Crisis serves as a ruthless educator. It can unify us through our common vulnerability, yet paradoxically, it may also separate us from our mutual humanity. During profound crises, the systems and frameworks of society intended to safeguard and assist us can become distorted, corrupted, or rendered ineffective – sometimes, the very characteristics that define our humanity can contribute to our collective dehumanization.
In Syria, my engagement in political activism became the basis for denying me the most fundamental forms of identification. I was arrested and subjected to torture as a tool of political suppression. My scholarly ambitions were abruptly interrupted, and any trace of evidence of my existence was taken away. And I, along with countless others in similar situations, had to flee that reality; clandestinely crossing borders to find safety in another nation – where I had to rebuild my life from the ground up: submitting applications for new identity documents, seeking access to a bank account, securing a residence, and all the various documents one requires to be acknowledged as a human being in contemporary society.
The Crisis as a Catalyst for Groundbreaking Change
Throughout more than ten years in the international aid and development field, I’ve wrestled with some unsettling inquiries: Are our conventional systems genuinely prepared to tackle extensive humanitarian crises? Are the influential and affluent organizations committed to safeguarding the world’s most vulnerable individuals truly doing everything within their power? Can we improve? How?
Through my Fellowship at the Ethereum Foundation, I’ve performed research and witnessed firsthand that public blockchain protocols such as Ethereum are more than a captivating advancement – For individuals ensnared in humanitarian crises – from Syria to Myanmar, Lebanon, and beyond – where conflicts and emergencies undermine confidence in essential technologies and where authoritarian regimes and centralized power structures have eroded collective faith in institutions, emerging technologies can serve as a lifeline in times of unimaginable human suffering, and they signify a glimpse into a forthcoming model of crisis response unbound by borders and institutional inertia.
When Every Detour Costs Lives and Trust
Envision the colossal sum of wealth that is $31.3 billion US dollars. This is the total amount of international humanitarian aid allocated in 2021. Of this staggering total, a mere 1.2% is directed to local NGOs in the form of direct assistance. The remainder shifts through a network of subcontractors, global funds, and multilateral organizations that allocate substantial amounts to operational expenses. Millions of dollars intended to ensure food or medical provisions for those in need ultimately gets diverted to resources like pristine white Toyota Land Cruisers, business-class flights to Geneva, or expensive office spaces in the nearest stable urban center. Millions more are squandered through corruption, inefficiency, and mismanagement. This disparity reveals a harsh truth: resources designed to act as a lifeline for those suffering are often drained by the very structures established to assist them.
Graph 1: General framework of foreign aid
As someone who has devoted years to overseeing millions of donor funds into Syria, I perceive this development framework not merely as a flawed system – it represents a breach of trust and a massive waste of resources. It’s a framework that transforms every dollar into a trickle by the moment it reaches those in dire need.
The truths of international aid are widely recognized, particularly by the organizations operating directly with individuals in crisis. Regrettably, those organizations do not frequently perceive any alternative. My research for the Next Billion Fellowship aimed to uncover the perspectives and beliefs of CSOs and NGOs functioning in Syria and Iraq regarding blockchain technology – to explore whether this anticipated technology could pave new pathways of assistance. These are organizations that navigate extreme contexts; surrounded by death, neglect, and oppressive dictatorship. They operate within decentralized networks of grassroots volunteers, orchestrating their efforts amidst airstrikes, sanctions, and various existential threats. One would presume that humanitarian organizations would naturally adopt technologies promoting decentralization.
My investigation unveiled a more intricate scenario. Early in 2022, merely 61% of the 94 CSOs and NGOs I consulted viewed blockchain as a promising alternative to traditional aid support. Among those that expressed positive sentiments, only four organizations were actively integrating it into their operations and initiatives. Their skepticism was profound. I recall one illuminating discussion with the leader of a notable NGO who worried that creating a metamask wallet might expose them to potential de-platforming on their existing donation channels such as PayPal or GoFundMe. He feared that experimenting with cryptocurrency for donations would raise alarms with the larger institutions whose goodwill their NGO must maintain. I perceived his anxiety as more than just prudent caution; it epitomized a form of unintentional paralysis that obstructs meaningful, transformative alterations to the current situation. In a world where every second and every dollar matters, reluctance incurs a cost.
Crisis: The Ruthless Classroom:
The 7.8 magnitude earthquake on February 6, 2023, imparted a harsh lesson on the disparity between Syria and Türkiye disaster response. In Syria, over 4.5 million individuals, already traumatized by displacement and conflict, confronted a new calamity. As structures collapsed, claiming more than 8,476 lives, the demand for aid was urgent and immediate.
Turkish NGOs acted rapidly, utilizing existing blockchain-based donation channels to amass over 11 million USD within just 48 hours. Their inventive use of cryptocurrency, NFT sales, and platforms such as Endaoment and The Giving Block not only demonstrated their digital proficiency but also underscored the vast divide in resources and technology between the two nations. Turkish government initiatives and campaigns like “Turkey – United Heart” further illustrated their effective mobilization, collecting an astonishing 115.1 billion Turkish Lira (equivalent to $6.22 billion USD) in a single night.
In stark contrast, Syrian organizations, hindered by a fragmented compliance and legal infrastructure and limited access to international fundraising platforms, found it challenging. The MolhamTeam, a significant Syrian NGO, was able to raise only $1.12 million within a week. Although this discrepancy was not merely a technology issue, it was exacerbated by global sanctions that restricted access to resources and humanitarian assistance, intensifying the crisis for those in need. However, as emphasized in expert discussions, the main obstacle to efficient aid delivery in Syria was not just these sanctions but also the behavior of the Syrian regime. Actions such as diverting aid for illicit market profits and mismanagement of resources further complicated the roadblocks faced by humanitarian efforts, adding layers of difficulty to an already critical scenario.
Yet, in the wake of the earthquake, a noticeable change was emerging in opposition territories. Signs prominently exhibited by hawala establishments proclaimed their acceptance of cryptocurrency transfers, indicating a notable shift towards digital finances. NGOs in these regions began approaching digital currency with increased urgency and practical interest. Some started receiving individual contributions to their personal wallets while seeking more clarity and reassurances from international benefactors. Expatriate Syrian organizations like the Karam Foundation, functioning under more defined regulatory frameworks in other nations, managed to utilize platforms like “The Giving Block” for secure donations.
Graph 2: Advertisement by a Syrian local transfer office mentioning they accept and facilitate crypto transactions – Source: Syrian NGO in Aleppo, Northern Syria
I believe this situation represented the initiation of a shift from tentative exploration to cautious, proactive adoption of blockchains for disaster relief.
The director of Furatona for Development in eastern Syria shared with me an outlook of careful optimism, suggesting that the positive use of cryptocurrency donations in Ukraine to respond to humanitarian needs had diminished fears regarding its application in Syria. “We are informing donors that we are not just prepared to use it; we require it,” he expressed.
From Skepticism to Acceptance: A Turning Tide
In our pre-crisis analysis, only 51 out of 94 organizations had contemplated blockchains as a feasible alternative to established systems. After the crisis, 87 of those same NGOs responded affirmatively, and many had already begun integrating the technology into their operations. Stripped of the luxury of choice and time, those on the ground did not merely adapt; they transformed. Those who had once been skeptical were now adopting digital currency as their primary solution for remittances and donations.
The earthquake served as a genuine turning point for Syrian aid. Syrian opposition groups started to draw inspiration from the progressive approaches of Turkish institutions, benefiting from legal clarity in Turkey and diminished skepticism. Smaller organizations within Syria began to openly request crypto donations on their social media platforms.
This isn’t merely about a handful of early adopters. Even sizable, mainstream NGOs I interacted with underwent legal consultations to explore blockchain-based funding avenues. The labyrinth of compliance and regulations presents its own challenges, highlighting a distinct need for education and system enhancement, but the anxiety that had once immobilized them was now largely absent.
Re-humanizing Impact
If this account teaches us anything, it’s that the theoretical discussions surrounding new aid channels have concluded. We now exist in the domain of practicality, tangible results, and urgent necessity. Peer-to-peer assistance transcends mere fundraising; it is about reconstructing trust in a world afflicted by crises. We can bridge the gap between giver and receiver, cultivating a sense of closeness even across continents. In this new framework, aid transforms into a personal act rather than a faceless transaction, changing the giver-receiver relationship into one of solidarity.
When borders and bureaucratic systems become barriers that obscure our shared humanity, public protocols function as a crucial channel, facilitating not only the transfer of funds but also the heartbeat of human connection. It’s more than just a tool; it’s a lifeline in a fractured world. As global crises expose the weaknesses of our conventional systems – systems that crumble and fragment under pressure – blockchains may provide a more robust alternative, one that treats all participants equitably, regardless of their socio-political circumstances.
Karam Alhamad is a second-year MPP student at Jackson School for Global Affairs at Yale University, with 12 years of experience in international development, specializing in research and grants management with a focus on Middle Eastern dynamics. His current investigation delves into the potential of blockchain technology in humanitarian aid. His research report will be released later this year.