of available resources. Pooling is therefore a solution that can be implemented immediately with tangible results. Hulo has developed cooperative processes and tools to structure and facilitate pooling between humanitarian actors, including pooled purchasing, digital solutions and initiatives shared between organisations. These tools are ready to be deployed on a large scale to maximise humanitarian impact while making the sector more efficient, more resilient and better prepared for future crises. Pooling is no longer an option, it’s a necessity.

• DH: In these extremely uncertain times, some humanitarian organisations may be tempted to turn in on themselves and look for solutions internally. Would you say that this is the risk that humanitarian organisations must avoid, and that openness is more essential than ever?

Withdrawal is both instinctive in a precarious situation and undoubtedly the greatest risk for humanitarian organisations in this period of crisis. Faced with the sudden halt in funding and the uncertainties hanging over the sector, the temptation to favour internal solutions may seem natural. However, this approach runs the risk of limiting the potential for solutions, and even exacerbating the difficulties by fragmenting resources even further and reducing the sector’s collective effectiveness. More than ever, openness and cooperation between players are essential to maintain aid to vulnerable populations. Pooling resources, sharing expertise and coordinating actions not only makes it possible to achieve economies of scale, but also guarantees greater responsiveness to urgent needs. Hulo defends this vision by proposing tools and processes that facilitate pooling, so that NGOs can overcome this crisis together, rather than suffering its consequences alone. It is by joining forces that the humanitarian sector will be able to rise to the challenges of today.

• DH: Can you think of a concrete example, in a specific field, of a strengthened pooling response, in collaboration with one or more of your partners, that was able to provide at least a partial response to the funding shortfall caused by the US decision?

It is still too early to cite a concrete example of pooling set up in direct response to the suspension of US funding, as the decision was only taken a month ago. At this stage, NGOs are still in an evaluation phase: they are trying to understand precisely which funding will be maintained, which will be definitively lost and what will happen after the 90-day deadline announced by the US administration. Not all organisations have been affected in the same way, with some taking the full brunt while others are, for the time being, less directly affected. What they all have in common, however, is the need to adapt and adjust their plans to ensure the continuity of aid. In this context of uncertainty, the pooling of resources and cooperation between players appear to be strategic levers for limiting the impact of this crisis and making humanitarian operations as secure as possible. Hulo is working to identify these evolving needs with organisations on the ground to see how pooling can meet their requirements.

• DH: Thank you very much Jean-Baptiste. To conclude, do you have a message to pass on to your partners, NGOs and others, and to the readers of Défis Humanitaires?

At this time of extreme uncertainty, our message is simple: now more than ever is the time for cooperation and pooling. Faced with the brutality of the new American administration’s decision and its repercussions, it is essential that the humanitarian sector does not fragment but, on the contrary, strengthens its synergies. Each organisation is now seeking to adapt its plans, but it is together that we will be able to find viable and sustainable solutions to continue to support the populations that depend on humanitarian aid.

We call on our partners, NGOs and other players in the sector, to commit to this collective dynamic. Pooling is not just an emergency response, it is a strategic lever that can transform our modes of action in the long term and make our sector more resilient. Hulo and its members, including Bioport and Atlas in particular, are ready to support this movement, by providing practical tools and facilitating essential cooperation. In the face of this crisis, it is through collective intelligence and solidarity that we will preserve our ability to act.

Pierre Brunet

Writer and humanitarian

Pierre Brunet is a novelist and a member of the Board of Directors of the NGO SOLIDARITES INTERNATIONAL. He became involved in humanitarian work in Rwanda in 1994, then in Bosnia in 1995, and has since returned to the field (Afghanistan in 2003, the Calais Jungle in 2016, migrant camps in Greece and Macedonia in 2016, Iraq and north-eastern Syria in 2019, Ukraine in 2023). Pierre Brunet’s novels are published by Calmann-Lévy: ‘Barnum’ in 2006, ‘JAB’ in 2008, ‘Fenicia’ in 2014 and ‘Le triangle d’incertitude’ in 2017. A former journalist, Pierre Brunet regularly publishes analytical articles, opinion pieces and columns.

Jean-Baptiste Lamarche

Jean-Baptiste Lamarche is CEO and co-founder of Hulo, the first humanitarian cooperative to connect players and innovate in the pooling and optimisation of supply chain resources. He holds an International Executive MBA from HEC Paris and has devoted most of his career to humanitarian logistics. Before founding hulo, Jean-Baptiste held management positions with a number of international NGOs, including Logistics and Information Systems Director for Action Contre la Faim. A committed leader and collaborator, Jean-Baptiste is passionate about innovation as a means of increasing the impact of humanitarian aid.

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