Financial crisis hitting help to poor: Red Cross

‘Reckless banks being helped at the cost of the most vulnerable’.

Global humanitarian assistance to help over two billion vulnerable people across countries and continents is being held hostage to rescuing banks and auto-companies in rich countries.

“We regret the logic of saving banks and companies but not the vulnerable human beings, whose number is multiplying by the minute in Asia, Africa, and South America,” warned Encho Gospodinov, director of International Federation of Red Cross and Red Crescent Societies.

“Money that comes from governments for humanitarian activities should not be held hostage for saving banks over human beings,” he told reporters today, expressing sharp concern over shrinking outlays in various countries for urgent humanitarian assistance.

The IFRC is in the forefront of helping people confronted with natural disasters, global epidemics and wars.

The Red Cross and its representatives are present in full force within five days of any major disaster.

IFRC is now worried and unsure if it will be able to carry out all its activities next year as it mobilises an international appeal for about $250 million to help about 150 million people in countries that are most in need.

About 45 per cent of its annual budget is spent on prevention of major deathly diseases — HIV/AIDS, human influenza, tuberculosis, malaria and polio in countries in Africa and South Asia. Further, its spends about 34 per cent of the annual budget on disaster management activities, which include assisting people caught in major earthquakes, cyclones, hurricanes and tsunamis, and floods.

“While the world is facing a major financial crisis that may have serious repercussions on humanitarian aid budgets, the IFRC wants to remind countries that they cannot afford to be oblivious to the worsening problems of the most vulnerable people in various countries,” Encho Gospodinov said.

If nations spend one dollar on what is called “early warning, early action” or preventive steps, they can save four dollars from health and climatic disasters. “We would like to invest in promoting the culture of preventing disasters very discreetly because it results in enormous savings for all countries,” the IFRC official maintained.

At a time when rich countries are pouring trillions of dollars to save their banks which were involved in reckless and irresponsible activities, around $250 million appear like a drop in the ocean, analysts say.

The IFRC fears that foreign remittances by workers from poor countries — India, Bangladesh, the Philippines, Kosovo among others — will dry up next year because of the current financial tsunami in rich countries.

Consequently, there will be large-scale migration of people from poor to rich countries, it fears. Given the barriers imposed at the borders, people are bound to resort to illegal methods to find a foothold in rich countries, IFRC says.