42 . MOPAN 2017-18 ASSESSMENTS . UNITED NATIONS RELIEF AND WORKS AGENCY FOR PALESTINE REFUGEES IN THE NEAR EAST Chapter 3. Overall performance of UNRWA The performance conclusions first consider four key attributes of an effective organisation: (1) whether it understands future needs and demands; (2) whether it is organised and makes use of its assets and comparative advantages; (3) whether it has mandate-oriented systems, planning and operations; and (4) whether it makes consistent developments according to its resource level and operational context. The journey of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) then is mapped against MOPAN’s previous assessment of the organisation in 2011. Lastly, the assessment report presents the key findings: the observed strengths and areas for improvement. 3.1. CURRENT STANDING AGAINST THE REQUIREMENTS OF AN EFFECTIVE ORGANISATION Is UNRWA future facing? UNRWA is greatly affected by its operating context: primarily the absence of political solution regarding a Palestinian state, the Gaza blockade and the Syrian civil war. At the same time, it is affected by the fluctuations and scarcity of its resource pool coupled with increasing costs, refugee needs and protection concerns. In this highly volatile and challenging operating context, UNRWA has demonstrated its ability to continue to deliver its core services in fulfilment of its temporary mandate. UNRWA’s Medium Term Strategy (MTS) 2016-21 and its strategic priorities – to provide protection, health, education, support to livelihoods and basic relief – reflect UNRWA’s expertise and its key role as service provider and support to Palestine refugees throughout the Middle East. The MTS was developed on the basis of lessons learned and identified needs among Palestine refugees. The UN General Assembly recognises that these strategic priorities remain relevant so long as the Israel-Palestinian conflict remains unresolved, regional stability continues to be tenuous and Palestine refugees remain vulnerable. The MTS sets out ambitious goals for the organisation and is consciously aspirational, given the nexus between humanitarian and development objectives implicit within the strategy and given UNRWA’s resource context. Indeed, a number of the organisation’s core functions are insufficiently funded and in particular protection, which is one of five strategic objectives in the MTS; the programme budget covers only 5% of its costs. This is of concern in light of the deterioration of protection standards across field offices and the use of primarily project funds, a precarious source, to support this core function. Faced with a systemic funding crisis, a persistent budget deficit and no reserves, UNRWA has implemented an extensive array of efficiency and austerity measures. The organisation has also sought to diversify its resources by engaging with new donors, mobilising new types of funding and shifting the narrative about UNRWA. UNRWA recognises that it will continue to play a critical role for the foreseeable future and needs a focused and stable programme budget (through assessed or voluntary contributions from the international community). Thanks to its long-standing engagement, its entrenched field presence, and its strong role in education, health and social services, UNRWA has a unique and comprehensive understanding of the context in which it is operating, whom it aims to serve and what is needed to accomplish its mission. The MTS reflects this: it is future-facing in terms of management working within the parameters of UNRWA’s mandate; considers the needs of the organisation going forward to 2021; and highlights where investment is needed to achieve each strategic goal in terms of capacity strengthening, leveraging of partners, institutional reform, infrastructure development and, most significantly, resource requirements and mobilisation.