Finance
Principles
The Global Centre for Risk and Innovation (GCRI) is established on the principles of radical transparency, accountability, and the collective intelligence of global communities and industry support. These principles are fundamental in building the world's foremost civic infrastructure for risk management, security, and sustainability. The Earth Cooperation Treaty (ECT) serves as the guiding framework, or "north star," for all GCRI activities, ensuring equal participation from global civil society organizations (CSOs) and Member States.
Radical Transparency:
Definition: Radical transparency entails open and honest communication about all aspects of GCRI’s operations, decisions, and performance.
Implementation: GCRI employs comprehensive reporting mechanisms, open data policies, and inclusive decision-making processes to ensure stakeholders have complete access to information. This includes publishing detailed reports on project progress, financial status, and strategic plans.
Importance: Transparency builds trust among stakeholders, fosters accountability, and enhances collaboration. It ensures that all actions are visible and that stakeholders can hold the organization accountable.
Accountability:
Definition: Accountability involves taking responsibility for actions, decisions, and their outcomes, and being answerable to stakeholders.
Implementation: GCRI establishes robust monitoring and evaluation frameworks, regular audits, and feedback loops to ensure that all activities align with strategic goals and ethical standards.
Importance: Accountability ensures that GCRI remains focused on its mission and objectives, improves performance through continuous learning, and maintains integrity in all operations.
Collective Intelligence:
Definition: Collective intelligence refers to the enhanced capacity created when diverse groups of people work together, leveraging their collective knowledge, skills, and insights.
Implementation: GCRI engages a wide range of stakeholders, including academia, industry, government, civil society, and local communities, to participate in decision-making, project implementation, and knowledge sharing.
Importance: Harnessing collective intelligence leads to more innovative solutions, better decision-making, and increased resilience in addressing global risks.
Industry Support:
Definition: Industry support includes partnerships with leading companies and organizations that provide expertise, technology, and funding.
Implementation: GCRI collaborates with industry leaders to co-develop technologies, access cutting-edge research, and secure financial investments.
Importance: Industry support accelerates the development and deployment of innovative solutions, provides critical resources, and ensures that GCRI initiatives are sustainable and scalable.
The Earth Cooperation Treaty (ECT)
Definition:
The ECT is a multilateral framework that unifies global efforts in risk management, sustainability, and resilience. It is grounded in principles of planetary stewardship and collective action.
Importance:
Guiding Framework: The ECT provides the legal and ethical foundation for all GCRI activities, ensuring consistency, coherence, and alignment with global sustainability goals.
Planetary Integrity: It promotes the sustainability of Earth’s life-support systems by integrating fragmented international environmental laws and policies.
Comprehensive Governance: The ECT establishes robust governance structures, including the General Assembly, Executive Council, Regional Councils, and Specialized Committees, ensuring comprehensive oversight and effective implementation.
Impact:
The ECT’s principles guide GCRI in developing and implementing strategies that are sustainable, inclusive, and resilient. It ensures that all initiatives align with global agreements such as the Paris Agreement, Addis Ababa Action Agenda, and Sendai Framework for Disaster Risk Reduction.
Equal Participation
Significance:
Inclusive Governance: Equal participation ensures that the voices of all stakeholders, particularly marginalized and vulnerable communities, are heard and considered in decision-making.
Shared Ownership: It promotes a sense of shared ownership and responsibility among CSOs and Member States, enhancing commitment and collaboration.
Challenges and Sacrifices:
Founding Team's Commitment: Since 2018, the founding team has made significant sacrifices to establish and nurture GCRI as fiercely independent organization, including personal, professional, and financial investments.
Building Trust and Collaboration: Establishing trust and fostering collaboration among diverse stakeholders at global stage required extensive outreach, negotiation, and consensus-building.
Long-term Vision: The founding team’s unwavering commitment to equal participation, financial stewardship and the long-term vision of GCRI involved prioritizing collective goals over individual gains and continuously advocating for inclusive and transparent governance.
Budgets
The Global Centre for Risk and Innovation (GCRI) operates with a comprehensive budgeting system designed to ensure financial sustainability and effective allocation of resources. The budgeting system is structured into three primary levels: Operational Budget, Project-Specific Budget, and Capacity Building Budget.
1. Operational Budget
The Operational Budget covers the day-to-day expenses necessary for the functioning of Central Beurau (CB). It ensures that the organization runs smoothly and efficiently by providing for routine costs associated with maintaining operations.
Components:
Salaries and Benefits: Compensation for C-Suite executives and team members, including benefits such as health insurance, retirement plans, and other employee benefits.
Office Rent and Utilities: Costs associated with leasing office space and utilities such as electricity, water, and internet services.
Office Supplies: Regular procurement of office essentials like stationery, printing supplies, and other consumables.
Travel Expenses: Costs for domestic and international travel for meetings, conferences, and other organizational activities.
Communication: Expenses for telecommunication services, internet, and other communication tools.
Miscellaneous Administrative Costs: Other minor expenses necessary for the daily operations of the organization.
Funding Sources:
National Contributions: Member states provide financial support through budgetary allocations and resource commitments, which are proportional to their economic capacity and the benefits they receive from GCRI initiatives.
Collaborative Funding Mechanisms: Public-Private-Planet Partnerships (4Ps) bring together public funds, private sector investments, and contributions from philanthropic organizations to share the costs of maintaining the Central Bureau's operations.
Membership Fees: GCRI charges annual membership fees to its institutional members, including CSOs, universities, research institutions, and industry partners. These fees contribute to the operational expenses.
Operational Grants: Grants from international organizations, foundations, and governments specifically allocated for administrative and operational purposes.
Service Fees: Revenue generated from services provided by GCRI, such as consultancy, training, and advisory services, is used to fund operational costs.
Importance: The Operational Budget ensures that GCRI has the necessary resources to maintain its regular functions and support its staff. It covers all the basic expenses required to keep the organization operational, thus providing a stable foundation for GCRI's activities.
2. Project-Specific Budget
The Project-Specific Budget is allocated for particular projects undertaken by GCRI. This budget is essential for the planning, execution, and completion of specific initiatives aligned with GCRI's mission and strategic goals.
Components:
Project Planning and Development: Initial costs for planning and developing project proposals, including feasibility studies and resource assessments.
Implementation Costs: Direct costs associated with executing projects, such as procurement of materials, equipment, and services required for project activities.
Monitoring and Evaluation: Expenses for tracking project progress, measuring outcomes, and evaluating the impact of the project.
Reporting and Documentation: Costs for compiling and disseminating project reports, maintaining records, and ensuring compliance with reporting standards.
Stakeholder Engagement: Funds allocated for engaging stakeholders, including organizing meetings, workshops, and public consultations.
Funding Sources:
Project-Based Grants: Grants from international organizations, foundations, and governmental agencies specifically allocated for particular projects.
Strategic Partnerships: Financial contributions from strategic partners, including industry leaders and philanthropic organizations, to co-fund specific initiatives.
Crowdfunding and Donations: Funds raised through crowdfunding campaigns and donations from individuals and organizations who support GCRI’s mission.
Revenue from Publications and Reports: Income generated from selling project-related publications, research reports, and data access.
Sponsorship: Financial support from corporate sponsors interested in specific projects that align with their corporate social responsibility (CSR) objectives.
Importance: The Project-Specific Budget allows GCRI to allocate resources directly to projects that drive the organization's mission. It ensures that each project has the financial backing necessary to achieve its objectives and deliver tangible results.
3. Capacity Building Budget
The Capacity Building Budget is dedicated to enhancing the skills, knowledge, and capabilities of NWGs, NCCs, partners, and stakeholders. This budget supports training programs, professional development, and the establishment of infrastructure to support organizational growth.
Components:
Training Programs: Funds for workshops, seminars, and training sessions designed to enhance the skills and knowledge of staff and partners.
Professional Development: Expenses for advanced education, certifications, and other professional development opportunities for employees.
Infrastructure Development: Investment in state-of-the-art facilities and technological infrastructure to support capacity-building initiatives.
Community Engagement and Outreach: Resources for engaging local communities, building partnerships, and fostering collaboration with stakeholders.
Research and Development: Funding for R&D activities that contribute to the organization's knowledge base and innovation capacity.
Funding Sources:
Capacity Building Grants: Grants from international development agencies, foundations, and governmental bodies aimed at enhancing organizational capacity and human resources.
Institutional Partnerships: Contributions from partner institutions, including universities, research centers, and industry leaders, to co-fund capacity-building initiatives.
Training Program Fees: Revenue generated from fees charged for workshops, seminars, and training sessions offered to external participants.
Research Contracts: Funds received from contracts for conducting research and development projects for external organizations.
Endowments and Scholarships: Financial support from endowments and scholarships established by philanthropic organizations to support professional development and training programs.
Importance: The Capacity Building Budget is crucial for the long-term sustainability and growth of GCRI. By investing in the development of human resources and infrastructure, GCRI ensures that it remains at the forefront of global risk management and innovation. It helps build a skilled workforce and strong partnerships necessary for achieving GCRI's strategic objectives.
The three levels of the GCRI budget—Operational Budget, Project-Specific Budget, and Capacity Building Budget—work together to ensure the effective and sustainable operation of the organization. The Operational Budget maintains daily functions, the Project-Specific Budget drives strategic initiatives, and the Capacity Building Budget invests in the future growth and capabilities of GCRI and its stakeholders. This comprehensive budgeting approach ensures that GCRI can effectively fulfill its mission of global risk management, security, and sustainability.
National Working Groups
The Global Centre for Risk and Innovation (GCRI) employs a shared financing model for National Working Groups (NWGs) that integrates contributions from each helix of the Quintuple Helix framework. This model is designed to ensure sustainable national contributions through a shared funding formula, matched by GCRI with international funds and resource pools. The mechanisms used for this include coupling and twinning, all within the framework of multilateral cooperation, standardization, and acceleration. This report outlines the principles and structure of the shared financing model and its application.
Quintuple Helix Framework
Academia: Universities, research institutions, and educational entities.
Industry: Businesses, corporations, and private sector entities.
Government: National, regional, and local government bodies.
Civil Society: Non-governmental organizations (NGOs), community groups, and social enterprises.
Environment: Natural resource management bodies and environmental organizations.
Shared Financing Model
Multilateral Cooperation: Each helix in the Quintuple Helix contributes financially, fostering collaboration and shared responsibility across sectors and borders.
Standardization: Contributions and fund allocations follow standardized protocols to ensure consistency, transparency, and accountability.
Acceleration: GCRI matches national contributions with international funds, accelerating the implementation of initiatives and projects.
Structure:
National Contributions:
Academia: Contributions from universities and research institutions, which may include financial support, facilities, and research grants.
Industry: Funding from businesses and corporations, often tied to corporate social responsibility (CSR) initiatives or strategic partnerships.
Government: Budgetary allocations from national, regional, and local governments, including specific grants for innovation, research, and sustainability.
Civil Society: Contributions from NGOs, community groups, and social enterprises, including grants and donations from foundations and philanthropic organizations.
Environment: Support from environmental organizations and natural resource management bodies, including funds earmarked for sustainability projects.
International Matching Funds:
GCRI Matching: GCRI matches the national contributions with funds from international organizations, development agencies, and global philanthropic foundations.
Resource Pools: Aggregated resources from various international partners, including technology, expertise, and in-kind contributions.
Mechanisms:
Coupling: Integration of national and international funding streams to create a cohesive financial support system. Implementation: National contributions are coupled with international funds to ensure comprehensive financing for NWG initiatives. Benefit: Ensures a stable and diversified funding base, reducing dependence on a single source of funds.
Twinning: Establishing partnerships between NWGs and international counterparts for mutual support and capacity building. Implementation: NWGs are twinned with similar organizations or institutions internationally, facilitating knowledge exchange, joint projects, and shared resources. Benefit: Enhances national capacity through international collaboration, leveraging global expertise and best practices.
Grants: Non-repayable funds provided by governments, organizations, or foundations to support specific projects or initiatives. Implementation: Apply for grants through proposal submissions to international bodies such as the UN, World Bank, or regional development banks. Benefit: Provides dedicated funding for specific projects, reducing financial burden on national resources.
Public-Private Partnerships (PPP): Collaborative agreements between public sector entities and private companies to fund and operate projects. Implementation: Establish PPPs to leverage private sector investment, expertise, and efficiency in public projects. Benefit: Combines public oversight with private sector innovation and funding, expanding resource availability.
Multilateral Development Loans: Loans provided by multilateral development banks like the World Bank or IMF to support large-scale projects. Implementation: Secure loans by presenting detailed project proposals that align with development goals and financial sustainability criteria. Benefit: Access to significant funding for infrastructure and development projects with favorable terms compared to commercial loans.
Technical Assistance Programs: Programs that provide expertise, training, and support to build capacity in specific areas. Implementation: Partner with organizations like the UNDP or IMF to receive technical assistance tailored to national needs. Benefit: Enhances local capabilities and expertise, improving project implementation and sustainability.
Blended Finance: The strategic use of development finance and philanthropic funds to mobilize private capital flows to emerging markets. Implementation: Combine concessional finance from donors with private sector investment to fund projects that are both financially viable and socially beneficial. Benefit: Leverages additional private sector investment for projects that might not otherwise attract commercial funding.
Conditional Funding: Funding provided on the condition that specific criteria or milestones are met. Implementation: Agree to terms set by funding agencies that require achieving specific project goals or implementing policy changes. Benefit: Ensures projects stay on track and meet predefined objectives, often leading to additional funding or support.
Sustainable Development Bonds: Bonds issued to raise funds for projects that support sustainable development goals (SDGs). Implementation: Issue bonds on capital markets, backed by the promise to use proceeds for sustainable development initiatives. Benefit: Access to capital for large-scale projects while promoting sustainable development practices.
Emergency Response Funds: Funds allocated for immediate response to crises and emergencies, often managed by organizations like the UN OCHA. Implementation: Apply for emergency funds during crises to provide immediate relief and recovery support. Benefit: Provides rapid financial support to address urgent needs and mitigate the impact of disasters.
Development Impact Bonds (DIBs): Performance-based investment instruments where private investors provide upfront capital for development programs. Implementation: Secure investments from private investors who are repaid by donors or governments based on achieved outcomes. Benefit: Focuses on results and efficiency, attracting private investment to development initiatives.
International Crowdfunding: Raising small amounts of money from a large number of people via online platforms to fund specific projects. Implementation: Launch international crowdfunding campaigns targeting global donors and supporters. Benefit: Engages a broad base of supporters and raises funds from diverse sources, increasing project visibility and community involvement.
Joint Ventures: Strategic alliances where two or more parties agree to pool their resources for a specific project or initiative. Implementation: Form joint ventures with international organizations or companies to share risks, costs, and benefits of projects. Benefit: Combines resources and expertise from multiple entities, enhancing project capabilities and reach.
Microfinance: Financial services provided to low-income individuals or groups who typically lack access to traditional banking. Implementation: Partner with microfinance institutions to offer small loans and financial services to support local entrepreneurship and development. Benefit: Promotes financial inclusion and economic empowerment at the grassroots level.
Applications
1. National Capacity Building
Funding Structure: Shared financing ensures that NWGs have the necessary resources for training programs, infrastructure development, and professional development. Impact: Builds local expertise and capabilities, fostering self-sufficiency and resilience.
2. Humanitarian Assistance
Funding Structure: Contributions from civil society and government are coupled with international humanitarian aid funds. Impact: Provides immediate support during crises, ensuring rapid response and recovery.
3. Sustainable Development
Funding Structure: Environmental contributions are matched with international sustainability funds and grants. Impact: Supports long-term projects aimed at environmental conservation, renewable energy, and sustainable practices.
4. Educational Programs
Funding Structure: National academic institutions contribute alongside international education grants and partnerships. Impact: Enhances educational infrastructure and access, promoting lifelong learning and skill development.
5. Healthcare Improvement
Funding Structure: Government health budgets and civil society contributions are matched with international health grants and donor funds. Impact: Improves healthcare facilities, access to medical services, and health outcomes in local communities.
6. Economic Development
Funding Structure: National economic development funds are coupled with international development loans and private sector investments. Impact: Stimulates local economies, creates jobs, and supports small and medium-sized enterprises (SMEs).
7. Disaster Risk Reduction
Funding Structure: Government disaster management funds are matched with international disaster risk reduction grants and private donations. Impact: Enhances preparedness, response, and resilience to natural and man-made disasters.
8. Technological Innovation
Funding Structure: Contributions from national technology sectors and government innovation funds are coupled with international tech grants and venture capital. Impact: Fosters innovation, research, and development of new technologies, driving economic growth and sustainability.
9. Agricultural Development
Funding Structure: National agricultural budgets and contributions from local farming communities are matched with international agricultural grants and partnerships. Impact: Promotes sustainable agriculture, improves food security, and supports rural development.
10. Cultural Preservation
Funding Structure: National cultural funds and civil society contributions are coupled with international cultural grants and heritage preservation funds. Impact: Protects and promotes cultural heritage, fosters community identity, and supports tourism.
Commons
The Decentralized Innovation Commons Ecosystem (DICE) is an innovative and comprehensive funding mechanism designed to support the operations of National Working Groups (NWGs) and Nexus Competence Cells (NCCs) within the Global Centre for Risk and Innovation (GCRI). DICE aims to provide a transparent, accountable, and efficient system for resource allocation and impact assessment, leveraging advanced technologies and international standards to foster global collaboration and sustainable development.
Definition: DICE is a decentralized system for pooling and managing resources, grounded in the International Aid Transparency Initiative (IATI) standards. It operates within a zero-trust environment to ensure end-to-end transparency and equitable access to funding for NWGs and NCCs. This system allows for real-time tracking and reporting of financial flows, ensuring that all stakeholders are accountable and that resources are used effectively.
Function: The primary function of DICE is to facilitate the collection, management, and distribution of resources from multiple sources to support various projects and initiatives within GCRI. DICE ensures that resources are allocated efficiently and transparently, fostering innovation, collaboration, and sustainable development across different regions and sectors.
Role: Acting as a commons, DICE brings together contributions from academia, industry, government, civil society, and environmental organizations. These contributions are matched with international funds and resources, creating a robust and sustainable financial support system for NWGs and NCCs. By integrating various funding sources and ensuring transparent management, DICE promotes shared ownership and collective responsibility among stakeholders.
Components
Funding Pools:
Function: Aggregates financial contributions from national and international sources.
Features: Ensures a diverse and scalable resource base, providing stability and resilience to funding streams.
IATI Standards:
Function: Provides a framework for transparent and accountable reporting of financial flows.
Features: Standardized data formats, real-time reporting, and open-access information ensure that all financial transactions are visible and traceable.
Smart Contracts:
Function: Automates agreements and transactions, ensuring predefined conditions are met.
Features: Immutable records, automatic execution, and programmable conditions enhance security and efficiency in fund management.
Impact Assessment Tools:
Function: Measures and evaluates the effectiveness and impact of funded projects.
Features: Key performance indicators (KPIs), real-time monitoring, and comprehensive reporting enable continuous improvement and accountability.
Decentralized Governance:
Function: Facilitates inclusive and participatory decision-making processes.
Features: Stakeholder councils, digital voting platforms, and transparent policy-making ensure that all voices are heard and considered.
Resource Allocation Framework:
Function: Defines how resources are distributed based on needs and priorities.
Features: Criteria-based allocation, equitable distribution, and responsive adjustments ensure that resources are used effectively and fairly.
Operations and Workflow
Resource Mobilization:
Approach: Secures contributions from diverse sources, including national entities, international organizations, and private donors.
Activities: Fundraising campaigns, grant applications, and establishing public-private partnerships ensure a steady flow of resources.
Technological Integration:
Approach: Utilizes blockchain and other advanced technologies to support transparency and security.
Activities: Implements smart contracts, develop secure data management systems, and integrate IATI standards to enhance trust and efficiency.
Stakeholder Engagement:
Approach: Involves relevant stakeholders in the decision-making process.
Activities: Regular consultations, participatory governance meetings, and collaborative planning sessions foster inclusive decision-making and stakeholder buy-in.
Capacity Building:
Approach: Enhances the skills and capabilities of NWGs and NCCs through continuous training and development.
Activities: Workshops, seminars, online courses, and knowledge-sharing platforms ensure that stakeholders are well-equipped to meet their objectives.
Monitoring and Evaluation:
Approach: Continuously assesses the impact and effectiveness of funded projects using robust impact assessment tools.
Activities: Deploy KPIs, conduct regular evaluations, and publish transparent reports to maintain accountability and drive continuous improvement.
Impact
Enhanced Innovation Capacity:
Outcome: Increased ability to develop and implement innovative solutions.
Impact: Accelerates progress in addressing global challenges through the collaborative efforts of diverse stakeholders.
Inclusive and Equitable Development:
Outcome: Broad participation and benefit-sharing across diverse stakeholders.
Impact: Reduces inequalities and promotes social cohesion by ensuring that all voices are heard and all contributions are valued.
Sustainable Growth:
Outcome: Development that meets current needs without compromising future generations.
Impact: Ensures long-term environmental, social, and economic health by fostering sustainable practices and responsible resource management.
Resilience and Adaptability:
Outcome: Enhanced ability of systems and communities to withstand and adapt to changes and shocks.
Impact: Improves preparedness and response to crises, ensuring that communities are resilient and adaptable in the face of uncertainty.
Global Cooperation:
Outcome: Strengthened international partnerships and collaborations.
Impact: Unifies efforts to tackle global issues, leading to more effective solutions and a more interconnected world.
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