Humanitarian finance primarily focuses on emergency aid and saving lives.
Modern.az reports that this was stated by Anaklaudia Rossbach, Executive Director of the UN Human Settlements Programme (UN-Habitat), during her speech at the panel session titled “Housing at the heart of post-crisis recovery and reconstruction” within the 13th session of the World Urban Forum (WUF13) held in Baku.
“Development finance, on the other hand, is mainly carried out through international financial institutions, and the share of the housing sector in this system is very small.”
A. Rossbach noted that insufficient attention is paid to housing issues in international development aid:
“Countries that can solve the housing problem do so mainly through domestic financial resources. Countries that do not have these opportunities struggle to solve the housing crisis.”
According to the UN official, even if financial resources are limited, the mindset regarding reconstruction should be formed from day one.
“One of the main goals is to strengthen the social capital and resilience of communities.
When communities receive certain support, they can combine their resources and build a phased and sustainable development model themselves.”
A. Rossbach also added that the role of local governance bodies is of particular importance:
“Local governments are key structures in terms of providing services and maintaining long-term governance.”
She also emphasized that the housing sector is not only a social issue but also an economic industry:
“Housing is an industry with a long value chain. Investment in this area stimulates both large and small businesses, accelerates local economic development, and has a positive impact on GDP,” A. Rossbach noted.
