TheUnited Nations Children`s Fund (UNICEF) is a program of the UnitedNations responsible for the provision of developmental andhumanitarian assistance to children in developing countries, as wellas mothers, the organization headquarter is in New York City. UNICEFhas a membership of the United Nations Development Group. The groupwas created in 1946 by the United Nations General Assembly to providehealthcare and emergency food to children in countries that had beenaffected by World War 2. UNICEF relies on contributions from privatedonors and governments. In 2008, UNICEF total income amounted to$3.373 billion, and different governments of countries all over theworld contribute two-thirds of the organization’s resources(Bradbury,&amp Jäntti, 2012).UNICEF was the recipient of Prince of Asturias Award of Concord andthe Nobel Peace Prize in 2006 and 1965 respectively. The organizationhas staff in over 190 countries all over the world and most of themwork in the field. The organization`s supply division has itsheadquarters in Copenhagen, which serves as the core point ofdistribution for such essential like antiretroviral medicines formothers and children with HIV, vaccines, nutritional supplements,family reunification, emergency shelters and educational supplies.Policies in UNICEF are established by an executive board which has 36members and approves financial plans, oversees legislative programsand programs. This report will focus on UNICEF`s usage ofcost-benefit analysis, evaluate the organization`s annual financialreport and finally assess UNICEF`s overall condition.

UNICEF’sUsage of Cost-Benefit Analysis

UNICEFaims at employing policies, which aim at the consideration of a broadrange of benefits and costs for which an equivalent of money can beestimated. For instance, one project was developed by UNICEF in a bidto establish a cost-benefit guidance and toolkit for aiding in theimprovement of the internal capacity for this kind of analysis. Thekit provided UNICEF staff with the necessary tools they needed toconduct a cost-benefit analysis of programs and policies, as well asthe techniques to analyze the quality of the cost-benefit studies inexistence.

Thetools and skills enabled UNICEF’S staff to advocate for children’s’investments. More specifically, the cost-benefit facilitatedinvestment because it gave enough evidence, as it supplemented thequantitative and qualitative knowledge which UNICEF had concerning anintervention. It considered how the children would benefit from theinvestment regarding educational and health outcomes. The tools andskills also provided a combined analysis of the Return to investment.The toolkit also provided guidance on steps such as theidentification of the alternatives and objectives, determination ofthe costs and benefits, calculation of the net present amount as wellas a recommendation (Mathis, 2013). For instance, in December 2014,UNICEF completed a full literature review concerning the evidence andcost-benefit analysis rations on charity issues, as well as those ofsocial protection, education, health, nutrition, hygiene andsanitation and so on.

Oneway in which UNICEF has used cost-benefit analysis is when they weredeveloping a legal guardianship service which was aimed at protectingand supporting separated and unaccompanied children who weremigrants. Most of the separated children mostly needed to be helpedin matters concerning poverty, food, and sought for protection fromviolence, war, and persecution as well (Bradbury &amp Jäntti,2012). Therefore, UNICEF used the cost benefit analysis and listedall the costs and benefits that would emanate from the guardianshipof the separated children.

Costsand Benefits

Itwas estimated that the yearly costs of operations for legal custodyand food (nutrition) for around 3000 children in England and Waleswould be approximately 19 million pounds, and the unit price was 6238pounds per child yearly. On the other hand, the benefit was that itwould result in some savings on expenditure and that it would deliverbenefits which were monetized and would total to 108 million pounds.The most significant advantages and savings were to be found incosts of accommodation that were approximately 20 million pounds,expenses about the children who were separated when they reached 18years old (51 million pounds) and the legal expenditure reductions bythe central and local government (28 million pounds). Consideringboth the savings and costs account, the service of guardianship couldgive savings to the public which would amount to approximately 22million pounds (Wright, 2016). With the estimations, the legalguardianship system could realize significant savings for threeyears. With the analysis, UNICEF was able to make the systempractical and workable.

Evaluationof UNICEF’s Annual Financial Report and Overall Financial Condition

Theorganization`s total revenue for 2015 amounted to $1.78 billion,which came from non-governmental organizations, intergovernmentalorganizations, and governments from contributions, which were mainlyvoluntary. It was an increase of 12.7% from the previous year and a33% increase from 2013 (Bradbury&amp Jäntti, 2012).In 2015 there was an increase in humanitarian needs, which were as aresult of simultaneous large-scale multiple emergencies whichrequired the humanitarian non-governmental organization to respond inareas such as Iraq, South Sudan, Yemen, Central African Republic,Nepal, and the Syrian Arab Republic (UNICEF, 2015). The response tothe emergencies that were suffered in 2015 was supported by fundingfrom two primary sources, which were earmarked contributions andbasic resources. Intergovernmental organizations and variousgovernments remained to be UNICEF`s largest sources of financing forhumanitarian response. The U.S., the European Commission, Japan,Germany, and the United Kingdom were some of the major partners thatcontributed to the year ended emerging priorities. The United Stateswas the highest contributor with $509 million which was a 40%increase from 2014 (Wright,2016).

Thematiccontribution experienced an increase I 2015 with$204 million incontribution as compared to contributions in 2014 which was at $139million. This increase in participation was because of globalthematic contribution, which was flexible from the Netherlands`government of $16 million which was a three-year commitment 0f 45million euros and the amount contributed was a first-year installment(Bradbury&amp Jäntti, 2012).Flexible, predictable and multi-year funding allows the humanitarianorganization to respond quickly and strategically to emergencies tothe needs of the children and to ensure the nexus is strengthenedbetween development and humanitarian. Global thematic funding in 2015represented a 10% contribution of UNICEF`s total revenue as comparedto 2014 where the thematic contribution was 1% of the total incomereceived by the organization (Wright,2016).

UNICEFORE total expenditure in 2015 amounted to $1.685 billion which was a35% of UNICEF`s total spending of $4.768 billion. As such, this was a40% increase from 2014 in ORE expenditure which was at $1.203billion. 26% of 2015 spending was the largest share which wasassigned to WASH, and then 20% was allocated to health, and 19% oneducation (UNICEF, 2015). North Africa and the Middle East regionscombined received 44% of ORE spending and Eastern, Western, Southernand Central Africa acquired 43% of the ORE (Wright,2016).In 2015 ORE expenditure reflected the massive response to the SyrianArab Republic and Iraq crisis and the largest scale response inDemocratic Republic of Congo and South Sudan.

In2016 the humanitarian organization aims at concentrating on bringingtogetherness in preparedness, peace building efforts, development,risk reduction, and according to the sustainable development agendaand its resulting framework. UNICEF is also fully committed tobuilding risk assessment capacities and analysis as a foundation forjoint development and humanitarian planning to strengthen and promoteresilient development and emergency preparedness in risk prone andfragile contexts.


Inan increasing manner, cost benefit analysis is being used byorganizations to make good decisions in policies and programs, inboth developing and developed countries. For several years, TheUnited Nations General Assembly has mandated UNICEF to advocate forthe protection of the rights of children and to aid them in meetingtheir basic needs so that their opportunities will be expanded tomeet their goals and objectives. One of UNICEF’s usage ofcost-benefit analysis is when its organization was developing a legalguardianship system which was aimed at the protection and support ofmigrant children who were separated. After conducting the costbenefit analysis, the organization decided that several benefitswould arise, thus it was a system, which was effective as itsadvantages supersede the fees associated with the whole system(Wright, 2016). Overall, UNICEF is financially stable because of thedonations which are acquired from the concerned parties. However, itshould get much funding because the funding they have or receive notenough to cater for all the projects it has.


Bradbury,B., &amp Jäntti, M. (2012). Child poverty across industrializednations. Unicef (Ed.). Florence: UNICEF.

Mathis,W. J. (2013). Costs and benefits. Phi Delta Kappan, 84(9), 679.

UNICEF,(2015). Annual results report: Humanitarian action. Retrieved fromhttp://www.unicef.org/publicpartnerships/files/2015ARR_Humanitarian_Action.pdf

Wright,F. D. (2016). Researchingdeveloping countries: A data resource guide for social scientist.