15 March 2009
Press Release
The UK government will give £200m for a global social protection fund which would provide immediate help to meet the daily needs of the poorest people in the poorest countries in the economic downturn, International Development Minister Douglas Alexander announced today.
The funding will go into the Rapid Social Response Fund (RSRF) to help protect the world’s poorest households from suffering further hardships as a result of the global financial crisis. The RSRF is specifically designed to focus on social protection, employment, and the protection of basic social services, particularly for children, pregnant women, elderly and disabled people living in extreme poverty. The multi-billion pound fund would be managed by the World Bank.
A ‘Global Poverty Alert’ system will provide instant updates on the impact of the economic crisis on the poor and direct the immediate financial support to communities in the developing world. The alert system would link international organisations, aid agencies and research groups into a single network and would include ‘real-time’ updates using text messaging and emails.
The announcement comes on the eve of a UK-hosted Pre-London Summit Africa Outreach Meeting, in which the Prime Minister and International Development Secretary will listen to African leaders’ concerns about the global economic crisis.
UK International Development Minister Douglas Alexander said:
"Drastic action must be taken to provide life-saving support for those hit hardest by the economic crisis. Our commitment will get the rapid response fund off the ground but other leading nations must follow suit if a global social protection fund for the poorest is to become reality. History suggests that the highest price of a downturn will be paid by the world’s poorest people and that is why we must act and act together."
The funding for the new RSRF is part of Douglas Alexander’s pledge to bring forward reforms on how international donors provide support to the worlds’ poorest. These reforms will be set out at next month’s G20 summit
The UK’s financial support will help the World Bank implement the RSRF as part of its existing Vulnerability Financing Facility. It will be designed to respond swiftly to immediate needs as well as providing longer term capacity building helping to build strong social protection systems, create jobs, and ensure people and countries are able to contribute to renewed growth.
