Humanitarian action put to the test by dwindling public funding

Faced with the sudden suspension of funding from USAID and the knock-on effect of other donors, French humanitarian NGOs find themselves in a state of disarray. What if this upheaval, rather than a simple accident, revealed the need for a far-reaching strategic change?

2025.02.27 The end of USAID, Washington, DC USA © Ted Eytan

The sudden suspension of strategic funding, particularly from long-standing donors such as USAID, has destabilised the heart of the humanitarian system. In the space of a few weeks, the main players in the humanitarian field – emergency relief and development aid – have seen vital programmes halted, missions scaled back, local teams weakened and community partners left without support.

This is not just a crisis of resources. It is the collapse of a balance that was thought to be stable. Humanitarian NGOs, which for years had been structured around relatively predictable institutional circuits, are suddenly faced with the brutal disappearance of whole sections of their funding.

For a long time, these donors – whether public or private institutions – ensured the continuity of a system based on a form of implicit delegation: entrusting NGOs with the task of repairing, filling in, making up. Year after year, they structured an economy of reparation, in which the NGOs became the operators of a permanent relief to disorders considered as lasting. The model seemed functional, balanced and even resilient. But it was based on a fragile principle: that of budgetary stability, which was thought to be guaranteed.

Now this paradigm is collapsing. The rise of a new international order, geopolitical polarisation, massive national indebtedness and the reorientation of public priorities are upsetting the balance. Against this backdrop, international solidarity – long held to be a universal moral duty – seems to be relegated to the status of an adjustment variable. And with it, the fate of millions of underprivileged people is in danger of being written off. Millions will die, big deal!

This is no mere cyclical accident. This is a historic shift. A cataclysm whose lasting effects are calling into question the very foundations on which modern humanitarian action was based.

In this moment of upheaval, one image stands out – that of a familiar place where people went every day to find sustenance, legitimacy and energy. A stable place. And then one day, that place is empty. You go back. You wait. You doubt. This place was a base, almost a given. Now it’s not.

Chaos as catharsis

Over the last four decades, the architecture of international humanitarian funding has enabled the construction of complex, interconnected programmes of great technical efficiency. But this same architecture is proving vulnerable. Too centralised. Too dependent on a small number of donors. Sometimes too remote from local dynamics.

The shockwave affects everything: partners in the field, beneficiary communities, but also the NGOs themselves in their most intimate aspects – their mission, their relationship with the world, their economic model.

Suddenly, a question runs through all the boards of directors: have we naively believed too much in the permanence of a system that lives only on predation, inequality and abysmal debts?

Time to be resilient, combative and inventive

There’s a little book that’s often quoted in the business world, sometimes mocked, but whose simplicity conceals a disturbing truth. Spencer Johnson’s Who Stole My Cheese features four characters in a maze. Every day, they find cheese in the same place. Until one day, the cheese is no longer there.

What sets the characters apart is not their intelligence, but their ability to understand that the world has changed – and to move with it. No longer clinging to an empty place, but exploring new avenues, getting out of the wait, unlearning certainties.

Today’s NGOs are exactly at that point. The source of their funding, their recognition and their role models has dried up. The temptation to wait, to complain, to be nostalgic is understandable. But it is dangerous.

© UNICEF Mauritania/Pouget/2021

Rediscovering the pioneering spirit

Humanitarian aid was not born of predictability. It was born out of disorder, out of urgency, out of a desire to act where structures were lacking. The strength of NGOs lies in their ability to read the cracks, to create in the midst of uncertainty, to build without a map.

This capacity still exists today. But we have to make the most of it:

By diversifying resources beyond traditional public funding sources: towards foundations, committed businesses, local authorities and citizens themselves.
By becoming more locally based, not by subcontracting, but by co-piloting with local players. This is what most of them are already doing.
By streamlining our systems, relying on cooperation, pooling and regional alliances.
By taking a strong stand in a world where humanitarian action is becoming a political issue: an independent, constructive, universal stand.

And afterwards? Because there is always an aftermath

The ‘cheese’ has disappeared. But perhaps, on closer inspection, this disappearance is more than just an inflection point? The real resource, the one that will keep us going over the long term, is perhaps to be found elsewhere: in agility, in the human link, in the ability to bounce back and get back on track.

NGOs don’t need a fixed model to be useful. They need movement, collective intelligence, and a direction: that of shared humanity.

 

Antoine Vaccaro 

Antoine Vaccaro. Holder of a PhD in Organizational Sciences – Management of Non-Market Economies from Paris-Dauphine.

After a career in major non-governmental organizations and communications groups (Fondation de France, Médecins du Monde, TBWA), he went on to chair Force For Good, Cerphi (Centre d’étude et de recherche sur la philanthropie) and a number of associations.

He holds a number of directorships in associations.

He is also co-founder of several professional bodies promoting private funding of public-interest causes: Association Française des fundraisers, Euconsult and La chaire de Philanthropie de l’Essec, and co-editor of the Charte de déontologie des organisations faisant appel à la générosité publique.

He has published several books and articles on philanthropy and fundraising.

 

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Securing water and agriculture in Armenia: the Vedi reservoir project

Construction of the Védi reservoir, February 2023.

Water is an essential resource for economic and social development, but in Armenia its sustainable management is a major challenge. This landlocked country, subject to arid summers, has to cope with a growing demand for water, particularly for its agriculture, which today employs an estimated quarter of the working population. Irrigated farming accounts for around 80% of total agricultural production.

In the fertile Ararat plain, the ageing irrigation systems, dating from the Soviet era, lead to major water losses and depend on energy-intensive pumping. Agence Française de Développement (AFD) is helping Armenia make the transition to more sustainable water management by supporting the construction of the Vedi reservoir, the largest water infrastructure built in the country since the Soviet era. This initiative is not limited to infrastructure: it is part of a wider strategy to modernise the entire agricultural sector through a programme to develop irrigated agriculture, financed by European Union funds under the name IADAAM (Irrigated Agriculture Development in Ararat and Armavir Marzes).

Ararat irrigated plain, spring 2022.

Water in Armenia: a multidimensional challenge

The water challenge in Armenia does not just concern agriculture. It is part of a wider context in which climate change, the legacy of Soviet infrastructure and geopolitical tensions are exacerbating the pressure on this vital resource.

Lake Sevan, the country’s main freshwater reserve, is being over-exploited, threatening its ecological balance and having long-term economic consequences. At the same time, obsolete infrastructures, based on energy-hungry pumping stations and ageing networks, are causing major water losses. According to the World Bank, irrigation efficiency[1] is only 25% (whereas a modern system can achieve 75-80%) and water productivity could be improved by more than 40% by rehabilitating and modernising existing infrastructure. This inefficiency places a considerable burden on public finances, with the state having to subsidise irrigation on a massive scale to support farmers.

The impact of global warming is exacerbating this pressure. Irregular rainfall, early snowmelt and rising temperatures are altering hydrological cycles, forcing farmers to adapt their practices quickly to ensure the sustainability of their farms.

Ensuring a stable and sustainable water supply is essential for food security and the resilience of rural communities. This helps to keep people rooted in their land, limiting rural desertification and curbing the rural exodus.

Vedi reservoir and irrigation system construction project

An integrated project: the Vedi reservoir and the agricultural support programme

With financing in the form of a 75 million euro loan from AFD, supplemented by a 15 million euro contribution from the Armenian government and a 10 million euro grant from the European Union to support irrigated agriculture, the Vedi reservoir is a concrete response to the water challenges. It will store up to 29 million cubic metres of water, thereby reducing dependence on direct withdrawals from Lake Sevan. The reservoir will ensure irrigation of the Ararat plain during the dry season, guaranteeing farmers’ harvests. A support programme for irrigated agriculture completes this project, accompanying the transition to more sustainable and efficient water management.

In the Ararat plain, where agriculture is still largely based on outdated irrigation systems, the work undertaken goes beyond the construction of the reservoir. New irrigation canals and pipes are being installed to limit water losses and guarantee more reliable access to farms. More modern techniques such as gravity-fed irrigation are being introduced to reduce dependence on electric pumps and cut costs for farmers. On the ground, teams are working with farmers to help them adopt more efficient farming practices: introducing new crops adapted to local conditions, advising on crop rotation and the rational use of water.

Visit to the VEDI reservoir with, from left to right: Sylvain Tesson (writer), Audrey Gourdien (AFD), Alain Boinet (Défis Humanitaires), Olivier Decottignies (French Ambassador to Armenia), Vincent Montagne (President of the Syndicat National de l’Edition France). Photo Antoine Agoudjian for Le Figaro Magazine.

The programme also supports farmers in their investments. Thanks to specific funding schemes, they can acquire more efficient equipment and install more water-efficient irrigation systems, such as drip irrigation. The initiative also facilitates land consolidation and the development of cooperatives, enabling small producers to pool their efforts and better adapt to market changes.

One of the key aspects of the programme is adaptation to climate change. Faced with droughts, heavy rainfall and increasingly unpredictable weather, farmers are given support to adjust their practices and ensure the long-term survival of their crops. By stabilising access to water resources and encouraging crop diversification, this programme is helping to strengthen the resilience of Armenia’s agricultural sector.

This comprehensive approach is gradually transforming local agriculture, offering farmers the means to improve their yields and stabilise their income, while preserving water resources in the long term.

Védi reservoir dam – December 2024

Conclusion: a comprehensive approach to sustainable agriculture

The Vedi reservoir, combined with the integrated approach of the support programme for irrigated agriculture, illustrates how modernising irrigation, preserving natural resources and improving living conditions for farmers can be compatible objectives. This dual approach guarantees secure access to water and promotes sustainable agriculture in the face of climatic and economic challenges.

[1] Irrigation efficiency reflects the effectiveness of the entire irrigation system in delivering water to crops, from the source to the root zone. It is the result of effective delivery and application in the field. Good irrigation efficiency at system level means minimum water wastage and better use of water.

 

By Fanny Delpey, Director of AFD’s South Caucasus office

A graduate of Sciences Po Toulouse (Economics and Finance Section) and holder of a DEA in International Economics from the University of Paris II – Panthéon-Assas, Fanny Delpey has been working in international development for over 15 years.

After starting her career in 2006 as a Civilian Technical Aid Volunteer in Saint-Pierre-et-Miquelon, she joined the headquarters of the French overseas departments’ issuing institutes as a junior economist in 2008. In 2011, she joined Proparco as a portfolio manager, before joining AFD in 2015 as a project team manager in structured finance. For eight years, she contributed to the financial structuring of non-sovereign projects in agribusiness, transport and energy, mainly in Africa and Asia.

In 2019, she became Deputy Director of AFD in Jerusalem, overseeing projects in energy, health, governance and civil society in the West Bank and Gaza. Since July 2023, she has been head of AFD’s South Caucasus agency.

 

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