Microfinance Focus, September 29, 2011: The World Bank increased to $1.88 billion from more than $500 million its support to countries in the Horn of Africa to battle one of the worst droughts causing mounting malnutrition, food insecurity, and displacement of people.

On July 20, the United Nations (UN), for the first time, declared famine in two regions of southern Somalia. The severe drought affecting the entire region has caused a severe food crisis across Somalia, Ethiopia and Kenya and threatens the livelihoods of more than 13.3 million people. U.N. estimates show that the financial need for immediate, short-term drought relief assistance is $2.4 billion. While international appeals have resulted in $1.4 billion in pledges, there is still a gap of $1 billion.

The resources will be allocated over a three-phase response period: 1) rapid response ($288 million) in fiscal year 2012, 2) economic recovery ($384 million) through fiscal year 2014, and 3) drought resilience ($1.2 billion) in the long-term. The main thrust of the Bank’s response to the crisis is to link short-term crisis mitigation with long-term development objectives both at a country and regional level.

“Working with a vast array of partners and complementing their efforts, our most urgent priority is to save lives, restore incomes and bring back the productive capacity of families and businesses,” said Obiageli Ezekwesili, World Bank Vice President for Africa. “We are confident that this response package will help prevent an unraveling of the gains made so far, and position affected countries on a path to sustainable living.”

The World Bank has also approved a $30 million fast-disbursing funds through UNHCR to respond to the health, nutrition and sanitation needs of the Somali refugees in Kenya and Ethiopia.

This step from the World Bank comes in lieu of the World Bank’s announcement as the development community is gathering in the United Nations to step up support for affected countries. “The World Bank will support the common call for action led by the U.N. humanitarian agencies, with stalwart support by the U.K., Australia, the European Commission, the United States, and others. In addition, to addressing today’s disaster, our role is to help build resilience for tomorrow. A humanitarian crisis need not and should not become a perpetual crisis,” said World Bank Group President Robert B. Zoellick.

Natural disasters such as recurring droughts have plagued the Horn of Africa, with climate change making them more intense. With the instability of governance in countries, like Somalia, the social pressures are expected to lead to heightened risks for conflicts over access to water, land and other resources.