Value for Money
It is estimated that every $1 invested in resilience will result in nearly $3 in reduced humanitarian spending and avoided asset losses over a 15-year period, but more research is required to understand which interventions have the greatest value for money.
Humanitarian responses to recurrent crises are costly. There is an urgent need to find ways to reduce the necessity and costs associated with these crises including lost lives and livelihoods, the cost to national and regional economies, and the unsustainable costs of responding to repeat, large scale humanitarian emergencies.
A study commissioned by USAID assessed the cost savings that could result from an earlier and more proactive response to drought in Kenya, Ethiopia and Somalia. It is estimated that every $1 invested in resilience and early response over a 15-year period will result in nearly $3 in reduced humanitarian spending and avoided asset losses.
However, additional evidence is required to determine which resilience interventions or combinations of interventions deliver highest value for money and have the greatest impact at the individual, household, community, and systems level in different contexts. This evidence will inform investment decision-making by national governments and international donors.